July 15, 2016 – Piercy Bowler Taylor & Kern (PBTK), a full-service accounting firm, announces that it has recently opened an office in Reno, Nevada.
Now the third PBTK location, the Reno office is located at 200 S. Virginia, Suite 655. The firm’s services will focus on accounting, audit, tax planning and preparation, 401(k) audits, and forensic accounting.
“We opened a Reno office to better serve our existing and perspective Northern Nevada clients,” said Lisa Cross, Managing Shareholder of the Reno office. “PBTK’s professionals have a unique set of skills and experiences in the industries found in the Reno area, such as gaming, hospitality, manufacturing and government. We are excited to now reside in this thriving business community.”
About Piercy Bowler Taylor & Kern
Piercy Bowler Taylor & Kern is a full-service accounting and business advisory firm that provides accounting and auditing, tax, consulting, valuation and litigation support services. Founded locally in 1990, the firm specializes in the casino gaming and leisure time industries, governmental and not-for-profit organizations, real estate development and construction industries and the legal and general business communities. Now with offices in Salt Lake City, Reno and Las Vegas, PBTK is one of the few independent accounting firms in its local markets to perform SEC audits. For more information on PBTK, visit pbtk.com or call Shannon Hiller at 702.384.1120.
You may not always take a balance sheet at face value, because certain valuable rights and costly future obligations may not qualify under U.S. generally accepted accounting principles (GAAP) as assets or liabilities and, therefore, be omitted. Here are some examples of items that may not be reported on a company’s balance sheet.
What GAAP Requires
Patents, brands, goodwill and other intangibles provide significant value for many companies. Acquired intangibles may be reported at their fair value at the time they are acquired and either amortized over time or tested at least annually for impairment. But the values of internally generated intangibles are generally not included as assets on a GAAP-basis balance sheet.
On the other hand, provisions for pending litigation, governmental investigations and other contingent losses may be estimated and accrued as a liability and reported on the balance sheet, disclosed in the notes or, in some cases, omitted from GAAP financial statements, depending on how their status, susceptibility to reasonable estimation and probability of realization. Accounting Standards Codification (ASC) Topic 450, “Contingencies,” requires companies to classify contingent losses as “probable” (that is, likely to occur), “remote” (meaning the chances that a loss will occur are slight), or “reasonably possible” (falling somewhere between remote and probable).
When to Report or Disclose
Under GAAP, a company must accrue and record a liability for a contingent loss if a claim has been asserted, and the loss is both probable and the amount (or a range of amounts) is reasonably subject to estimation. If it can’t be reasonably estimated, companies must disclose the nature of an asserted claim with a probable loss contingency, and explain why the amount can’t be quantified.
If a contingent loss is only reasonably possible, the company must disclose it but doesn’t need to record an accrual. The disclosure should include an estimate of the amount (or range of amounts) of the contingent loss, if possible, or an explanation of why it can’t be estimated. If a realization of contingent loss is remote, or no claim has been asserted, no disclosure or accrual is required.
Reporting contingencies requires professional judgment. We can provide advice to help you classify and estimate losses in accordance with GAAP so as to help give investors a clearer picture of your company’s financial position — and protect against shareholder claims in the event a loss occurs.