News & Resources

Audit and Assurance

Coming soon: Updated rules for reporting convertible instruments

Coming soon: Updated rules for reporting convertible instruments

The FASB recently issued new guidance to simplify the accounting rules for convertible instruments and contracts in an entity's own equity. Though narrower than initially proposed, the changes will provide investors with more-comparable information that is easier to understand. Read more

AICPA Issues Guidance on Reporting PPP Loans

AICPA Issues Guidance on Reporting PPP Loans

Some recipients of PPP loans have been unclear as to how to account for these loans. Should these arrangements be treated as loans or grants under U.S. Generally Accepted Accounting Principles? Read more

FASB issues update to implementation timing for two significant pending accounting changes

FASB issues update to implementation timing for  two significant pending accounting changes

On June 3, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-05 - Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). Read more

How will the coronavirus health crisis affect financial reporting?

How will the coronavirus health crisis affect financial reporting?

The coronavirus (COVID-19) pandemic has rightly become the focus of massive public attention in recent weeks. In addition to concerns about the health of their workers, businesses may be concerned about how it will affect their financial results and the performance of their supply chain partners. Read more

Agreed-Upon Procedures Engagements: No Written Assertion, No Problem

Agreed-Upon Procedures Engagements: No Written Assertion, No Problem

The AICPA's Auditing Standards Board ("ASB") issued a revised attestation standard in December 2019. The revised standard gives accountants more flexibility when performing agreed-upon procedures ("AUP") engagements. Read more

How a not-for-profit should prepare for a financial audit

How a not-for-profit should prepare for a financial audit

Outside financial audits may seem like an extravagance to not-for-profits working to contain costs and focus on their mission. However, undergoing regular audits allows an organization to identify risks early and act quickly to prevent problems. Read more

Revising lease terms to avoid the new lease accounting rules

Revising lease terms to avoid the new lease accounting rules

Debt-strapped private companies have been exploring ways to avoid having to use the lease accounting rules for new contracts. Implementing the updated leases standard might cause some companies to trip their loan covenants and how to safeguard against this potential pitfall. Read more

Measuring the fair value of equity-based awards

Measuring the fair value of equity-based awards

Equity-based compensation awards can help companies attract skilled workers and boost performance. But accounting for these payments can be complicated and costly. Read more

Effective dates: FASB proposes changes to standard-setting approach

Effective dates: FASB proposes changes to standard-setting approach

In recent years, smaller public companies and private entities have been struggling to keep up with the rapid pace of change in accounting rules. In response, the FASB has proposed changing its philosophy for establishing effective dates for major new accounting standards. Read more

How strong are the internal controls of your company?

How strong are the internal controls of your company?

A solid system of internal controls translates into more reliable financial reporting and can help companies prevent, detect and correct financial misstatements. Read more

FASB will propose delays to four new accounting standards

FASB will propose delays to four new accounting standards

In July, the FASB voted to propose a sweeping set of split deferrals for certain entities. The proposal would delay new accounting rules for 1) leases, 2) credit losses on loans, 3) long-term insurance contracts, and 4) hedge accounting. Read more

Providing more detailed information about expenses

Providing more detailed information about expenses

Ideally, investors should be able to get sufficient information about a company's future cash flows by looking at the income statement. But they currently do not because expense information is too densely reported, according to recent discussions by the Financial Accounting Standards Board (FASB). Read more

Disclosing government assistance

Disclosing government assistance

In February, Amazon backed out of plans to open a second headquarters in Queens, New York, because of community opposition to roughly $2.5 billion in government incentives. Read more

Boardroom diversity update

Boardroom diversity update

Many corporate directors want to increase board diversity to capture the benefits. This article highlights key findings from recent boardroom diversity studies and some characteristics, beyond gender and race diversity, that boards should look for in new members. Read more

Private businesses: Who is ready for the new lease standard?

Private businesses: Who is 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, that go into effect starting in 2020. This article explains what is changing and how private companies can adapt. Read more

Best Practices for Audit Committees

Best Practices for Audit Committees

In January 2019, the board of the International Organization of Securities Commissions published a report intended to promote audit quality. It outlines best practices for audit committees. Read more

Why auditors require face-to-face meetings to assess fraud risks

Why auditors require face-to-face meetings to assess fraud risks

Auditing standards require auditors to identify and assess the risks of material misstatement due to fraud and to determine overall and specific responses to those risks. Here is what auditors look for during fraud-risk interviews and why face-to-face meetings are essential. Read more

Revenue Recognition Contracts: Part 4

Revenue Recognition Contracts: Part 4

This article addresses steps 4 and 5 of the new revenue recognition model: allocation of the transaction price to performance obligations and recognizing revenue when, or as, performance obligations are satisfied. Read more

Revenue Recognition Contracts: Part 3

Revenue Recognition Contracts: Part 3

This step of the revenue standard addresses the determination of the transaction price in a contract arrangement. Topic 606 defines the transaction price as "the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer." Read more

Revenue Recognition Contracts: Part 2

Revenue Recognition Contracts: Part 2

In this article we dive deeper into steps 1 and 2 of the Accounting Standards Update (ASU) No. 2014-09 Revenue from Contracts with Customers: identify the contract with a customer and identify the separate performance obligations in the contract. Read more