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New AICPA Technical Questions and Answers Issued

The American Institute of Certified Public Accountants (“AICPA”) recently issued a new Technical Question and Answer (“TQA”) and amendments for TQA Section 2220, Long-Term Investments. The new TQA, Section 2220.28, Definition of Readily Determinable Fair Value and Its Interaction With the NAV Practical Expedient, features amendments to TQA section 2220.18, “Applicability of Practical Expedient.” It eliminates TQA section 2220.24, “Disclosures—Ability to Redeem Versus Actual Redemption Request” and TQA section 2220.25, “Impact of ‘Near Term’ on Categorization Within Fair Value Hierarchy.” Section 2220.28 also offers guidance in understanding and applying the Financial Accounting Standards Board (“FASB”) FASB Master Glossary definition “readily. Read More.

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FASB to Release Standard and Propose Transition Guidance on Leases

A final Accounting Standards Update (“ASU”) and a proposed standard by the Financial Accounting Standards Board (“FASB”) aim to lower costs and make it easier for preparers to implement its leases guidance. The FASB will issue a final standard that gives organizations an optional transition practical expedient to reconsider their accounting for current land easements that are not presently accounted for in Topic Accounting Standards Codification (“ASC”) 840, Leases. The standard also affirms that once the guidance is active, new or modified land easements must be reviewed under ASC Topic 842, Leases. Separately, FASB staffers were ordered to draft a. Read More.

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AICPA Board Proposes Three Auditing Standards

The American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board recently issued the following exposure drafts of Proposed Statements on Auditing Standards (“SASs”): Proposed Statements on Auditing Standards, Auditor Reporting and Proposed Amendments―Addressing Disclosures in the Audit of Financial Statements:  The Exposure Draft proposes amendments converge the AICPA auditor reporting standards with standards of the International Standard on Auditing by the International Auditing and Assurance Standards Board (“IAASB”). The proposed changes address: Forming an Opinion and Reporting on Financial Statements; Communicating Key Audit Matters in the Independent Auditor’s Report; Modifications to the Opinion in the Independent Auditor’s Report; and. Read More.

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AICPA Issues Enhancing Audit Quality Report

Highlighting this year’s significant achievements to improve audit quality, the American Institute of Certified Public Accountants (“AICPA”) recently issued Enhancing Audit Quality: 2017 Highlights and Progress (“Report”). The Report lists major accomplishments in areas such as peer review, single audits, and quality control. Separately, the Report addresses evolving talent needs and includes sections concerning the Uniform CPA Examination and Valuation credentials. Download Enhancing Audit Quality: 2017 Highlights and Progress at AICPA.org.

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Gary Buesser Appointed to FASB

Financial Accounting Foundation Chairman Charles Noski has announced that Gary Buesser will replace outgoing Financial Accounting Standards Board (“FASB”) Marc Siegel next year. A director and research analyst of a global firm, Buesser has more than 30 years of experience covering investment management with financial statements. He is a member of the Financial Accounting Standards Advisory Council and served for two years as a co-chairman of the board’s Investor Technical Advisory Committee. Buesser will take Siegel’s seat on the FASB effective July 1, 2018.

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CAQ Issues Auditing Request for Proposals for 2018

The Center for Audit Quality (“CAQ”) has issued a request for proposals (“RFPs”) to finance auditing projects for academic research. This marks the tenth annual request by the CAQ, which is asking for applicants to submit RFPs concerning critical policy issues and topics of interest such as auditor risk assessment, cybersecurity, non-GAAP measures, and professional skepticism. Proposals must be submitted via the CAQ online submission form by March 15, 2018. The CAQ’s Research Advisory Board will review all proposals, and the CAQ will award grants to the selected projects in June 2018.

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