On May 16, 2013, the FASB issued Proposed Accounting Standards Update (ASU), Leases. This proposed ASU is a complete rewrite of the lease accounting rules that have been in effect since 1976. Under existing accounting standards, a majority of leases are not reported on the lessee’s balance sheet, and the amounts involved can be substantial.
Small business owners, controllers, CFOs, and CEOs often ask whether their company needs audited financial statements. Many times the answer is not a simple yes or no: it depends. Here are some of the top reasons you may need an audit: