October 2017 Update of the AICPA Professional Literature

Transcription

1 ALERTS AND AICPA GUIDES October 2017 Update of the AICPA Professional Literature The 2017 edition of the following AICPA Guides is being released: Brokers and Dealers in Securities (aag-brd) In recent years the broker-dealer industry has undergone significant change. These changes add challenges for broker-dealers assessing their operations and internal controls for regulatory considerations. The 2017 edition gives you the up-to-date industry-specific guidance you need to be able to tailor your operations with the most current standards and regulations. From new best practices to interpretive guidance to industry-specific considerations, this guide has you covered. This edition offers best practice discussion of industry-specific issues such as fair value accounting and related disclosures, as well as compliance with regulatory requirements. Further, new guidance on initial margin has been approved in accordance with applicable AICPA requirements. SEC Release No , Amendment to Securities Transaction Settlement Cycle SEC Release No , Standards for Covered Clearing Agencies Coverage of regulatory updates from key industry regulators (SEC, CFTC, and FINRA) Illustrative sample compliance report and sample exemption report Comprehensive examples of financial statements, disclosures, and supplementary schedules Discussion and interpretive guidance associated with industry specific financial reporting and regulatory compliance Preparation, Compilation, and Review Engagements (aag-crv) Issued under the authority of Accounting and Review Services Committee (ARSC) and a go-to guide for accountants performing preparation, compilation and review engagements, this version contains the most upto-date guidance from ARSC. This version also contains some enhancive updates related to materiality in review engagements, professional skepticism, and more illustrative accountant s reports. Statement on Standards for Accounting and Review Services (SSARS) No. 22, Compilation of Pro Forma Financial Information (AICPA, Professional Standards, AR-C sec. 120) SSARS No. 23, Omnibus Statement on Standards for Accounting and Review Services 2016 (AICPA, Professional Standards) Authoritative guide Illustrative inquiry and analytics for review engagements Illustrative engagement letters for preparation, compilation and review engagements Illustrative representation letter for review engagements Page 1 of 5

2 Illustrative accountant s compilation/review reports on financial statements Illustrative engagement letter for a compilation of pro forma financial information Illustrative accountant s compilation report on pro forma financial information The updated 2017 edition of the following AICPA Guide is being released: Revenue Recognition (aag-rev) The October 2017 edition of this guide adds implementation issues for the following industries: Insurance Entities (chapter 14) Power and Utility Entities (chapter 15) Time-Share Entities (chapter 16) Additional implementation issues have also been included in the following chapters: Chapter 3, Aerospace and Defense Entities Chapter 5, Brokers and Dealers in Securities Chapter 6, Gaming Entities Chapter 9, Software Entities Chapter 13, Telecommunications Entities The 2017 edition of the following alert is being released: General Accounting and Auditing Developments 2017/18 (ara-gen) This alert contains a description of all recent auditing, accounting and regulatory developments, and ensures you have a robust understanding of the business, economic, and regulatory environments in which you and your clients operate. In addition, this alert ensures you have a full understanding of emerging practice issues, with targeted analysis of new developments and how they may affect your engagements, including recent economic trends, recent legislative and PCAOB developments, recent developments in peer review, and recent ethics interpretations. It also contains new accounting and auditing guidance related to derivatives and hedging, service concession agreements, discontinued operations, and stock compensation. Key features and benefits include discussion of the revenue recognition standard, discussion of the leases standard, discussion of the financial instruments standard, and common peer review findings. The following AICPA Guides contain minor editorial changes: Attestation Engagements on Sustainability Information (Including Greenhouse Gas Emissions Information) (aag-sust) Construction Contractors (aag-con) Page 2 of 5

3 Health Care Entities (aag-hco) Investment Companies (aag-inv) State and Local Governments (aag-slg) AUDIT AND ACCOUNTING MANUAL This update releases the following section: Section 8012, General Accounting and Auditing Developments 2017/18. This alert contains a description of all recent auditing, accounting and regulatory developments, and ensures you have a robust understanding of the business, economic, and regulatory environments in which you and your clients operate. In addition, this alert ensures you have a full understanding of emerging practice issues, with targeted analysis of new developments and how they may affect your engagements, including recent economic trends, recent legislative and PCAOB developments, recent developments in peer review, and recent ethics interpretations. It also contains new accounting and auditing guidance related to derivatives and hedging, service concession agreements, discontinued operations, and stock compensation. Key features and benefits include discussion of the revenue recognition standard, discussion of the leases standard, discussion of the financial instruments standard, and common peer review findings. BEST PRACTICES IN PRESENTATION AND DISCLOSURE This update releases the 2017 edition of the following product: U.S. GAAP Financial Statements Best Practices in Presentation and Disclosure (att-2017) With comprehensive coverage of virtually every required disclosure, this resource is designed to give you an unparalleled picture of U.S. GAAP compliance. Updated for new accounting and auditing guidance issued, this valuable tool provides hundreds of high quality disclosure examples from carefully selected U.S. companies of different sizes, across industries such as banking, credit and insurance, communication services, and healthcare from such organizations as Scotts Miracle-Gro, Coca-Cola, Caterpillar, and BB&T Don t spend your time searching for the most helpful example of a given disclosure, let AICPA s experts do the work for you. You ll find illustrations of the most important, immediate, and challenging disclosures, such as derivatives and hedging, consolidations, and fair value measurement. Hot topics include statement of cash flows, going concern, and business combinations and intangibles. This edition also provides clear, direct guidance to help you understand and comply with all significant reporting requirements and detailed indexes to help you quickly find exactly what you need. For auditors, this resource presents up-to-date auditors reports, fully in compliance with generally accepted auditing standards (GAAS). Save time and improve efficiency with the unrivaled presentation and disclosure examples found in U.S. GAAP Financial Statements. Time saving, as examples of financial statement disclosures are all in one location Page 3 of 5

4 Includes a sample auditor s report based on GAAS Discussion of the new accounting and auditing pronouncements Listing of most required disclosures Pronouncement index to help you find what you need faster FASB Accounting Standards Update (ASU) No , Income Statement Extraordinary and Unusual Items (Subtopic ): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items FASB ASU No , Interest Imputation of Interest (Subtopic ): Simplifying the Presentation of Debt Issuance Costs FASB ASU No , Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the Emerging Issues Task Force) CHECKLISTS AND ILLUSTRATIVE FINANCIAL STATEMENTS PCAOB STANDARDS AND RELATED RULES PCAOB Staff Guidance This update adds Staff Audit Practice Alert No. 15, Matters Related to Auditing Revenue From Contracts With Customers (PCAOB Staff Guidance, sec ). PEER REVIEW PROGRAM MANUAL PRACTICE AIDS AND TOOLS PRINCIPLES AND CRITERIA FOR XBRL-FORMATTED INFORMATION AICPA PROFESSIONAL STANDARDS Statements of Position Auditing [AUD] This update issues Statement of Position (SOP) 17-1, Performing Agreed-Upon Procedures Related to Rated Exchange Act Asset-Backed Securities Third-Party Due Diligence Services as Defined by SEC Release No (AUD sec. 60), which is effective for agreed-upon procedures attestation engagements that include covered services accepted subsequent to December 31, This SOP will supersede Attestation Interpretation No. 1, Third-Party Due Diligence Services Related to Asset- Backed Securitizations: SEC Release No (AT-C sec. 9215), of AT-C section 215, Agreed-Upon Page 4 of 5

5 Procedures Engagements. TECHNICAL QUESTIONS AND ANSWERS Specialized Industry Problems: ERISA Reporting and Disclosures This update deletes Technical Questions and Answers (Q&A) section , Employee Benefit Security Administration Guidance on Insurance Company Demutualizations. Specialized Organizational Problems: Definition of a Public Business Entity This update adds Q&A section 7100, Definition of a Public Business Entity, along with the following Q&As: Q&A section , Use of the Term Security in the Definition of a Public Business Q&A section , Types of Securities Included in the Definition of a Public Business Q&A section , Use of the Term Over-the-Counter Market in the Definition of a Public Business Q&A section , Use of the Term Conduit Bond Obligor in the Definition of a Public Business Q&A section , FINRA TRACE and MSRB EMMA Data and a Public Business Q&A section , Use of the Phrase Contractual Restriction on Transfer and a Public Business Q&A section , Use of the Terms Prepare, Publicly Available, Financial Statements, and Periodic Basis in the Definition of a Public Business Q&A section , Application of the Definition of a Public Business Entity When Entities are Organized in Tiered Organizational Structures (Parent, Consolidated Subsidiaries, Nonconsolidated Entities, Guarantors, Equity Method Investees) Q&A section , Financial Statements or Financial Information Filed With the SEC and Considerations for Effective Dates and the Definition of a Public Business Q&A section , Accounting Standard Update Effective Dates and the Definition of a Public Business Q&A section , Evaluating the Definition of Public Business Entity for Financial Institutions Subject to Section 36 of the Federal Deposit Insurance Act and Part 363 of the FDIC Rules and Regulations Q&A section , Mutual Depository Institutions and the Definition of a Public Business Q&A section , Brokered Certificates of Deposit and the Definition of a Public Business Q&A section , Private Resales (Rule 144 and Rule 144A) and the Definition of a Public Business Q&A section , Insurance Companies and the Definition of Public Business Q&A section , Brokers, Dealers, and Futures Commission Merchants and the Definition of a Public Business SUPPORTING DOCUMENT COLLECTION Page 5 of 5