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ACCOUNTING AND SEC HEADLINES:
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Cryptocurrencies – New Edition of A Closer Look Discusses Accounting for Cryptocurrencies
We have published a new edition of
A Closer Look: Accounting for Cryptocurrencies. This new edition discusses financial reporting questions related to cryptocurrencies purchased as investments and used in lieu of cash for the purchase or sale of goods and services. We also explain how the accounting profession is addressing some of the common questions about accounting for transactions denominated in digital currencies.
EITF – New Edition of GAAP Update Service Review Recent EITF Activities
We have published a new edition of the GAAP Update Service,
Emerging Issues Task Force: Recent Activities. This new edition reviews issues recently addressed by the EITF. These issues addressed ranged from financial instruments to cloud computing to the accounting for a master trust in the financial statements of an employee benefit plan.
These recent EITF consensuses apply equally to public and private companies. And while the focus of an individual issue is narrow, the nature of the issue may affect companies of various sizes in various industries. For this reason, companies can benefit from understanding both the EITF’s process and its recent activities.
Related Parties – New Edition of Related Party Accounting Interpretation Published
We have published a new edition of our Related Party accounting interpretations Accounting for Sales, Purchases and Transfers of
Assets between Related Parties and Sample Disclosures for Related-Party Transactions. These editions have been updated for requirements issued through May 31, 2021.
International Accounting – New Edition of GAAP Update Service Provides a Primer on the IASB
We have published a new edition of the GAAP Update Service,
The International Accounting Standards Board (IASB) - A Primer. This new edition provides an overview of the structure of the IASB, its work, and standards.
GAAP Financial Statement Disclosures Manual – 2021-2022 Edition of GAAP Financial Statement Disclosures Manual Published
We have published the 2021-2022 edition of the
GAAP Financial Statement Disclosures Manual. This manual provides comprehensive guidance on the subject of financial statement disclosures. This edition of the manual incorporates the financial statement disclosure requirements through FASB Accounting Standards Update No. 2021-03,
Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events.
Climate Changes – SEC Commissioner Lee Discusses Climate Change
SEC Commissioner Allison Herren Lee recently discussed the role corporate boards of directors play in navigating the challenges presented by climate change, racial injustice, economic inequality, and numerous other issues that are fundamental to the success and sustainability of companies, financial markets, and our economy. Lee discussed ESG in the context of the most recent proxy season which saw growing shareholder proposal support related to ESG initiatives and unprecedented access to corporate boards of directors from climate activists. In addition, Lee discusses understanding ESG and corporate board responsibilities and mitigating ESG risks and maximizing ESG opportunities.
Sustainability Standards – SEC Commissioner Peirce Comments on IFRS Sustainability Standards Efforts
SEC Commissioner Hester M. Peirce recently announced that she has provided comments to the IFRS in response to its request for comment addressing the IFRS Foundation’s proposed constitutional amendments relating to sustainability standards. Specifically, the IFRS Foundation is formally exploring the creation of an International Sustainability Standards Board under the Foundation’s governance structure. Peirce urges the IFRS Foundation “not to wade into sustainability standard-setting because doing so would (i) improperly equate sustainability standards with financial reporting standards, (ii) undermine the Foundation’s current important, investor-centered work, and (iii) raise serious governance concerns.”
Inflation – New Edition of Inflation Rates for Judging Whether an Economy Is Highly Inflationary Interpretation Published
We have published a new edition of our Interpretation,
Inflation Rates for Judging Whether an Economy Is Highly Inflationary – June 2021. This new edition has been issued and reflects the latest available inflation rate information. The following changes were made to the classification of countries under this Interpretation from the previous Interpretation dated March 2021:
- Egypt has been moved from the countries that may have highly inflationary economies to the list of countries that do not have highly inflationary economies.
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Cryptocurrencies – New Edition of A Closer Look Discusses Accounting for Cryptocurrencies
As discussed above, we have published a new edition of
A Closer Look: Accounting for Cryptocurrencies. This new edition discusses financial reporting questions related to cryptocurrencies purchased as investments and used in lieu of cash for the purchase or sale of goods and services. We also explain how the accounting profession is addressing some of the common questions about accounting for transactions denominated in digital currencies.
Common Interest Realty Associations – 2020-2021 Edition of Preparations, Compilations, and Reviews of Common Interest Realty Associations" (Post-SAS-134 and SSARS-25) Published
We have published the 2020-2021 edition of
Knowledge-Based Audits™, Preparations, Compilations, and Reviews of Common Interest Realty Associations. This guide provides practitioners with the most effective approach for conducting the highest quality audits, preparation engagements, compilations, and reviews of common interest realty associations (CIRAs).
This new edition provides guidance on the implementation of the standards and rules promulgated by the ASB, as well as best practices based on the guidance promulgated by the Public Company Accounting Oversight Board (PCAOB) and other regulators. The audit section of this guide has been updated to incorporate the provisions of the following ASB Statements on Auditing Standards (SASs):
- SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements;
- SAS No. 135, Omnibus Statement on Auditing Standards—2019;
- SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports;
- SAS No. 138, Amendments to the Description of the Concept of Materiality;
- SAS No. 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes from SAS No. 134;
- SAS No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes from SAS Nos. 134 and 137; and
- SAS No. 141, Amendment to the Effective Dates of SAS Nos. 134-140.
SAS 136 – New Edition of GAAS Update Service Discusses Audits of Employee Benefit Plans
We have published a new edition of the GAAS Update Service,
A Closer Look: Audits of Employee Benefit Plans Subject to ERISA Under SAS-136. This new edition takes a closer look at audits of employee benefits plans subject to ERISA under SAS No. 136,
Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA.
SAS 136 created a new AU-C Section 703 in AICPA Professional Standards to address the auditor’s responsibility to form an opinion on the financial statements of employee benefit plans (EBPs) subject to the Employee Retirement Income Security Act of 1974 (ERISA).
SAS 144 – New Edition of GAAS Update Service Discusses Use of Specialists and Pricing Information
We have published a new edition of the GAAS Update Service,
AICPA Statement on Auditing Standards No. 144, "Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources." This new edition discusses SAS No. 144,
Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources.
Among other matters, SAS 144 provides enhanced guidance on auditing the fair value of financial instruments, including a focused direction on the use of pricing services.
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GOVERNMENT HEADLINES:
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Leases – New Edition of Governmental GAAP Update Service Discusses GASB 87 (Part 1)
We have published a new edition of the GAAS Update Service,
Implementing GASB Statement No. 87 Leases – Part 1. This new edition introduces GASB 87 and focuses on implementation considerations.
Leases – New Edition of Governmental GAAP Update Service Discusses GASB 87 (Part 2)
We have published a new edition of the GAAS Update Service,
Implementing GASB Statement No. 87 Leases – Part 2 - Lessees. This new edition introduces GASB 87 and focuses on lessee provisions and implementation.
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