Private company insights: year-end reporting reminders for private companies

Sample of key insights and resources included in report

Accounting impacts of current macroeconomic and geopolitical events

Depending on a company’s industry, location, customer and supplier diversification, it may experience both direct and indirect impacts from the following:

• Rising interest rates
• Supply chain challenges
• Inflation
• Geopolitical conflict
• Market volatility
• Recession concerns

New accounting standards effective in 2022

• The leases standard, which includes a significant change from the current leases guidance, is likely to introduce some level of change for all entities that are party to a lease arrangement. 
• The government assistance standard, which requires business entities that account for transactions with a government by applying a grant or contribution model by analogy to disclose information about government assistance recorded during the period, is intended to increase transparency about government assistance arrangements and improve the usefulness of financial results.
• The simplified income tax guidance includes the removal of certain exceptions to the general principles of ASC 740, Income Taxes, in order to reduce the cost and complexity of their application.
• The private company expedient provides an option for determining the current share price of a stock compensation award.

We hope this publication serves as a helpful resource as you wrap up the financial reporting season and look ahead to 2023.