ASB Strategy and Work Plan
The AICPA’s Auditing Standards Board has issued their Proposed strategy and work plan. Their goal is get feedback on their mission, work plan and strategic initiatives. The proposal includes their plan for the next two years. Comments are due January 31, 2020.
PEEC Strategy and Work Plan
The AICPA’s Professional Ethics Executive Committee (PEEC) is asking for feedback on future standard setting items. They have identified potential issues and practice areas where either updated standards are needed or additional member education. They are looking for your input to determine whether they are on the right track. Did they miss anything? Anything on there not really necessary? It’s your opportunity to help set the agenda for the committee that writes the Code of Professional Conduct. Comments are due by February 28, 2020.
FASB Proposal – Codification Improvements to Hedge Accounting
FASB has issued a proposal addressing implementation issues for its new hedge accounting rule. This technical correction addresses issues related to documentation, dual hedges and provides clarifications that forecasted transaction and hedged risk are distinct. Comments are due January 13, 2020.
GASB Survey of Financial Statement Preparers
GASB is looking for preparers to answer questions in a survey about interim financial reporting. As part of pre-agenda research, GASB would like to understand current practice and if there is a need for technical guidance. The survey can be found at https://www.fafsurveys.org/se/4CA36E926D01E3C5.
SAS 134, Technical Q&A
Happy Halloween! This short blog will address a new Technical Q&A that the AICPA issued regarding the proper reporting for comparative financial statements in the year of adoption of SAS 134. The effective date and the fact that you can’t early adopt, created some questions as to what the proper format would be in the year of adoption. The TQA offers two methods of presentation for auditors to choose between.
GASB: Replacement of Interbank Offered Rates
Governmental Accounting Standards Board (GASB) has introduced an exposure draft to address issues when LIBOR goes away for hedges and leases for governmental entities. Trying to ease the burden on governments, the proposal would allow entities to continue using hedge accounting for certain hedging derivative instruments that are amended or replaced due to the LIBOR transition. Comments are due November 27, 2019.
Q3 2019 in Review
This Q3 in review covers the final standards issued by standard setters in the third quarter of 2019. We’ll cover the two final SASes issued by the AICPA as well as a new forensic standard and TQA. We’ll also cover the sole ASU issued by FASB as well as two staff Q&As. Finally, GASB issued 2 Implementation Guides. This blog will give a brief overview of what you need to know about recently issued standards.
Materiality Considerations for Subject Matters that Cannot be Quantitatively Measured
The AICPA has issued an Invitation to Comment to provide feedback on a project related to materiality in attestation engagements that have non-quantitative subject matter. The ITC addresses the challenges faced by practitioners but also provides examples and guidance on ways to use materiality in these types of engagements. Comments are due October 31, 2019.
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