Keeping Up With Accounting and Auditing Standards
Standards: Finding the time to stay on top of new standards can be difficult. The PCPS team works to provide you with quick access to new standards relevant to your firm, along with materials to assist you in their implementation and communication.
Advocacy: The PCPS Technical Issues Committee works diligently to provide the small-medium size firm perspective in the standard-setting process. If you have questions, local firm advocacy issues or suggestions for TIC, let us hear your voice and email us.
PCPS Technical Toolkits
These toolkits were developed as resources to support you in the implementation of newer standards and the communication of these standards within your firm and to your clients.
Center for Plain English Accounting
CPEA is the AICPA’s national A&A resource center, available exclusively to members of the Private Companies Practice Section. The CPEA’s team of experts assists member firms in understanding and implementing accounting, auditing, review, compilation, and quality control standards by sharing technical advice and guidance in a straight-forward manner. CPEA professional staff provide A&A support by describing “how to do” what you “need to do” in implementing the authoritative literature.
SSARS No. 23
Issued in October 2016, SSARS No. 23 amendments affect the accountant’s review and compilation reports related to supplementary information. Some of the amendments related to the wording in these reports are effective immediately. Due to the timing of the release of SSARS 23 and the immediate effective date, it’s possible third party practice aids will not have updated reporting language. To avoid noncompliance, familiarize yourself with these amendments as soon as possible.
FASB Revenue Recognition Standard
FASB ASU 2014-09, Revenue from Contracts with Customers, was issued in May 2014 with numerous subsequent updates. ASU 2014-09 will affect the financial reporting of a significant number of entities as it replaces current GAAP revenue recognition with a principle-based approach. Public entities are required to adopt the new standard for reporting periods beginning after December 15, 2017. Nonpublic entities have an extra year to adopt. Early adoption is permitted for annual reporting period beginning after December 15, 2016.
Financial Instrument Updates
The FASB is addressing financial instruments in three standards. ASU 2016-01 –Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and ASU 2016-13 – Credit Losses: Measurement of Credit Losses on Financial Instruments were issued during 2016. The third exposure draft is expected in Q3 2016. ASU 2016-01 will be effective for public entities for years ending December 15, 2017 and a year later for all other entities. ASU 2016-13 will be effective December 15, 2019 for public entities and a year later for all other entities. Both allow early adoption. Check out these resources for more information on the financial instrument updates.
Technical & Advocacy Resources
PCPS Technical Issues Committee (TIC) Advocacy
TIC monitors technical developments that could significantly affect private companies and the firms that serve them. When standards are written, TIC submits informed comments and recommendations in support of small-medium size firms.
One central location to access the standards and statements that the AICPA develops, issues and enforces including (but not limited to) Audit and Attest Standards, Code of Professional Conduct, Compilation and Review Standards.
Other Helpful Resources
Compilation and Review Services
The resources and information in the this area will be helpful tools in providing compilation and review services and will help you understand and stay informed of new developments.
Recently Issued Technical Questions and Answers
Recently issued technical staff questions and answers can be found here.
AICPA Technical Hotline
If you’re looking for a place to turn when it comes to matters involving professional judgment, then contact the Technical Hotline where a team of experts will help answer your questions by phone. From accounting and financial reporting issues, audit and attest engagements, and everything in between, the team answers thousands of calls each year.