- A piece of interpretive guidance from the AICPA’s Professional Ethics Executive Committee outlines the types of data or technological services an accountant provides to a client that will impair the accountant’s independence from the client. A second piece of guidance describes the pressures or conflicts of interest that could cause an accountant to breach the ethics guidance.
- The AICPA released the 2017 edition of its Audit and Accounting Guide (AAG) Revenue Recognition, for the FASB’s landmark revenue standard to help accountants and auditors apply the standard. The 2017 edition adds material for three industries — airlines, telecommunications, and engineering and construction, and it updates the material for securities brokers, gambling companies, healthcare companies and software developers.
- Distinguishing between liabilities and equity has long been a source of frustration for accountants. The FASB is close to deciding how to begin a project to simplify the notoriously complex guidance, with board members suggesting that their staff research problems that can be fixed with short-term efforts but continue looking for more far-reaching improvements that will address the standard’s fundamental problems.
- 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.
- The FASB’s sweeping new revenue recognition rules go into effect in 2018 and will require a major change in the way companies calculate the top line in their income statements. The magnitude of the effect on the revenue figure reported, however, will vary from company to company. For example, General Electric Co. and Raytheon Co. say the total revenues they report are not expected to change significantly.