Happy Halloween! This short blog will address a new Technical Q&A that the AICPA issued regarding the proper reporting for comparative financial statements in the year of adoption of SAS 134. The effective date and the fact that you can’t early adopt, created some questions as to what the proper format would be in the year of adoption. The TQA offers two methods of presentation for auditors to choose between.
The AICPA has issued another proposed SAS titled Auditing Accounting Estimates & Related Disclosures. The proposal was issued in August 2019. The project was driven by high rates of nonconformity found in auditing estimates as it is the most common audit issue detected by practice monitoring programs worldwide. The standard addresses risk assessment and response as well as audit procedure interweaving its requirements with other sections of the audit standards. Comments are due November 22, 2019.
The AICPA has issued a proposal to align the 800 section of the auditing standards with SAS 134. The proposal addresses special purpose frameworks, single financial statements and elements as well as summary financial statements. The goal was to align the report with some modifications due to topics. Comments are due October 28, 2019.
The AICPA has published the Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies guide. The guide is intended to help preparers, auditors, and valuation specialists with the accounting for and valuation of portfolio company investments held by investment companies that fall under the scope of FASB’s Accounting Standards Codification ASC 946, Financial Services—Investment Companies. The guide was developed by the AICPA PE/VC Task Force which includes members from the PE/VC industry, auditors, valuation practitioners, and AICPA staff.
The AICPA’s Professional Ethics Executive Committee (PEEC) of the AICPA has published a revision to Independence Rule Interpretations related to Information System Services. The interpretation offers guidance to members that provide nonattest services related to an attest client’s information systems. It is much more detailed than previous guidance in order to help members understand under what circumstances independence would be impaired and when it would not be impaired. The newly released amendment is effective on January 1, 2021 and early implementation is allowed.
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.
