AICPA issues TQAs on use of inappropriate accounting standards

By Ken Tysiac

The AICPA issued technical questions and answers (TQAs) Wednesday that address reporting on financial statements developed using an inappropriate set of standards.

Developed in response to recent questions from AICPA members auditing governmental entities, including Indian tribes, the TQAs provide nonauthoritative guidance.

TQA Section 9160.31–.35 also discusses:

  • Whether an entity is a state or local government for purposes of determining whether it is using the appropriate set of accounting standards.
  • How to report on the entity’s financial statements when the entity elects to follow either a different set of standards or a special-purpose framework.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

Where to find May’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Implementing lease accounting

FASB’s Codification (ASC) 842, Leases, requires companies to make significant changes in the way they report operating leases. But one of the initial challenges might be simpler than you think … find out more with this report.