Statement on Standards for Forensic Services No. 1
The AICPA has issued its first proposed standard relating to CPAs who perform forensic work. After working with multiple committees including The Forensic and Valuation Services Executive Committee (FVSEC), Forensic and Litigation Services Committee, Business Valuation Services Committee, Certified in Financial Forensics Credential Committee and Accredited in Business Valuation Credential Committee, they issued their first proposed Statements on Standards for Forensic Services. The proposed standard would be followed by CPAs who perform work in the areas of litigation and investigation. Comments are due February 28, 2019.
Implementation Guide: Fiduciary Activities
This blog addresses the proposed Implementation Guide issued by Governmental Accounting Standards Board that contains questions and answers about GASB 84 on fiduciary activities. The guide includes 53 new questions and updated 5 existing clients. Comments are due by February 28, 2019.
2018 in Review
This blog provides a high-level of overview of the final standards issued in 2018 by the FASB, GASB and AICPA. The FASB was quite busy issuing 20 Accounting Standard Updates (ASUs) while not a record definitely kept us busy this year. GASB issued 3 Statements as well as their annual Implementation Guide. The AICPA’s only issued one standard but we expect a flurry of standards in 2019! We will have a webinar on January XX, to cover the 20 ASUs issued by the FASB. Spots are still available.
Goodwill Amortization for Not-For-Profits
FASB has proposed extending the PCC alternatives related to goodwill and identifiable intangibles to NFP entities as a short term solutions for NFPs. Long term, the FASB is expected to issue an ITC to look at goodwill overall in a holistic fashion for all entities. Comments are due February 18th.
Proposed Interpretation: Staff Augmentation Arrangements
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a proposal on the independence impact of staff augmentation engagements. Creating a management participation and a threat to the perception of simultaneous employment, the proposal includes required safeguards. Comments are due by March 7, 2019.
GASB Proposed Implementation Guidance Update – 2019
GASB has issued an exposure draft for the 2019 Implementation Guide. The IG includes Q&A related to a variety of topics from Pensions and OPEB to tax abatements and cash flow statements. The IG does not include questions related to fiduciary activities or leases as those are being released as separate IGs. Comments are due to GASB by January 31, 2019.
FinREC Proposals – CECL & Inventory
The AICPA’s FinREC has issued two items for public comment. One related to the Current Expected Credit Loss (CECL) model and the related to the fair valuing of inventory in a business combination. Both topics will be included in future A&A guides. As a result, the AICPA is looking for feedback on the proposals to insure preparers, valuation experts and auditors agree with the proposed methodologies. Comments are due to the AICPA.
Codification Improvements: Financial Instruments
FASB has issued a proposal related to its financial instruments suite. The proposal makes technical corrections to ASU 2016-01 (recognition and measurement), ASU 2016-13 (the CECL model) and ASU 2017-12 (hedging). The updates come in part from meetings with its Transition Resource Group (TRG) and from feedback received from preparers and auditors. Comments are due by December 19th.
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