Forthcoming Accounting Guidance Updates to Impact Nonprofits
Some of the Financial Accounting Standards Board’s Accounting Standards Updates will certainly have an effect on nonprofit organizations. As the standards’ effective dates draw near, the American Institute of Certified Public Accountants (“AICPA”) has highlighted five standards nonprofits should become familiar with: Going concern requirements Consolidation requirements Simplifying the presentation of debt issuance costs Fair value disclosures when net asset value per share is used Inventory measurement More on these standards is available on AICPA.org. In addition, Cherry Bekaert’s Melisa Galasso will host an AICPA webinar on April 25 to offer nonprofits guidance on these Accounting Standards Updates.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", Consolidation, Debt Issuance Costs, Fair Value Accounting, FASB, Financial Accounting Standards Board "FASB", Going Concern, Inventory, Nonprofits
Going Concern Standard Issued by AICPA Board
A new going concern standard has been released to replace Statement on Auditing Standard (“SAS”) No. 126 of the same name. Issued by the American Institute of Certified Public Accountants (“AICPA”) Auditing Standards Board (“ASB”) this week, SAS No. 132, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, provides clarity to financial statements and their associated disclosures. Several concepts of SAS No. 126 are retained in the new standard, but SAS No. 132 includes significant changes that impact: The auditor’s objectives and related conclusions; Financial support by third parties or the entity’s owner-manager; The period. Read More.
Going Concern Standard Approved by AICPA Board
The American Institute of Certified Public Accountants’ Auditing Standards Board (“ASB”) has unanimously voted to finalize its guidance for going concern. Approved during the ASB’s four-day meeting in Fort Lauderdale earlier this month, the final standard includes recommendations from the comment letters regarding Proposed Statement on Auditing Standards (“SAS”): The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. The standard will be issued SAS No. 132: The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, and supersede SAS No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted), (AU-C Section 570). SAS No. 132. Read More.
AICPA Auditing Standards Board to Meet in Florida
Starting Monday, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board will hold a four-day meeting in Fort Lauderdale, Florida. Cherry Bekaert’s Melisa Galasso will attend a portion of the meeting as a member of the AICPA’s Technical Issues Committee. According to the meeting agenda , the Auditing Standards Board is expected to vote on proposed AU-C section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. In addition, the board is expected to approve an exposure draft of proposed Statements on Auditing Standards No. 13x, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans. Read More.
Topics: AICPA Auditing Standards Board, American Institute of Certified Public Accountants "AICPA", Employee Benefit Plans, Going Concern, International Auditing and Assurance Standards Board "IAASB", Proposed Statement on Auditing Standards
Proposed Statement on Auditing Standard on Going Concern Issued
The American Institute of Certified Public Accountants’ Auditing Standards Board (“ASB”) has proposed a Statement on Auditing Standard (“SAS”) concerning an auditor’s responsibilities during the audit of financial statements with regard to going concern and the impact on the auditor’s report. Issued as the exposure draft Proposed Statement on Auditing Standards: The Auditors Consideration of an Entity’s Ability to Continue as a Going Concern, the proposed SAS uses a neutral accounting framework approach that can be applied to financial statement audits prepared under various frameworks. Specifically, the biggest changes proposed are the requirements pertaining to audits of special purpose frameworks,. Read More.
GASB Forms Going Concern Consultative Group
The Governmental Accounting Standards Board (“GASB”) has formed a consultative group to assist with its research in the reassessment of the going concern disclosures of GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. Appointed by David Vaudt, the consultative group will offer guidance and feedback to GASB staff members during the research process, as well as review drafts of the research materials. The full list of the going concern consultative group members is available on the GASB website.