Genuine Learning Blog

The Genuine Learning Blog is a video series designed to keep you abreast of the latest developments in accounting and auditing.  This is a not a teaser, marketing tool.  This blog breaking down new proposals from GASB, FASB, and the AICPA into short manageable videos.  Watching this series will make you better informed than your peers!

 

melisa teaching
FAF Reviews PCC

FAF Reviews PCC

The Financial Accounting Foundation has opened an opportunity for stakeholders to provide feedback on the effectiveness of the Private Company Council (PCC). The review request includes several questions to help evaluate the impact and progress of the PCC and determine if any changes are needed. Comments are due May 31, 2024.

Proposed Sustainability Ethics Standard

Proposed Sustainability Ethics Standard

IESBA has issued a Proposed International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting which was issued in January 2024. It establishes a third pillar of ethics, including independence, standards to complete the infrastructure of international standards being developed by other standard setters and regulators and support public trust in sustainability-related information. Comments are due May 10, 2024.

ISAs for Less Complex Entities

ISAs for Less Complex Entities

In December, the International Auditing and Assurance Standards Board issued the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The ISA for LCE standards will allow auditors to provide reasonable assurance for audits of general purpose financial statements by following a scaled back audit approach appropriate for less complex entities. ISA for LCE is effective for audits beginning on or after December 15, 2025 with early adoption permitted.

2024 NASBA CPE Standards Update

2024 NASBA CPE Standards Update

The AICPA & NASBA issued updated CPE Standards in January 2024. They made changes to definitions and clarified group internet based rules. They also addressed the often requested “hybrid” which is not an actual program type for NASBA sponsors. We’ll review the key changes and how they are impacting GLS’s operations.

Proposed Concept Statement: Chapter 6: Measurement

Proposed Concept Statement: Chapter 6: Measurement

In December, FASB issued a proposed chapter of the Conceptual Framework on measurement. The proposal identifies 2 systems of measurement: entry prices and exit prices. It provides the underlying theory that the board would use when determining which measurement system is appropriate when developing GAAP. Comments are due March 20, 2024.

Induced Conversions of Convertible Debt Instruments

Induced Conversions of Convertible Debt Instruments

In December, FASB issued a proposed ASU that helps organizations determine whether a transaction is an induced conversion or an extinguishment. The topic comes from stakeholder questions and was debated by the Emerging Issues Task Force (EITF). Comments are due March 18.

DOL Audit Quality Study Report

DOL Audit Quality Study Report

In November 2023, the DOL issued their Audit Quality study that found that 30% of ERISA audits from 2020 (prior to the adoption of SAS 136) were materially nonconforming. We’ll review the scope of the DOL’s review, their findings and recommendations for the future.

2023 Trends Report

2023 Trends Report

The AICPA issued their 2023 Trends report which provides data on trends related to supply and demand for accounting students as well as trends related to the CPA exam. The report continues to show a drop in bachelor and masters degrees with an increase in demand from firms. The report is really helpful as the visuals show the trends across decades to provide perspective!

2023 Year In Review

2023 Year In Review

2023 is in the record books. This blog will review the standards that were issued by the FASB, AICPA and GASB throughout the year. This high level review will help you identify which standards you should check out in more detail! Happy New Year!

AICPA ED on Stablecoin

AICPA ED on Stablecoin

The AICPA’s Assurance Services Executive Committee (ASEC) recently issued an exposure draft to provide a framework for stablecoin issuers to present information about stablecoins and the assets that back them. While the FASB recently issued ASU 2023-08 which included subsequent recognition, presentation and disclosure requirements of crypto assets, ASEC is focusing this ED on token issuers and the need for a set of guidelines to share information about tokens. Comments are due January 29, 2024.

GAO Report: COVID19 Fraud Schemes

GAO Report: COVID19 Fraud Schemes

Building on last week’s blog, this week’s looks at another COVID-19 report issued by GAO which looks at the common fraud schemes found. The report, published in November, provides an update on the types of frauds and the outcome of the work done to bring fraudsters to justice.

GAO COVID Report

GAO COVID Report

GAO has issued two COVID fraud related reports. This week’s blog looks at the first one which focuses on some of the insights and lessons learned from the fraud in the COVID-19 response. GAO has made both Congressional as well as agency recommendations to help prevent similar fraud in the future.

Proposed Peer Review Standards Update No. 2

Proposed Peer Review Standards Update No. 2

The AICPA is proposing changes to the peer review standards. This update includes proposed changes for quality management with effective dates that would tie to the QM implementation. But there are other changes that are also included referred to as Omnibus changes that will be implemented earlier. Due to the release in November, the AICPA has provided a longer comment period with comments due May 2024.

Updated Statements on Standards for Tax Services

Updated Statements on Standards for Tax Services

While we often think of accounting and auditing when we think standards, tax professionals are also subject to standards which are changing effective January 1, 2024. We’ll review the key changes impacting tax professionals!

ITC: International Non-Profit Accounting Guidance Part 2

ITC: International Non-Profit Accounting Guidance Part 2

This blog will cover the second phase of the International Non-Profit Accounting Guidance by looking at Exposure Draft 2 and its proposed guidance for nonprofits. The goal of the INPAG project is create a global nonprofit financial reporting framework. ED2 focuses on providing guidance that amends current IFRS for SMEs which will serve as the base of the new guidance. The ifr4npo website has great explainer videos that details the proposals. Comments are due March 15, 2024.

2023 National Management of an Accounting Practice (MAP) Survey

2023 National Management of an Accounting Practice (MAP) Survey

The AICPA has released their 2023 National Management of an Accounting Practice (MAP) Survey Executive Summary. This summary can help firms benchmark themselves against the industry and see trends. Over 1100 firms participated in helping to understand trends in compensation and fees. The AICPA releases median information so firms can see where they fit in the big picture.

Disclosure and Classification of Certain Capital Assets

Disclosure and Classification of Certain Capital Assets

The GASB recently proposed to separate out disclosures of various types of assets to help users understand the types of assets. Due to the creation of new assets like lease assets and subscriptions assets in GASB 87 and 96 there have been questions about how disclosures should be presented. GASB’s proposal would separate out intangible assets, lease assets and subscription assets separately by their respective classes of assets. Comments are due January 5, 2024.


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.