AICPA Committee Proposes Interpretation for Long Association
As part of its convergence project with the International Ethics Standards Board for Accountants, the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has released the exposure draft, Proposed Interpretation –Long Association of Senior Personnel With an Attest Client). The proposal concerns independence threats when an attest client has a long association with senior personnel. The Committee’s proposed Interpretation would state that an AICPA member’s lengthy inclusion among the attest engagement team’s senior personnel could cause a familiarity threat with the attest client. The familiarity threat could also extend to the team’s operations, senior management of the. Read More.
Topics: AICPA, AICPA Professional Ethics Executive Committee, American Institute of Certified Public Accountants "AICPA", International Ethics Standards Board for Accountants "IESBA", Long Association
Gift Acceptance Policy Tips for Nonprofits
In a recent blog on the American Institute of Certified Public Accountants’ (“AICPA”) website, Foundation of the Carolinas Vice President Alyssa Federico shares her insights on developing a gift acceptance policy for a nonprofit organization. According to Federico, a well-developed policy can protect a nonprofit from potential risks and educate staff members on when to decline gifts. Some of the guidance Federico outlines concerns handling non-cash gifts, the process for deciding whether or not to accept a gift, and determining what is required prior to acceptance. Federico’s blog can be read in its entirety on the AICPA website.
FASB Rejects Pleas for More Implementation Guidance on Credit Loss Standard
As concerns mount regarding implementation of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the American Institute of Certified Public Accountants’ Private Companies Practice Section Technical Issues Committee (“the Committee”) wants the Financial Accounting Standards Board (“FASB”) to provide more guidance on the standard. FASB members, however, have no plans to offer additional implementation guidance. Addressing the matter this week with Committee representatives, FASB members said that the board’s credit loss standard for writing down losses on bad loans contains sufficient accounting guidance and examples. FASB Vice Chairman. Read More.
Industry-Specific Revenue Standard Implementation Guidance Proposed
On July 3, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee released four working drafts on the Financial Accounting Standards Board’s revenue recognition standard. The working drafts are tailored to the following four industries: Airlines. Working Draft: Airlines Revenue Recognition Implementation Issue #2-1: Regional Contracts addresses capacity purchase agreements established by major airlines with regional carriers to reach smaller markets. The working draft applies the guidance in Topic 840, Leases, to the aspects of a capacity purchase agreement that are not deemed leases. In addition, the working draft instructs air carriers how Topic 606, Revenue From Contracts With Customers, is to be employed to review the various. Read More.
Topics: AICPA, Airlines, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Gaming, Health Care, Proposed Implementation Issues, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Telecommunications, U.S. GAAP, Working Drafts
New Code of Professional Conduct Ethics Interpretations Issued
The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee has published the following new interpretations of the Code of Professional Conduct: Hosting Services (ET sec. 1.295.143) under the Independence Rule (ET sec. 1.200.001). Effective September 1, 2018, this interpretation offers guidance in circumstances when a member providing non-attest services, and the member is the sole host of a financial or non-financial information system for an attest client, in charge of or protecting the client’s data or records or keeping electronic security or reserve services for an attest client’s data or records. Pressure to Breach the Rules (ET sec.. Read More.
FASB Member Says No Major Accounting Changes Coming
In the last 18 months, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Updates (“ASU”) for leases, credit losses, and revenue recognition. FASB member Christine Botosan, however, stated last week that the board has no immediate plans to publish additional major accounting changes. During the American Institute of Certified Public Accountants’ Not-for-Profit Conference in Maryland, Botosan assured attendees by announcing the board’s plans to pause on adding major accounting standards to its agenda. Botosan said the FASB is considering undertaking other significant accounting projects, but is also aware of how much effort goes into complying with ASU No.. Read More.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Leases (Topic 842), Revenue From Contracts With Customers, Revenue Recognition