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If your company is successful and poised for continuous growth, you may be considering taking it public. Every founder of a privately owned business has individual preferences and goals which motivated the original investment of time, money, and energy in the enterprise. However, your business and personal objectives can change, and capital to expand the business and personal liquidity may now be among your top priorities.
The key argument for proposing to remove the exception for intra-entity transfer of assets is the purported complexity when intangible assets are transferred or sold in intra-entity transactions. For example, intra-entity transfer of indefinite-lived intangible assets and goodwill may trigger a net tax effect to be deferred on the balance sheet and amortized into income tax expense over the remaining amortization period (if any) or economic useful life.
On Jan. 22, 2015, the Financial Accounting Standards Board (FASB, or “Board”) issued an Exposure Draft (ED) to solicit public comments on two proposed changes to ASC 740, Income Taxes: (1) remove the intra-entity asset transfer exception, and (2) remove the “current” classification of deferred taxes. The Board also decided on a transition method, transition disclosure, and an effective date. The Board is seeking comments on the ED by May 29, 2015.
Cloud computing has rapidly grown in acceptance as one of the most efficient and flexible ways for organizations to better manage their complex IT needs. From improving organizational flexibility and decreasing the need for a complex internal IT infrastructure, there’s no doubt that the cloud offers significant advantages. However, like any new technology, it comes with its own set of legal and regulatory risks that must be investigated by conducting an internal audit. Here are the top 5 internal audit considerations to keep in mind before making the shift to the cloud.

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