News & Insights

Lease Accounting

Every Lease Will Require the Recording of a Liability The rules for lease accounting were first established in 1976 (FAS 13). Under existing rules, there were two ways to account for leases. For operating leases, the most common, the lessee records rent expense each month over the term of the lease. Some leases were capitalized (by recording capitalization) if they devoted some attention to the words in the lease agreement. There are the subsequent amendments to those rules, many believed that lease accounting rules were unnecessarily complex. Those rules may seem simple compared to the changes to lease accounting that…

BKM Sowan Horan Joins KS International

Dear Friends and colleagues, The partners of BKM Sowan Horan, LLP are pleased to announce our Firm’s association with Kingston Sorel International (KSi). KSi has approximately 150 offices in over 60 countries and is one of the top 20 international accounting associations. "Our clients with overseas accounting and tax needs will now be served by an international association of accounting firms that has the necessary technical expertise to meet their needs. Moreover, we believe KSi reflects our approach to client service and possesses the flexibility to serve middle market clients” said Rick Sowan, managing partner. "The KSi client service model…

Accounting Information Systems

Accounting Information Systems (AIS) collect, record, store, and process data to produce information for decision makers. Accounting information systems are a set of interrelated components, that interact, to achieve a goal. Most accounting information systems are composed of smaller subsystems and vice-versa, every organization has goals. Accounting Information Systems can use advanced technology, be a simple paper-and-pencil system or be something in between. Technology is simply a tool to create, maintain, or improve a system.  An accounting information systems topics impact corporate strategy and culture. Accounting information systems offers value and is a very important part of the value chain. Although “adding value” is a commonly used buzzword, in…