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.
AICPA and Healthcare Trade Group to Issue Guidance for Revenue Standard
To help healthcare companies with Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), the Healthcare Financial Management Association and the American Institute of Certified Public Accountants are planning to offer additional industry-specific guidance. The interpretive guidance is expected to address when healthcare providers should record revenue from special state funding methods that cover deficits between Medicaid reimbursements and patient care costs. Frustration over recognizing revenue related to provider tax programs was discussed at last month’s meeting between the FASB and the Healthcare Financial Management Association’s Principles and Practices Board. Brian Conner, a national practice leader for hospitals. Read More.
AICPA Issues Technical Guidance for IRS Audits of Partnerships
A recent Technical Question & Answer (“TQA”) document from the American Institute of Certified Public Accountants provides guidance on complying with the Internal Revenue Service’s (“IRS”) new approach to auditing partnerships for income taxes. TQA 7200.09, Partnerships Tax Accounting Considerations Under Partnership Audit Regime , clarifies whether a previous year’s underpayment signifies an income tax liability of the partnership or the individual partners. Per the guidance, Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes FASB ASC 740-10-55-226, Income Taxes — Overall — Implementation Guidance and Illustrations — Attribution of Income Taxes to the Entity or Its Owners, through FASB ASC 740-10-55-229, Financial Statements of a Group. Read More.
AICPA Names Bob Dohrer Chief Auditor
In a March 27 press release, the American Institute of Certified Public Accountants (“AICPA”) announced the appointment of Robert “Bob” Dohrer, CPA, as the organization’s chief auditor. Dohrer will replace Charles Landes, CPA, who is also the AICPA’s vice president of professional standards – public accounting. Landes will retire in early 2019, but he will help with the transition when Dohrer joins the AICPA in October. Dohrer currently serves as global leader, quality and risk, for a multi-national network of accounting firms based in London. In his role as AICPA chief auditor, he will serve as the organization’s expert on. Read More.
Financial Executives Slowly Warming to Risk Management Planning
Despite the American Institute of Certified Public Accountants’ (“AICPA”) latest survey revealing organizations have inadequate risk management practices, the numbers compared to the inaugural survey have improved. The AICPA discovered that 31 percent of companies have created processes for enterprise risk management. That number is 22 percentage points higher than in 2009; only nine percent of organizations surveyed that year reported having risk management processes. The survey is part of the AICPA and North Carolina State University’s Enterprise Risk Management Initiative. Mark Beasley, the director of NC State’s ERM Initiative, said this year’s survey shows that more senior executives and. Read More.
AICPA Releases 2018 Not-for-Profit Entity Guide
This year’s edition of the Audit and Accounting Guides (“AAG”) Not-for-Profit Entities is now available. Issued last month by the American Institute of Certified Public Accountants, the 2018 guide features information about Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The Not-for-Profit, AAG also highlights the amended guidance and compares the changes to previous guidance.