• Reporting of Non-Financial Information by SMEs in Europe

    January 22, 2019 Published: IFAC By: Paul Thompson There are growing pressures for businesses to explain how their activities impact the environment and society at large. In Europe, and indeed in many if not most other regions, small and medium-sized enterprises (SMEs) account for the majority of private sector GDP, employment, and environmental and social

  • CPA Canada study of the impact of adopting the new revenue standard

    January 21, 2019 Published: CPA Learn about the key findings from Chartered Professional Accountants of Canada (CPA Canada)’s study of the financial impact of the adoption of the new revenue standard by listed companies. Canadian public companies with calendar year ends began applying a new accounting standard for revenue recognition in the first quarter of

  • Comment on the proposed general improvements to the IFRS Taxonomy 2018 by Monday 4 February

    January 16, 2018 Published: IFRS In December 2018, the IFRS Foundation published IFRS Taxonomy 2018—Proposed Update 2 General Improvements for public consultation. The proposed changes aim to improve the quality of tagged data and to make the IFRS Taxonomy easier to use. The proposed update: – introduces implementation notes that explain how to use specific IFRS Taxonomy elements and

  • IAASA warns UK auditors of impacts of No-Deal Brexit

    January 17, 2019 Published: The Accountant By: Joe Pickard The Irish Auditing and Accounting Supervisory Authority (IAASA) has written to the leading UK audit firms to give advice on preparations for a no-deal Brexit scenario. The IAASA has stated that in the event of a no-deal exit from the EU, UK audit firms will have

  • IOSCO issues good practices to assist audit committees in supporting audit quality

    The Board of the International Organization of Securities Commissions (IOSCO) published today the IOSCO Report on Good Practices for Audit Committees in Supporting Audit Quality, which seeks to assist audit committees in promoting and supporting audit quality. The quality of a company’s financial report, supported by an independent external audit, is key to market confidence

  • Corporate Tax remains a key source of revenue for developing countries

    January 15, 2019 Published: The Accountant By Mishelle Thurai Despite falling rates worldwide, corporate tax remains a key source of income especially for governments in developing countries. Corporate Tax Statistics, a report from the Organisation for Economic Co-operation and Development (OECD), revealed in Egypt, Kazakhstan, Malaysia, Papua New Guinea and the Philippines, Corporate Income Tax

  • Future Implementation Support for International Standards on Auditing (ISAs)

    January 15, 2019 Published: IFAC By: Christopher Arnold and Dawn McGeachy As part of the IFAC’s commitment to support the implementation and adoption of international standards, we are exploring if new or additional initiatives could better assist small and medium-sized practices (SMPs) in efficiently and effectively implementing the International Standards on Auditing (ISAs). In particular, we are

  • The EC´s Technical Expert Group on Sustainable Finance publishes First Report

    January 14, 2019 Published: The Accountant The Technical Expert Group on Sustainable Finance set up by the European Commission (EC) has published its first report on companies’ disclosure of climate-related information. The report contains proposals for disclosing not just how climate change might influence the performance of a company, but also the impact of the

  • Delivery of last pending proposals, a common Destiny of unity, the hour of European Democracy

    January 9, 2019 Published: European Commission In its first weekly meeting of 2019 Commission discusses the main political challenges ahead The College of Commissioners held today the first weekly meeting of 2019 which was devoted to discussing the challenges of this new year. Commissioners used the opportunity to take stock and discuss the year ahead,

  • From Risk to Opportunity – Accountants Need to Lead Enterprise Risk Management

    January 7, 2019 Published: IFAC By:  Stathis Gould and Stuart Chaplin IFAC’s report, Enabling the Accountant’s Role in Effective Enterprise Risk Management, highlights both the importance of Enterprise Risk Management (ERM), and the contribution of accountants, CFOs and finance functions in leading ERM practice. We believe that professional accountants have an opportunity to enable more effective

  • Volunteering for a more human approach

    January 7, 2019 Published: Accountancy Europe Auditors face increasing pressure to evaluate more than just the financial results of a company. For 40 years, one audit firm in the Netherlands has been committed to helping the community for a more human approach to the profession. Marcel Karman and Arjan Buteijn of Dubois & Co, share

  • A new framework for audit quality disclosures

    January 8, 2019 Published: Journal of Accountancy In their continuing pursuit of the highest possible quality in their work, many audit firms produce annual transparency or audit quality reports to inform the public about their efforts. To help audit firms develop those disclosures, the Center for Audit Quality (CAQ) has developed a new Audit Quality Disclosure

  • Changes related to peer review proposed for UAA

    January 4, 2019 Published: Journal of Accountancy The National Association of State Boards of Accountancy (NASBA) is proposing changes to the Uniform Accountancy Act (UAA) Model Rules related to peer review programs. The UAA is a nonbinding model designed to provide best practices for state laws and regulations related to the accounting profession. Typically, when

  • FASB proposes alternative to accounting for Goodwill and certain identifiable intangible assets for non-for-profits

    January 3, 2018 Published: The Accountant The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU), which would reduce the cost and complexity of accounting for goodwill and measuring certain intangible assets for not-for-profit organisations. Stakeholders have been encouraged to review and provide input on the proposed ASU by February 18

  • ASB changes align GAAS with PCAOB standards

    January 3, 2019 Published: Journal of Accountancy The AICPA’s Auditing Standards Board (ASB) voted to issue a new auditing standard, Omnibus Statement on Auditing Standards — 2019,that will more closely align standards for auditors of nonpublic clients to the auditing standards of the PCAOB, in order to enhance audit quality in an effective and efficient manner. The

  • ICYMI: Top Trends on Gateway in 2018

    December 18, 2018 Published: IFAC By: Bhumi Jariwala, Editor, IFAC Global Knowledge Gataway For the accountancy profession, 2018 was a future-focused year. The need to embrace rapidly emerging technologies, attract and retain top talent, enhance audit quality, leadership in ethics and demonstrating how the accountancy profession is playing a wider role in society were among the key

  • PCAOB posted an annotated example of an auditor’s report for the audit of a broker or dealer

    December 17, 2018 The following is an example of an unqualified auditor’s report under AS 3101* on the financial statements of a broker or dealer reporting under Rule 17a-5 of the Securities Exchange Act of 1934. The example includes an unqualified auditor’s report on the supplemental information and assumes no explanatory or emphasis paragraphs. New

  • Investors favor SOX 404(b) audit rule, says study

    December 27, 2018 Published: AccountingToday Section 404(b) of the Sarbanes-Oxley Act of 2002, which requires public companies to undergo annual audits of the adequacy of their internal controls over financial reporting, appears to be supported by investors who want newly acquired companies to be audited as well, according to a new study. The study, by

  • UK Gov. launches new review into audit profession

    December 18, 2018 Published: The Accountant Donald Brydon, the outgoing chair of the London Stock Exchange Group, has been appointed to lead a new independent review of the quality and effectiveness of the UK audit market, the so-called ‘Brydon Review’. The independent review was launched the same day the Kingman Review published its findings that

  • How audit committees can oversee FASB standard adoption

    December 20, 2018 Published: Journal of Accountancy The abundance of game-changing new accounting standards issued by FASB has given audit committees a lot to consider as 2018 concludes. New standards for revenue recognition, lease accounting, and accounting for credit losses have demanded intense focus from company finance departments. Audit committees are charged with oversight and

  • 6 tips for developing critical audit matter disclosures

    December 21, 2018 Published: Journal of Accountancy A new standard for public company auditing is bringing the stress that accompanies any significant change, but it also is giving auditors the opportunity to communicate more about the audit. New PCAOB rules for the auditor’s report require auditors to disclose “critical audit matters” that are encountered in

  • PCAOB Adopts New Estimates Standard and Amendments Related to Using the Work of Specialists

    December 20, 2018 Published: PCAOB The Public Company Accounting Oversight Board today adopted a new standard to enhance the requirements that apply when auditing accounting estimates, including fair value measurements.  The Board also adopted amendments to its auditing standardsto strengthen requirements that apply when auditors use the work of specialists in an audit. The new estimates standard replaces

  • Post-Implementation Review of AS 1220, Engagement Quality Review

    December 19, 2018 Published: PCAOB PCAOB staff have completed a post-implementation review of AS 1220, Engagement Quality Review. The review of AS 1220 is the PCAOB’s first post-implementation review. The review includes key findings, messages for auditors and audit committees, and enhancements to achieve more effective reviews. To perform the review the staff analyzed information collected through the

  • GAAP, SEC taxonomies for 2019 are available

    December 18, 2018 Published: Journal of Accountancy The 2019 GAAP Financial Reporting Taxonomy and the 2019 SEC Reporting Taxonomy are available on FASB’s website, the board announced Tuesday. FASB expects the taxonomies to be accepted as final by the SEC early in 2019. The 2019 GAAP Financial Reporting Taxonomy contains updates for accounting standards and other recommended improvements. The

  • 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements

    December 17, 2018 Published: IFAC – IAASBCurrent Edition The latest edition of the handbook includes: – ISA 250 (Revised), Consideration of Laws and Regulations in an Audit of Financial Statementsand amendments to other International Standards in response to the new requirements addressing non-compliance with laws and regulations (NOCLAR) in the IESBA International Code of Ethics for Professional

  • PCAOB to consider rules on auditing estimates, use of specialists

    December 11, 2018 Published: Journal of Accountancy The PCAOB will consider whether to adopt new public company auditing rules for auditing accounting estimates and use of the work of specialists during a public meeting scheduled for Dec. 20. The subjective nature of estimates and fair value measurements make these issues challenging for auditors. The PCAOB

  • FRC issues revised auditing standard and consults on guidance for quality bank audits

    12 December 2018 Published: FRC The Financial Reporting Council (FRC) has issued an International Standard on Auditing Accounting Estimates and Related Disclosures, covering the audit of expected credit losses in banks and which reflects the increased importance and complexity of estimates in financial statements. The FRC strongly supported the development on this standard. The FRC is

  • Signs on the Road to Change for Accountants in Business in a Digital Age

    December 11, 2018 Published: IFAC By: Larry White, Executive Director, Resource Consumption Accounting Institute   Professional accountants working in business and the public sector constitute the overwhelming majority of the profession working within and beyond finance teams. The future attractiveness of the profession is very much dependent on the value these accountants create to secure

  • How audit committees can address emerging technologies

    December 12, 2018 Published: Journal of Accountancy Emerging technologies present big opportunities for efficiencies and strategic advantages for companies, but they also pose substantial challenges for audit committees. Artificial intelligence and robotic process automation can change the way companies do business and increase efficiency and the quality of financial reporting. But the technologies also pose

  • SEC urges consistency in non-GAAP reporting

    December 10, 2018 Published: Journal of Accountancy SEC Chairman Jay Clayton and Chief Accountant Wes Bricker urged CPAs on Monday to deliver consistency in the non-GAAP information they report to investors. “There has to be a similar consistency in the reporting of non-GAAP numbers and key performance indicators (KPIs) as we expect in GAAP numbers,”

  • What ‘dry runs’ reveal about critical audit matters

    December 10, 2018 Published: Journal of Accountancy New PCAOB rules on the content of the auditor’s report are providing audit practitioners with an opportunity to communicate more and different information on an engagement than ever before. But auditors are still performing “dry runs” to practice how and what to communicate as they prepare to implement

  • What PCAOB inspectors will look for in 2019

    December 7, 2018 Published: Journal of Accountancy Systems of quality control, independence issues, and recurring deficiencies will be among the main areas of focus during PCAOB inspections of registered audit firms during 2019. The PCAOB Division of Registration and Inspections staff on Thursday provided an outlook on the objectives and potential focus areas for its 2019 inspections

  • Simplifying implementation of FASB’s not-for-profit financial reporting standard

    November 5, 2018 Published: Journal of Accountancy By Christopher M. Gordon, CPA, and Ruth Granlund, CPA Tax-exempt organizations are working through the biggest change to not-for-profit financial reporting in 25 years. FASB Accounting Standard Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, brings significant changes for all not-for-profit organizations,

  • AICPA issues new standard for ERISA benefit plan audits

    December 3, 2018 Published: Accounting Today The American Institute of CPAs’ Auditing Standards Board voted to issue a long-awaited standard on audits of financial statements of employee benefit plans, although it is still awaiting some details before the standard takes effect. The Statement on Auditing Standards Forming an Opinion and Reporting on Financial Statements of Employee

  • US Regulators plan changes to CPA Licensure Model

    November 29, 2018 Published: The Accountant Leaders from the accounting profession, regulators and other stakeholders have revealed talks are ongoing in an effort to change the US CPA licensure model in response to the expanded skillsets accountants need. The goal of the effort is to align licensure with how CPAs will perform services in an

  • 8 things to know about lease accounting implementation

    November 29, 2018 Published: Journal of Accountancy The changes brought about by FASB’s new lease accounting standard are coming into full view for finance departments that use U.S. GAAP for their financial reporting. Many public companies are in their last stages of implementing the standard, which takes effect for them at the beginning of next

  • Harnessing Innovative Technologies To Advance Audit Quality

    November 20, 2018 Published: Forbes By: Panos Kakoullis Brand Contributor Businesses today operate in a dynamic, fast-moving, digitally enabled, and fiercely competitive global economy. To respond, organizations must constantly adapt – and so must their auditors, by incorporating innovative technologies to continuously address and identify emerging risks in markets characterized by perpetual transition. Ground breaking technologies

  • How to incorporate analytics into workforce planning

    November 27, 2018 Published: Journal of Accountancy In a time of great disconnection in the workplace, scenario planning through analytics may be a key to success for organizations and their people. The workplace disconnection arises because organizations are having difficulty finding enough skilled workers to fill their vacant positions, yet even the best employees are

  • Strategies for maintaining an effective board

    November 1, 2018 Published: Journal of Accountancy Strong not-for-profit governance hinges on successful recruitment, training, and retention. The severity of the risks associated with not-for-profit board shortcomings came fully into focus for Cheryl Olson, CPA, CGMA, while she was having coffee earlier this year with Elizabeth Grant. Grant is attorney-in-charge of the Charitable Activities Section in the Civil Enforcement Division

  • IOSCO seeks feedback on proposed framework for assessing leverage in investment funds

    November 14, 2018 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on a proposed framework to help measure leverage used by investment funds which in some circumstances could pose financial stability risks. The proposed framework, outlined in IOSCO Report: Leverage, comprises a two-step process aimed at achieving a

  • AICPA wants IRS to reconsider tax transcript changes

    November 20, 2018 Published: AccountingToday The American Institute of CPAs is asking the Internal Revenue Service to rethink its proposed changes to the tax transcript process, contending they would delay the process of getting copies of old tax returns for clients. “We appreciate your efforts to protect taxpayer data from cybercriminals; however, these changes will

  • Global growth is slowing amid rising trade and financial risks

    November 21, 2018 Published: OECD Global economic growth remains strong but has passed its recent peak and faces escalating risks including rising trade tensions and tightening financial conditions, according to the OECD’s latest Economic Outlook. Growth forecasts for next year have been revised down for most of the world’s major economies. Global GDP is now

  • Proposed guidance published on inventory valuation

    November 19, 2018 Published: Journal of Accountancy The AICPA Financial Reporting Executive Committee (FinREC) on Monday published a working draft on inventory valuation and is seeking comments on the draft. The inventory valuation material ultimately will be included in an AICPA Accounting and Valuation Guide on business combinations. The inventory working draft provides nonauthoritative guidance and illustrations

  • Review of 2016 Audit Standards

    November 20, 2018 Published: The Financial Reporting Council (FRC) The Financial Reporting Council (FRC) is consulting with stakeholders to determine how effective the changes to ethical and auditing standards in 2016 have been in delivering high quality audit, and whether further steps are now needed to strengthen auditor independence, reduce conflicts, improve quality and preserve trust in

  • FEI publishes guides to internal controls for leasing and CECL standards

    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

  • FRC announces 2019/20 audit thematic reviews, priority sectors and audit areas of focus

    November 15, 2018 Published: The Financial Reporting Council (FRC) The Financial Reporting Council (FRC) will, in 2019/20, supplement its routine AQR monitoring programme with two thematic reviews. These thematic reviews, which focus on aspects of audit practice across a number of firms to identify both scope for improvement and good practice, complement other AQR work,

  • IASB to propose one-year deferral of insurance contracts Standard

    November 14, 2018 Published: IFRS The International Accounting Standards Board (Board) has today voted to propose a one-year deferral of the effective date for IFRS 17, the new insurance contracts Standard, to 2022. The Board has also decided to propose extending to 2022 the temporary exemption for insurers to apply the financial instruments Standard, IFRS

  • New PCAOB board members plan big changes

    November 13, 2018 Published: AccountingToday The Public Company Accounting Oversight Board is planning extensive changes in how it inspects firms and interacts with financial statement preparers. The PCAOB has a new slate of board members this year along with a new chairman. Two of the new board members, James Kaiser and Duane DesParte, spoke alongside

  • SEC looking at Trump proposal on quarterly financial reporting

    12 de noviembre 2018 Publicado: AccountingToday Presidente Comisión de Valores de Jay Clayton dijo la SEC está estudiando una propuesta del presidente de Trump para cambiar el ciclo trimestral de información financiera para las empresas públicas. En agosto, Trump pié, “Al hablar con algunos de los principales líderes de negocios del mundo, le pregunté qué

  • When the SEC Speaks About Cybersecurity, We’d All Better Listen

    November 12, 2018 Published: The Institute of Internal Auditors In his blog, Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, shares his personal reflections and insights on the internal audit profession. Here’s an excerpt from his latest blog: I often find myself talking with reporters about internal audit’s role regarding risks, particularly cybersecurity. Recently, a reporter asked me