• 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

  • IESBA proposes changes to code of ethics for accountants

    The International Ethics Standards Board for Accountants proposed some changes Wednesday to the International Code of Ethics for Professional Accountants to improve the mindset expected of accountants. The exposure draft, Proposed Revisions to Promote the Role and Mindset Expected of Professional Accountants, comes in response to calls from different stakeholders asking the Ethics Board to explore

  • FASB proposes standard for distinguishing liabilities from equity

    The Financial Accounting Standards Board released a proposed accounting standards update Wednesday with the goal of enhancing the guidance for financial instruments with the characteristics of liabilities and equity, including convertible instruments and derivatives. The proposed update aims to improve the guidance for both convertible instruments and the derivatives scope exception for contracts in a company’s own

  • Voices The economic case for ESG disclosure

    Tim Mohin is chief executive of the Global Reporting Initiative (GRI), an independent international organization that helps businesses and other organizations understand and communicate their sustainability impacts. When it comes to corporate transparency, the United States is at a crossroads. To one side is maintaining the status quo, with a patchy reporting landscape for environmental,

  • AICPA weighs in with IRS on excise taxes for donor-advised funds

    The American Institute of CPAs sent a set of recommendations to the Internal Revenue Service on the application of excise taxes to donor-advised funds. DAFs have become an increasingly prevalent way for philanthropists to give funds to charities, as an alternative to private foundations. Donors can claim tax deductions the following year, but recommend specific

  • 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

  • Protecting clients: Manufacturers are high-risk for data breaches

    Cybersecurity is top of mind today for accountants, the industry having faced several high-profile attacks this year. But accounting professionals also have to keep in mind the vulnerability of their clients, and different types of clients face different levels of risk. One of the most highly sought after prizes for malicious hackers, after money, 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

  • MAZARS welcomes consultation on CMA proposals

    July 19, 2019 Published: International Accounting Bulletin Marking the launch of the eight-week consultation period for the Competition & Markets Authority (CMA) proposals on statutory audit, Mazars says it supports the Department for Business, Energy & Industrial Strategy’s conclusion that the CMA had produced ‘a thorough and effective range of measures to create a genuinely

  • Closing the expectation gap in audit

    May 9, 2019 Published: ACCA Everyone closely connected to the audit profession, from regulators to the general public, will need to work together in order to close the expectation gap. Key messages: – The public sees audit as part of the solution for preventing company failure. – The public demands more responsibilities for auditors in

  • Statement on IOSCO Liquidity Management Recommendations for Investment Funds

    July 18, 2019 Published: IOSCO By: Ashley Alder, IOSCO Board Chair Liquidity problems which have recently affected some investment funds have been the subject of extensive media coverage. The Bank of England published a Financial Stability Report of the Financial Policy Committee (FPC), a committee of the Bank of England, earlier this month, which discusses

  • IASB proposes amendments to accounting for Deferred Tax

    July 17, 2019 Published: IFRS The International Accounting Standards Board (Board) has today published for public comment proposed changes to the IFRS Standard for income tax, IAS 12. The amendments clarify how companies account for deferred tax on leases and decommissioning obligations. IAS 12 specifies how a company accounts for income tax, including deferred tax,

  • Draft Code on Internal Audit aims to reduce risk of major UK Corporate collapses

    July 15, 2019 Published: International Accounting Bulletin A draft code to strengthen corporate governance and help reduce the risk of major corporate collapses in the UK by boosting the status, standards, scope and skills of internal audit has been launched by the Chartered Institute of Internal Auditors. The institute is now seeking feedback and is

  • FRC consults on enhanced Ethical and Auditing Standards

    July 15, 2019 Published: The Accountant The Financial Reporting Council (FRC) has issued a consultation proposing changes to the UK’s Ethical and Auditing Standards. The FRC proposes to set more stringent ethical rules for auditors, in response to findings from recent audit enforcement cases and from audit inspections. In response to feedback from investors, the

  • ASB addresses ERISA plan auditor reporting, other information in annual reports

    July 10, 2019 Published: Journal of Accountancy By Ken Tysiac In separate standards issued Wednesday, the AICPA Auditing Standards Board (ASB): – Changed requirements for auditor reporting and performance on ERISA (Employee Retirement Income Security Act) plan financial statements. – Amended rules for the purpose of improving transparency regarding auditors’ responsibilities related to other information

  • AICPA issues forensic accounting standards

    July 10, 2019 Published: Journal of Accountancy By Jeff Drew  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

  • No-Deal BREXIT Contingency measures in EU Budget

    July 9, 2019 Published: International Accounting Bulletin The European Council has adopted contingency measures on the implementation and financing of the 2019 EU budget in the event of a no-deal Brexit. The aim of the measures is to mitigate the impact of a no-deal scenario for funding in a wide range of areas such as

  • FASB seeks Stakeholders input on certain identifiable Intangible Assets and the subsequent accounting for Goodwill

    July 9, 2019 Published: FASB The Financial Accounting Standards Board (FASB) today issued an Invitation to Comment (ITC) seeking stakeholder input on the accounting for certain identifiable intangible assets acquired in a business combination and subsequent accounting for goodwill. Stakeholders are asked to comment on the ITC by October 7, 2019. Private companies and not-for-profit organizations currently have

  • FRC revises practice notes on Financial Sector Audits

    July 4, 2019 Published: The Accountant The Financial reporting Council (FRC) has issued a revision of Practice Note 19: The audit of banks and building societies in the United Kingdom. Such Practice Notes are aimed at helping practitioners to comply with the requirements of UK auditing standards, providing additional contextual material. The Practice Note has been

  • Auditing Accounting Estimates, Including Fair Value Measurements

    July 2, 2019 Published: PCAOB What was changed? The new standard replaces three existing standards by establishing a single standard that sets forth a uniform, risk-based approach. It emphasizes that auditors need to apply professional skepticism, including addressing potential management bias, when auditing accounting estimates. The new standard also provides more direction on addressing certain

  • Auditor´s Use of the Work of Specialists

    July 2, 2019 Published: PCAOB What was changed? Published: PCAOB The amendments adopted by the Board strengthen the requirements for evaluating the work of a company’s specialist, whether employed or engaged by the company. They are designed to increase audit attention in areas where a specialist is used and to align the applicable requirements with the

  • Financial Regulators welcome UK Government´s Green Finance Strategy

    July 2, 2019 Published: International Accounting Bulletin The Financial Reporting Council (FRC) has issued a joint statement with other financial regulators, including the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA) and the Pensions Regulator (TPR) in response to the UK government’s Green Finance Strategy. The statement notes that the boards of UK companies have

  • Financial / Non- Financial Reporting Frameworks share common principles

    July 2, 2019 Published: The Accountant The world’s leading financial and non-financial corporate reporting frameworks have the same common foundations, based on the key objectives of transparency and accountability, according to a position paper published by the framework providers. The position paper sets out the seven key principles report preparers should follow for achieving such

  • Get private companies ready for the new revenue standar

    June 27, 2019 Published: Journal of Accountancy Auditors of private companies are reviewing clients’ efforts to prepare for filing financial statements under the new revenue recognition standard in early 2020. In the five years since FASB adopted its landmark guidance in Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), companies large and

  • IASB consults on amendments to aid implementation of IFRS 17

    June 26, 2019 Published: IFRS The International Accounting Standards Board (Board) has today proposed amendments to the insurance contracts Standard, IFRS 17, for public consultation. The aim of the amendments is to continue supporting implementation by reducing the costs of implementing the Standard and making it easier for companies to explain their results when they

  • The Global Accountancy Profession’s Call to Action for G20 Leaders

    Jun 20, 2019 Published: IFAC Counting on Society 5.0 At a time of economic and political uncertainty, IFAC’s recommendations focus on actions that will strengthen the economy, ensure progress toward the Sustainable Development Goals, and create a fair and empowered digital economy. G20 countries play a crucial role in fostering institutions and governance models that can anticipate,

  • Companies starting to use AI technology to fight fraud

    June 24 2019 Published: Accounting Today Companies are beginning to employ advanced technologies such as artificial intelligence and machine learning to uncover fraud, according to a new report. The report, from the Association of Certified Fraud Examiners and analytical technology provider SAS, found that 13 percent of organizations currently use AI or machine learning to

  • Better business decisions with assurance on non-financial information

    Junio 20, 2019 Published: Accountancy Europe 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.

  • Audit evidence standard would be updated under proposal

    June 20, 2019 Published: Journal of Accountancy Issues such as the use of emerging technologies and the application of professional skepticism are addressed in a new audit evidence standard proposed Thursday by the AICPA Auditing Standards Board (ASB). Proposed Statement on Auditing Standards (SAS), Audit Evidence, addresses the evolving nature of business and audit services as well as

  • European Commission publishes Climate-Related Guidelines

    June 20, 2019 Published: International Accounting Bulletin The European Commission has published new guidelines on corporate climate-related information reporting, as part of its Sustainable Finance Action Plan. The guidelines will provide companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact

  • Convergence with international standards sought for SSARSs (Statements on Standards for Accounting and Review Services)

    June 19, 2019 Published: Journal of Accountancy In an effort to promote convergence with international standards, the AICPA Accounting and Review Services Committee (ARSC) on Wednesday proposed changes to standards for review services. ARSC believes that it is important for the Statements on Standards for Accounting and Review Services (SSARSs) to be as closely converged

  • SEC Adopts Amendments to Improve the Application of the Auditor Independence Rules to Loan Provision

    June 18, 2019 Published: SEC The Securities and Exchange Commission adopted amendments to the auditor independence rules relating to the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client.  The Commission has become aware of circumstances where the