SSARS No. 22 to Supersede SSARS No. 14
Replacing Statement on Accounting and Review Services (“SSARS”; the “Statement”) of the same name, the American Institute of Certified Public Accountants’ (“AICPA”) Accounting and Review Services Committee has issued SSARS No. 22, Compilation of Pro Forma Financial Information. The Statement clarifies the guidance under SSARS No. 14, and will be codified as AR-C section 120. The updates are aimed to help the standards become easier to understand and apply. SSARS No. 22 is effective for compilation reports on pro forma financial information dated on or after May 1, 2017.
FASB Notice of Open Meetings for Sept. 29-30
Per its Notice of Open Meetings , the Financial Accounting Standards Board (“FASB”) will meet tomorrow with members of the American Institute of Certified Public Accountants’ Private Companies Practice Section Technical Issues Committee to review topics of mutual interest. The meeting is scheduled to begin at 10:00 a.m. ET. Cherry Bekaert’s Melisa Galasso will be in attendance for the meeting. In addition, the FASB will meet Friday with its Private Company Council (“PCC”) to collect feedback regarding several projects on the board’s standard-setting agenda. Projects expected to be covered include improving the variable interest entities (“VIE”) guidance. Private companies consider VIE guidance a priority because it. Read More.
Topics: AICPA Private Companies Practice Section Technical Issues Committee, debt classification, debt liabilities, Financial Accounting Standards Board "FASB", Private companies, Private Company Council "PCC", Variable Interest Entity "VIE"
GASB Omnibus Statement Proposed to Address Practice Issues
Newly proposed guidance by the Governmental Accounting Standards Board (“GASB”) seeks to address various reporting issues during the implementation of certain pronouncements. The Exposure Draft, Omnibus 201X, covers the following issues: Simplifications concerning the alternative measurement method for other postemployment benefits (“OPEB”). Reporting goodwill and negative goodwill. Disclosing on-behalf payments for pensions or OPEB in employer financial statements. Categorizing real estate for operations and investment reasons by insurance companies. Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost. Comments on Omnibus 201X are due Wednesday, November 23. To download the Exposure Draft, visit the GASB website.
Additional Income Tax Disclosures Proposed
The Financial Accounting Standards Board (“FASB”) wants to increase the disclosure requirements for income taxes. In its Proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework – Changes to the Disclosure Requirements for Income Taxes, the FASB recommends all entities add the following disclosures: An explanation of a tax law amendment that is likely to impact the entity in a later period. Income or losses from ongoing operations previous to income tax expenses or benefits separated between domestic and foreign. Income tax expenses or benefits from ongoing operations separated between domestic and foreign. Income taxes paid separated between domestic. Read More.
Reduced Amortization Period for Callable Debt Securities Proposed
The Financial Accounting Standards Board (“FASB”) wants to reduce the amortization period for premium paid for callable debt securities when purchased above market value. In Proposed Accounting Standards Update (“ASU”) No. 2016-340, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, the FASB proposes the premium amortization to be more aligned with the market’s expectations for the securities. The amortization period would end on the earliest call date, as opposed to the instrument’s maturity date. Due to a tax incentive allowing municipal bond issuers to sell 30-year bonds with above-market coupons and 10-year call provisions,. Read More.
Cybersecurity Risk Management Guidance Proposed
The following exposure drafts have been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Assurance Services Executive Committee, offering guidance for evaluating cyber risk management: Proposed Description Criteria for Management’s Description of an Entity’s Cybersecurity Risk Management Program (“Description Criteria”). This exposure draft is intended for a company’s management when developing and describing its organization’s cybersecurity risk management program, and by public accounting firms for reporting the description of the program. The AICPA hopes developing a conventional set of criteria will clear the path for a cybersecurity examination to assist in evaluating the efficiency of an organization’s cybersecurity. Read More.