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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 

Not-for-Proft Newsletter

1st Quarter 2015



News & Alerts

Tax News

Mon, 23 Nov 2015 05:00:00 GMT

FDI Update

In order to boost the foreign investment environment in India, the Government of India has brought in through a Press Note, FDI related reforms and liberalisation touching upon 15 major sectors of the economy.

The main intention of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route and save the time and energy of the investors. Further, the Department of Industrial Policy & Promotion (DIPP) has also been advised to consolidate all FDI related instructions contained in various notifications & press notes and prepare a booklet for ease of reference.

Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalilities for foreign investment. Further new sectors have also been opened to foreign investments.

Mon, 23 Nov 2015 05:00:00 GMT

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On November 19, 2015, the Internal Revenue Service issued Revenue Procedure 2015-56, which provides certain retailers and restaurants a safe harbor method of accounting for remodel or refresh expenditures on qualified buildings. The safe harbor helps eliminate confusion around which costs may be deducted immediately and which must be capitalized and depreciated over time. The Revenue Procedure also provides instruction for obtaining automatic consent to convert to the safe harbor method of accounting.
Under the safe harbor, retailers and restaurants with applicable financial statements are able to take 75 percent of qualifying expenditures as an immediate deduction. The remaining 25 percent is capitalized and depreciated over time.
This revenue procedure is effective immediately for tax years beginning on or after January 1, 2014.


Definition of a Remodel-Refresh Project
A remodel-refresh project is defined as a planned undertaking on a qualified building to alter its physical appearance and/or layout for one or more of the following purposes:
  • To maintain a contemporary and attractive appearance
  • To more efficiently locate retail or restaurant functions and products
  • To conform to current retail or restaurant building standards and practices
  • To standardize the consumer experience if a taxpayer operates more than one qualified building
  • To offer the most relevant and popular goods in the industry
  • To address changes in demographics by altering product or service offerings and their presentations
A qualified building is one that is used primarily for selling merchandise at retail or for preparing and selling food or beverages to customers for sit-down or to-go consumption. Leased buildings will generally qualify.
Qualifications and Exclusions
To qualify for the safe harbor, a taxpayer must have an Applicable Financial Statement and conduct activities within NAICS codes 44, 45 or 722 with some specific exceptions such as gas stations, automotive dealers and caterers.
In general, a taxpayer may not take partial disposition losses and must also make a general asset account election for the applicable buildings.
Remodel-refresh costs are amounts paid for remodel, refresh, repair, maintenance or similar activities performed on a qualified building as part of a remodel-refresh project. Examples include:
  • Painting, polishing or finishing interior walls
  • Adding, replacing, repairing, maintaining or relocating permanent floor, ceiling or wall coverings or kitchen fixtures
  • Adding, replacing or modifying signage or fixtures
  • Relocating or changing the square footage of departments, eating areas, checkout areas, kitchen areas, beverage areas, management space or storage space within the existing footprint of a qualified building
  • Moving, constructing or altering walls within the existing footprint of a building
  • Adding, relocating, removing, replacing or re-lamping lighting fixtures
  • Making non-structural changes to exterior facades
  • Repairing, maintaining or replacing the roof or a portion of the roof within the existing footprint of a qualified building
Examples of excluded remodel-refresh costs include Section 1245 property, intangibles, land improvements and the initial build-out costs of a qualified building.

The safe harbor method minimizes the need to perform a detailed factual analysis to determine whether each remodel-refresh cost is a repair or maintenance deduction or should be capitalized. The safe harbor allows 75 percent of qualified expenditures to be deducted and 25 percent to be capitalized.
Automatic Change in Accounting Method
The Revenue Procedure adds two new automatic change numbers:
  1. Change number 221 – “Revocation of partial disposition election under the remodel-refresh safe harbor described in Rev. Proc. 2015-16”
  2. Change number 222 – “Remodel-refresh safe harbor method”

BDO Insights

  • The Revenue Procedure is a welcome safe harbor to address unique remodel issues and challenges in the retail and restaurant industries.
  • The safe harbor method reduces the need for taxpayers to spend significant resources to determine whether remodel costs should be deducted or capitalized.
  • The Revenue Procedure provides a helpful appendix for documentation standards and computation of qualified costs. See pages 49-51 of Revenue Procedure 2015-56.
  • The eligibility for smaller retailers and restaurants will be limited by the Applicable Financial Statement requirement.

If you have questions related to matters discussed above, please contact Phil Hofmann or Randy Frischer.

Assurance News

Wed, 18 Nov 2015 05:00:00 GMT

The following VIE practice aid is designed to assist entities that have adopted ASU 2015-02 with the consolidation analysis required by ASC 810.  Entities that have not adopted ASU 2015-02 may refer to BDO’s prior VIE practice aid, which was last updated in August 2015.

Users of this practice aid are encouraged to follow the steps outlined in the flowchart to apply the VIE consolidation criteria required by US GAAP during their initial assessment of an entity or during any subsequent reconsideration. Note that the discussion in Section II, which follows the flowchart, clarifies only some aspects of the steps presented in the flowchart. In that regard, the flowchart is not a substitute for US GAAP and users should ensure any conclusions reached are consistent with the FASB’s Accounting Standards Codification.

Mon, 16 Nov 2015 05:00:00 GMT

Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (File Reference No. 2015-320) (“the ED”)

BDO supports most of the proposed revenue changes, but believes additional questions remain.

General Business News