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AICPA Committee to Review Proposed Statement on Standards

Starting next Tuesday, the American Institute of Certified Public Accountants’ Accounting and Review Services Committee (“the Committee”) will hold a three-day meeting to discuss the proposed Statement on Standards for Accounting and Review Services (SSARS): Clarification and Recodification. Meeting in Providence, Rhode Island, the Committee will vote to release the SSARS as a final standard and discuss certain components such as Preparation of Financial Statements, Compilation Engagements and Review of Financial Statements. In addition, the Committee will discuss the proposed SSARS, Compilation of Prospective Financial Information and Pro Forma Financial Information. For the meeting’s full agenda , visit the AICPA website. Also. Read More.

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AICPA Issues Alert on Revenue Recognition Standard

Offering guidance to practitioners implementing the joint Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) standard, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) recently issued Understanding Revenue Recognition: Changes to U.S. GAAP . The alert includes: a summary and overview of FASB’s Accounting Standards Update (ASU) No. 2014-09 , Revenue from Contracts with Customers (Topic 606), and IASB’s IFRS 15 , Revenue from Contracts with Customers; advice on helping entities transition to the new standard; AICPA’s learning and implementation plan; and a mapping tool chronicling key revenue recognition matters. The ASU 2014-09 amendments are effective for public entities during annual reporting periods starting after December 15,. Read More.

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AICPA Starts Initiative to Improve Quality of Private Entity Audits

As the American Institute of Certified Public Accountants (“AICPA”; “the Institute”) begins its Enhancing Audit Quality (EAQ) initiative, the organization has released a discussion paper describing how it will improve the auditing performance of private entities. With contributions from the Institute’s committees, boards and staff members, the EAQ aims to align the goals of all audit-related AICPA efforts and cooperatively enhance the quality of audit services. Per the August 7th document, the AICPA outlines how it will address quality issues associated with private entities’ financial statement audits and which efforts are already in progress. In its first phase, the initiative will propose. Read More.

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New Auditing Interpretations Have Been Issued Related to GASB 67 and 68

The American Institute of Certified Public Accountants (“AICPA”) recently issued interpretation of certain standards related to implementation of Governmental Accounting Standards Board (“GASB”) Statements 67 and 68. Summaries of these interpretations follow. If you are interested in additional information regarding your specific circumstance, you can find the interpretations on the AICPA’s website. Interpretations to Audit Evidence Standard Interpretation No. 2, “Auditor of Participating Employer in a Governmental Cost-Sharing Multiple-Employer Pension Plan,” of AU-C section 500, Audit Evidence, answers two questions. The first clarifies that the audited financial statements of a cost-sharing plan prepared, in accordance with generally accepted accounting principles. Read More.

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Auditing Standards Board Issues Standards for Public Comment

During its three-day meeting in Montreal, Quebec, Canada, last month, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) moved forward on issuing proposed clarified attestation standards Chapter 8, “Reporting on Controls at a Service Organization,” and Statement on Auditing Standards (SAS), An Audit of Internal Control Over Financial Reporting That is Integrated With an Audit of Financial Statements, for public comment. If both become final, then Chapter 8 would replace the current AT Section 801, “Reporting on Controls at a Service Organization”, and the proposed SAS would supersede AT Section 501, “An Examination of an Entity’s. Read More.

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Updated Conceptual Framework Proposal Comment Letter Approved

During its July 15th teleconference, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) approved an updated draft comment letter related to the Financial Accounting Standards Board’s (“FASB”) Proposed Statement of Financial Accounting Concepts (CON) No. 2014-200, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. Despite not providing official guidance to users of financial statements, the proposal offers guidelines for writing U.S. GAAP disclosure requirements. Signed by FinREC’s Richard Paul and Rick Day, the seven-page letter orders FASB to review current disclosure requirements, and remove repetitive disclosures and insufficient information. Per the letter, the simplification of disclosures will. Read More.

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