GASB Issues Proposed Implementation Guide
The Governmental Accounting Standards Board (“GASB”) seeks feedback on a proposed Implementation Guide to help clarify recent GASB Statements. Issued Wednesday, the proposed guide addresses the GASB’s latest accounting and reporting guidance involving pensions, cash flow statements, certain investments, external investment pools, tax abatements, and other topics. Also included in the guide are amendments to preceding implementation guidance. Comments on the Exposure Draft of Implementation Guide No. 201X-Y, Implementation Guidance Update—201X , are due Tuesday, January 31.
Companies Warned About Workload of Implementing Revenue Standard
As the 2018 effective date for the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard approaches, companies in the latter stages of the implementation process caution that the undertaking is extensive and complicated. Those insights were shared by company representatives at the recent Financial Executives International’s Current Financial Reporting Issues conference in New York. Christine DiFabio of Zoetis, Inc. said Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is all encompassing. She also noted that implementation takes a significant effort that could require assistance from all parts of an organization. Newly appointed Securities and Exchange Commission Chief Accountant Wesley Bricker made similar remarks, saying both. Read More.
Sustainability Guide Coming in 2017
Early next year, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) is expected to publish its guide on sustainability reporting. The forthcoming Audit and Accounting Guide will be based on an ASB task force’s work on a proposed Standard for Attestation Engagements concerning sustainability. Plans for the formal standard were scrapped in May. During Baruch College’s Audit Conference this week, ASB chair Michael Santay said the board wants to provide auditors and their clients a framework until clear financial reporting and auditing guidelines for sustainability emerge. The ASB will count on sustainability reporting groups like the. Read More.
Final Overtime Rule on Hold
A November 22 preliminary injunction has blocked the Overtime Final Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.
The Auditor Strikes Back: Patent Costs Get an Update
As we reported in October, the Defense Contract Audit Agency (“DCAA”) Contract Audit Manual (“CAM”) was recently updated. One of the thirteen areas of cost updated related to patent costs. This topic is covered in Chapter 52 of the CAM, with the new version being separated into three key topics: 52-1, Allowability of Patent Costs 52-2, Patent Rights – Ownership by the Contractor and the Allowability of Associated Patent Costs 52-3, Special Requirements for Nonprofit Organizations Previously, the DCAA CAM addressed patent costs in Chapter 7-700, which was less than three pages in length on treatment of patent costs for allowability purposes. The. Read More.
AICPA Committee Approves Exposure Revisions to Definitions
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has approved for exposure revisions to the following definitions under the AICPA Code of Professional Conduct: Client: The proposed revision would clarify that when a company that retains a licensee to perform a professional service is not the same company bound by the professional service, both companies are considered separate clients of the licensee. Attest Client: The proposed revision would state that only the subject entity is an attest client. The exposure draft is expected to be released in mid-December.