05/13/2025

Well, hi there! Sit back, enjoy, and relax as you’re currently on the Daily Accrual.

Every day, I sift through the accounting noise so you don’t have to. I share to you the most relevant, juicy accounting insights that really matter – nothing phony, just some good, accounting testimony! 

💸 Profit & Loss Report

The IRS announced that interest rates for tax overpayments and underpayments will remain unchanged for the third quarter beginning July 1. Individuals will continue to face a 7% annual rate, compounded daily, for both overpayments and underpayments. Corporations will also see no change with 6% for overpayments, 4.5% for overpayments exceeding $10,000, 7% for underpayments, and 9% for large corporate underpayments.

These interest rates are set quarterly under the Internal Revenue Code, based on the federal short-term rate plus a margin that varies by designated taxpayer type. The third quarter of 2025 rates were calculated using the short-term rate determined in April, as detailed in Revenue Ruling 2025-11. This follows a rate cut deduction in Q1 2025—the first reduction since 2020.

Source: CPA Practice Advisor

💎 Rare Accounting Oddities

There are two main accounting dialects: GAAP (used in the U.S.) and IFRS (used just about everywhere). GAAP is rule-heavy and detail-obsessed. IFRS is detailed more on principles, and global flair.

Both don’t always agree. Under GAAP, R&D gets expensed. Under IFRS? It might be capitalized. GAAP says LIFO is fair game; IFRS says “non merci.”.

So the next time your statements feel a little off, double check the framework. It’s not shady math, it’s just international accounting personality differences!

Feeling like a rockstar with debits and credits, but a deer in headlights when someone mentions “Stark Law”? Wisdify got you covered.

Wisdify’s Healthcare Accounting Series is built specifically for CPAs who get a little queasy around healthcare compliance jargon.

Wisdify’s Healthcare Accounting Courses:

• Regulatory Frameworks in Healthcare Accounting (HIPAA, Medicare, Medicaid, and more!)

• Revenue Recognition in Healthcare (yes, ASC 606 can be tamed)

• Cost Accounting in Healthcare (because saving lives and managing overhead is a team effort)

Build confidence in a high-growth industry, and finally stop pretending you’ve heard of healthcare regulatory laws before. Learn from only the best professionals in the healthcare accounting world with Wisdify today!

Source: Wisdify

📝 Journaling Insider

The Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update improving how entities identify the accounting acquirer under ASC Topic 805, Business Combinations. The update clarifies the determination process, particularly for transactions involving equity interest exchanges where the legal acquiree is a variable-interest entity that qualifies as a business.

Effective for annual reporting periods and interim periods within those years, the ASU allows for early adoption. The updated guidance requires entities to apply the same set of factors used in other types of acquisitions to ensure consistent and accurate identification of the accounting acquirer, which directly impacts how assets and liabilities are reported post-combination.

Source: Journal of Accountancy

💰 Making Cents of Accounting

#MissionImpossible💥💰