One of the many determinations companies need to make as they implement ASC 842, the new lease accounting standard, is calculating the appropriate discount rate for their leases. For lessees, selecting and estimating the discount rate will have an impact on the lease liability and right of use asset (ROU) on the organization’s balance sheet. Read more…
In the first half of 2021, there was a surge in restating financial statements. The reason relates to guidance issued by the Securities and Exchange Commission, requiring special purpose acquisition companies (SPACs) to report warrants as liabilities. SPACs are shell corporations listed on a stock exchange to acquire a private company, making it public without Read more…
Sensiba recognized for its commitment to social, environmental, and corporate governance. Pleasanton, CA, August 19th – Sensiba, a leading Northern California-based accounting and business consulting firm, is honored to be recognized by CREW Silicon Valley with a Community Impact Award. “Being recognized for our push toward equitable social and environmental policies is an honor,” said John Sensiba, Read more…
As public companies grow, they may move from one filing status or issuer category to another. Recent and proposed changes to the Securities and Exchange Commission (SEC) rules for some categories could affect your company’s financial reporting and audit procedures. Categories of public companies Under existing rules, public companies fall into different SEC filing status Read more…
Auditors typically deliver financial statements to calendar-year businesses in the spring. A useful tool that accompanies the annual report is the management letter. It may provide suggestions — based on industry best practices — on how to fortify internal control systems, streamline operations and reduce expenses. Managers generally appreciate the suggestions found in management letters. Read more…
Since the passage of the Tax Cuts and Jobs Act (TCJA) in 2017, individuals who itemize their federal tax deductions have been limited to a $10,000 deduction for state and local income taxes (“state taxes”). This has impacted taxpayers in high-tax states such as California, New Jersey, and New York. A pass-through entity (“PTE”) tax Read more…
Get Prepared for ASC 842 Lease Accounting Standard Private companies and nonprofits will soon be subject to the ASC 842 lease accounting standard. Adopting this standard is effective for annual reporting periods ending after December 15, 2021. For calendar year-end companies, the effective date is January 1, 2022. For companies with a fiscal year-end, the Read more…
Analytical software tools will never fully replace auditors, but they can help auditors do their work more efficiently and effectively. Here’s an overview of how data analytics — such as outlier detection, regression analysis and semantic modeling — can enhance the audit process. Auditors bring experience and professional skepticism When it’s appropriate, instead of manually Read more…
Many types of businesses — such as homebuilders and manufacturers — turn raw materials into finished products for customers. Production is a continuous process. So, any work that’s been started but isn’t yet completed before the end of the accounting period is reported as work in progress (WIP) under U.S. Generally Accepted Accounting Principles (GAAP). Read more…
Businesses rely on internal controls to help ensure the accuracy and integrity of their financial statements, as well as prevent fraud, waste, and abuse. Given their importance, internal controls are a key area of focus for internal and external auditors. Many auditors use detailed internal control questionnaires to help evaluate the internal control environment — Read more…
PLEASANTON, Calif. (May 5, 2021) – Sensiba, a leading San Francisco Bay Area accounting and business consulting firm, announces the appointment of Practice Leader, Tom Crotty to expand the firm’s Family Office Practice. “Family Office is one of the fastest growing segments in the world, yet over 70% of families dissipate their wealth by the Read more…
Pleasanton, CA, May 1 – Sensiba is pleased to announce the promotion of Jacqueline Fader and Jessica Mendiola to Equity Partners effective May 1, 2021. Fader began her career at Sensiba in 2010 as an Associate, spent a year at EY, and then rejoined Sensiba in 2014. She works extensively with Venture Capital firms along with venture-backed Read more…
Audit committees face many challenges. As the economy rebounds from the COVID-19 pandemic, there are new dimensions to the oversight roles and responsibilities of the audit committees. Consider taking these following four steps to fortify your committee’s effectiveness. 1. Focus on fundamentals Once you’ve wrapped up the financial reporting process for this fiscal year, take Read more…
Sensiba Partner appointed to the Morison KSi North America Board of Directors Pleasanton, CA – March 25, 2021 – Sensiba, a leading Northern California-based accounting and business consulting firm, is pleased to announce that Sensiba Tax Partner, Evan Stephens, has been appointed to the Board of Directors for Morison KSi North America. Morison KSi is Read more…
The U.S. Supreme Court decision in South Dakota v. Wayfair created enormous changes for businesses making remote sales into the states related to sales tax. However, it may have had a grander impact than you realized. Could Wayfair have also impacted how you manage your state income tax obligations? Sales Tax Perspective To be required Read more…
When the shelter-in-place order was instituted a year ago, Sensiba was well-positioned to quickly pivot to working remotely. The past year has proven we can make that work successfully on a much larger scale without sacrificing our commitment to serving you. With our lease coming up for renewal in San Francisco this year, we have Read more…
Dear Friends, This past year has tested every facet of our lives — our health, ingenuity, resilience, routines, and, quite frankly, our patience. It’s challenged businesses in a way like never before, and we, like many of you, were forced to adapt to this drastically different world. While it’s easy to fixate on 2020’s many Read more…