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!
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.
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.
The AICPA’s Accounting & Review Services Committee (ARSC) has issued an exposure draft titled Quality Management for an Engagement Performed In Accordance with SSARS. As the AICPA has already exposed changes to the current quality control standards and a related SAS about QM at the engagement level, ARSC is providing guidance on the application of QM to SSARS engagements. Comments are due by January 31, 2022.
The GLS team held their first retreat in Orlando, FL earlier this month. Leveraging Disney excellence in customer service and quality, we used the home of the Magic Kingdom as the setting for our retreat. Our three day retreat offered each person an opportunity to lead sessions and help advance the company’s goals. We focused on areas for improvements and celebrated our wins. We used the Disney Institute book titled ‘Be Our Guest’ as the basis for the agenda of our retreat. In addition to deep work, we also had some fun team building experiences. Overall, we got a lot out of our 3 days together and we look forward to making it an annual tradition!
The AICPA has issued a proposal to update key terminology and certain ethics interpretations to better align with changes made by the SEC. The AICPA issued a temporary enforcement policy earlier this year. The goal is for this proposal to make the needed alignments. Comments are due January 5, 2022.
The AICPA has issued a proposal to make updates to the Peer Review standards. The changes are primarily formatting to make the standards more user friendly. There are a handful of substantive changes as well. Comments are due by December 15, 2021.
This week’s GLS blog addresses the final standards that were issued by the AICPA, FASB and GASB in the third quarter of 2021. While it was a light quarter from a standard setting perspective, some of the issued standards address implementation issues which are always helpful. As we expect some big standards to issue in Q4, a light quarter is likely a good thing as all standard setters have big projects on their plate as well!
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a proposal to revise the rules around unpaid fees. The current rules use a one year period with no considerations of materiality. The proposal would move to a principles based approach with a threats and safeguards application. Comments are due December 20, 2021.
The AICPA has issued a proposed ethics interpretation to help CPAs understand to what extent they can assist clients with implementing new accounting standards. The proposal identifies certain items as being nonattest services for which the normal rules for nonattest services would apply – management having SKE, management accepting responsibility, etc. On the other hand, it also identifies prohibited nonattest services the CPA can not perform without impairing independence. Comments are due December 20, 2021.
FASB has issued a proposed ASU addressing the accounting for investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The proposal clarifies that a contractual restriction on the sale of these securities is not considered part of the unit of account of the equity security which means it does not impact the measurement of fair value. Comments are due by November 14, 2021.
This week’s blog addresses part 2 of the IFR4NPO Consultation Paper. The second part of the paper focuses on NFP Specific Financial Reporting Issues. The project is looking for feedback on a variety of nonprofit specific financial reporting considerations. If you have a background in nonprofits, we encourage you to respond to Part 2 of the consultation paper by September 24, 2021.
The AICPA is in the process of updating the CPA exam and is looking for CPAs to give them feedback as to whether their plan meets the needs of the profession. The survey should take 20 – 25 minutes to complete but will provide useful feedback to the AICPA and NASBA on how to proceed with their plan to launch a new CPA exam in 2024. Survey closes September 7.
The AICPA has provided a Fraud Risk Frameworks document to help CPAs and their clients visual the types of fraud in 3 major sectors. The one pagers help put the most common types of fraud in a visual that can be used to generate discussion. The Frameworks were developed by the AICPA Forensic and Litigation Services (FLS) Fraud Task Force.
The AICPA has issued a TQA addressing questions about how for-profit and nonprofit entities account for the new restaurant revitalization and shuttered venue grants that have been received by many organizations. As there is no on point GAAP for for-profit entities, the TQA provides examples of guidance that can be applied by analogy.
Governmental Accounting Standards Board (GASB) issued a REVISED exposure draft regarding Notes to the Financial Statements. This is in preparation for a Concept Statement that helps determine what is “essential” for disclosure. The Board previously issued an ED back in 2020 and has made revisions based on the feedback received. Comments are due by October 15, 2021.
GASB has issued a proposed Omnibus Exposure Draft. The ED addresses implementation issues for leases, PPP and SBITA as well as targeted accounting guidance. It also addresses the delay in reference rate reform and LIBOR discontinuance. The Omnibus addresses a variety of topics that are not large enough to address in a standalone standard but that improve financial reporting. Comments are due September 17, 2021.
Have you ever wanted to influence the topics that FASB covers in its standard setting? Well, now here’s your chance. Today, Financial Accounting Standards Board (FASB) issued its Invitation to Comment (ITC) that asks individuals to provide feedback on its future standard-setting agenda. The ITC offers examples of topics provided by various stakeholders during the consultation process but provides opportunity to give additional thoughts to what FASB should focus their time on. Comments are due September 22, 2021.
It’s time to wrap up the second quarter of 2021. The quarter was pretty slow for issuances of final standards. In this blog, we’ll give an executive overview of the standards issued in the second quarter by FASB, GASB and the AICPA. This will keep you up to date with the changes in financial reporting and auditing.
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.