Financial Reporting

  The AICPA published a set of free technical practice aids that offer nonauthoritative implementation guidance to FASB’s Accounting Standards Update (ASU) 2009-12, Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). These entities, often called alternative investments, include hedge, private equity and real estate funds.


The FASB rule allows an investor, as a practical expedient, to estimate the fair value of an alternative investment on the basis of its net asset value if certain criteria are met. It is effective for reporting periods ending after Dec. 15, 2009. The ASU is available at


Technical Practice Aids sections 2220.18–.27 cover a series of issues related to the FASB guidance, such as determining whether net asset value calculation is consistent with FASB Accounting Standards Codification Topic 946, Financial Services—Investment Companies, determining whether an adjustment to net asset value is necessary, and certain disclosure considerations. The TPA is available at


  FASB issued a Proposed Accounting Standards Update, Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements.


The proposal stems from questions about whether the requirements to disclose the date that the financial statements are issued could conflict with some SEC guidance, according to FASB.


FASB has proposed amendments that would remove the requirement for an entity that files or furnishes financial statements with the SEC to disclose a date in both the originally issued and restated financial statements.


The board also has clarified that, if the financial statements have been restated, an entity that does not file financial statements with the SEC would disclose both the original date the financial statements were issued or available to be issued and the date the restated financial statements were issued or available to be issued.


These proposed changes would remove potential conflicts with the SEC literature, FASB says in the exposure draft.


The comment period ended Jan. 28.


  Representatives of more than 20 organizations including the AICPA agreed on a proposal to form a committee that would oversee development of an integrated reporting model. The model would connect reporting of organizations’ strategy, risk and financial and sustainability performance.


The proposals were the outcome of a London meeting of the Accounting for Sustainability Forum hosted by the Prince of Wales. “Sustainability is a global issue,” said AICPA Senior Vice President Arleen Thomas, who represented the Institute at the meeting. “Collaboration with other major accounting bodies in international groups like the Accounting for Sustainability Project is essential to success in providing thought leadership and influence in this emerging area.”


The members of the forum agreed that part of the problem is that numerous organizations are developing standards but no single organization is coordinating the efforts. “Businesses and investors both need universally accepted standards and frameworks that reduce complexity and provide consistent comparable information,” says AICPA Technical Manager Ken Witt, who was part of the Institute’s delegation.


As a result, the group proposed that accountability for the oversight and development of the reporting model should rest with a single body. However, that single body, which the proposal ( calls an International Connected Reporting Committee, would not be responsible for developing accounting standards. Instead, it would “provide strategic oversight and be a source of guidance in relation to the reporting model.”


The proposal says the committee would:

  • Provide vision and identify key elements and how they need to interlink to provide insight and understanding;
  • Provide a road map to support the model’s development;
  • Establish structures and mechanisms to achieve collaboration between existing organizations in order to enhance connectivity and reduce proliferation;
  • Identify emerging issues that may demand a global solution and future incorporation into the reporting framework; and
  • Sponsor and coordinate research across all aspects of the model so as to inform and shape its development.


The proposal concludes by saying, “It is hoped that action to establish an ‘International Connected Reporting Committee’ will have been taken by the end of 2010.” To that end, it provides next steps, including establishing a working group comprising representatives of interested organizations, developing the governance structure for the committee and achieving broader support for the proposals among key stakeholder groups.


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.