Steve Ursillo Discusses How Technology Will Impact Audit
In a short video for the International Federation of Accountants (“IFAC”), Steve Ursillo, Jr. , shares his thoughts on how technology will affect audit and assurance services. Ursillo, Cherry Bekaert’s National Leader for the Information Assurance & Cybersecurity practice, says new accounting technologies will likely impact the way auditors perform engagements and client services. Watch the video on the IFAC website.
Education Department Proposes Title IX Changes
Secretary of Education Betsy DeVos has issued a proposed rule that would curtail a college institution’s obligations to investigate on-campus sexual misconduct. The rule change would add protections for college students accused of sexual misconduct, and it would allow institutions to investigate misconduct that occurred within programs they sanction. In addition, colleges would be responsible for investigating cases when a formal complaint is submitted to appropriate campus officials. While DeVos said the rule would improve the process of resolving complaints, women’s groups and other advocates argue that it would undermine victims’ rights and open the possibility to off-campus assaults or. Read More.
FinREC Issues Proposed Guidance for Inventory Fair Value Measurement
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has proposed new guidance for companies when measuring their inventory’s fair value when purchasing or merging with another company. Issued as a working draft on November 19, the proposed guidance is meant for Audit and Valuation Guide: Business Combinations. The working draft features non-authoritative guidance and illustration for estimating the fair value of inventory acquired in a business combination under FASB ASC 820, Fair Value Measurement. The proposed guidance also offers general principles and two examples presenting how companies should value finished goods and inventory considered a work. Read More.
FASB to Monitor Financial Reporting Impact of Tax Reform
The Financial Accounting Standards Board (“FASB”) has no plans to issue new guidance on the Tax Cuts and Jobs Act (“TCJA”). During a November 14 meeting on the financial reporting impact of tax reform, FASB researchers said Big Four firms’ guidance, FASB accounting staff’s technical inquiries, and U.S. GAAP have helped companies answer some of the complicated financial reporting issues caused by the tax law change. Despite holding off on issuing new tax reform guidance, the FASB still plans to monitor whether any necessary future action should be taken. The staff will especially keep a close eye on the global. Read More.
Update Pushes Credit Loss Standard Effective Date to 2022 for Community Banks
After unanimously approving last month several amendments to Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326) , the Financial Accounting Standards Board (“FASB”) published an update that will give credit unions and community banks an extra year to comply with the credit loss standard. The update, ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, aligns the implementation dates for private companies’ annual financial statements with their interim financial statements. The new guidance states that private companies must apply the credit loss standard to fiscal years, including interim periods within such years, starting after December 15, 2021. This change means smaller institutions like credit unions and community banks can apply. Read More.
Upcoming Changes to the SOC 2 Reporting Framework
Is your organization prepared for the upcoming changes to the SOC 2 reporting framework? All SOC 2 reports issued with a reporting period ending after December 15, 2018, must comply with the new Trust Services Criteria (also known as TSP 100) issued by the Assurance Services Executive Committee of the American Institute of Certified Public Accountants. SOC 2 reports evaluate the effectiveness of controls over the security, availability, processing integrity, confidentiality, and privacy of information processed by systems at an entity, division, or operating unit level. Revisions to the trust services criteria include an alignment of criterion with the Committee. Read More.