A new omnibus standard proposed Thursday would, if issued as a final standard, provide requirements and guidance for compilations and reviews of financial statements prepared in accordance with a financial reporting framework generally accepted in another country—or performed in accordance with both the Statements on Standards for Accounting and Review Services (SSARS) and another set of compilation and review standards.
The proposed guidance is contained in an exposure draft, Proposed Statement on Standards for Accounting and Review Services, Omnibus SSARS—2018, which was issued by the AICPA Accounting and Review Services Committee. The proposal, if issued as a final standard, would:
- Create new AR-C Section 100, International Reporting Issues;
- Withdraw Interpretation No. 1, “Considerations Related to Reviews Performed in Accordance With International Standard on Review Engagements (ISRE) 2400 (Revised),” to AR-C Section 90, Review of Financial Statements; and
- Amend other AR-C sections.
In addition to addressing international financial reporting issues, the proposal would substantially harmonize requirements for the accountant to consider an entity’s ability to continue as a going concern in a review engagement with the requirements in AU-C Section 930, Interim Financial Information. The proposal also would include a specific written representation regarding disclosure of all information relevant to the use of the going concern assumption in the financial statements.
The proposal also would provide requirements and guidance to address practice issues identified when accountants reference the work of other accountants in an accountant’s review report
The provisional effective date of the proposed SSARS will not be earlier than for compilations and reviews of financial statements for periods ending on or after June 15, 2019. Comments are due Dec. 14 and can be emailed to Mike.Glynn@aicpa-cima.com.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.