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.

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Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.