Accounting Methods and Standards and Bonus Depreciation: Selected Analyses

Editors: Suzanne Thomas



This book reviews selected analyses of accounting methods and standard and bonus depreciation. Chapter One of this book briefly explains the different accounting standards and U.S. capital markets. It examines several IFRS policy options Congress might consider and the benefits and challenges of each of those options. Chapter Two introduces the difference between cash and accrual methods by providing an overview of concepts and theories that underlie these accounting methods. It then explores these concepts through the business cycle of a fictitious small business and how the basis of accounting would affect the financial condition of the business. Chapter Three provides a brief explanation of cash and accrual accounting. It then examines the legislative history surrounding the Tax Reform Act of 1986, which set most of the current policies related to cash accounting for tax purposes. Chapter Four discusses bonus depreciation as either a temporary stimulus provision or a permanent part of the tax code. Chapter Five examines the current status, legislative history, and main economic effects (including their efficacy as an economic stimulus tool) of the Section 179 and bonus depreciation allowances.

Table of Contents:

Preface

U.S. Capital Markets and International Accounting Standards: GAAP Versus IFRS
(Raj Gnanarajah)

Cash Versus Accrual Basis of Accounting: An Introduction
(Raj Gnanarajah)

Cash Versus Accrual Accounting: Tax Policy Considerations
(Raj Gnanarajah, Mark P. Keightley)

Bonus Depreciation: Economic and Budgetary Issues
(Jane G. Gravelle)

The Section 179 and Bonus Depreciation Expensing Allowances: Current Law and Issues for the 114th Congress
(Gary Guenther)

Index