This week we review the standards issued and proposed in the second quarter of 2020 for GASB, FASB, and the AICPA. While it was a slower quarter, GASB did manage to finalize quite a few final standards while also issuing exposure drafts for the conceptual framework and a preliminary views document on revenue and expenses. FASB focused solely on COVID19. The AICPA addressed COVID19, as well, while also issuing the final standard in their reporting suite and four TQAs.
The AICPA has issued a Technical Q&A to provide guidance on how nongovernmental entities should account for monies received under the CARES Act. The Q&A addresses questions related to how to account for the forgiveable portion of the PPP loans. GASB has issued a separate exposure draft addressing accounting for governmental entities.
The AICPA’s Professional Ethics Executive Committee (PEEC) delayed 3 interpretations at its May meeting. In addition, it has issued an exposure draft addressing record requests and updates the interpretation regarding acts discreditable. Comments are due September 30th.
In December, the AICPA Auditing Standards Board proposed amendments to conform sections of its codification to standards issued earlier in the year on auditor reporting (SAS 134) and the auditor’s responsibilities relating to other information included in annual reports (SAS 137). The ASB also proposed amending certain AU-C sections (particularly AU-C Section 935 – Compliance Audits) to address practice issues that have arisen since they were revised. This proposal represents a continuation of the efforts to improve transparency into the basis for the auditor’s opinion and to further clarify the responsibilities of both management and auditors. Comments are due February 10th.
Happy New Year AND New Decade (although some are debating that fact!). In honor of the new decade, we decided to kick off our first blog in 2020 on changes coming to the CPA profession. We start with a look at a proposal to change the CPA exam. NASBA and the AICPA have proposed a model similar to engineers to incorporate a core exam and then a specialty while everyone would receive the same CPA license. We then turn our attention to the Dynamic Audit Solution that the AICPA and its Major Firms Group are creating to disrupt the audit profession. We close with a look at the CGMA Competency Framework for those in industry on the skills needed to be successful and the changes coming to the future of finance. This decade will be filled with disruption, innovation and progress. We wish you a decade filled with learning, development, and growth!
Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with nearly 20 years of experience in the accounting profession, Melisa designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting.
Her passion is providing high-quality CPE that is meaningful, creates efficiencies and improves quality, and positively impacts ROI. She also supports essential professional development, audit level training, and train the trainer efforts.
Melisa is a Certified Speaking Professional, a Certified Professional in Talent Development (CPTD), and has earned the Association for Talent Development Master Trainer™ designation. Her passion for instructional design and adult learning techniques is one of the differentiators that set her apart from other CPE providers.
She also serves on the FASB’s Not-for-Profit Advisory Committee (NAC), AICPA Council, and the AICPA’s Women’s Initiative Executive Committee (WIEC). She also serves as a Subject Matter Expert for the Center for Plain English Accounting. She previously served on the AICPA’s Technical Issues Committee (TIC), the VSCPA’s Board of Directors, and is a past Chair of the NCACPA’s A&A committee. In addition, Melisa is the author of Money Matters for Nonprofits: How Board Members Can Harness the Power of Financial Statements by Understanding Basic Accounting which is available on Amazon or anywhere you purchase books online.
Melisa received a Top 50 Women in Accounting Award in 2021 by Ignition, is a 2020 Enterprising Women of the Year Award recipient, and was honored as a “40 under 40” by CPA Practice Advisor in 2017, 2018, and 2019. She was also named the 2019 Rising Star by her regional NAWBO chapter, received the Don Farmer award for achievement in technical content instruction, and earned several other awards for public speaking and technical training.
