• FASB votes to delay effective dates for 3 major standards

    October 16, 2019 Published: Journal of Accountancy Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses (known as CECL), and hedging after a unanimous vote Wednesday by FASB. FASB directed its staff to draft an Accounting Standards Update (ASU) that will change the

  • Corporate Boards May Be Blind to Risks

    October 15, 2019 Published: The Institute of Internal Auditors (IIA) Unique Survey Finds Critical Gap Between What Boards Think Is Going On and What’s Really Happening Boards are significantly overconfident when it comes to addressing the thorniest issues facing organizations today. Board members have greater confidence in their organizations’ ability to manage key risks than members of

  • IFAC sees greater adoption of global accounting standards

    October 14, 2019 Published: Accounting Today The International Federation of Accountants issued a report Monday indicating strong support for international accounting and auditing standards, particularly in areas where IFAC member organizations are involved in the process from beginning to end. The report includes data from more than 170 professional accountancy organizations that make up IFAC’s

  • FRC reviews of disclosures relating to reporting requirements

    October 10, 2019 Published: FRC Companies have responded positively to newly introduced reporting requirements for Revenue Recognition and Financial Instruments but there is still considerable scope for them to improve the quality of their annual report disclosures. The findings relate to three thematic reviews conducted by the Financial Reporting Council (FRC) to analyse companies’ disclosures for the

  • OECD leading multilateral efforts to address tax challenges from digitalisation of the economy

    October 9, 2019 Published: OECD The OECD Secretariat published a proposal to advance international negotiations to ensure large and highly profitable Multinational Enterprises, including digital companies, pay tax wherever they have significant consumer-facing activities and generate their profits. The new OECD proposal brings together common elements of three competing proposals from member countries, and is based on

  • To rebuild trust in auditors, we need the courage to speak up

    October 7, 2019 Published: Accountancy Europe Marie-Pauline Lauret, Global Head of Internal Audit of a large Dutch listed company, tells us about how auditors can help rebuild trust in the profession by speaking up and looking beyond the scope of their role. Auditors can change culture! Auditors have the power to change corporate culture from

  • Key audit matters in European Banking sector – update 2019

    Auditors identifying risks October 7, 2019 Published: Accountancy Europe Key audit matters (KAMs) are the most significant risks in the audit of financial statements. They have the biggest impact on overall strategy and the allocation of resources in an audit. KAMs are communicated by the auditor in their report. Reporting on KAMs opens the way

  • 21% of JSE-Listed Companies have changed their auditors ahead of MAFR deadline

    October 8, 2019 Published: The Accountant With less than four years remaining until the effective date of Mandatory Audit Firm Rotation (MAFR) (1 April 2023) in South Africa, roughly 21% of the JSE Ltd main board listed companies have voluntarily rotated auditors since the Independent Regulatory Board for Auditors (IRBA) started tracking audit firm rotations

  • Critical audit matters: What firms are reporting

    October 4, 2019 Published: Journal of Accountancy By: Maria L. Murphy, CPA Some important themes are emerging in auditors’ reporting of critical audit matters, which are the key component of the biggest change to public company auditor reporting in 70 years. Goodwill and intangible assets, revenue, and income taxes were the most frequent topical areas reported

  • IOSCO publishes updates to peer reviews of regulation of MMFs and securitization

    October 2, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published two update reports entitled Update to the IOSCO Peer Review of Regulation of Money Market Funds and Update to the IOSCO Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation. These reports summarize IOSCO’s ongoing efforts to monitor implementation of

  • Research supports the FRC taking firmer action on regulation

    October 2, 2019 Published: The Accountant The UK’s Financial Reporting Council (FRC) citizens’ juries believe the FRC should take firmer action to hold companies to account, says new research. The citizens’ juries allowed participants to be presented with, and have time to discuss topics including corporate reporting, corporate governance, audit and the FRC’s work in

  • New TQAs discuss 2019 Compliance Supplement’s guidance for performing single audits

    September 24, 2019 Published: Journal of Accountancy By: Ken Tysiac New Technical Questions and Answers (TQAs) posted Tuesday by the AICPA provide nonauthoritative guidance related to single audits. The Office of Management and Budget’s 2019 Compliance Supplement contains new guidance for single audits, which are compliance audits performed under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for

  • Alliance of accounting organisations finds multidisciplinary firm structure benefits audit quality

    September 27, 2019 Published: The Accountant A global alliance of accounting organisations has found firms that offer both audit and non-audit services are best positioned to deliver robust and reliable assurance. A report published by Chartered Accountants Australia and New Zealand (CA ANZ), the Association of Chartered Certified Accountants (ACCA) and the International Federation of

  • OECD: Use of Digital Technologies set to increase Tax compliance

    September 24, 2019 Published: The Accountant The recently published eighth edition of the OECD’s Tax Administration Series reveals how tax administrations are increasingly moving to e-administration and using a range of technology tools, data sources and analytics to increase tax compliance. According to the report, an increase in e-administration are creating more options for online filing of

  • Voices: Operating vs. finance leases: The impact of the new standard

    September 24, 2019 Published: AccountingToday By: Kevin Rhode The clock is ticking on the countdown to the implementation of the new lease accounting standard for private companies. According to reports from the Securities and Exchange Commission and the U.S. Chamber of Commerce, U.S. companies currently have an estimated $2.8 trillion in operating lease obligations that are

  • Climate Action in a Climate Emergency

    September 19, 2019 Published: IFAC By: Kevin Dancey, Chief Executive Officer, IFAC Climate change is serious. The threat is immediate. There is no long-term planning horizon. It is one of those big, scary, multi-faceted societal problems that will require serious, coordinated vision and leadership to solve. This is not a problem we can wish away

  • Taxes on polluting fuels are too low to encourage a shift to low-carbon alternatives

    September 20, 2019 Published: OECD Taxing polluting sources of energy is an effective way to curb emissions that harm the planet and human health, and the income generated can be used to ease the low-carbon transition for vulnerable households. Yet 70% of energy-related CO2 emissions from advanced and emerging economies are entirely untaxed, offering little incentive

  • The IIA Releases New Practice Guide on Demonstrating the Core Principles for the Professional Practice of Internal Auditing

    September 19, 2019 Published: The Institute of Internal Auditors The IIA’s Core Principles for the Professional Practice of Internal Auditing are part of the IPPF’s Mandatory Guidance. The principles validate the effectiveness, credibility, and value of the internal audit activity within an organization’s governance structure.   This new practice guide explains the concepts embodied in the

  • Integrated thinking is a game changer for sustainable corporate governance

    September 12, 2019 Published: The International Integrated Reporting Council (IIRC) By: Olivier Boutellis-Taft, CEO, Accountancy Europe Since the industrial revolution, the market economy has propelled prosperity, well-being, life expectancy, cultural creativity and personal fulfilment. However, our economy is also aggravating natural resource depletion, deadly pollution, over-consumption and growing social concerns ranging from income inequality to climate migrations.

  • Cybersecurity Tops Business Risks, say Internal Auditors

    September 11, 2019 Published: International Accounting Bulletin A new survey has found the top three risks faced by businesses across Europe are: cybersecurity (78%), regulatory change (59%) and digitalisation (58%). The survey of 528 Chief Internal Auditors (125 from the UK and Ireland) is part of the Chartered IIA’s Risk in Focus 2020 report. The

  • 5 Key Factors to Enhance Audit Committee Effectiveness

    September 9, 2019 Published: IFAC By:  Laura Leka , Technical Manager, Global Accountancy Profession Support, IFAC and Laurie Tugman, IFAC PAIB Committee Member Corporate failures and scandals across countries, including the recent collapses of Carillion, Patisserie Valerie and London Capital & Finance in the UK, failings in South Africa’s state-owned entities Transnet, Eskom, and South African Airways, and

  • More efforts needed to boost trust in business and finance

    September 9, 2019 Published: OECD Policy makers should step up their efforts to bolster public trust in finance to reduce the risks of contagion if economic growth and financial returns continue to fall, according to a new OECD report. The 2008 global financial crisis marked a turning point in the way governments considered the role

  • AICPA issues auditor practice aid on CECL standard

    September 9, 2019 Published: Accounting Today The American Institute of CPAs has released a practice aid to help auditors with the allowance for credit losses under the Financial Accounting Standards Board’s new standard for measuring credit losses on financial statements. The practice aid, Allowance for Credit Losses — Audit Considerations, focuses on loans measured at amortized

  • FASB proposes guidance to ease transition to new benchmark rates

    September 5, 2019 Published: Journal of Accountancy FASB is seeking feedback on a proposed Accounting Standards Update (ASU) designed to reduce the accounting costs and complexities related to the migration from interbank-offered interest rates to new reference rates. The proposed ASU, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,would establish

  • FRC publishes annual report as the transition to a new regulator progresses

    September 6, 2019 Published: FRC The Financial Reporting Council (FRC) has today published its annual report for 2018/19 setting out its progress against commitments to tackle poor-quality audit work, boost Enforcement resourcing and improve the quality of reporting.      During the year the FRC substantially revised the UK’s Corporate Governance Code and consulted on an overhaul of the

  • IFAC launches ‘Future-Fit’ series to address changing role of accountants

    September 5, 2019 Published: The Accountant With a changing and uncertain business environment, Chief Financial Officers (CFOs) and finance functions must evolve to sit at the heart of decision making within their organisations, according to a series launched by IFAC (the International Federation of Accountants). The series includes: – A vision for the CFO and

  • The Role of the Global Accountancy Profession in Addressing 21st Century Public Sector Challenges

    September 3, 2019 Published: IFAC The public sector is facing a multitude of challenges globally, from budgetary pressures and revenue limitations to intense scrutiny of public finances, all at the same time as rapidly increasing demand for high-quality public services. Around the world, common issues have emerged with many countries facing: – Increasingly less citizens

  • IFIAR comments on IAASB Exposure Drafts for ISQM 1, ISQM 2 & ISA 220

    July 1, 2019 Published: IFIAR The International Forum of Independent Audit Regulators (IFIAR) appreciates the opportunity to comment on the International Auditing and Assurance Standards Board (IAASB) exposure drafts for ISQM 1 (Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements), ISQM 2 (Engagement Quality Reviews)

  • The IIA Releases New Practice Guide on the Foundations of Internal Auditing in Financial Services Firms

    August 26, 2019 Published: The Institute of Internal Auditors The demand for internal auditors with financial services knowledge and experience is growing rapidly, propelled by regulatory pressures to appropriately staff internal audit programs with the right volume and caliber of resources. This has led many internal audit activities within the highly regulated financial services industry

  • UK NAO launches public consultation on new Draft Code of Audit Practice

    August 30, 2019 Published: The Accountant The UK National Audit Office (NAO) has launched a public consultation on its proposed update of the Code of Audit Practice ahead of it coming into effect in April 2020. The Code sets out what local auditors of relevant local public bodies (such as councils, police, fire and NHS

  • Strengthened Going Concern Standard for UK Auditors

    September 30, 2019 Published: The Accountant The UK’s Financial Reporting Council has issued a revised going concern standard in response to recent enforcement cases. It is also in response to recent corporate failures where the auditor’s report has failed to highlight concerns about the prospects of entities which collapsed shortly after. The revised standard, ISA

  • AICPA proposes changes to auditor reporting standards

    August 28, 2019 Published: AccountingToday The American Institute of CPAs’ Auditing Standards Board has proposed amendments to three sets of auditing standards for special-purpose, single and summary financial statements. For the exposure draft of the proposed Statement on Auditing Standards Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes from SAS No. 134, the board

  • IRS program to prevent personal data loss is delayed

    August 26, 2019 Published: AccountingToday Taxpayers’ personal information and tax account data remain at risk of being leaked from the Internal Revenue Service’s computer networks despite progress on a data loss prevention program, according to a new report. The IRS began a program known as the Safeguarding Personally Identifiable Information Data Extracts Project, which is

  • AICPA issues forensic accounting standards

    By Jeff DrewJuly 10, 2019 The AICPA on Wednesday issued new professional standards for members who perform forensic accounting services engagements. The Statement on Standards for Forensic Services No. 1 (SSFS 1) provides authoritative guidance for AICPA members providing litigation and investigative services. Specifically, the statement defines litigation and investigation for accounting purposes, outlines key considerations for

  • PCAOB issues staff guidance on auditing estimates, specialists

    August 22, 2019 Published: Journal of Accountancy The PCAOB released four staff guidance documents Thursday that are designed to help auditors implement the board’s new standards and amendments on auditing accounting estimates and the auditor’s use of the work of specialists. The new standards will take effect for audits of financial statements for fiscal years

  • ASB addresses challenges in auditing accounting estimates

    August 22, 2019 Published: Journal of Accountancy A proposal issued Thursday by the AICPA Auditing Standards Board (ASB) is intended to provide auditors with enhanced guidance on auditing accounting estimates. The proposal is intended to address the challenges that auditors face when auditing accounting estimates by providing risk assessment requirements and further audit procedures that: Are more

  • FASB proposes delay to Insurance Standards on long-duration contracts

    August 22, 2019 Published: The Accountant The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply a standard that addresses this area of financial reporting. On 15 August 2018, the FASB

  • New AICPA discussion paper tackles materiality

    August 21, 2019 Published: The Accountant A new discussion paper from the American Institute of CPAs (AICPA) discusses the challenges of determining materiality in an attestation engagement when subject matters cannot be quantitatively measured. Materiality Considerations for Attestation Engagements Involving Aspects of Subject Matters That Cannot Be Quantitatively Measured, developed by a Working Group of

  • How to effectively implement innovation

    August 19, 2019 Published: Journal of Accountancy Business Insider not too long ago published a list of some of the worst product launches in history. While it’s funny to recall that Coke once thought it was a good idea to abandon its classic formula, many of these stories are learning opportunities for today’s accounting firms planning their strategies

  • GASB issues lease accounting implementation guide

    August 15, 2019 Published: Journal of Accountancy GASB issued an implementation guide Thursday that contains questions and answers about the board’s new lease accounting standard for state and local governments. Implementation Guide No. 2019-3, Leases, provides guidance for preparers on how to apply the rules in GASB Statement No. 87, Leases, including: – Scope and applicability. –

  • IOSCO to launch 2019 World Investor Week to promote investor education

    August 14, 2019 Published: IOSCO The International Organization of Securities Commissions (IOSCO) is preparing to launch its third annual World Investor Week (WIW) from 30 September to 6 October 2019, after its successful organization in 2017 and 2018. WIW is a week-long, global campaign, which aims to promote investor education and investor protection, highlighting the

  • Non-Financial Reporting: «…it is about staying in business»

    August 14, 2019 Published: Accountancy Europe This interview was realised by Ivan Chaliy, Chief Editor of IFRS Practice Journal with Hilde Blomme, Accountancy Europe Deputy CEO.   Ivan Chaliy (IC): What do you think of the obliged regulation of forming a sustainability report? Hilde Blomme (HB):  Since 2018 large EU companies need to report such

  • Auditors suffer when they issue negative opinions

    August 13, 2019 Published: International Accounting Bulletin Auditors get a bad reputation when they do their job properly according to new research. In a report being presented at the American Accounting Association’s annual meeting entitled Don’t Make Me Look Bad: How the Audit Market Penalizes Auditors for Doing Their Job, researchers found that flagging material weaknesses

  • Machine Learning: More Science Than Fiction

    August 12, 2019 Published: IFAC By: Narayanan Vaidyanathan, Head of Business Insights, ACCA Artificial intelligence (AI) is having an enormous impact on our consciousness. And machine learning (ML), which uses mathematical algorithms to crunch large data sets, is being increasingly explored for business applications in AI-led decision making. Following several years with the belief that AI

  • Eliminating biases that jeopardize audit quality

    August 1, 2019 Published: Journal of Accountancy By Billy E. Brewster, CPA, Ph.D.; Janet B. Butler, CPA (inactive)/CITP, CGMA, Ph.D.; and Ann L. Watkins, CPA, Ph.D. Certain cognitive biases pose threats to audit work, but it’s possible to recognize and overcome them. Auditing standards state that inquiry alone does not provide sufficient evidence regarding the

  • Companies find lease accounting more challenging than expected

    Both public and private companies are underestimating the challenges of transitioning to the new lease accounting standard, according to a new survey. The survey, by lease accounting technology company LeaseQuery, found that only 37 percent of companies in the early stages of implementation anticipate that their transition would be difficult. However, 67 percent of companies in

  • Voices Accounting in the fourth industrial revolution

    There seems to be much conversation recently around the notion that tax, bookkeeping and accounting jobs are going away over the next five to 10 years — eclipsed by the advancement of technology. Artificial intelligence, machine learning and blockchain are seen as emerging technologies that will lead to the automation and ultimate elimination of your

  • Better business decisions with assurance on non-financial information by Olivier Boutellis-Taft and Mario Abela

    People need to be able to rely on corporate information to make important decisions surrounding investing, buying products or signing employment contracts. Non-financial corporate information (NFI), such as environmental or social impacts, is essential to get the full picture of a company’s performance. Financial information alone cannot provide this anymore. Ultimately, integrating NFI leads to longer

  • Voices The human-technology balance that accounting needs

    Advances in technology are rewriting the rules for how business is done across all industries. In particular, the buzzwords of machine learning and artificial intelligence have sparked concern throughout the accounting profession. We’ve constantly seen predictions from multiple sources (like this study from McKinsey) that suggest as many as 800 million jobs will be lost worldwide

  • Voices GAAP vs. IFRS for property, plant and equipment

    In the area of fixed assets and the resultant depreciation there are some major differences between the GAAP rules codified in ASC Topic 360 and the IFRS rules in IAS 16. In GAAP there is only one way to initially record a fixed asset and that is the cost method. The cost method involves recording