The International Ethics Standards Board for Accountants® (IESBA®) has issued two new ethics standards. The first addresses fee-related prohibitions. Firms may not permit the audit fee to be influenced by the provision of services other than the audit to the audit client. In addition, they revised the non-assurance services rules to clarify the circumstances in which firms may provide nonassurance services to an audit or assurance client.
GAO has issued a technical update to Yellow Book. In a very rare move, GAO has made modifications to a handful of paragraphs in the 2018 Yellow Book. The updates address the concept of equity, SKE for nonaudit services and changes to evaluation of internal controls for performance audits. Updates were effective upon issuance.
The GASB has issued an exposure draft to amend the name of the comprehensive annual financial report to the Annual Comprehensive Financial Report. The current spoken acronym is offensive in some cultures and reordering the terms will alleviate unintended insults. There are no changes to the contents or use of the report, just the title. Comments are due July 9, 2021.
Todays blog looks at a movement to develop internationally applicable financial reporting guidance for non-profit organizations. IFR4NPO has issued a consultation. This blog looks at Part 1 of the proposal which includes scope and overall conceptual framework to be used in the development of this international standard. Comments on Part 1 are due by July 30, 2021.
The first quarter of 2021 is a wrap. It was a light quarter for standard setting and given everything else we have going on, that’s probably not a bad thing! This blog covers the few standards that were finalized in Q1.
GASB has issued a proposal to address diversity in practice as well as common deficiencies related to reporting compensated absences. The proposal addresses PTO and sabbaticals as well as provides a single method of accounting for leave. The proposal includes the use of FIFO to account for the amount due in one year as well as a provides guidance on using the current pay rate for recognition of the liability. Comments are due June 4th.