Financial Reporting

The AICPA Accounting Standards Executive Committee (AcSEC) commented favorably on a partial draft of a conceptual framework for financial reporting being developed jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The framework, which consists of a common set of principles for developing accounting standards, is a key part of the boards’ moves toward convergence of their respective standards.

The FASB preliminary views document, titled Conceptual Framework of Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information, consists of the framework’s first two chapters. They deal with the objectives of financial reporting and the qualitative characteristics of financial reporting information that are useful in decision making, such as relevance, faithful representation, comparability and understandability.

AcSEC agreed with many of the draft’s provisions but made 10 recommendations, including that less complexity should be accorded a higher value in the conceptual framework. In addition, AcSEC said FASB should provide a more robust framework for how preparers and auditors should assess materiality.

To review the joint conceptual framework, visit .

For the next phase of the project, FASB and IASB will hold roundtable discussions on measurement, concerning the value of assets and liabilities in financial reporting. The discussions, which will take place in Hong Kong, London and Norwalk, Conn., will focus on the list of measurement issues identified in the plan for the project’s measurement phase, the initial inventory of potential measurement bases prepared by the project staff and the terminology associated with that inventory.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.