AICPA Committees to Explore Guidance for Digital Currencies
Following similar efforts by the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”), the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board and Financial Reporting Executive Committee are considering whether to issue accounting and auditing guidance on digital currencies and initial coin offerings. Both committees plan to research the matter and will likely compose a list of financial reporting questions that have appeared concerning digital transactions. Dan Noll, the AICPA director of accounting standards, said the AICPA is considering guidance on digital currencies due to the pervasive nature of the questions being asked on. Read More.
AICPA Issues Working Draft on Multiemployer Benefit Plans
The American Institute of Certified Public Accountants (“AICPA”) wants to add a chapter on multiemployer benefit plans to the Audit and Accounting Guide Employee Benefit Plans. Issued on September 7 as a working draft, the chapter follows Financial Accounting Standards Board (“FASB”) guidance related to multiemployer plans. Such guidance includes FASB ASC 960, Plan Accounting—Defined Benefit Pension Plans, and FASB ASC 960, Plan Accounting—Defined Contribution Pension Plans. Outlined in the draft chapter are the multiemployer plan requirements and how those plans vary from other employee plans. The guidance touches on the overlap among the accounting provisions of multiemployer plans and other retirement. Read More.
FinREC Issues Draft Implementation Guidance for FASB Credit Loss Standard
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has issued the following working drafts on the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments: Working Draft: Allowance for Credit Losses Implementation Issue #1: Zero Expected Credit Losses: This working draft offers guidance for situations when a lender may experience no credit loss, even for a defaulted asset. The draft features implementation guidance for applying the zero-loss assumption to instruments like Treasury securities or mortgage bonds supported by the Federal National Mortgage Association. Working Draft: Allowance for. Read More.
AICPA Updates Two Technical Questions and Answers
The American Institute of Certified Public Accountants (“AICPA”) has amended the following Technical Questions and Answers (“TQA”) sections: Section 1200.01, “Disclosure of Revenues of an Agent”: The amendment this TQA Section acknowledges that the AICPA has yet to revise the TQA to reflect Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and ensuing ASUs amending Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The AICPA will delete this TQA upon ASU No. 2014-09’s effective date for all entities. Section 6910.25, “Considerations in Evaluating Whether Certain Liabilities Constitute ‘Debt’. Read More.
New AICPA Interpretation Proposed on Disclosing Client Information
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has issued an exposure draft that proposes a new interpretation of a confidentiality rule concerning the disclosure of confidential client information. Per the rule, an AICPA member is not allowed to share a client’s confidential information without the client’s specified consent. There are exceptions to gaining specific client consent, such as for members who obtain a practice review authorized under the AICPA, a state CPA society, or Board of Accountancy. As currently written, the standard does not clarify whether the exceptions to the rule extends to quality reviews.. Read More.
AICPA and Credit Union Advocate Seek New Credit Loss Standard Effective Date
Despite non-public entities already receiving an extra year to comply with the Financial Accounting Standards Board’s (“FASB”) new credit loss standard, the American Institute of Certified Public Accountants (“AICPA”) and the Credit Union National Association (“CUNA”) seek another extension. Both organizations want the FASB to amend the effective date of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as well as give privately held banks and credit unions until January 1, 2022, to implement the guidance. Non-public businesses like private community banks and credit unions must apply the new. Read More.
Topics: Accounting Standards Update "ASU", AICPA, Community Banks, Credit Loss Model "CECL", Credit Union National Association, Credit Unions, FASB, FASB credit loss standard, Financial Instruments - Credit Losses (Topic 326)