Wednesday, August 25, 2010

IFRS Net Impact on Taxable Income, Elimination of 72 year old LIFO Accounting practices?

As if corporate America doesn't have enough economic pressure upon its shoulders these days. Now, the 2011 federal budget proposed by the Obama Administration again includes a provision to repeal LIFO accounting. LIFO allows companies to calculate the cost of goods sold based on the price of the most recently purchased ("last-in") inventory, rather than inventory that was purchased more cheaply in the past and has been sitting on the shelf. That boosts the cost of goods sold, which lowers profits - and, thus, taxable income. Let's face the truth here, inventory isn't flying off the shelves for anyone and what in the world are the lawmakers in Congress thinking?

Full story here as published in CFO magazine.

Tuesday, August 3, 2010

Are you drinking the Cloud Kool-Aide?

Let's face it, there is a lot of debate going on within businesses between IT Leadership and Executive Management. I am the lucky recipient of both sides of the argument. Most of time, IT tends to be less supportive of Software as a Service, or Application Service Providers (outsourcing) and the revenue generation side of the organization tends to be largely in support of outsourcing.

However, there are some valid arguments for not embracing cloud based computing alternatives. Here are five reasons some CFOs have shared with us why they won't be embracing the Cloud anytime soon: Cloud not in the forecast for some CFOs