KNet is the periodical publication of KPMG Korean Practice in the United States.
KNet is issued quarterly to Korean companies operating business in the U.S. It delivers informative articles, leading opinions, best practices, trends and news on regulatory requirements on accounting, tax and other business related issues.
Current Issue - Issue 6
AICPA Releases Financial Reporting Framework for Small- and Medium-Sized Entities (PDF)
AICPA recently released its Financial Reporting Framework for small- and medium-sized entities (FRF for SMEs). Unlike the FASB and its Private Company Council’s private company initiative to consider whether modifications or exceptions to U.S. GAAP should be available for private companies that issue GAAP financial statements, the FRF for SMEs is a self-contained, other comprehensive basis of accounting that would not affect GAAP. The FRF for SMEs is available for use by private entities whose financial statement users will accept financial statements prepared under the FRF for SMEs.
Current Issue - Issue 5
FATCA, Foreign Account Tax Compliance Act (Final Regulations)
On January 17, 2013, the U.S. Department of Treasury and the Internal Revenue Service released the final regulations for the Foreign Account Tax Compliance Act (FATCA).
Since the enactment of FATCA in March 2010, Treasury and the IRS have issued several rounds of preliminary guidance, including proposed regulations. The recently released final regulations have been much anticipated by taxpayers that expect to be affected by the new FATCA withholding and reporting regime, particularly in light of the looming January 1, 2014. KPMG released a high level analysis of key changes in the final rules. This document contains a more comprehensive analysis of the changes, by section, incorporating salient points from the initial release.
Current Issue - Issue 4
2012 American Taxpayer Relief Act
President Obama on January 2, 2013, signed the American Taxpayer Relief Act of 2012(Act) averting the “Fiscal cliff” of tax increases and spending cuts. The Joint Committee on Taxation estimates that the Revenue provisions in the Act would reduce revenue by 3.9 trillion over a 10-year period, as measured against the current law baseline.
Current Issue - Issue 3
Retroactive Transfer Pricing adjustments and Potential Customs Duties Refunds (PDF)
U.S. importers received welcome news on May 30, 2012, when the U.S. Customs and Border Protection (“CBP”) agency finalized a long-awaited revision to its policy on transfer price adjustments. CBP clarified that, under certain circumstances, transfer price adjustments are compatible with the customs “transaction value” method, and modified its policy to now allow duty refunds for downward transfer price adjustments. This article provides a summary of CBP’s new policy, including observations and considerations addressing transfer price adjustments from a customs perspective..
Current Issue - Issue 2
Trade and Customs Update (PDF)
In the era of growing international trade, managing costs is key to remaining competitive in the global marketplace. Corporations need to identify and implement programs and procedures to achieve cost savings in their trade operations. KNet newsletter introduces duty savings programs such as: the First Sale for Export Principle, Foreign Trade Zones (FTZs) and Free Trade Agreements (FTAs).
Current Issue - Issue 1
Lessee and Lessor Accounting Update (PDF)
Under the Boards’ latest tentative decisions, the pattern of total non-contingent lease expense recognized by lessees generally would be either front-loaded or straight line, depending on whether the underlying asset is real estate or equipment, and the terms of the lease. The Boards also decided to align the classification test used by lessors to determine whether to apply the receivable and residual (R&R) model or operating lease accounting with the lease classification test used by lessees.