ARSC proposes 3 standards

Changes would address compilations of prospective and pro forma financial information.

The AICPA Accounting and Review Services Committee (ARSC) issued three proposed standards on preparation and compilation of prospective financial information and compilation of pro forma financial information.

Comments on the proposed Statements on Standards for Accounting and Review Services (SSARSs) will be accepted through May 6 and can be submitted to Mike Glynn at mglynn@aicpa.org.

All three proposals are available in one exposure draft on the AICPA website. The proposals are as follows:

  • Proposed SSARS, Compilation of Prospective Financial Information, would move and change some of the requirements and guidance for compilations of prospective financial information from the Statements on Standards for Attestation Engagements to the SSARSs literature.
  • Proposed SSARS, Compilation of Pro Forma Financial Information, would clarify and supersede AR Section 120 of the same title.
  • Proposed SSARS, Omnibus Statement on Standards for Accounting and Review Services—2016, would amend various existing SSARSs literature to incorporate the concepts and provisions of the first two proposals. This proposal also would require that the accountant follow AR-C Section 70, Preparation of Financial Statements, when engaged to prepare prospective financial information but not engaged to perform a compilation, examination, or agreed-upon procedures engagement with respect to that prospective financial information.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

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

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.