Chapter 4, Conceptual Framework: Elements
The FASB has issued an update to the definition of key elements in the Concept Statements. The definitions of an asset, liability, revenue and expenses have all received an update. This blog will discuss what’s changing and how the concept statements interact with the writing of ASUs.
Information System Services Ethics Update
The Professional Ethics Executive Committee (PEEC) of the AICPA has postponed the implementation of the Information System Services Interpretation an additional year. In addition, PEEC has also provided a new practice aid. The interpretation will now be effective in January 2023.
2021 A&A Year in Review
Happy New Year! Let’s wrap up 2021 with a review of all things accounting and auditing! 2021 saw a flurry of activity from the AICPA, FASB and GASB. We’ll review the final and proposed standards that were issued in 2021. Wishing you all a prosperous 2022!
FASB Announces 2022 Research Agenda
FASB announced its updated research agenda based off of initial discussions of the earlier 2021 Invitation to Comment. The ITC was an agenda consultation project to hear from stakeholders what their thoughts were on the next phase of standard setting. The research agenda includes 6 items that if approved will move to the standard setting agenda.
Temporary Policy Statement Related to the USERRA
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a Temporary Policy Statement Related to the Uniformed Services Employment and Reemployment Rights Act (USERRA) and parallel state statutes. They are providing an exception to the simultaneous employment requirements, assuming certain qualifications are met, for employees who provide services to the military and are also serving in the armed forces. The temporary policy is effective until rescinded by PEEC.
Disclosure Framework – Proposed Changes to Interim Disclosure Requirements
The FASB has issued an exposure draft as part of its Disclosure Framework project to update the disclosure requirements for interim reporting. The proposal follows ASU 2018-13 and 2018-14 in updating disclosures using the new conceptual framework. Comments are due January 31, 2022.
SEFA Reporting for Provider Relief Funds
The AICPA has issued a Technical Q&A to address questions surrounding reporting on the SEFA when the amount reported does not tie back to the financial statements due to DHHS’s requirement to report based on the reporting to the Portal. The TQA provides guidance on the application of AU-C 725 to this scenario.
ASB Survey on Auditing LCEs
The AICPA’s Auditing Standards Board (ASB) is interested in hearing from auditors who perform audits of less complex entities (LCEs). They want to know your thoughts on what the ASB can do to make GAAS more scalable including even potentially issuing a separate set of standards! Give your feedback by November 22 to be heard.
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.
