Private companies must disclose uncertain tax positions
Questions have been raised about the appropriate way for private companies to implement the full provisions of the Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 740, Income Taxes, in their financial statements.
Of particular concern is the "overall" section (ASC 740-10) within that guidance, which includes the legacy document FASB Interpretation (FIN) 48, Accounting for Uncertainty in Income Taxes.
Include auditor insights in your post-recession recovery
While auditors need to ensure that they comply with independence requirements and regulations when offering additional services to their clients, post-recession environments present unique opportunities.
Audit clients should prepare to take the bull by the horns.
Milestone event method: Recognizing R&D revenue
The Financial Accounting Standards Board released new revenue recognition guidance for research and development arrangements in April 2010.
Research or development arrangements often include payment provisions so that a portion of the consideration to be received is contingent upon "milestone events." Examples of these types of events include successful completion of phases in certain studies within the medical profession or achievement of specified results from other research or development work.
Independence and Internal Control Issues: Do third parties get a clear picture of impairments?
In the world of smaller private company financial reporting, it is not uncommon for management, or owner-managers of businesses, to engage practitioners to perform attest engagements and certain nonattest engagements as well.
Attest engagements span a spectrum – from a high assurance engagement, an audit, to a limited assurance engagement, a review, and all the way to a nonassurance engagement, a compilation.
Expect helpful communication from your auditor
Clear communication is always helpful – in life and in business – to avoid unpleasant surprises or to confirm that you’re on the right track.
The Statement of Auditing Standards (SAS) 115, Communicating Internal Control Related Matters Identified in an Audit, reiterates the standards found in SAS 60 and SAS 112 for auditors to communicate information regarding internal control matters to managers and those in charge of corporate governance.
New rules codified for reporting subsequent events
In preparing financial statements, it’s important to implement the new guidance in FASB Accounting Standards Codification (ASC) Topic 855, Subsequent Events. The new guidance establishes general standards to account for, and disclose, events that occur after the financial statement date but before the financial statements are issued or available to be issued.
Time out for review of significant audit judgments
The Public Company Accounting Oversight Board (PCAOB) released its Auditing Standard No. 7 on July 28, 2009. The standard requires a review of “significant judgments made by the engagement team and the related conclusions reached in forming the overall conclusions on the engagement and subsequent engagement report.”
Forming an audit committee? Know what’s involved
Five simple words have created not just ripples – but waves – of audit committee activity. Embedded within Section 301 of H.R. 3763, our nation’s 107th Congress set forth language amending the Securities and Exchange Act of 1934 by adding “Standards Relating to Audit Committees.”
FIN 46R: Changes are much more than skin deep
Amendment, of course, means change. But, at some point, the extent of the changes can mean a complete replacement. When the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standard No. 167, Amendments to FASB Interpretation No. 46R, in June 2009, the amendments actually replaced the guidance in FIN 46R, Consolidation of Variable Interest Entities.
Private companies now have ‘the Standard’ to follow
Financial reporting standards for private companies have finally arrived, thanks to the International Accounting Standards Board (IASB).
Out with the old, in with new codified standards
Have you ever felt as if you’re on the outside looking in? That’s the situation for all the formerly authoritative guidance that was superseded when the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard No. 168 at the end of June 2009.
