SSARS 23 expands application of preparation, compilation standards

By Ken Tysiac

A new standard issued Tuesday by the AICPA Accounting and Review Services Committee expands the subject matter to which the Statements on Standards for Accounting and Review Services (SSARSs) apply.

SSARS No. 23, Omnibus Statement on Standards for Accounting and Review Services—2016, results in the SSARSs being applicable to engagements performed on certain subject matter other than financial statements.

Among other changes, SSARS No. 23 adds prospective financial information to the subject matter to which AR-C Section 70, Preparation of Financial Statements, applies, as well as clarifying when the section applies, when it may be applied, and when it does not apply.

In addition, the new standard states that AR-C Section 80, Compilation Engagements, now applies to compilations of prospective financial information, pro forma financial information, and other historical financial information.

SSARS No. 23 also makes other changes to AR-C Sections 70 and 80 and amends AR-C Section 60, General Principles for Engagements Performed in Accordance With Statements on Accounting and Review Services, and AR-C Section 90, Review of Financial Statements.

SSARS No. 23 is effective upon issuance except for the amendments to AR-C Sections 70 and 80 with respect to prospective financial information. Those amendments are effective for prospective financial information prepared on or after May 1, 2017, and for compilation reports dated on or after May 1, 2017, respectively.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

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