New nonauthoritative guidance related to management representations, EBP accounting


New Technical Questions and Answers (TPAs) have been issued and are available on the AICPA website to provide nonauthoritative guidance.

TPAs 6931.18–.30 address the effect of FASB Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting, on the accounting for primarily single-employer, defined benefit pension and defined contribution retirement plans. The guidance was developed by the AICPA Employee Benefit Plans Expert Panel, and readers are encouraged to review these TPAs as a collective set of guidance.

TPA 8900.11, “Management Representations Regarding Prior Periods Presented That Were Audited by Predecessor Auditor,” addresses situations when the prior-period statements were audited by a predecessor auditor whose report on the prior period’s financial statements is not reissued.

Under these circumstances, the auditor is not required to obtain a representation letter covering the prior-period financial statements because the auditor is not opining on the prior year when making reference to the prior period that was audited by a predecessor auditor. The TPA also discusses when additional representations may be necessary in the current year’s letter.

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

COLUMN

Deflecting clients’ requests for defense and indemnity

Client requests for defense and indemnity by the CPA firm are on the rise. Requests for such clauses are unnecessary and unfair, and, in some cases, are unenforceable.