What Wall Street’s Tariff Response Means for Corporate Accounting Teams in 2025
Grant E. Allen, MSA, IRS Enrolled Agent
Partner - The Kaizen Group, LLP | Adjunct Professor of Accounting
GAAP Compliance in a Turbulent Trade Year
Having guided companies through multiple tariff cycles over my 25-year career, I can confirm that 2025’s import costs are rewriting GAAP playbooks. The sudden spike in expenses requires careful cost capitalization vs. expensing decisions—especially for inventory-heavy businesses.
Pro tip: Document tariff impacts meticulously to justify accounting treatments during audits.
Asset Revaluation: The Hidden Balance Sheet Shake-Up
Tariffs don’t just hit P&Ls, they force impairment testing for assets tied to global supply chains. One manufacturing client recently revalued their overseas facilities by 18% due to projected trade friction. Accounting teams should review ASC 830 (foreign currency matters) and ASC 350 (goodwill impairment) now.
Transfer Pricing’s New Complexity
For multinationals, 2025’s tariffs are turning transfer pricing into a high-stakes puzzle. The IRS and OECD are scrutinizing intercompany charges more closely than ever. My advice: Revisit your TP policies before year-end—arm’s-length adjustments could save millions.
3 Urgent Actions for Q3/Q4
Your Turn: How is your team adapting financial reporting for tariff impacts? Share your challenges below, and if this resonates, tag a colleague navigating these same issues!