Fortner Bayens, P.C. Banking Letter - April 2018 Edition

Cyber Security from the Inside Out

Alyssa L. Reeves, MIS, CISSP, CISA, CEH

Cyber security continues to be a hot topic in 2018 and many companies are now coming to realize that it is more than a regulatory inconvenience. The real question is: How do we truly protect ourselves?  And what controls are going to be the most beneficial without breaking the bank? 

While there are a variety of frameworks to help you evaluate your cyber security inherent risk and controls maturity, I believe the true marker is a company’s corporate security culture.  

As ISACA puts it, “Corporate security culture determines what an organization does about security, as opposed to what it intends to do.”

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Regulators Amend Appraisal Requirements for Commercial Real Estate Transactions

Michael P. Kurtz, CPA

On April 2nd the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (the “Agencies”) amended the appraisal threshold for commercial real estate transactions. 

This amendment addresses the comments received during the Economic Growth and Regulatory Paperwork Reduction Act review process from the original proposal in July 2017. Under the amendments, titled Real Estate Appraisals, appraisal threshold for commercial real estate transactions increased from $250,000 to $500,000.

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Succession Planning

Alexander L. Muñoz, CPA

With retirements looming for many executives, it’s important for banks to have succession plans in place to ensure successful transitions. Succession planning shouldn’t just be the responsibility of the outgoing executive or the HR department, but should be spearheaded by the Board of Directors. Even then, the board’s role in the process isn’t simply choosing the new CEO (or another executive). But rather, creating the succession plan and overseeing its successful execution.

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What to do if you Need to Extend Your Corporate Tax Return

Mark Corey, CPA, JD

The C-corporation tax filing deadline has come and gone, however many corporations were not be able to file their return on time. What are the options when you cannot file your corporate return in a timely manner?  

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Accounting for Hedging Activities               

Michelle L. Steinbronn, CPA

In August, 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.  It is an effort to improve the financial reporting of hedging relationships, better portray the economic results of an entity’s risk management activities, and simplify the application of hedge accounting guidance.

The guidance is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For other entities it is effective for fiscal years beginning after December 15, 2019, and interim period beginning after December 15, 2020. Early application is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption.

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