CPA Observation Post

FAF Establishes New Council to Improve Standard Setting for Private Companies

After seeking and considering extensive public comment, the Financial Accounting Foundation (FAF) Board of Trustees has established a new body to improve the process of setting accounting standards for private companies. >>Read More

FASB and IASB prepare proposal for lease accounting

The Financial Accounting Standards Board and the International Accounting Standards Board will convene this week to discuss a proposal on the "whole contract" approach to lease accounting. Whole contract accrues the average rent as the reported lease cost and adjusts the asset value and lease liability to the present value of remaining lease payments. Read More>>

FASB moving forward in project to combat disclosure overload (via @AICPA_JofA)

After almost two years of development, the Financial Accounting Standards Board is scheduled to invite the public to comment on its project on a disclosure framework in June or July, FASB Chairman Leslie Seidman said Thursday. The framework project is designed to reduce disclosure overload. Its objectives are to determine which information is essential to investors; to get preparers to think about relevance; and to organize financial statements more sensibly. Read More>>

Auditing and Accounting Standards in Transition (via @AccountingToday)

A group of high-ranking officials in accounting and auditing standard-setting organizations discussed the changing standards for mandatory audit firm rotation, private company accounting and other controversial issues at the American Institute of CPAs’ Spring Meeting of Council. Read More>>

GASB Releases School District Finance Guide (via @AccountingToday)

The Governmental Accounting Standards Board has published a new user guide to help taxpayers understand the financial statements of local school districts. Read More>>

Center for Audit Quality workshop addresses auditor's changing role

Management discussion and analysis, earnings releases, and key performance indicators were among the topics discussed at a workshop held by the Center for Audit Quality, which is affiliated with the AICPA, on the evolving role of the public company auditor. Workshop attendees noted that some investors would like a requirement that the auditor discuss the earnings release with the audit committee. Read More>>

Transatlantic Divide Grows Over Audit Rotation (via @CFOpub)

Although audit firms on both sides of the Atlantic are locked in arms against mandatory audit term rotation, they’re clearly split on how best to maintain auditors’ objectivity and skepticism. While alternatives to mandatory rotation are gaining ground in Europe, the United States may be headed in a different direction. Read More>>

IASB Proposes IFRS Amendments

The International Accounting Standards Board (IASB) has published for public comment an exposure draft of proposed amendments to eleven International Financial Reporting Standards (IFRSs) under its annual improvements project. The project provides a streamlined process for dealing efficiently with a collection of narrow scope amendments to IFRSs. >> Read more

FASB to reconsider management's going-concern assessment (via @AICPA_JofA)

The Financial Accounting Standards Board will reconsider the question of whether management should be required to assess if there is doubt about an entity's ability to continue as a going concern, according to a summary of decisions from Wednesday's board meeting. Read More>>

Whole contract added to list of lease accounting proposals

Whole contract, or Approach D, is a fourth possible approach for lease accounting that could be included in the second exposure draft for the lease accounting convergence project. It was added to the list of approaches after the International Accounting Standards Board and the Financial Accounting Standards Board could not agree on the other approaches. Whole contract "accrues the average rent as the reported lease cost ... and adjusts the lease liability on each balance sheet date to be the present value of the remaining lease payments," Erika Morphy writes in this article. Read More>>