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.
Investors, customers and key stakeholders continue to seek reliable and transparent information on a variety of environmental, social and governance (ESG) metrics. The accounting profession has a key role to play. Accountants within organizations play an important role in integrating critical business information; implementing and maintaining relevant processes and controls; making and enabling business decisions; and reporting to stakeholders in a holistic, integrated way. Public accountants play a critical role in providing assurance and advisory services to organizations to enhance confidence in the reported information. As influential members of almost every business, government and non-governmental organization, professional accountants are uniquely positioned to make a difference.
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For many public companies, the financial reporting challenges brought on by the COVID-19 pandemic aren’t going to disappear anytime soon. They will continue through year-end, and probably at a minimum for a few quarters after that. We’ve been hearing about the following A&A issues from those of you in the trenches — finance professionals and firm practitioners — and many of these challenges will be discussed at the AICPA Conference on Current SEC and PCAOB Developments next week. Here are some of the topics I’m expecting we’ll hear about.
- Impairment related to non-financial assets
Continue reading "4 A&A challenges caused by COVID-19" »
Mortgage-backed securities, credit-default swaps and derivatives were not much more than financial industry jargon until the recession of 2007. When the world economy nearly collapsed—due in part to mismanagement of and poor investment in complex financial instruments—those terms entered the mainstream.
The 2019 survey of business executives reveals that 59% of CPAs have complex financial instruments on their balance sheets. Of those, 28% said they expect complex financial instruments to take an even bigger percentage in the next three years. At the same time, 55% said they are concerned about the valuations of those investment vehicles, and 69% said they expect them to become even more complex, making them harder to value.
Continue reading "Derivatives are back, but are the risks?" »
Does your company or client lease assets such as real estate, airplanes or manufacturing equipment? If so, then you may want to keep reading...
In 2016, the Financial Accounting Standards Board (FASB) issued a new financial accounting and reporting standard that requires companies that lease assets (lessees) under operating lease arrangements to recognize those arrangements on their balance sheets.
You may be wondering “Why a change?” Given the prevalence of leasing in the marketplace, it’s important for users of financial statements to have a complete and understandable portrayal of a company’s commitments to leasing activities.
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Summertime is finally here! But before you hit the beach, head to your clients’ offices and make sure they are ready to adopt the Financial Accounting Standards Board’s (FASB) accounting standard on revenue recognition, issued as FASB ASU 2014-09 with subsequent amendments.
Public companies adopted the new guidance in 2018, and soon private companies will get their turn. The guidance is effective for private entities in 2019 for annual reporting periods, and in 2020 for interim periods.
Continue reading "3 tips to help your clients with revenue recognition implementation " »