ITC – Identifiable Intangible Assets and Subsequent Accounting for Goodwill
https://youtu.be/791it9X8x-U FASB has issued an Invitation to Comment aimed to provide feedback to the standard setter on the subsequent accounting for goodwill as well as feedback related to identifiable intangibles. In 2014, the FASB using a PCC alternative allowed...
Information Systems Services
The AICPA’s Professional Ethics Executive Committee (PEEC) of the AICPA has published a revision to Independence Rule Interpretations related to Information System Services. The interpretation offers guidance to members that provide nonattest services related to an attest client’s information systems. It is much more detailed than previous guidance in order to help members understand under what circumstances independence would be impaired and when it would not be impaired. The newly released amendment is effective on January 1, 2021 and early implementation is allowed.
Proposed SSARS: Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks
The AICPA’s Accounting and Review Services Committee has issued a proposed SSARS, Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks. The proposed amendments are intended to more closely align SSARS with International Standard on Review Engagements and as well as consider the relationship with the SASes. The proposal includes the requirement for the accountant to determine materiality in reviews of financial statements, permits the expression of an adverse conclusion, and also addresses terminology throughout the SSARS. The revisions would be effective for engagements performed in accordance with SSARSs on financial statements for periods ending on or after June 15, 2021. Comments are due by September 20, 2019.
Proposed SAS: Audit Evidence
The AICPA Auditing Standards Board has issued a Proposed SAS on Audit Evidence. The SAS is intended to modernize auditing standards to recognize new sources of information and evolving business technologies. Emerging technologies such as audit data analytics and blockchain are now used by financial statement preparers and by auditors alike. This evolution drives new challenges related to audit evidence and professional skepticism. The standard includes attributes and factors to be used in evaluating audit evidence. Feedback is due by September 18, 2019.
FASB Staff Q&A: Not-for-Profit Grants and Contracts Standard
The FASB has issued a Staff Q&A that addresses two few frequently asked questions about the application of the limited discretion indicator and the accounting for cost-sharing provisions when implementing ASU 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The Q&A addresses cost sharing provisions as well as budgets and its impact on whether these stipulations would qualify as conditions for contribution accounting.
New State & Local Ethics Interpretations
https://youtu.be/cgp9bBi8q5Y The AICPA has issued a new interpretation related to the ethics code for state and local governments. This interpretation helps identify the entities related to a state or local government, which are considered affiliates and thus are...
Public-Private Partnerships
https://youtu.be/zvXx4Gsehbw Governmental Accounting Standards Board (GASB) has issued an Exposure Draft titled Public-Private and Public-Public Partnerships and Availability Payment Arrangements (fondly referred to as triple p). The ED provides guidance for PPP...
New Data Collection Form
https://youtu.be/eu5Hn1kKLcU Office of Management and Budget has issued the new Data Collection Form for use in years 2019 through 2021. There are a quite a few changes auditors (and auditees) should be aware of including customizable SEFAs, an auditee EIN edit check,...
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