Accounting Update - Leases and Disclosures, Audit Report Changing, and More

Lease Update: ASC 842 Effective date: For private companies and private NFPs, to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15,… Read More »

Preparing for the New Lease Accounting Standard

After almost a decade of planning, the Financial Accounting Standards Board (FASB) issued a new standard on accounting for leases (ASU 2016-02) in February 2016. The standard went into effect for Public… Read More »

Do I Need a SOC Audit?

While most organizations know whether they require a systems and organization controls (SOC) audit, the COVID-19 pandemic forced many businesses to modify their processes and procedures or provide controls… Read More »

How to Define Materiality

Defining “materiality” The concept of materiality is used to determine what’s important enough to be included in — and what can be omitted from — a financial statement. In late October, the Auditing… Read More »

Avoiding New Lease Accounting Rules

Debt-strapped private companies have been exploring ways to avoid having to use the lease accounting rules for new contracts. Why? Some fear that implementing the guidance would cause them to violate… Read More »

How to measure the fair value of equity-based awards

Cash-strapped start-ups and high growth firms often award stock options and other forms of equity-based compensation to attract and retain skilled employees. These awards can also provide incentives for… Read More »

SEC finalizes "test-the-waters" option to all companies

Has your company ever considered issuing public stock? To help encourage more companies to consider public offerings, the Securities and Exchange Commission (SEC) recently adopted a rule that would extend… Read More »

How strong are your company's internal controls?

A solid system of internal controls translates into more reliable financial reporting and can help companies prevent, detect and correct financial misstatements. In contrast, weak controls can result… Read More »

Accounting for Acquired Goodwill

Goodwill is an acquired intangible asset that can affect earnings if it declines in value. The Financial Accounting Standards Board (FASB) is soliciting feedback on this topic as it considers whether… Read More »

Stock repurchases and the associated risks

Stock repurchases have skyrocketed in recent years, fueled, in part, by cash flow generated by the Tax Cuts and Jobs Act (TCJA) and the availability of inexpensive debt capital. So-called “buybacks” have… Read More »

Public companies: Is it time to update the MD&A requirements?

The U.S. Securities and Exchange Commission (SEC) is planning to issue a proposal by April 2020 that would “modernize and simplify disclosure rules” regarding management’s discussion and analysis (MD&A)… Read More »

FASB extends alternatives for goodwill to not-for-profits   

On May 30, the Financial Accounting Standards Board (FASB) issued an accounting standard that enables not-for-profit organizations to use the easier, less costly methods available to private companies… Read More »

Financial Reporting: Comparability vs. Convergence

The global financial reporting project is alive and well, according to Russell Golden, Chairman of the Financial Accounting Standards Board (FASB). Despite rumors that the FASB and the International Accounting… Read More »

New inline XBRL requirements

The Securities and Exchange Commission (SEC) adopted a rule in June 2018 to require public companies to embed interactive data tags directly into their financial statements using a process called the inline… Read More »

Lease Standards for 2020

Private businesses: Who’s ready for the new lease standard? Many private companies are still unaware of the balance sheet effects of new lease accounting rules, including lease capitalization requirements,… Read More »

Materiality: International vs U.S. Standards

Close-up on materiality The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) has been discussing options to amend its definition of the term “materiality.” In… Read More »

What are the benefits of XBLR?

Investors and accounting professionals have warned the Securities and Exchange Commission (SEC) against exempting small companies from the requirement to add interactive data to their financial statements… Read More »

Best Practices for Audit Committees

In January 2019, the board of the International Organization of Securities Commissions (IOSCO) published a report intended to promote audit quality. It outlines best practices for audit committees. Although… Read More »

Auditor Independence: What are the SEC Rules?

The Securities and Exchange Commission (SEC) recently proposed changes to its auditor independence rules. The proposal targets situations in which auditors are borrowing funds or issuing debt to accumulate… Read More »

New Lease Accounting Standard - Right of Use (ROU)

After a decade in the making, on February 25, 2016, the Financial Accounting Standards Board (FASB) issued its controversial lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02,… Read More »

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