Accounting and Auditing: End of Year Tune-Up
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Fall is here. CPAs in industry, government, and education are beginning to prepare for September and December closing dates for their companies. CPA auditors, reviewers, compilers, and preparers are preparing for the years ending dates as well. Major questions and concerns are to make sure that all the new provisions and updates from the Financial Accounting Standards Board (FASB) are implemented in their companies and clients where needed for their year-end dates. |
Several important areas come to mind for all CPAs:
- What is the status of the Revenue Recognition Accounting Standards Update 2014-09 for these year ends?
- What is the status of the proposed Accounting Standard Update for Leases?
- What is the status of the proposed Accounting Standards Update for Financial Instruments?
- Are there any new developments in the International Financial Reporting Standards that might impact my employer or the clients of the firm?
- Will the Private Company Council continue for the coming year and are there any new expectations to be looking out for?
- What changes in the Not for Profit area are expected from the FASB and when?
Additionally, the profession has some changes from the past that will need implementation for the coming accounting periods that deal with documentation, disclosures, and new requirements for management, auditors, and other accounting professionals. These changes come about because the Accounting Standards Updates from prior years are now effective and require implementation. Some of these updates are in the area of:
- Going Concern (both from management and the auditor’s perspective)
- Inventory valuations might be impacted by the changes to the inventory pricing models that involve “market value”.
- Issues on “cloud computing” finally have been set forth regarding when the cloud has data processing software programs as part of the cloud and when an entity takes its own software into a cloud.
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