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.
FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts