• AICPA updates standards for accounting and review services

    The American Institute of Certified Public Accountants (AICPA) has rolled out the long-awaited update of its accounting and review standards. Statement on Standards for Accounting and Review Services (SSARS) No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, represents one of the AICPA’s most significant revisions of its nonaudit standards since 1979. Among other things, the guidance creates a bright line between accounting (or preparation) services and reporting (compilation or review) services and lays out distinct requirements for each type of service. This article outlines what the clarified guidance means to those who use CPAs to perform nonaudit services — including reviews, compilations, and financial statement preparations — to report their historical and prospective financial results.
  • Baker Tilly Comment Letter to the AICPA on the Enhancing Audit Quality Initiative

    We welcome the opportunity to provide feedback to the American Institute of Certified Public Accountants (AICPA) in connection with the Enhancing Audit Quality Initiative (EAQI). Baker Tilly Virchow Krause (Baker Tilly) is committed to audit quality and believes the delivery of high quality audits not only serves the public trust but enhances the value that we provide to our clients.
  • Progress report: International convergence of accounting standards

    In 2002, FASB and the IASB agreed to work together to develop high-quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting. Since then, the bodies’ efforts to achieve the so-called “convergence” of US GAAP and IFRS have had their ups and downs. Going forward, US standard setters propose an informal, collaborative model that will minimize differences in financial reporting, in lieu of the IASB’s one-size-fits-all approach. This article looks back at what’s happened with convergence to date and examines the future direction of financial reporting in a global marketplace.
  • Going Concern: FASB issues new standard on reporting adverse conditions and events

    FASB has released a new accounting standard that provides much-needed guidance on management’s responsibility in evaluating and disclosing adverse conditions or events that raise substantial doubt about a company’s ability to continue as a “going concern.” The guidance, published in ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, applies to all companies that prepare their financial statements in accordance with US Generally Accepted Accounting Principles (GAAP). This article details the new guidance.