• Frequently Asked Questions for IFRS taxonomy are updated

    The SEC updated its Frequently Asked Questions (FAQs) about submitting IFRS financial statements tagged in the eXtensible Business Reporting Language (XBRL) to regulatory filings. The update provides information about the location of the tags for disclosure rules that are not part of the IFRS taxonomy. Earlier this year, the SEC updated its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) filing system to accommodate XBRL exhibits for IFRS financial statements.
  • Mutual fund reports may switch to electronic delivery

    The SEC is planning to adopt a rule in the spring of 2018 letting mutual funds provide shareholder reports electronically. The fund industry said the switch will save it $200 million in printing and mailing costs each year that can be passed on to investors.
  • Virtual assets may be regulated under securities laws

    The SEC said in a statement that digital assets may be regulated under federal securities laws. The agency made the statement after investigating a virtual organization known as the DAO that sold digital tokens to fund various projects.
  • Review begins of PCAOB’s expansion of auditor reports

    The SEC began its review of the PCAOB’s rule to expand the auditor’s report in regulatory filings. The rule requires auditors to discuss the challenging issues that arose as they examined a client’s financial statements in their reports.
  • House Democrats ask FASB to require more detailed disclosures about offshore taxes

    16 Democrats in the House of Representatives called on the FASB to write standards to require U.S. multinationals to disclose more information about their offshore earnings and taxes. The lawmakers’ request comes as reform and civic groups have urged Congress and regulators to crack down on tactics companies use to hide profits in offshore tax havens.
  • Materiality guidance takes shape

    The IASB decided to scrap guidelines about assessing covenant breaches from its forthcoming guidance to help businesses and other organizations determine the information that is important enough to include in their financial statements. The board wants its Practice Statement, to be published by the end of the year, to help businesses use judgment when drawing up financial statements.
  • Lease standard implementation falls behind schedule

    Businesses have two major accounting changes on the horizon in the next two years — the revenue recognition standard that goes into effect for public companies in less than six months and the lease accounting overhaul that must be followed in 2019. The lease standard is less complicated than the revenue guidance, but lease amendments still require major work to implement, and companies have been slow in making the necessary changes to their financial reporting systems and the processes to support the change.
  • Amendment to U.S. GAAP simplifies accounting for some embedded options

    The FASB published an update to U.S. GAAP to simplify the accounting for a class of financial instruments with embedded options that early-stage companies often issue to investors to protect them from a decline in the value of their investment. The amendment allows a financial instrument with a down-round feature to no longer automatically be classified as a liability solely based on the existence of the down-round provision.
  • Cybersecurity Audit and Accounting Guide is released

    The AICPA said the Audit and Accounting Guide (AAG) AAG: Reporting on an Entity’s Cybersecurity Risk Management Program and Controls (aag-cyb) provides a framework for managing cybersecurity risks. The guide explains how to implement the framework and report on an organization’s program for managing technology risks on a company-wide basis.
  • ASC 606 Revenue Recognition eBook

    If your organization is in the process of adopting, or still researching, the new revenue recognition accounting standard, then this comprehensive, yet easy-to-read, 60+ page eBook is for you.
  • ASC 606 update: Insurance revenue streams affected

    Insurance organizations thought ASC 606 would have minimal impact on the industry because insurance contracts were out of scope, but as companies and accounting specialists delved into the standard, they discovered many insurance organizations have revenue streams that fall under the scope of ASC 606.
  • ICFR for Revenue Recognition

    Understand the nuances of internal controls over financial reporting (ICFR) for ASC 606 (revenue recognition), including transition methods discussed in this Financial Executives International (FEI) presentation.
  • The ASC 606 (revenue recognition) transition: Cost capitalization

    As with revenue recognition itself, the codification has never comprehensively addressed costs in connection with contracts. Often, the guidance has been found within the industry sections, or other disparate sections of the codification. The new standard seeks to comprehensively address the issue.
  • Attention! ASC 606 will affect insurers. Are you ready?

    Many insurance entities believed ASC 606 would not affect them BUT other transactions such as risk management services, claims administrations, property valuations/appraisals, financial planning, and commissions or bonuses will be affected.
  • ASC 606 transition: Disclosures

    Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, seeks to change the value of disclosures by requiring robust disclosure for the users of the financial statements.
  • Accounting for leases: Measurement and re-measurement

    So far in this series, we have discussed how to identify a lease in a contract and how to classify a lease (as operating or finance type) based on the terms of the lease contract. In this article, we discuss the initial recognition and measurement of leases and how re-measurement is made when changes occur in the contract during the estimated initial period of the lease.
  • Health Plan Audits

    This article shares information about health insurance and how to audit key aspects. It addresses the regulatory environment, including topics such as Model Audit Rule and state examinations.
  • Identifying a lease: Implementing the new leases accounting standard

    The first step in applying ASC 842 is determining whether or not a contract, which is defined as an agreement between two parties which creates enforceable rights and obligations, contains a lease. Basically the contract contains a lease if it conveys the right to control the use of identified property or equipment for a period of time.
  • Significant changes to Form 3115

    The IRS’s new Form 3115 and instructions contain revisions that incorporate modifications and additions from two revenue procedures issued in early 2015.
  • The FASB has a full plate for 2016

    Actions the FASB takes can have a significant effect on your financial statements and the impression they leave with users of such statements. Here are areas the FASB is likely to focus on in 2016.
  • Year-end insurance accounting update 2015

    Baker Tilly’s insurance professionals provided an update on recent NAIC statutory and GAAP changes affecting insurance organizations and shared insights into complex accounting standards.
  • NAIC Fall 2015 National Meeting recap

    At the Fall Meeting the NAIC Statutory Accounting Principles (E) Working Group (SAPWG) adopted several nonsubstantive revisions to statutory accounting and exposed various substantive and nonsubstantive revisions.
  • Benefits of a fraud risk assessment

    Designed with the state and local government board member in mind, this high-level podcast can help you identify fraud within your government and explores various methods for carrying out a fraud risk assessment.
  • NAIC provides additional ORSA feedback to industry

    Overall, the 2015 Working Group memo indicated that the depth and breadth of the content of the ORSA reports varied significantly from company to company, and that the ORSA reports of life insurers generally demonstrated more mature ERM and capital management frameworks than those of property-casualty and health insurers.
  • NAIC Summer 2015 National Meeting update

    The National Association of Insurance Commissioners (NAIC) recently held its Summer 2015 National Meeting. There are several relevant items and future changes for insurance organizations to be aware of and to watch for from the Statutory Accounting Principles Working Group, Blanks Working Group, Investment Classification Project, and Investment Risk Based Capital Working Group.
  • Revenue recognition requirements delayed one year

    On July 9, 2015, the FASB approved its April 2015 proposal to defer the effective date of ASU No. 2014-09, Revenue from Contracts with Customers, for all entities for one year. Entities will, however, be allowed to apply the new standard as of the original effective dates set out in the standard. This article examines the revenue recognition standard and explains why the FASB granted an extension.
  • Government financial statements 101

    Designed for the state or local government board member, this brief podcast provides an overview of key financial statement components and their importance.
  • Transitioning to the 2013 COSO Framework

    Since the Committee of Sponsoring Organizations (COSO) issued its Internal Control — Integrated Framework (2013 Framework) in May 2013, many organizations have implemented the new framework to comply with the initial December 15, 2014 transition deadline. The 2013 Framework requires management to assess whether 17 principles are present and functioning, which is a change from the previous framework. Further, the 2013 Framework includes points of focus, which are important characteristics of the 17 principles and assist management with determining whether controls are properly present and functioning.
  • Baker Tilly Comment Letter to the FAF on the PCC

    We are pleased to have the opportunity to provide feedback to the Financial Accounting Foundation (FAF) with respect to the Private Company Council (PCC). At Baker Tilly Virchow Krause, LLP (Baker Tilly) we have strong support for the PCC and its efforts to date in improving financial reporting for the users of private company financial statements.
  • New way to calculate net asset value per share

    There are several ways to calculate the value of an asset, and financial institutions have a number of options for determining the Net Asset Value Per Share. They also have to make what is sometimes a difficult judgment call, and a new accounting regulation is designed to simplify that process.
  • Securitization of deposits and investments

    Ensuring the security of government deposits and investments is a fiduciary responsibility of the governing body and management. These common mechanisms help governments fulfill their duty to safeguard public funds.
  • Five easy internal controls your government should implement

    Ensuring there are adequate controls over both traditional and electronic processes and periodically reviewing those controls can help mitigate your government’s susceptibility to fraud. Baker Tilly’s audit team encourages you to consider implementing these five low-cost controls.
  • Update from REITWise 2015

    The National Association of Real Estate Investment Trusts (NAREIT) held their annual REITWise conference in Phoenix, Ariz. The latest accounting, tax, and economic issues impacting real estate investment trusts (REITs) were addressed over the course of the conference. Highlights from some of the committee meetings and sessions are summarized.
  • Indirect cost changes under OMB Uniform Guidance

    For recipients of federal awards that currently have a negotiated indirect cost rate, there is now a requirement that all federal awarding agencies accept this negotiated rate unless otherwise required by federal statute or regulation or when approved based on documented justification.
  • Banking brief: Aging accounting standard exposed by fiscal policy changes

    Recent communications by the Federal Reserve Board Federal Open Market Committee (FOMC) have set the stage for increases in interest rates in mid to late 2015. As the domestic economy continues to demonstrate fundamental signs of a sustained recovery, including modest price increases and wage gains, few have challenged the merit of increasing interest rates in the near term.
  • Final Basel III capital rule will affect community banks

    The final rules for the Basel III international capital accord, which will be phased in between the beginning of this year and 2019, include some relief for community banks. There are also some changes that affect the capital standards and reporting for community banks.
  • 2015 hot topics in NAIC risk-focused examinations

    Understanding insurance industry trends, NAIC developments, Financial Condition Examiners Handbook updates, and preparing for reviews of Own Risk Solvency Assessment (ORSA) are some of the key items for State regulators and insurer regulatory examination liaisons.
  • Recap of the 2014 FASB ASUs

    In 2014, the Financial Accounting Standards Board (FASB) issued eighteen Accounting Standards Updates (ASUs). There are several major areas expected to be updated in 2015, including leases, disclosure framework, and accounting for financial instruments. To help you review the most recent updates, links are provided to the detailed FASB information for each of the 2014 ASUs.
  • AICPA releases new plan advisory on quality auditors

    The Employee Benefit Plan Audit Quality Center has recently released a Plan Advisory (the Advisory) on the importance of hiring a quality auditor in respect to your employee benefit plan; this advisory covers the financial statement audit's significance to users, and the risk a plan sponsor will face if a quality audit is not performed. The Advisory also provides guidance in evaluating auditor qualifications, and includes a complete overview of the proposal process.
  • Implementing an effective cybersecurity management program

    Cybersecurity is one of the most urgent topics in business today. It seems that every week, there is a new story about a company’s data being breached with millions of customer records, payment card data, or lost trade secrets. The best-prepared companies are shifting their cybersecurity strategies from prevention, to implementing techniques that quickly detect breaches and limit the damage once a breach has been confirmed. What are the effective components of a modern cybersecurity management program? We consider five main components to improve cybersecurity effectiveness.
  • 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.
  • Regulatory noncompliance is now a financial matter

    More punitive regulatory approach raises financial statement audit scrutiny: In the aftermath of the Great Recession, regulators have turned dramatically to a far more punitive approach in dealing with actual and alleged instances of noncompliance with laws and regulations by financial institutions. The increased presence of significant financial consequences, brings into greater light a financial statement auditing standard that previously had infrequent application and limited effect on the financial condition and results of reporting companies’ operations.
  • Tips for owning your next A-133 audit

    If your institution expends more than $500,000 (increasing to $750,000 come December 26, 2014), in general funds of awards per year, you must submit to a single audit, more commonly known as the OMB Circular A-133 Audit on an annual basis. Many view the A-133 audit as a “necessary evil” – something that has to be done in order for your institution to receive the research funding. In this article we outline tips for taking back control of your next A-133 audit.”
  • Updated mortality tables affect employee benefit plans

    The Society of Actuaries recently released new mortality tables for use by plan sponsors when measuring benefit plan costs and obligations. The new tables, RP-2014 (mortality tables) and MP-2014 (longevity improvement scale), will most likely result in higher defined benefit obligations in benefit plans.
  • 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.
  • Corporate governance standards are nearing final adoption–Now is the time for insurers to assess their governance structure

    At the November 2014 National Association of Insurance Commissioners (NAIC) meeting, the Executive Committee is expected to formally adopt the Corporate Governance Annual Disclosure Model Act and the Corporate Governance Annual Disclosure Model Regulation (collectively “the Act”). The Act will require insurers of all sizes to make an annual filing with the lead state Insurance Commissioner which discloses the insurer’s corporate governance structure, policies and practices.
  • Disclosures about short-duration contracts

    In June 2013, the Financial Accounting Standards Board (FASB) issued its Exposure Draft on Insurance Contracts. Feedback from respondents was overwhelmingly in support of retaining the current guidance for recognition and measurement for short-duration contracts existing in US Generally Accepted Accounting Principles (GAAP). However, financial statement users commented that expanded disclosures about the liability for unpaid claims and claim adjustment expenses would increase the transparency of significant estimates and provide insight into the ability of the insurance entity to underwrite and anticipate claims.
  • 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.
  • Accounting update from the NAIC Summer 2014 meeting

    The National Association of Insurance Commissioners (NAIC) 2014 Summer National Meeting was held in Louisville, KY. A number of issues and statutory accounting changes were addressed over the course of the meeting. Highlights from some of the working group meetings are summarized below.
  • Common IRS document requests in 401(k) plan audits

    The IRS has recently increased its audits of employer 401(k) plans. Rather than wait for an audit, plan administrators should proactively consider potential issues and take any necessary corrective measures. The following is a brief rundown of what the IRS will request at the outset of an audit, as well as a non-comprehensive list of issues commonly scrutinized by the IRS during a 401(k) plan audit.
  • Financial Policies 101

    Learn how a well-written financial policy can offer a multitude of ongoing benefits for your organization.
  • Money market fund reform becomes reality. What’s changing?

    On July 23, 2014 the US Securities and Exchange Commission (SEC) adopted a Final Rule that amends Rule 2a-7 of the Investment Company Act of 1940, which governs money market funds. These long anticipated amendments are designed to provide both structural and operational reform addressing an investor run on funds during a financial crisis, as was seen in 2008. The Final Rule becomes effective sixty days after publication in the Federal Register and provides for a two-year implementation period.
  • SEC enforcement of federal securities laws

    Due to increased concerns about potential widespread violations of the federal securities laws by municipal issuers and underwriters the SEC has undertaken a new initiative to identify and clean up false certifications.
  • The Affordable Care Act: where are we now?

    Employers are now more than ever faced with additional obligations under the Affordable Care Act, this article provides an overview of how the final regulations affect employer groups by employee size.
  • Steps for creating an OMB Uniform Grant Guidance implementation roadmap

    Many organizations receiving federal awards are still assessing the impact the OMB uniform guidance will have on them. With the effective date looming, now is the time to assess the changes necessary to obtain compliance and determine a plan of action. To help you get started, we have developed a checklist of important steps you should take and key items to consider along the way.
  • Revenue recognition standards will have major impact on financial statements

    After many years of discussion, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued the long awaited and converged revenue recognition standard on May 28. This standard has the potential to be one of the biggest changes ever in financial reporting because it impacts virtually every financial statement issued in the world.
  • New NIST Cybersecurity Framework

    In February 2014, the NIST Cybersecurity Framework was introduced as a response to Executive Order 16363, ordered by President Obama in 2013. The Executive Order was a White House initiative to improve cybersecurity of critical infrastructure by developing a framework which incorporates a consensus of industry standards and best practices.
  • De-risking strategies in pension plans

    De-risking strategies in pension plans are currently much discussed by corporate management and pension plan fiduciaries. These strategies may include adopting a liability driven investment (LDI) strategy or purchasing participating annuity contracts (buy-in contracts) on the asset side to decrease volatility and manage cash flow.
  • Manage mobile device risks holistically

    Mobile devices transform the way your organization serves customers and generates business, as well as communicates with your employees and stakeholders. These same devices bring new and increased risks to your organization’s data, competitive advantage/intellectual property, and reputation. Managing these risks requires a holistic approach, which goes beyond just securing the software on a device.
  • New accounting guidance likely to change your revenue recognition practices

    The bodies that establish US and international accounting standards have released new guidance on the timing of companies’ revenue recognition. The new guidance from FASB and the IASB have been in development for more than a decade and are intended to enhance comparability of revenue recognition practices across companies, industries, jurisdictions, and capital markets. FASB’s version of the guidance was published in ASU No. 2014-09, Revenue from Contracts with Customers. This article provides an overview of the converged guidance, along with a brief look at the potential impact on certain industries.
  • Recent FASB board discussion on insurance contracts

    On February 19, 2014 the Financial Accounting Standards Board (FASB) announced it would abandon its rewrite of existing US GAAP through the Insurance Contracts Exposure Draft and instead focus on targeted improvements to the existing standards for long-duration contracts and targeted disclosure enhancements for short-duration contracts. On April 16, 2014 the FASB began its discussions on those improvements and disclosures that should be included in the scope of this project.
  • ORSA – Why should exempt companies care?

    Over the last few years the NAIC has established its expectations for insurance companies to maintain a risk management framework and conduct an Own Risk and Solvency Assessment (ORSA), including the filing of an ORSA Summary Report with state regulators. In 2012, the NAIC issued a Guidance Manual to provide insurers guidance with respect to reporting on ORSA, and later the NAIC adopted an ORSA Model Act. In 2012 and 2013 the NAIC conducted two separate feedback pilot projects and provided feedback and observations in a memo to the industry.
  • Risk governance: What to expect

    For years, risk governance meant risk management, with a relatively narrow focus on specific areas: loans, legal, and possibly IT. Then, everything went sideways in 2008-2009, and regulators saw the need for a more proactive, comprehensive risk governance strategy. Within the past five years, new rules and guidelines have begun changing the flaws regulators could see boards of directors were not engaged at the right level; board members and executives weren’t getting the right information to make informed decisions; and management didn’t have tools in place to facilitate a timely and comprehensive analysis of overall risk.
  • New recommendations for bank audits

    External bank auditors have new guidance from the Basel Committee on Banking Supervision as of March 31, and banks should understand the updated guidelines before their next audit. The new guidelines, 46 pages in all, replace The Relationship Between Banking Supervisors and Banks' External Auditors, published in 2002, and External Audit Quality and Banking Supervision, from 2008.
  • Healthcare reform update for not-for-profits

    Baker Tilly specialists discuss the recent changes pertaining to the Affordable Care Act Section 4980H-Pay or Play requirements and outline steps to evaluate healthcare coverage for your employees.
  • Upcoming pension changes – part III

    Learn about key implementation considerations for the new pension reporting standards for the Minnesota Public Employees’ Retirement Association (PERA), Teachers’ Retirement Association (TRA), and/or Minnesota State Retirement System (MSRS) General Plan.
  • FASB releases simplified reporting rules for discontinued operations

    The Financial Accounting Standards Board (FASB) released revised guidance for financial reporting on discontinued operations in April 2014. The new rules directly respond to concerns that too many disposals of assets, including small groups of assets that are recurring in nature, qualify for discontinued operations, and that the guidance for applying the current definition of a discontinued operation is complicated to interpret and apply.
  • FASB grants variable interest entities reporting exception for private company leases

    As part of continuing efforts to ease the burden on private companies that prepare their financial statements in accordance with Generally Accepted Accounting Principles (GAAP), the Financial Accounting Standards Board (FASB) has established another alternative to GAAP reporting requirements. The alternative, described in Accounting Standards Update (ASU) 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements, may provide relief for private companies that lease property from a business entity owned by an owner of the private company.
  • Insurance outlook briefing: Charging ahead of recent developments in ORSA expectations

    At the recent National Association of Insurance Commissioners (NAIC) Spring 2014 national meeting, two new documents were approved for release as exposure drafts: the Draft Own Risk and Solvency Assessment (ORSA) Guidance for Financial Analysts and the Draft ORSA Guidance for Financial Examiners. While the documents are intended to be guidance for insurance department financial analysts and examiners, the guidance provides a window into expectations for the future.
  • Accounting update from the NAIC Spring 2014 meeting

    The National Association of Insurance Commissioners (NAIC) 2014 Spring National Meeting was held in Orlando, FL. A number of issues and statutory accounting changes, both substantive and nonsubstantive, were addressed over the course of the meeting. Highlights from some of the working group and committee meetings are summarized.
  • Public business entity definition

    In December 2013, the Financial Accounting Standards Board added a new definition to its master glossary with the issuance of Accounting Standards Update 2013-12, Definition of a Public Business Entity. The public business entity (PBE) definition will be used to determine which entities may apply the private company accounting and reporting alternatives within US generally accepted accounting principles (US GAAP) on a going-forward basis.
  • NAIC’s ORSA subgroup provides new feedback to the industry

    The NAIC formally adopted the Own Risk and Solvency Assessment (ORSA) Model Act in September 2012, and the ORSA requirement for qualifying insurers will be effective January 2015. In an effort to improve guidance and regulation, the NAIC’s ORSA (E) Subgroup has completed two feedback pilot projects, one in June 2012 and the most recent in September 2013.
  • Financial recovery in sight for city government

    Working with Baker Tilly, the city achieved a smooth transition for the comptroller and eliminated a significant staffing void. The efficient collaboration led to a carefully prepared audit with limited adjustments and within budget.
  • Managing risk for third party relationships: Office of the Comptroller guidance

    The Office of the Comptroller of the Currency (OCC) released guidance in October 2013 to national banks and federal savings associations on how to assess and manage risks of third parties. Concerns over how effectively banks are managing risks of their outsourced providers have increased along with their use. This increased use has consisted of both greater numbers of service organizations employed by banks and increased complexity in the services they provide. This, coupled with the fact that service organizations may also be domiciled in foreign countries, has raised concerns within the OCC and the banks themselves.
  • Understanding the COSO Internal Control-Integrated Framework

    COSO’s Internal Control-Integrated Framework makes it easier to design and evaluate the effectiveness of internal controls. The framework is also used by public companies to assess effectiveness of internal control over external financial reporting (ICEFR) under Sarbanes-Oxley (SOX) section 404.
  • Upcoming pension changes – part II

    Learn about key implementation considerations for the new pension reporting standards for Wisconsin Retirement System, the Illinois Municipal Retirement Fund and/or the Teachers’ Retirement System.
  • FASB accounting standards offer GAAP relief for private companies

    Since May 2012, the Financial Accounting Standards Board (FASB) has been working with the Private Company Council (PCC) to determine whether alternatives to existing US Generally Accepted Accounting Principles (GAAP) standards are appropriate for private company financial statements. Two new accounting standard updates mark the first concrete steps toward providing relief from burdensome and costly requirements for private companies that need or are required to have financial statements prepared in accordance with GAAP.
  • Regulatory accounting under GASB 62

    If your utility is required to follow governmental accounting standards, read this article for answers to some allowable uses of regulatory accounting under GASB 62.
  • NAIC 2013 Fall meeting update

    The 2013 Fall NAIC meeting concluded on December 18, 2013 in Washington, DC. A number of substantive and non-substantive agenda items, including various committee meeting summaries were addressed. Key technical accounting updates were discussed during the Statutory Accounting Principles Working Group and the Emerging Accounting Issues Working Group.
  • FASB tentatively decides to add natural expense reporting requirement for all nonprofits including higher education Institutions

    On December 18, the Financial Accounting Standards Board (FASB) continued deliberations and tentatively decided to require all Not-For-Profit (NFP) entities to report expenses by functional and natural classification within their financial statements. Currently, all NFPs are required to report expenses by functional classification, but not by nature (salaries, benefits, repairs, etc.).
  • FASB issues ASU 2013-12, Definition of a Public Business Entity

    The Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2013-12, Definition of a Public Business Entity (ASU 2013-12) in December 2013. This update provides a single definition of public business entity for use in future financial accounting and reporting guidance. Distinctions about which not-for-profit entities (NFPs) would receive financial accounting and reporting alternatives within US GAAP typically have been made on the basis of whether an NFP has public debt securities, including conduit debt.
  • SEC proposes rules to increase access to capital for smaller companies

    On December 18, 2013, the Securities and Exchange Commission voted to propose rules intended to increase access to capital for smaller companies. The SEC’s proposal would build upon Regulation A, which is an existing exemption from registration for small offerings of securities up to $5 million within a 12-month period.
  • Recap of 2013 FASB ASUs

    In 2013, the Financial Accounting Standards Board (FASB) issued twelve Accounting Standards Updates (ASUs). There are four exposure drafts and seven final documents expected in 2014 according to the current FASB project plan. To help you review the most recent updates, links are provided below to the detailed FASB information for each of the 2013 ASUs.
  • Upcoming pension changes

    Discover the components of the recent GASB 67 and 68 issuance and learn about the new changes taking effect for the accounting and reporting of pensions for both the pension plan and the local government employer.
  • The Equitable Bank testimonial

    Jennifer Provancher, Executive Vice President, Chief Financial Officer, and Chief Operations Officer of The Equitable Bank, describes her experience working with Baker Tilly in this video.
  • Mueser Rutledge benefits from long-term service relationship

    Mueser Rutledge Consulting Engineers (Mueser Rutledge) was founded in 1910 and is a leader in providing structural design of foundations and waterfront structures and in performing complete geotechnical studies. The firm specializes in complicated sites, especially in urban areas, solving difficult foundation and special structure problems.
  • PCAOB proposed auditing standard – related parties

    Proposed amendments to certain PCAOB auditing standards regarding significant unusual transactions and other proposed amendments to PCAOB auditing standards. On May 7, 2013 the Public Company Accounting Oversight Board (PCAOB) reproposed the Proposed Auditing Standard – Related Parties; Proposed Amendments to Certain PCAOB Auditing Standards Regarding Significant Unusual Transactions; and Other Proposed Amendments to PCAOB Auditing Standards.
  • Big changes coming for issuers of insurance contracts

    The Financial Accounting Standards Board (FASB) recently issued Proposed Accounting Standards Update - Insurance Contracts (Topic 834) (the update) to improve current US generally accepted accounting principles (GAAP) and to move toward an international standard.
  • NAIC summer 2013 meeting highlights

    There were several items of interest that came from the Statutory Accounting Principles Working Group at the summer meeting of the National Association of Insurance Commissioners (NAIC). These include SSAP No. 35R - guaranty fund and other assessments, Issue paper No. 146 - share-based payments with non-employees, and the new SSAP regarding working capital finance investments.
  • Considering establishing an audit committee?

    A government is accountable for the services provided to taxpayers and for the way that it uses its resources to provide those services. One way to enhance accountability is to form an audit committee.
  • FASB proposes ASU to define public business entity

    Based on inquiries to the Financial Accounting Standards Board (FASB) on which entities will be within the scope of the draft Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies (the “Guide”), FASB has issued proposed guidance on the definition of public business entities.
  • The truth is in the (XBRL) tagging

    All too often you hear about the cost of doing business and the mountain of compliance exercises that must be undertaken for the privilege of being listed on a public stock exchange. With the seemingly endless array of documents, disclosures, and deadlines by which a public company must abide, it is no surprise that many CFOs feel the same way about the Securities and Exchange Commissions’ electronic data mandate: it is just another compliance exercise that creates no value for the company.
  • New financial reporting option for small- and medium-sized entities announced

    The "Financial Reporting Framework for Small- and Medium-Sized Entities" (SME framework) from the American Institute of Certified Public Accountants (AICPA) is intended to ease reporting for smaller, privately held, owner-managed businesses that are not required to follow Generally Accepted Accounting Principles (GAAP). The goal of the framework is to help these businesses clearly and concisely report what they own, what they owe, and their cash flow.
  • Accounting and financial reporting for pensions

    No topic in government finance is more controversial right now than employee pensions. Recognizing this trend, the Governmental Accounting Standards Board (GASB) has issued Statements No. 67 and No. 68 that document upcoming changes in the accounting and financial reporting for pensions by governmental entities.
  • FASB exempts private companies from a fair value measurement disclosure

    The Financial Accounting Standards Board (FASB) recently issued guidance clarifying the applicability to nonpublic entities of a certain disclosure requirement regarding the fair value of assets and liabilities. The guidance, found in Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825): Clarifying the Scope and Applicability of a Particular Disclosure to Nonpublic Entities, takes effect immediately. It directly affects private companies that have total assets of $100 million or more — or one or more derivative instruments — and the preparation of their 2012 financial statements.
  • Revised lease accounting exposure drafts released

    In May 2013, the Boards released revised exposure drafts for the proposal of new lease accounting guidance. The Boards’ revised proposals are very similar in nature and represent significant progress in the international convergence project to create more unified financial reporting for leases.
  • Recap of 2012 FASB updates

    The Financial Accounting Standards Board (FASB) issued seven Accounting Standards Updates (ASUs) in 2012, just over half of the twelve issued in the prior year.
  • FASB clarifies disclosure requirements for offsetting

    The Financial Accounting Standards Board (FASB) recently issued guidance clarifying which types of transactions will be subject to enhanced disclosure requirements for companies that offset assets and liabilities on their financial statements.
  • Top tips for recognizing fraud

    Fraud can be detrimental to an organization, both financially and culturally. Over the years, we have encountered many cases of fraud in a variety of industries. The following three examples reflect fraud our specialists have either discovered or helped investigate, along with behavioral warning signs and tips for preventing similar acts in the future.
  • What are group audits and how might they affect my audit?

    In an effort to make US generally accepted auditing standards (GAAS) easier to read, understand, and apply, the Auditing Standards Board (ASB) undertook an effort to redraft all of the auditing sections in the Codification of Statements on Auditing Standards. This is also known as the Clarity Project. The ASB established drafting conventions and, among other improvements, the new standards more clearly specify the objectives of the auditor and the requirements with which the auditor has to comply when conducting an audit in accordance with GAAS.
  • A useful resource - Auditee Resource Center

    Baker Tilly is committed to achieving the highest quality audits. As you may already know, our firm is a member of the AICPA’s Governmental Audit Quality Center (GAQC), which entitles us access to key information and comprehensive resources that we use to help ensure our compliance with appropriate professional standards and laws and regulations that affect our audits. Through our membership in the GAQC, we also adhere to membership requirements designed to enhance the quality of our audit practice. We are pleased to inform you that the GAQC has recently launched a new Auditee Resource Center, which is intended to assist procurers of audit services (i.e., auditees). We hope that as an auditee, your organization will take advantage of this great resource.
  • Understanding your financial statements

    This webinar focuses on how to understand your government's annual financial statements by reviewing different ratios and other financial analysis tools. It also helps users of financial statements analyze the financial health of their entity in order to assist future decision making and budgeting for upcoming years.
  • Baker Tilly assists medical device company with IPO on ASX

    Baker Tilly served as the accountants and advisors to Osprey Medical, Inc. (Osprey Medical) during their initial public offering (IPO) on the Australian Securities Exchange (ASX). Osprey Medical, a late stage medical device company, successfully raised A$20 million during the IPO and will trade under the ticker "OSP."
  • New impairment testing guidance for indefinite-lived intangible assets

    The Financial Accounting Standards Board (FASB) has issued revised standards for public and private companies on how to test indefinite-lived intangible assets, other than goodwill, for impairment. The amendments won’t change how a company measures an impairment loss, but they could allow some companies to skip the performance of the quantitative impairment test on assets such as trademarks, licenses and distribution rights when the likelihood of impairment is low.
  • Revised multiemployer disclosure requirements

    The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update No. 2011-09, Compensation-Retirement Benefits-Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan.
  • Using International Financial Reporting Standards in Russia

    Baker Tilly Russaudit, Ltd. and Financial Director magazine polled more than 200 Russian companies of various sizes and from different industries concerning their usage of International Financial Reporting Standards (IFRS) from 2009 through 2011, including actual applications, reasons for use, preparation timeframe and methods, and software used by the companies.
  • Accounting for leases

    Leasing of equipment, real estate, and other assets has been and continues to be a significant source of financing for businesses in all industries. As a result, the financial reporting rules for the treatment of lease transactions can be significant to the financial statements and the business operations of lessees and lessors alike.
  • Baker Tilly weighs in on blue ribbon panel report

    Timothy L. Christen, CEO of Baker Tilly Virchow Krause, LLP and Chair of the Major Firms Group (MFG) of the American Institute of Certified Public Accountants (AICPA), offers his opinion on the blue-ribbon panel and private company financial reporting in this AICPA video.
  • Leases update

    Since The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) (collectively the Boards) published the exposure draft, Leases, the Boards have tentatively agreed to a number of changes, some of which are significant.
  • Where do you sit? Evaluating your financial position

    A recent segment on the long-running CBS show 60 Minutes featured an episode on the precarious financial health of state governments titled “The Day of Reckoning.” While much of the focus was on State governments, those being interviewed and in-the-know discussed how the dire financial situation of state governments is likely to rapidly trickle down to local municipalities, counties, and schools if something isn’t done soon.