Archive for the ‘Accounting’ Category
A few fun reads for accountants:
- Why no Hollywood movie will ever show a profit.
- Adrienne Gonzalez is back at Going Concern, talking about the idea of TBTF Big 4 firms possibly, maybe, becoming SIFI (not likely to ever happen, but a fun read anyway).
- Talent shortage appearing in the CPA world.
- Research from Management of an Accounting Practice now available.
9/14/11 (yes, 2011) – The Atlantic – How Hollywood Accounting Can Make a $450 Million Movie “Unprofitable” – If you have never taken a look at the astoundingly creative accounting in Hollywood, this article will give you a superb introduction.
Several years ago I took a fraud education CPE course in which the instructor went on a tangent to explain why no Hollywood movie has ever made a profit and none of them ever will.
The AICPA’s annual audit risk alert had been out a little while. There is a lot of good stuff covered that all auditors really ought to check out. I heartily recommend reading the annual update before you get very far into your 12/31 audits. The document is Audit Risk Alert General Accounting and Auditing Developments—2016/17.
I will mention just a few highlights.
The 2017 audit season is about to begin. Planning is well underway for all those 12/31 clients.
To help you get ready, the annual updates to AICPA risk alerts are available. Consider:
- General Accounting and Auditing Developments – 2016/17 Audit Risk Alert
- Developments in Preparation, Compilation, and Review Engagements 2016/17
- Government Auditing Standards and Single Audit Developments – Audit Risk Alert (16/17 edition)
I read the risk alerts every year. They are great for reminding me of what I already knew and even better for pointing out what tidbits I had missed.
You might want to check them out in the lull before the rush of field work hits.
The new overtime rules were set to go into effect tomorrow, December 1. The rules are on hold as a result of an injunction issued by a federal judge. What should charities do about changes that have been implemented, or announced, or on the drawing board?
(Cross-post from my other blog, Nonprofit Update.)
Two articles have some suggestions:
11/29 – Baltimore Business Journal – Plenty of questions still surround blocked overtime pay law – It is very uncertain how the new overtime rules will be handled. Article cites the CEO of an outsourcing and payroll company. His advice is stay tuned to developments. The rules could be implemented, overturned, or modified.
places a hold on the new rules regarding
(Cross-post from my other blog Nonprofit Update.)
A federal judge in Texas issued an injunction putting on hold the new Department of Labor rule increasing the threshold for paying overtime. The judge concluded there was a reasonable likelihood (I don’t quite appreciate the technical description so will use casual wording) that the lawsuit by 21 states and a lot of businesses would succeed. He also concluded the rule could cause irreparable financial harm. Thus, he issued the injunction, which applies nationwide.
The new rules revising not-for-profit financial reporting are a significant change although they are not as dramatic as what we saw a long time ago with SFAS #116 and #117.
ASU 2016-14, Presentation of Financial Statements of Not-four-Profit Entities, was issued August 18, 2016. You can find the document here.
I will write a series of articles going into detail on the new rules. In the meantime, here are a few more articles providing background.
(This article is cross-posted from my other blog, Nonprofit Update.)
8/18 – AICPA – FASB’s standard Aims to Improve Not-for-Profit Financial Reporting – good overview of most changes
8/18 – Journal of Accountancy – FASB modifies not-for-profit accounting rules – High level overview. Article also provides some background on the process. Revision of GAAP to require operating measures is still under consideration but will be part of the next phase.
SSARS #22 addresses Compilation of Pro Forma Financial Information. This document rolls SSARS #14 into the clarified format. This is the last section of the old SSARS to be rewritten as a clarified document.
You can find the document here.
It will be effective for compilations of pro forma info dated on or after May 1, 2017.
Charles Hall has a superb recap of the document at his blog, CPA-Scribo: Are You Up to Speed on the New Pro Forma Information Standards? If you want to get up to speed really fast, check out his article.