The AICPA works closely with the Financial Accounting Standards Board and other accounting regulators for the mutual goal of improving financial reporting. The AICPA provides accounting guidance via audit and accounting guides and issues papers, recommends to Financial Accounting Standards Board topics worthy of standard setting, and advocates its beliefs on needed outcomes on proposed accounting standards.
Many preparers and practitioners have been anxiously awaiting the new, converged revenue recognition standard for quite some time. The standard was released by the Financial Accounting Standards Board and the International Accounting Standards Board on May 28. How can we prepare for a smooth transition to the new standard? What major changes will we encounter as we begin implementing it? The new standard is principle-based, which is a big shift from the industry-specific guidance we have today. In preparation for this change in approach, the AICPA has established 16 industry task forces which are developing a new accounting guide containing helpful tips and illustrative examples for applying the new revenue recognition standard.
As the co-chairs of the Construction Contractors Revenue Recognition Task Force, we have been thinking about our major implementation issues for a while now. Here are our top 12 concerns so far.
Continue reading "12 Revenue Recognition Concerns" »
Is the United States somewhat behind the rest of the world when it comes to embracing sustainability practices and reporting? Some seem to think so. However, a shift has occurred over the last couple of years as companies are beginning to recognize that sustainable business practices are simply good for business. This point was made in a conversation between Susan Coffey, AICPA Senior Vice President, Public Practice and Global Alliances, and Jessica Fries, Executive Chairman and Board Director of the Prince of Wales Accounting for Sustainability Project, also known as A4S. Many companies around the world are beginning to take notice of risks within their business models, such as their reliance on non-renewable forms of energy or their excessive water consumption, and are working toward replacing these practices with sustainable solutions.
Continue reading "Taking the Leap Toward Sustainability" »
It’s here! The new revenue recognition standard, that is. I believe it is the most pervasive and across-the-board important topic that the Financial Accounting Standards Board and the International Accounting Standards Board could have tackled. This new standard eliminates the transaction and industry-specific guidance found in current U.S. GAAP and replaces it with a principle-based approach. Also, it applies to all public, private and not-for-profit entities. I implore you, no matter what your professional discipline, to pay attention to this new standard. And please, don’t get comfortable because the effective dates seem far off.
Are you sure the final words in the new standard are consistent with what you have been hearing to date about this project? Are you comforted in having specific revenue recognition rules replaced by a more principle-based approach? Are you confident that unwritten industry norms of accounting practice formed over decades are consistent with the new standard? In this video, AICPA Senior Technical Manager for Accounting Standards Kim Kushmerick provides an overview of the standard, in addition to highlighting key items to consider and helpful AICPA resources.
Continue reading "10 Years in the Making: The New Revenue Recognition Standard" »
From the newest design inventions to the Thai food truck that showed up in your town last week, the crowdfunding movement is allowing individuals to unleash their entrepreneurial spirit and turn their dreams into reality. By sharing their ideas on the web, users can raise funds to support the launch of their small businesses.
Numerous crowdfunding platforms exist, many focusing on the type of project being funded. For example, certain platforms serve non-profits and philanthropic causes, music, theatre, small business and so forth. Even with such specialization, investing comes with risk. Crowdfunding indeed opens investment opportunities to a new pool of potential stakeholders. Many of those investors may not fully understand the risks involved. During the next few weeks on AICPA Insights, we will look at the benefits and risks of crowdfunding.
Continue reading "5 Key Regulations to Get Right in Crowdfunding" »
You keep hearing about “the cloud.” You have read articles and attended conference sessions encouraging the use of cloud services. It is clear that the cloud is increasingly becoming a part of our business processes and solutions. Your clients are starting to clue in. This is for good reason. The cloud may enable them to reduce costs, better use their resources and perform more efficiently.
As your clients seek cloud services, how are you advising them?
Your clients should understand the importance of Service Organization Control reports. It is essential that they have trust in their cloud service providers and are assured that their information is being protected by the necessary security, availability, processing integrity, confidentiality, privacy controls and/or internal controls over financial reporting.
Continue reading "Before Your Clients Run to the Cloud, Remember SOC" »