ESG Merger Completed
This week marked a major consolidation in the ESG standard setting arena. The IFRS Foundation completed its consolidation of the Value Reporting Foundation (VRF). The IFRS Foundation is the parent entity to the IASB who writes IFRS. It will now also be the parent to the new International Sustainability Standards Board’s (ISSB) which is working to develop a comprehensive global baseline of sustainability disclosures for the capital markets and will leverage the resources of the VRF as part of this consolidation.
Proposed ASU: Transition for Sold Contracts (Long Duration Contracts)
The FASB has issued a proposal to address transition for insurance entities in applying ASU 2018-12. The proposal addresses the requirements to apply the new standard to contracts that have been sold. This is a very niche standard so comments are due August 8.
AICPA Proposes Changes to CPA Exam Blueprint
The AICPA has provided more details about the upcoming transition for the CPA exam which is scheduled for January 2024. The new blueprint provides details on the types of skills expected of newly licensed CPAs as well as the design of the exam. Comments are due September 30th.
Q2 2022 In Review
The second quarter of 2022 is behind us and it was a very busy one for standard setters. The AICPA issued its suite of standards related to quality control. They also issued a SAS related to NOCLAR, which corresponds to changes recently made to the ethics requirements. GASB issued 3 final standards in Q3 and FASB issued 1 final standard.
PEEC Conforming Amendments
The AICPA’s Professional Ethics Executive Committee (PEEC) has proposed changes to a few interpretations to align the verbiage around ownership with previously issued interpretations related to loans. The proposed changes address three sections of the ethics code. Comments are due July 5.
Ethics Interpretation Proposal: Compliance Audits
The AICPA’s Professional Ethics Executive Committee (PEEC) has proposed some new independence rules related to compliance audits. The AICPA is aware that much of the new COVID-19 related funding is causing many entities who have no been subject to audit requirements or single audit requirements historically to now be subject to them. They add 2 definitions and revise the definition of financial statement attest client to help identify which independence rules apply to these engagements. Comments are due September 1, 2022.
FASB ITC: Government Assistance for Business Entities
The FASB has issued an Invitation to Comment to gather feedback about the operability of leveraging IAS 20 for government grants for for-profit entities in the US. The ITC does not include any preliminary views but is to help the FASB staff gather information from stakeholders about any benefits or issues that should be considered in the project. Comments are due September 12, 2022.
Engage 2022
The GLS team had a great time this week in Las Vegas for the ENGAGE conference. The team was able to interact with clients and colleagues both at the exhibit booth and at various evening functions. We also had a wonderful client reception on Monday, which included the cover reveal of Melisa’s new book Money Matters for Nonprofits. This book demystifies financial statements and basic accounting, empowering nonprofit board members and other stakeholders to better advise their organizations and make an even greater difference in the world. At ENGAGE, Melisa enjoyed presenting on Nonprofit Hot Topics and attending some CPE for a change. But all good things come to an end. The team is heading home with ideas to build on this momentum.
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.