Proposed Changes to DCF
The Federal Audit Clearinghouse (FAC) has issues proposed revisions to the Data Collection Form (DCF). This form is used to make the results of Single Audits publicly available. Non-federal entities and their auditor’s should review the proposed changes and consider providing feedback.
Q1 2018 in Review
Q1 was a relatively quiet quarter in terms of final standards. The FASB issued five Accounting Standard Updates (ASUs) and 5 Staff Q&As related to the tax cuts and jobs act (TCJA). The AICPA issued an interpretation and two TPAs. GASB had no final standards issued during the quarter.
Proposed Ethics Interpretation – Information System Services
The AICPA’s Professional Ethics Executive Committe (PEEC) is proposing some revisions to independence rules related to financial information systems. Addressing the issues of self review and management participation, the interpretation provides updated guidance regarding when independence is impaired for work performed as a non attest service related to a clients IT systems.
Proposed ASU: Cloud Computing
FASB has issued a proposed ASU to clarify the proper accounting for implementation costs of cloud computing arrangements that are part of a service contract. The proposal would permit the capitalization of cost in compliance with the software for internal use guidance.
Proposed ASU: New Benchmark Interest Rate
FASB has issued a proposal to permit the use of a new benchmark interest rate for hedging purposes. Proposed ASU 2018-220 proposes the addition of the OIS based on SOFR to the list of permitted benchmark rates.
GASB ITC – Revenue & Expense Recognition
GASB has issued an Invitation to Comment (ITC) that offers two models for revenue recognition. It proposes an exchange / nonexchange model similar to today’s model but updated for implementation issues. It also proposes a performance obligation / no performance obligation model that would be similar to the FASB / IASB Revenue Recognition model. Comments are due April 24th.
Proposed SAS – Other Information in Annual Report
This blog reviews the proposed changes to AU-C 720. We look at the updated scope including the definition of an annual report as well as the newly expanded auditor’s responsibilities with respect to this other information.
Proposed Auditor’s Report Changes – Part 4
The last in a four part series on changes to the auditor’s report. This blog covers the changes to emphasis of matter and other matter paragraphs as well as changes to other AU-C sections as amendments.
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