The effective dates of three AICPA ethics interpretations may be delayed by one year as a result of the coronavirus pandemic.
The AICPA Professional Ethics Division staff will recommend during the AICPA Professional Ethics Executive Committee (PEEC) meeting on May 5 that PEEC issue a one-year delay of the effective dates of:
- The “Information Systems Services” interpretation, which is currently scheduled to take effect Jan. 1, 2021.
- The “State and Local Government Client Affiliates” interpretation, which is currently scheduled to take effect for fiscal years beginning after Dec. 15, 2020.
- The “Leases” interpretation, which is currently scheduled to take effect for fiscal years beginning after Dec. 15, 2019.
All three interpretations permit early implementation and would continue to do so under the staff recommendations.
The AICPA has consistently heard from firms that regardless of when the coronavirus crisis ends or when social distancing restrictions are lifted, small and midsize firms will struggle to recover. As a result, firms may not have the time or resources to effectively implement independence interpretations in time to meet the current effective dates.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.