Revisions to the Uniform Accountancy Act’s Model Rules
The National Association of State Boards of Accountancy (NASBA) has proposed revisions to the Uniform Accountancy Act (UAA) Model Rules. The AICPA has already approved CPA Evolution and thus now changes are needed to the UAA. The proposed revisions make changes to the educational requirements for sitting for the CPA exam. Changes include a focus on professional skepticism as well as data analytics. The goal is to encourage uniformity between states for licensure. Comments are due August 31, 2020.
Yellow Book CPE – COVID Update
GAO has issued an alert addressing COVID and Yellow Book CPE requirements. More rules being relaxed. It does NOT change CPE requirements for any other organizations. The relaxation of CPE is intended to be responsive to the cancellations of many CPE events due to COVID19.
FASB Delays Leases & Revenue Recognition
FASB voted to delay both revenue recognition and leases for private entities at their May 20th meeting. The original proposal was for a delay for private company franchisors to receive a one year delay of revenue recognition. But the Board added all private entities that have not yet issued financials. In addition, both “public” and private nonprofits as well as all private entities receive an extra year (in addition to ASU 2019-10) for leases. ASU to be issued in June!
PEEC Delays and Exposure Draft
The AICPA’s Professional Ethics Executive Committee (PEEC) delayed 3 interpretations at its May meeting. In addition, it has issued an exposure draft addressing record requests and updates the interpretation regarding acts discreditable. Comments are due September 30th.
Peer Review Provides COVID Delays
This week the Peer Review Board of the AICPA voted to grant a six-month extensions for peer reviews, corrective actions, and implementation plans that had original due dates between January 1 and September 30, 2020. The delays, consistent with other standard setters, are trying to assist firms who are struggling with COVID19. As firms assist clients with obtaining assistance and work to audit in a remote environment, the delay is to provide relief. The additional six months is optional and if a firm and the reviewer are ready and able, they can continue as scheduled. The extension is automatic and does not have to be requested.
FASB Effective Date Delays for Certain Entities
FASB has proposed a one year delay of revenue recognition for private company franchisors. In addition, public and nonpublic nonprofits will receive a delay along with nonpublic entities. The delay is due to the operational issues associated with COVID19. Originally, nonprofits with conduit debt were scheduled to adopt leases with public business entities but have now been granted a one year delay as many of these entities are hospitals and universities who are most impacted by COVID19.
GASB Delays Nine Standards
At it’s teleconference meeting on April 14th GASB voted to delay standards by one year due to COVID 19. On April 15th, what has historically been tax day but due to COVID19 has lost that honor, the exposure draft was issued. Comments are due by the end of April to help GASB have a quick turnaround time for issuing a final standard (especially for those upcoming May and June year ends!).
This Week in A & A
https://youtu.be/iZ2A2xvFeRI The second week of April definitely had some major impact on standard setting. The NAC was able to have its first meeting of 2020 which was delayed from March. FASB announced a delay in the leases standard for nonprofit and nonpublic...
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.
