November 16, 2018
Published: Accounting Today
Financial Executives International has released two guides to help CFOs, controllers and other senior finance execs address the internal control considerations for the new lease accounting and credit loss standards.
The pair of “ICFR: Insights, Issues and Practices” guides discuss some of the considerations and best practices that financial statement preparers should follow in their application of internal controls when dealing with the Financial Accounting Standards Board’s new standards for leases and current expected credit losses, also known as CECL. FEI’s Committee on Corporate Reporting is publishing the two documents to help companies of different sizes implement and maintain effective internal controls over financial reporting for both of the new FASB standards.
“Internal controls must be top of mind for management at all times, but especially as new standards are operationalized, and new systems and processes are implemented,” said FEI CCR chairman Mick Homan, who is also vice president of finance and accounting for corporate accounting at Procter & Gamble. “These ICFR guides represent the collaborative efforts of leading preparers, with input from their auditors. We believe this will help refresh the dialog between management and its auditors, leading to process improvements and better internal controls,”
Both Insight Guides are available for download on the FEI website at The Lease Standard Insight and the Current Expected Credit Loss (CECL) Standard Insight.
Earlier this week, FEI hosted its annual Current Financial Reporting Issues Conference in New York, where a number of speakers addressed the new revenue recognition, leasing and CECL accounting standards.