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Welcome to Sassetti LLC !

 
Sassetti LLC is a full-service Certified Public Accounting Firm with a ninety year tradition of quality professional services.  Our clients include businesses, both privately-held and publicly traded, not-for-profit organizations, employee benefit plans and individuals.
 
Sassetti LLC was originally founded in 1921, and has been located in Oak Park, Illinois since 1964.
 
We are members of the American Institute of Certified Public Accountants, the Illinois CPA Society, the Center for Public Company Audit Firms and the AICPA Employee Benefit Quality Center.



2014 Year Under Review

January 2015
Final FASB Guidance 
 

Sassetti NFP Newsletter

1st Quarter 2015

Sassetti EBP Newsletter

1st Quarter 2015


 
 
 
 

 

 

News & Alerts


Tax News

Wed, 29 Jul 2015 04:00:00 GMT

Section 2704 Proposed Regulation Coming Possibly in Fall of 2015

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Summary

Catherine Hughes, Office of Tax Policy of the US Treasury Department, recently spoke at the American Bar Association Conference.  Part of her discussion indicated that proposed regulations under IRC section 2704 will likely be introduced in the fall of 2015.  Those regulations may limit the availability of lack of control and lack of marketability discounts for transfers of closely held interests among family members.  Accordingly, clients contemplating the transfer of closely held business interests should consider making those gifts as soon as possible, prior to the issuance of the proposed regulations.

Details 

IRC Section 2704 & Applicable Restrictions
IRC Section 2704 was enacted in 1990 to eliminate perceived valuation abuses concerning certain lapsing voting and liquidation rights as well as certain restrictions on liquidation.  Specifically, the statute addresses transfers of interests in controlled corporations or partnerships among family members.  In valuing those transfers “applicable restrictions” are to be disregarded.  An “applicable restriction” is any restriction that effectively limits the ability of a corporation or partnership to liquidate and, (i) where either the restriction lapses, in whole or in part, after the transfer, or (ii) the transferor or family members can remove the restriction, in whole or in part. 

An applicable restriction, however, does not include any restriction imposed by federal or state law, nor any reasonable restriction which arises as part of financing to the corporation/partnership with a person who is not related to the transferor or transferee, or a member of the family of either.  Many states enacted statutes that caused a restriction to be imposed by state law such that discounts for those restrictions were still permitted.
Section 2704(b)(4) provides that the IRS can issue regulations that would disregard other restrictions if the restriction has the effect of reducing the value of the transferred interest, but does not ultimately reduce the value of such interest to the transferee. Under this provision, the IRS intends to issue proposed regulations.
 
When Will the Regulation Take Effect?
It is not known if this Regulation will be effective as of the date of the Proposed Regulation, or as of the date of issuance of the Final Regulation.  If gifts, as described above, are contemplated, the safest approach is to make them prior to issuance of the Proposed Regulation in late summer or early fall of 2015.

 

Tue, 28 Jul 2015 04:00:00 GMT

The July edition of BDO China's China Tax Newsletter features recent tax-related news and developments in China, such as adjustment to VAT declaration, adjustments to cigarette consumption tax and more. Articles include:

  • Promulgation of Administrative Measures on Tax Refund for Overseas Visitors Purchasing Goods and Departing from China (Trial Implementation)
  • Deferred Declaration Allowed for Overdue Export VAT Refund (Exemption)
  • Reinforced Follow- up Administration of Cost Apportionment Agreement
  • Clarification on Several Issues Relating to Administration of Levying and Collection of Enterprise Income Tax on Restructuring of Enterprises
  • Simplification of Application Procedure of Business Tax Exemption on Individual Donating Immovable Property and Land Use Right
  • Adjustment of Value-Added Tax Incentives of Integrated Utilization of Resources Products and Labor Services
 

Assurance News


Wed, 29 Jul 2015 04:00:00 GMT

FASB Issues ASU to Simplify the Measurement of Inventory 

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Summary

The FASB recently issued ASU 2015-111 as part of its simplification initiative. The amendments require inventory within the scope of the ASU to be measured using the lower of cost and net realizable value.  The changes apply to all types of inventory, except those measured using LIFO or the retail inventory method. The new standard takes effect in 2017 for calendar year-end entities and is available here.
 

Detail

Main Provisions:
Under the new guidance, the subsequent measurement of inventory depends on the cost method used:
 
  • Inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method (within the scope of the ASU)
  • Inventory measured using LIFO or the retail inventory method (excluded from the scope of the ASU)
 
The ASU amends some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, those amendments are not intended to result in any changes to current practice.
 
Inventory within the scope of the ASU (e.g. FIFO or average cost) should be measured at the lower of cost and net realizable value.  Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
 
Prior to the ASU, U.S. GAAP required an entity to measure inventory at the lower of cost or market.  Market is measured using replacement cost unless it is above net realizable value (commonly referred to as “ceiling”) or below net realizable value less an approximately normal profit margin (commonly referred to as “floor”).  For inventory within its scope, the ASU eliminates the notions of replacement cost and NRV less a normal profit margin, which is intended to simplify the accounting for inventory.
 
Inventory excluded from the scope of the ASU (i.e., LIFO or the retail inventory method) will continue to be measured at the lower of cost or market.  That is, there is no change to current practice in these circumstances.
 
Effective Date and Transition:
The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period.
 
The amendments in this Update should be applied prospectively.  If an entity has previously written down inventory (within the scope of the ASU) below its cost, that reduced amount is considered the cost upon adoption.
 
Upon adoption, the change from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of the ASU will be accounted for as a change in accounting principle.  Only the nature and reason for the change in accounting principle is required to be disclosed in the first interim and annual period of adoption.

For questions related to matters discussed above, please contact Adam Brown, Gautam Goswami or Chris Smith.

1 Inventory (Topic 330): Simplifying the Measurement of Inventory
 

Mon, 13 Jul 2015 04:00:00 GMT

Issued on a quarterly basis, the Significant Accounting and Reporting Matters Guide provides a brief digest of final and proposed financial accounting standards. This guide is designed to help audit committees, boards and financial executives keep up to date on the latest corporate governance and financial reporting developments.

Highlights include:
 

  • FASB Issues Narrow-Scope Amendments and Proposals to Simplify GAAP
  • FASB and IASB Propose Amendments to Revenue Standard
  • SEC Proposes Pay vs. Performance Rules
  • PCAOB Seeks Feedback on Various Matters
  • IASB Proposes Changes to Conceptual Framework
 

General Business News