Accounting


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The AICPA accounting and review services committee (ARSC) issues three interpretations of AR section 100, “Compilation and Review of Financial Statements.” They are no. 8, “Reports on Specified Elements, Accounts, or Items of a Financial Statement— Revised ”; no. 24, “Reference to the Country of Origin in a Review or Compilation Report”; and no. 25, “Omission of the Display of Comprehensive Income in a Compilation.” The committee encourages implementation of the interpretations ( www.aicpa.org/download/members/ ) as soon as practicable.

FASB defers implementation of Interpretation no. 46, “Consolidation of Variable Interest Entities” ( www.aicpa.org/pubs/jofa/apr2003/news.htm#financial ) and releases an exposure draft (ED) of a clarification ( www.fasb.org/draft/ed_prop_interp_vie.pdf ) of its requirements. The deferral applies only to such entities created before February 1, 2003, and gives companies and their auditors more time to determine which ones to include in their consolidated financial statements. Companies must complete their evaluations and consolidate—for the first reporting period ending after December 15—those variable interest entities of which they are the primary beneficiary. Calendar-year companies must include such consolidations in their December 31 financial statements ( www.fasb.org/news/nr100903.shtml ). The board issued the ED in response to constituents’ concerns about implementation requirements; its provisions would apply at the same time as those of the interpretation. Comments are due by December 1.

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How the election may affect taxation of business income

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VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out