Onesource Corporate Consulting, Inc.: Tax and financial reporting considerations

This case places you in the role of a new staff accountant at a public accounting firm who is asked to research financial accounting and tax issues for a client engagement. The client, Onesource Corporate Consulting, Inc. is a large, rapidly growing and successful consulting firm that specializes in corporate restructuring work, forensic investigations, litigation consulting, strategic communications consulting, economic consulting, and technology development. You must research issues affecting the company’s financial statements and tax reporting, including: contingent debt, forgivable loans issued to employees, revenue recognition for various types of contracts, and lease incentives. You will likely find this case challenging. However, this case is based on a real company and the research and analysis required in this case is reflective of issues and assignments you may encounter early in your career.

► Students research both financial reporting and US federal income tax issues for a consulting company.
► Issues examined include forgivable employee loans, revenue recognition, lease incentives, and convertible debt.
► Students gain experience using the FASB Accounting Standards Codification and tax databases.