Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Archive for the ‘Accounting’ Category

Guidance from SBA for faith-based charities applying for PPP loans.

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Image courtesy of Adobe Stock.

If you are in leadership or on the finance team of a faith-based not-for-profit organization, you really, really need to read the Faith-Based Organizations FAQ From The Small Business Administration:

(Cross-post from my other blog, Nonprofit Update.)

The document is dated 4/3/20.

Read this document if you have applied or are thinking about applying for a loan under the Paycheck Protection Program.

An issue in the back of many people’s mind is whether any federal assistance under this program will infringe on religious freedom. I think you will be quite pleasantly surprised by reading the FAQ.

Please read the article. You might want to make a copy for your file.

Written by Jim Ulvog

April 9, 2020, 11:05 am at 11:05 am

Posted in Accounting, Other stuff

Articles for CPAs during the pandemic: Expect delay in lease effective date for private companies and NFPs – 4/9

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Image courtesy of Adobe Stock.

Big news from FASB yesterday. They are planning to postpone the new lease rules for private companies and most not-for-profit entities.

4/8/20 – Journal of Accountancy – FASB effective date delay proposals to include private company lease accounting and Wall Street Journal – FASB Proposes Delaying New Accounting Rules for Some Companies Because of Coronavirus – FASB is moving towards a deferral of revenue recognition that applies to a very narrow slice of companies. Also moving toward a deferral of new lease accounting for private companies and private not-for-profit organizations.

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Written by Jim Ulvog

April 9, 2020, 10:21 am at 10:21 am

Legal issues arising from the pandemic. It’s gonna’ get messy…

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Time to read that insurance policy. Image courtesy of Adobe Stock.

ECFA presented a webcast Navigating Critical Legal Issues in the COVID-19 Crisis on 4/7/20. If this condensed summary of issues is at all interest to you, check out their website,www.ECFA.org. Webcast is now available at no charge if you are a registered member or if you are an ECFA member. Registered status is free.

I won’t be giving any legal advice here. Instead I will merely identify issues for you to consider. Consult with your attorney if you need to go in depth.

A long yet partial list of legal issues to consider

Intentionally assess whether you perceive taking a PPP loan under the SBA rules will have any effect on your ability to exercise your religious freedom. Webcast provides good guidance.

OSHA – there are general rules under federal OSHA and state equivalent regulations affecting the workplace. These may be more significant in a coronavirus environment.

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Written by Jim Ulvog

April 8, 2020, 6:05 am at 6:05 am

Posted in Accounting, Other stuff

Articles for CPAs during the pandemic: Possible delay in SAS effective dates – 4/7

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Ultra modern audit interview. Image courtesy of Adobe Stock.

Some background articles for CPAs. Won’t be covering the CARES Act here or general pandemic news. Instead these posts focus on those of us running an attestation practice.

4/6/20 – Journal of Accountancy – ASB to consider one-year deferral of effective dates – There is a string of new audit rules that go into effect the end of this year. The ASB will be meeting on April 22 considering whether to postpone the effective dates by a year. Under consideration are SAS 134 through 139 which have already been issued plus SAS 140 which is expected this week. Those include:

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Written by Jim Ulvog

April 7, 2020, 7:11 am at 7:11 am

Articles for CPAs during the pandemic: CECL postponement & going concern – 4/4

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Your new office. Image courtesy of Adobe Stock.

A few more articles as you work through your audits, reviews, and compilations during the pandemic, plus a video on how to make your own cloth masks out of a t-shirt.

Key issues in this post:

  • Postponement of new CECL accounting
  • Deep dive into going concern assessment

3/26/20 – Nicola White at Bloomberg Tax – Congress Poised to Derail Biggest Bank Accounting Change in Decades Congress put a provision in the giantic CARES Act to postpone CECL until 12/31/20 or when the governemnt declares the pandemic over.  CECL otherwise went into effect on 1/1/20.  This is the first time Congress has dictated accounting rules.  Article mentions this is a reminder of the debate over mark-to-market during the Great Recession.

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Written by Jim Ulvog

April 4, 2020, 8:25 am at 8:25 am

Articles for CPAs during the pandemic – 4/2

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The new conference room. Image courtesy of Adobe Stock.

A few more articles as you work through your audits, reviews, and compilations during the pandemic. Stretch question at the end: what are going concern implications if a third of grad MBA students will defer classes a year if they are not on campus and just under half expect a large tuition discount if classes are online?

3/25/20 – Financial Management – Ethical leadership at a time of crisis – Encouragement to maintain high ethical standards in time of turmoil and uncertainty.  Summary of tips:  Be transparent, be empathetic, be available.

4/1/20 – AICPA – Addressing pandemic-related audit challenges – Reminder that while creative techniques can be used to perform audit steps, the professional standards have not changed. Article points to following document:

4/1/20 – AICPA’s Center for Plain English Accounting – Consequences of COVID-19 –  Potential Auditing Challenges Agility and creativity is needed to complete audits. Document is a reminder that the professional standards still need to be complied with because they have not changed.

Document reminds us there are a range of possible scope limitations in an audit. Discussion includes a range of issues:

Written by Jim Ulvog

April 2, 2020, 13:42 pm at 1:42 pm

Articles for CPAs during the pandemic.

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Image courtesy of Dollar Photo Club before their merger into Adobe Stock.

Lots of articles are appearing that can help CPAs during the pandemic. There are new and depressingly creative ways this is going to affect financial reporting. I’ll start mentioning some of those articles that grab my attention and may be of interest to you.

3/31/20 – FEI Daily – How Lease Accounting Will Be Affected by Coronavirus – Turmoil in leasing office space will create lots of complications under ASC 842, the new lease accounting rules. Article calls attention to: rent concessions, discount rate, fair market values, impairment, partial termination, reassessment, full termination abandonment, and information delay.

3/29/20 – Forbes – For Higher Education, Nothing Matters More Than September Read the rest of this entry »

Written by Jim Ulvog

March 31, 2020, 10:54 am at 10:54 am