This includes sessions from the conference: Advanced Accounting and Auditing (as part of AICPA ENGAGE 2018)
Presentation of an investment firm’s past performance can be a powerful tool for attracting new clients. To promote fair representation and greater comparability in performance presentations, CFA Institute created the Global Investment Performance Standards (GIPS® standards). Many investment firms’ claim of compliance with these standards has been regarded as providing a competitive advantage. The CFA Institute is currently working to update the GIPS Standards in preparation of a new edition effective in January 2020. In this panel, CFA Institute representatives and expert practitioners will provide an update on the status of the GIPS 2020 project.
• Discuss the guidance currently in the workings for private funds, and the new provisions for asset owners and broadly distributed pooled funds.
• Provide an update on the guidance that is being developed on GIPS verification and performance examinations, which may affect the work of practitioners that engage in attestation engagements under AICPA’s Statement of Position 12-1, “Reporting Pursuant to the Global Investment Performance Standards”
Auditing under Topic 606 will be more challenging due to the transition and disclosure requirements as well as the new rules for revenue recognition. Get ahead of the curve by learning the expectations for a supportable audit of the client's transition and new revenue recognition response.
• Review of the auditing portion of the 2016 A&A Guide Revenue Recognition
• Review of the controls entities should have in place for the transition and for going forward.
• Tips for minimizing the extent of procedures necessary to achieve a supportable audit of revenuesSpeaker(s):
This session provides an overview of the latest developments and trends in key areas of audit and assurance.
Attendees will learn about:
• The current environment and its impact on audit and assurance
• What practitioners can do to keep abreast of changes and adapt their practices
• AICPA’s initiatives to support the profession, ongoing relevance of services, and quality
Focusing on the top impact areas for private companies, the technical director of the Center for Plain English Accounting (CPEA) provides an understanding of and practical insights about key principles and essential elements of the new revenue recognition standard. Participants gain a deeper grounding in key aspects of the FASB ASC 606 architecture. Interactive illustrations and exercises are utilized to deepen the participants' knowledge of major concepts.
After participating in this session, attendees will be able to:
• Understand the new revenue recognition standard (FASB ASC 606) and how it differs from current guidance
• Apply the concepts and requirements of the new revenue recognition standard when accounting for transactions and preparing financial statements
This session is part 1 of a two-part session series. These sessions, which qualify for the ongoing Team/Review Captain training requirement, will cover recent changes to peer review guidance, peer review resources, and other related developments. Peer review is undergoing significant change as a result of several key initiatives and it is imperative team and review captains stay current. Both parts, which run back-to-back, must be completed to fulfill the requirement.Speaker(s):
The AICPA's Technical Issued Committee (TIC) is a committee of CPA practitioner volunteers working to represent the views of local firms and their clients in the standards-setting process. This panel includes 3 representatives of TIC to provide their views on recent standards-setting activities.
• To provide an update on recent activities of TIC
• Allow participants to ask questions about the recent activities of standards setters and TIC's views on some of the key issuesSpeaker(s):
The new revenue recognition standard (FASB ASC 606) substantially changes the accounting for variable consideration, customer loyalty programs, marketing incentives, and other customer promotions. In this session, the technical director of the Center For Plain English Accounting (CPEA) uses active learning techniques to upskill participants in these critical aspects of revenue recognition. Practical illustrations relevant to private companies are used to deepen the learning experience.
After participating in this session, attendees will:
• Gain a deeper understanding of the new revenue recognition rules (FASB ASC 606) related to variable consideration, customer loyalty programs, marketing incentives, and other customer promotions
• Learn how to apply the new rules to common transactions existing at private companies
This session covers the changes in peer review guidance made during the last year. It provides information essential to all peer reviewers and firms who will be undergoing a peer review in 2018, including a high-level overview of changes to standards and guidance, as well as an update on the short and long-term enhancements to audit quality currently being developed by the Peer Review Board.
• Review significant changes in peer review standards and guidance effective January 1, 2018
• Identify common mistakes
• Differentiate between the various types of common matters for further consideration
This session will address some of the accounting challenges for various complex compensation arrangements seen at private companies, including profits interests.
• Explain the factors in evaluating whether profits interests are within the scope of ASC 718 or ASC 710
• Apply ASC 718 to classify certain profits interests as equity or liabilities
• Describe some of the other challenges in accounting for compensation arrangements entered into by private companies
As a result of the new revenue recognition standard, auditors will face significant challenges, not only in learning about and understanding the standard, but in designing an effective audit plan and procedures to address the various risks. In this session, we will address some of the risks associated with pre-adoption date activities and requirements, and identify procedures that could be responsive to those risks.
In this session we will:
• Describe the risks associated with pre-adoption date activities and requirements
• Identify procedures that could be responsive to those risks