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Accounting Profession Faces Challenging Future

Speaking at the American Institute of Certified Public Accountants’ (“AICPA”) spring Council meeting last week, AICPA Senior Vice President of Strategy, People & Innovation’s Lawson Carmichael stated that the accounting field, CPAs and businesses they serve will have to adapt to various challenges in the coming years. As part of his remarks, Carmichael shared how the profession will be impacted, and asked Council members to offer insight on the risks and opportunities that could be presented. Trends identified that could affect accounting services include firms focusing more on growth and talent management than cost-cutting, recruiting and retaining talent, globalization, emerging. Read More.

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AICPA and NASBA Release New UAA Edition and Model Rules

The Seventh Edition of the Uniform Accountancy Act (“UAA”) and the UAA’s Model Rules were recently issued by the American Institute of Certified Public Accountants (“AICPA”) and National Association of State Boards of Accountancy (“NASBA”). Created by both organizations, the UAA helps deliver an identical approach to the regulation of accounting. Certified Public Accountants (“CPA”) must follow accountancy laws in licensing jurisdictions that oversee the practice of public accounting. The UAA’s Seventh Edition includes: An extended definition of “attest” in UAA Section 3, Definitions. The updated attest meaning states, “any examination, review, or agreed upon procedures engagement to be performed. Read More.

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PCAOB Issues Guidance on Economic Analysis

Produced by the members of the Public Company Accounting Oversight Board (“PCAOB”) staff and the Office of the General Counsel, the PCAOB has released Staff Guidance on Economic Analysis in PCAOB Standard Setting (“the Guidance”). Dedicated to using economic analysis in rulemaking, the Guidance offers four elements of economic analysis for establishing auditing professional practice standards. As noted in the Guidance, the four main elements are: Describing the Need for the Rule; Developing the Baseline for Measuring Rule Impacts; Considering Reasonable Alternatives; and Analyzing the Economic Impacts of the Standard (and Alternatives). The Guidance’s press release is currently available on the PCAOB’s. Read More.

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ASU 2014-05 – Agreeing on Service Concessions Agreements

The Bottom Line Published January 23rd, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2014-05, Service Concession Arrangements (Topic 853) — a consensus of the FASB Emerging Issues Task Force, in response to an increase in public sector entities (i.e. governmental bodies) entering into service concession agreements with operating entities who follow U.S. GAAP. The overall conclusion of this ASU is that these types of arrangements should not be considered leases within the scope of ASC 840. What is a Service Concession Arrangement? A service concession arrangement (“SCA”) is an arrangement between a public sector entity (the. Read More.

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AICPA Updates the Trust Services Principles and Criteria Related to SOC 2 & 3 Audits

In February, the American Institute of Certified Public Accountants’ (“AICPA”) released an updated edition of its Trust Services Principles and Criteria (“TSP”) 2014. The TSP’s criteria is utilized by CPA firms in performing Service Organization Control (“SOC 2” or “SOC 3”) audit engagements that report on the system controls relevant to security, availability, processing integrity, confidentiality and/or privacy. The revised Trust Principles are effective for reporting periods ending or after December 15, 2014, but the AICPA is permitting early adoption. The revisions are intended to improve clarity, eliminate redundancy, and update criteria based upon changes in technology and business environments.. Read More.

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IASB and FASB Announce Joint Revenue Standard

Issued today, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) have released a joint standard on revenue recognition from contracts with customers. This is a major accomplishment of the work to converge a key area of financial accounting between International Financial Reporting Standards and U.S. GAAP. Accounting Standards Update (“ASU”) 2014-09 provides enhancements to the quality and consistency of how revenue is reported. The IASB and FASB’s new standard will require the recognition of revenue as goods or services are transferred to customers in amounts that reflect payment the company expects to receive in exchange. In addition. Read More.

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