Financial reporting


U.S. federal government entities will be required to report the effects of general property, plant, and equipment impairments under new standards issued by the Federal Accounting Standards Advisory Board (FASAB).

Statement of Federal Financial Accounting Standards (SFFAS) No. 44, Accounting for Impairment of General Property, Plant, and Equipment Remaining in Use, is designed to provide clarity for users of financial statements.

The standards will enable users to discover the cost of impairments when they occur, the financial impact on the reporting entity, and the cost of services provided following the impairment. Comparability of financial statements between federal government entities also should improve because the standards require those entities to account for impairments in a similar manner.

Administrative burdens are expected to be negligible because the standards do not require departments or agencies to specifically search for impaired assets, according to FASAB. Impairments are required to be considered in the context of entities’ existing practices, and the statement is required to be applied only when an indicator of significant impairment is present.

The standards, available at tinyurl.com/a7x6ea4, take effect for reporting periods beginning after Sept. 30, 2014, and FASAB encourages early implementation.

SPONSORED REPORT

Questions to ask before committing to the cloud

Cloud computing has its pros and cons. In this report, we answer common questions CPAs may have as they consider transitioning partially or fully to the cloud.

QUIZ

News quiz: IRS reopens an online service, but criticism endures

The IRS brings back the Get Transcript Online service, but the agency faces criticism for its handling of the aftermath of the event that led to the shutdown of the service. See how much you know about other recent news with this quiz.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.