Accounting Research Manager^TM

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ACCOUNTING AND SEC HEADLINES:
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A Closer Look – New Edition of A Closer Look Examines Not-for-Profit In-Kind Gift Disclosures

We have published a new edition of A Closer Look, Not-for-Profits: In-Kind Gifts. This new edition discusses the FASB’s new standard, Not-for-Profit Entities (Topic 958) – Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, (ASU No. 2020-07). ASU 2020-07 is narrowly focused on disclosures by not-for-profit organizations. It does not apply to businesses.

Leases – IASB Proposes Extension of Support for Lessees Accounting for COVID-19 Related Rent Concessions

The International Accounting Standards Board (IASB) has published the Exposure Draft, Covid-19-Related Rent Concessions Beyond 30 June 2021 (Proposed Amendment to IFRS 16). This exposure draft proposes to extend by one year the application period of the amendment to International Financial Reporting Standard (IFRS) 16, Leases, issued in 2020 to help lessees accounting for COVID-19-related rent concessions.

The original amendment, Covid-19-Related Rent Concessions - Amendment to IFRS 16, was issued in May 2020 to make it easier for lessees to account for COVID-19-related rent concessions, such as rent holidays and temporary rent reductions, while continuing to provide useful information about their leases to investors. The practical relief currently applies to rent concessions that reduce lease payments due on or before June 30, 2021.

In response to calls from stakeholders and because the COVID-19 pandemic is still at its height, the IASB proposes to extend the relief to cover rent concessions that reduce only lease payments due on or before June 30, 2022.

The Trustees of the IFRS Foundation have approved a shorter-than-normal comment period of 14 days for this consultation due to the urgent nature of the proposal. The deadline for submitting comments on the Exposure Draft is February 25, 2021.

Goodwill – FASB Discusses Goodwill Triggering Event Assessment Alternative

As reported in its “Summary of Board Decisions” publication, the FASB met on February 10, 2021 and discussed the feedback received on the proposed Accounting Standards Update, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events. The FASB affirmed the following decisions:

• The scope of the amendments will be limited to private companies and not-for-profit entities that account for goodwill under Subtopic 350-20, Intangibles—Goodwill and Other—Goodwill.
• Entities will not be required to provide incremental disclosures as a result of the forthcoming final amendments, as the disclosures required by Topic 235, Notes to Financial Statements, and Subtopic 350-20 are sufficient.
• An entity will be allowed to apply a one-time transition election to adopt the amendments prospectively after its effective date without applying the guidance on preferability in Topic 250, Accounting Changes and Error Corrections.
• The amendments will be available on an ongoing basis and will not be limited to a specified time period.

FASB Targeted Improvements – New GAAP Update Service Discusses FASB Proposed Targeted Improvements on Leases

We have published a new edition of the GAAP Update Service. This new edition discusses the FASB’s proposed targeted improvements on leases. The exposure draft targets three narrow issues:

• Sales-type leases with substantial variable lease payments (lessor issue);
• Remeasuring a lease liability (lessee issue); and
• Termination of a separate lease component (lessor and lessee issue).

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AUDITING AND INTERNAL CONTROLS HEADLINES:
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A Closer Look – New Edition of A Closer Look Examines Not-for-Profit In-Kind Gift Disclosures

As discussed above, we have published a new edition of A Closer Look, Not-for-Profits: In-Kind Gifts. This new edition discusses the FASB’s new standard, Not-for-Profit Entities (Topic 958) – Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, (ASU No. 2020-07). ASU 2020-07 is narrowly focused on disclosures by not-for-profit organizations. It does not apply to businesses.

Auditor Independence – 2021 Edition of CPA’s Guide to Independence and Ethics Published

We have published the 2021 edition of CCH’s “CPA's Guide to Independence and Ethics." This publication addresses the ethical and professional obligations placed on accountants who serve the general public.

This new edition incorporates codes, rulings, guidance, and commentary current through December 31, 2020, and offers an interpretive approach to understanding the ethical and professional responsibilities imposed on all types of accounting and auditing professionals, including the firms for whom they may work. In addition to providing guidance on code of conduct principles, rules and interpretations, this publication provides the practitioner with interpretive guidance and application material through the use of practical examples and commentary, where appropriate.

General Accounting and Auditing Developments – New GAAS Update Service Discusses AICPA Audit Risk Alert

We have published a new edition of the GAAS Update Service. This new edition is the first of a three part series that discusses the AICPA’s Audit Risk Alert, General Accounting and Auditing Developments-2020/21. This first edition focuses on COVID-19 accounting and auditing implications. The March 15, 2021 GAAS Update will address select matters identified in peer reviews and emerging technologies. The March 30, 2021 GAAS Update will discuss the more significant audit and attestation issues and developments that are of importance to auditors.

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GOVERNMENT HEADLINES:
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Conduit Debt Obligations – New Governmental GAAP Update Service Discusses GASB 91

We have published a new edition of the Government GAAP Update Service. This new edition discusses the impact of GASB No. 91, Conduit Debt Obligations, on many governments and why some governments may want to prepare for the changes now.

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