GASB Aims to Improve Going Concern and Debt Disclosure Guidance
After stakeholders called for further review of the “going concern” concept in regard to governments and associated organizations, the Governmental Accounting Standards Board (“GASB”) will begin pre-agenda research on improving guidance for going concern. Announced on Friday , the research efforts will determine whether the current generally accepted accounting principles offer financial statement preparers of state and local governments enough guidance on management’s responsibilities for reviewing and disclosing any worries related to financial stress. Meanwhile, in response to state and local government reporting inconsistencies, the GASB will research ways to improve debt disclosure guidance. Debt disclosures have been inconsistent since government entities have. Read More.
GAO Upholds Restriction of Consultants During Proposal Preparation
The U.S. Government Accountability Office (“GAO”) recently denied a protest where a contractor challenged the Department of Veteran Affairs’ (“VA”) rationale for restricting the use of consultants in its proposal preparation. The subject Request for Proposal (RFP) was issued on November 19, 2014, and anticipated awarding up to 20 indefinite-delivery-indefinite-quantity (IDIQ) firm-fixed-price, time-and-material, or cost-reimbursement contracts worth up to a maximum of $22.3 billion. The GAO’s bid protest decision (Case B-410898.2, Advanced Communication Cabling, Inc., dated March 25, 2015) centered on the use of independent consultants on a proposal where the solicitation specifically prohibits offerors from using consultants to assist. Read More.
AICPA Publishes Technical Q&As on Section 9540
The American Institute of Certified Public Accountants (“AICPA”) recently issued five attest technical questions and answers (Technical Q&As) on Section 9540, Attest Engagement:American Land Title Association Best Practices Framework. Listed under the American Land Title Association Best Practices Framework (the Framework), the new Technical Q&As include: Section 9540.01, Types of Engagement. Technical Q&A 9540.01 discusses the engagements a practitioner might complete for a title insurance and settlement company to help management and third parties determine compliance and implementation of the Framework. Per the guidance, a practitioner may include attestation or consulting engagements. Section 9540.02, Applicability to an Attest Engagement. Technical. Read More.
Apple Wants Additional Time to Adopt Revenue Standard
Despite the Financial Accounting Standards Board (“FASB”) proposing a one-year deferral of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, earlier this month, Apple Inc. (“Apple”) has told the standard-setter and International Accounting Standards Board (“IASB”) that more time is needed for the company and other U.S. multinationals’ foreign units to adopt the new revenue recognition standard. In a comment letter to both accounting boards last week, the tech giant said additional time is necessary due to complications partially caused by differences between Apple and its foreign units’ fiscal year-ends. Further, Apple discloses financial results in U.S. generally accepted. Read More.
Accounting for Cloud Computing Fees Amended
As part of its generally accepted accounting principles (U.S. GAAP) simplification efforts, the Financial Accounting Standards Board has issued an amendment to clarify accounting for fees when buying cloud computing services. Complementing the intangible assets guidance in the Accounting Standards Codification, Accounting Standards Update No. 2015-05, Intangibles: Goodwill and Other: Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, helps entities and other organizations determine if a software license is part of a cloud computing agreement or should be recognized as a service agreement. Public entities must implement the new requirements for fiscal years, including. Read More.
New Bill Forcing Government Contractors to Pay Their Taxes
That is right folks, you are hearing it again! A new bill, H.R. 1562, Contracting and Tax Accountability Act of 2015 (on a second attempt), was introduced at the end of March 2015 (which was passed by the house using a procedure called “suspending the rules”, on April 15, 2015, Tax Day) to prevent companies that are delinquent in paying income taxes from not only winning federal contract awards but also preventing them from competing. A broad overview of the bill states that it would prohibit federal agencies from awarding contracts or grants to persons or companies that have serious. Read More.