2018 update of this Infographic: the objective of FASB Topic 832 is to develop disclosure requirements about government assistance, also known as tax credits & incentives – this Infographic depicts a timeline of where this project originated as well as its projected completion date.
In a digital era where software is eating the world, the vast majority of public companies are struggling to stay current when it comes to deploying new technologies in their tax and finance departments. It’s true that one of the primary duties of the chief financial officer is to de-risk the enterprise, but at what cost when they are losing competitive advantage due to slow adoption of new technology?
An old, veteran salesman used to tell me stories about the good ol’ days of enterprise technology sales from back in the late 1970’s.
He spoke of the fierce competition that existed between his company and a few others–all of which would one day become multi-billion dollar global giants. He described how in those days, before computers were commonly used in the workplace, everyone used to track their sales prospects data on paper or on white boards.
When Big 4 staple Deloitte comes out with a list of the top RegTech companies, it’s a sure sign that this emerging tech sector has arrived.
We may be wary of another tech buzzword given how much hype, and at times hyperbole, past buzzwords have received. But how many fads have been based on a topic so practical and operationally based like RegTech?
The client on the phone had a desperate tone in his voice as he said he needed help. He said the CEO was breathing down his neck. His company had not seen a dime on two of their government incentives for the last few years. On the other end of the phone, Scott Nelson, a Big Six government incentives consultant, had an “aha moment”.
The Financial Accounting Standards Board (FASB) convened on May 4, 2016 for the first time after the Exposure Draft Comment Period closed on Topic 832 to discuss feedback from staff on the comment letters and other input from various outreach performed by the staff. Overall most stakeholders are supportive of the FASB’s efforts to increase transparency in government incentives & address the diversity in practice that exists today in accounting for government assistance.