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!