TQA addresses related-party disclosure requirements

The AICPA issued a new Technical Question and Answer (TQA) to provide nonauthoritative guidance regarding the audit and reporting implications of a new related-party disclosure requirement for many institutions of higher education.

TQA Section 6960.13, Related Party Disclosure Requirements Issued by the U.S. Department of Education for Institutions of Higher Education, specifically provides guidance on the audit and reporting implications of the U.S. Department of Education’s requirement for institutions of higher education that participate in financial assistance programs under Title IV of the Higher Education Act to disclose in their financial statements all related-party transactions based on the definition set forth in FASB ASC Topic 850, Related Party Disclosures, and additional identifying information that would enable the department to readily identify the related party.

The TQA also provides auditor reporting considerations relative to related-party disclosures for institutions subject to the department’s requirements.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.