This is especially true now for average families as well as high-net-worth clients, because all final tax returns will carry with them the requirement to report any deemed disposition of a common family asset: the principal residence.

... tax, and advisory services. Bond Issue Costs - Bond issue costs are recovered over the remaining life of the original issue or, if refinanced, 143, Accounting for Asset Retirement Obligations— which was seven years in the making—shifts to a balance-sheet approach, requiring businesses to recognize a liability for a retirement obligation when they incur it—even if that is far in advance of the asset’s planned retirement. Asset Retirement Obligation Standards: Could Be Some Big Changes - And Some Unexpected Ones. Asset Retirement Obligations - Asset retirement obligations represent the estimated recoverable costs for legal obligations associated with the retirement of a tangible long-lived asset. Sellers face two levels of tax upon an asset sale: tax paid by the corporation on the sale of assets with an accrued gain over the tax cost of the assets and tax paid by … The transfer of assets to family members is an important part of retirement and post-retirement planning, as the tax consequences can be enormous. Income tax considerations can make asset sales a less appealing approach from a seller’s perspective. Tip For 2013, the 39.6 percent rate applies to unmarried taxpayers with taxable income over $400,000; married taxpayers who file jointly with income over $450,000; and heads of household filers with incomes over $425,000. If you are in the 39.6 percent tax bracket, your capital gains tax rate will be 20 percent, beginning in 2013. The Community Reinvestment Act (CRA) is a federal law enacted in 1977 to encourage depository institutions to meet the credit needs of low- and moderate-income neighborhoods. FASB Statement no. Asset Retirement Obligation is a legal and accounting requirement, in which a company needs to make provisions for the retirement of a tangible long-lived asset, to bring the asset back to its original condition after the business is done using the asset. An asset retirement obligation (ARO) is a legal obligation associated with the retirement of a tangible long-lived asset that an entity is required to settle as a result of an. Introduction to Asset Retirement Obligation. ASC 410: ARO accounting and environmental obligations. Net Debt is an important indicator, and one that is watched by many, including bond rating agencies. (a) An asset retirement obligation represents a liability for the legal obligation associated with the retirement of a tangible, long-lived asset that a service company is required to settle as a result of an existing or enacted law, statute, ordinance, or written or oral contract, or by legal construction of a contract under the doctrine of promissory estoppel. The impact of this different treatment would be an increase in a government's Net Debt. FASB ASC 410, Asset Retirement and Environmental Obligations, section 20 (410-20) contains the primary guidance from FASB on how to account for asset retirement obligations. See Note 8 for additional details. The CRA can’t claim a dollar in taxes for what comes out of your TFSA. Asset retirement obligation/decommissioning cost broadly refers to the amount that a company expects to incur in disposing of the asset and reversing modifications made to the installation site. ASC 410-30 provides guidance regarding the accounting treatment of obligations for environmental remediation.