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.
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.
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.
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.
Topics: American Institute of Certified Public Accountants "AICPA", Attestation, Audit, Auditing Standards Board "ASB", Federal Deposit Insurance Corporation Improvement Act, Financial Statements, Quality Control Standards Task Force, Service Organization Control
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.
Topics: American Institute of Certified Public Accountants "AICPA", disclosure, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Financial Statements, U.S. GAAP
AICPA’s Auditing Standards Board Issues Comfort Letters Guidance
Impacting comfort letters issued on or after December 15th, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”) has released Statement on Auditing Standards (SAS) No. 129, Amendment to Statement on Auditing Standards No. 122 Section 920, “Letters for Underwriters and Certain Other Requesting Parties,” as amended (AICPA, Professional Standards, AU-C sec. 920). The guidance applies to auditors when they issue requested comfort letters associated with a non-issuer’s financial statements contained within registration statements. When the AUs were clarified, AU-C section 920 was not intended to alter practices connected to comfort letters. However, particular unintended issues managed. Read More.