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FASB Turns Attention to Cash Flows and Accounting Methods

Last week, the Financial Accounting Standards Board (“FASB”; “the Board”) met to discuss its cash flows pre-agenda research and the project on accounting for financial instruments. As part of the April 23rd meeting, the Board expressed concern regarding progress on Topic 230, Statement of Cash Flows. Per its discussion, the Board spoke on cash flow problems associated with classifying particular types of cash receipts and cash payments. Also at the meeting, the FASB revisited its proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Board focused on how an entity could. Read More.

Pilot Program Created for Audit Quality Indicators

After publishing a set of possible Audit Quality Indicators (AQIs) in its paper, CAQ Approach to Audit Quality Indicators, the Center for Audit Quality (“CAQ”) has announced a pilot program for testing the new indicators. Through its paper, the CAQ details the proper approach how to communicate the prospective AQIs, which will be tested by CAQ member firms that have select audit committees. The set of AQIs are viewed as guidance for audit committees in overseeing audit processes. In putting together the AQIs, the CAQ collected feedback from key stakeholders and the audit profession. Member firms also determined which audit. Read More.