News Highlights for March 2010
A new blue-ribbon panel is poised to take on the issue of whether separate accounting standards are needed for private companies. The AICPA and the Financial Accounting Foundation, FASB’s parent organization, have launched the panel charged with making recommendations on the future of standard setting for private companies. The National Association of State Boards of Accountancy is also a sponsor of the panel, which will be chaired by Rick Anderson, chairman and CEO of Seattle-based Moss Adams LLP (see “Minding the GAAP,” an interview with Anderson, on page 22).
The standard will amend and replace the current U.S. standard for audits of service organizations, Statement on Auditing Standards no. 70 (AU section 324), Service Organizations. At this writing, the PCAOB, which adopted AU section 324 as an interim standard, subject to additional guidance in Appendix B, paragraphs 17–27 in PCAOB Auditing Standard no. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements, had not indicated whether it intends to modify its guidance.
The ASB worked closely with the International Auditing and Assurance Standards Board (IAASB) on this project, according to Charles E. Landes, AICPA vice president–Professional Standards and Services. The IAASB version, International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization, was issued in December and is effective for service auditors’ reports covering periods ending on or after June 15, 2011.
The JofA’s Web site now has a page devoted to the latest news and analysis about International Financial Reporting Standards. Find it at journalofaccountancy.com/Web/IFRS.htm. The page also offers practical tips, background information and videos.
And for more on IFRS training and publications, visit the AICPA-produced ifrs.com.
