Going concern evaluations, auditor’s reporting model on the week’s agenda

Auditors’ going concern evaluations and the auditor’s reporting model project will be among the topics discussed Thursday at a meeting of the PCAOB’s Standing Advisory Group (SAG).

Established in 2003 to advise the PCAOB on the development of standards, the SAG includes auditors, investors, public company executives, and others. The group will be updated on recent PCAOB developments and the board’s agenda for standard setting.

Topics will include:

• Possible revisions to the auditing standard regarding the auditor’s evaluation of whether there is substantial doubt about a company’s ability to continue as a going concern.
• The PCAOB’s proposal to improve the auditor’s evaluation of a company’s identification of, accounting for, and disclosure about its relationships and transactions with related parties.
• The status of the board’s project regarding changes to the auditor’s reporting model and related international developments.

The meeting will be held from 8:30 a.m. to 5 p.m. Thursday in Washington and is open to the public. A webcast will be available at the PCAOB’s website.

U.S.-Colombia trade agreement

The U.S.-Colombia Trade Promotion Agreement – expected to provide American businesses, farmers and ranchers with improved access to the third largest economy in South America – goes into effect on Tuesday.

More than 80% of U.S. exports of consumer and industrial products to Colombia will become duty-free, including agricultural and construction equipment, building products, aircraft and parts, fertilizers, information technology equipment, medical scientific equipment, and wood. Also, more than half of U.S. exports of agricultural commodities to Colombia will become duty-free, including wheat, barley, soybeans, high-quality beef, bacon and almost all fruit and vegetable products.

The agreement also is expected to provide new access to Colombia’s $180 billion services market, supporting increased opportunities for U.S. service providers. Colombia agreed to eliminate measures that prevented firms from hiring U.S. professionals, and to phase out market restrictions in cable television.

The U.S. International Trade Commission estimates the agreement will increase U.S. GDP by $2.5 billion.

Last year, the U.S. exported $14.3 billion in goods to Colombia. Colombia is a large importer of grains from the United States, while it exports a number of tropical fruits to the U.S. American cotton, yarn and fabric exports to Colombia are used in many apparel items that Colombia exports to the United States.

For more on upcoming global economic events, visit CGMA Magazine.

IFRS Interpretations Committee

The IFRS Interpretations Committee meets Tuesday and Wednesday in London; a webcast of the meeting will be available by webcast on the IFRS website.

The Interpretations Committee reviews widespread accounting issues that arise within the context of IFRSs. It attempts to reach consensus on appropriate accounting treatment and providing authoritative guidance on newly identified financial reporting issues and issues where unsatisfactory or conflicting interpretations have developed or seem likely.

Topics on a lengthy agenda this week for the committee include accounting for different aspects of restructuring Greek government bonds; recognition of deferred income tax for a single asset in a corporate entity; and purchase of right to use land.

The Big 125, CFOs

Two AICPA events scheduled this week will shed light on various issues that face CFOs and the accounting profession.

• At spring council meetings Wednesday through Friday at the J.W. Marriott in Washington, D.C., the AICPA will celebrate 125 years of serving the CPA profession. Highlights will include panel sessions on current issues and the future of audits of public companies; stimulating the economy; the implications of Horizons 2025 on young CPAs; and the future of financial and business reporting from a standard-setting and regulatory perspective.
• The AICPA CFO Conference will be held Thursday and Friday, following a day of pre-conference workshops Wednesday at The Roosevelt New Orleans. The main conference will feature a keynote session by Madoff whistleblower Harry Markopolos and various strategies for growing business that range from social media management to insurance coverage to successfully managing an IPO. For more information, click here.

—Ken Tysiac (ktysiac@aicpa.org) is a JofA senior editor.