Retirees Secure Housing Spots at Arizona State
A new housing complex set to open at Arizona State University next year will include a surprising group of college students. Senior citizens have reserved their spots at the on-campus housing that will serve as a retirement community with a college twist. Residents will be free to enroll in classes, use campus facilities, and mentor younger students. Arizona State’s housing complex catering to senior citizens reflects a rising trend of privately-owned, on-campus retirement communities. More on Arizona State’s retirement community is available on the Inside Higher Ed website.
PCAOB Releases Consistent Approach to Auditing Accounting Estimates
In its first standard-setting move since undergoing a complete leadership change early last year, the Public Company Accounting Oversight Board (“PCAOB”) unanimously approved a standard to improve audits of accounting estimates. Issued as Release No. 2018-005, Auditing Accounting Estimates, Including Fair Value Measurements, the standard provides auditors a more consistent approach to auditing accounting estimates. Previously, auditors used three standards to audit estimates: Auditing Standard (“AS”) 2501, Auditing Accounting Estimates; AS 2502, Auditing Fair Value Measurements and Disclosures; and AS 2503, Auditing Derivative Instruments, Hedging Activities, Investments in Securities. While the standards employ a common approach to testing estimates, they differ in explaining the. Read More.
California Community Colleges Reject Tuition-Free Plan
Amid concerns about high default rates, several California community colleges are rejecting the state’s plan that offers in-state students one year of free tuition. California awards community colleges free tuition aid for participating in the plan, but institutions like Barstow College and Imperial Valley College disagree with the mandate requiring participation in the federal student loan program. The San Bernardino district referenced the recent high federal loan default rate among borrowers at its colleges for rejecting participation in the tuition-free plan. Meanwhile, California Community College system officials oppose the move and believe colleges that aren’t taking part in the federal. Read More.
PCAOB Approves Standard for Auditor’s Use of Specialists
Last month, the Public Company Accounting Oversight Board (“PCAOB”) published a final standard aimed to strengthen the requirements for an auditor’s use of specialists. Release No. 2018-006, Amendments to Auditing Standards for Auditor’s Use of the Work of Specialists, improves how an auditor uses the work of specialists and reinforces the provisions necessary for reviewing the work of an organization’s specialist. The revised standard also aligns with the PCAOB’s risk assessment standards. Specifically, an auditor must now test the suitability of an organization’s data, as well as the significant assumptions and methods applied. PCAOB member Duane DesParte noted that the amendments. Read More.
GSA Consolidating Multiple Award Schedules into One Schedule
On November 27, 2018, the General Services Administration (“GSA”) announced that it will simplify its multiple award schedule (“MAS”) offerings by consolidating the 24 schedules now in use to a single schedule. GSA’s goals in doing so are to improve customer service, make it easier for small businesses to access the schedules program, and reduce duplication for vendors. The transition into a single schedule will take place over the next two fiscal years and will consist of two phases. The first phase will take place in fiscal 2019, and it will focus on developing the consolidated schedule and shutting down. Read More.
Codification Improvements to FASB Leases Standard Proposed
The Financial Accounting Standards Board has announced proposed amendments to its leases standard concerning possible lessor implementation issues related to Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The proposed changes would align the FASB’s guidance for fair value of the underlying asset by lessors not considered manufacturers or dealers under Topic 842, with existing guidance. Thus, the fair value of the underlying asset at the start of the lease is its cost, and it would incorporate any applicable volume or trade discounts. If significant time has lapsed since the acquisition of the underlying asset and when the lease starts, however,. Read More.