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)
Cherry Bekaert Responds to AICPA’s Proposed Amendments to Audit Reporting
In a comment letter last month to the American Institute of Certified Public Accountants (“AICPA”), Cherry Bekaert (“the Firm”) Partner David Bettler, CPA , affirms the Firm Partners’ support of the AICPA Auditing Standards Board’s Proposed Statements on Auditing Standards, Auditor Reporting and Proposed Amendments―Addressing Disclosures in the Audit of Financial Statements . Bettler states that the proposed standards and amendments will be useful to financial statement users, as well as improve transparency and the quality of audits. The two-page letter also features the Partners’ responses to the exposure draft questions considered by the Auditing Standards Board. Read David Bettler’s comment letter on AICPA.org.
AICPA Committee Issues SSARS No. 24 Omnibus Statement
After a delayed release, the American Institute of Certified Public Accountants’ (“AICPA”) Accounting and Review Services Committee (“ARSC”) has finally issued Statement on Standards for Accounting and Review Services (“SSARS”) No. 24, Omnibus Statement on Standards for Accounting and Review Services – 2018 . SSARS No. 24 includes the following new or amended guidance: AR-C Section 100, Special Considerations—International Reporting Issues: This new AR-C Section 100 features guidance for compilation or review engagements when: Financial statements are prepared according to a financial reporting framework accepted in another country but is adopted by a designated body outside of the Council of the AICPA to set generally accepted accounting principles; and The engagement must be performed according to SSARS and another set of compilation and. Read More.
Topics: AICPA, AICPA Accounting and Review Services Committee, AR-C Section 100, AR-C Section 60, AR-C Section 90, international reporting, International Standard on Review Engagements, Statements on Standards for Accounting and Review Services "SSARS"
AICPA Revenue Recognition Working Drafts Issued
The American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee has released the following working drafts concerning revenue recognition guidance: Issue #6-9B, Gaming Entity’s Accounting for Management Contract Revenues, Including Costs Reimbursed by Managed Properties Issue #15-3, Contract Modifications The working drafts propose guidance for implementation matters with the five-step revenue recognition model under Topic 606, Revenue from Contracts with Customers. Specifically, Issue #6-9B relates to the gaming industry and Issue #15-3 focuses on the telecommunications industry. Feedback on both working drafts is due by Monday, July 2.