October 2018 Update of the AICPA Professional Literature

Transcription

1 ALERTS AND AICPA GUIDES October 2018 Update of the AICPA Professional Literature The 2018 editions of the following AICPA Guides are being released: Brokers and Dealers in Securities (aag-brd) How and at what date should brokers and dealers in securities implement the new revenue recognition standard FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers? This edition of the guide addresses that question in detail. This edition contains revenue recognition implementation issues for brokers and dealers in securities applying FASB ASC 606 and related interpretations from the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG). Specifically, the following revenue streams are addressed: Commission income Recognition on trade date Underwriting revenues Soft dollars Investment banking M&A advisory fees Selling and distribution fee revenue The following other related topics are also addressed: Scope Costs associated with investment banking advisory services Principal versus agent: Costs associated with underwriting In addition, the 2018 guide includes interpretations from the TRG which may be relevant for management of asset management entities in applying FASB ASC 606. Specifically, the following revenue streams are addressed: Management fee revenue, excluding performance fee revenue Incentive or performance fee revenue, excluding incentive-based capital allocations This edition also includes content from a recent Technical Question and Answer (Q&A), which addresses the question, Is a broker, dealer, or future commission merchant considered a public business entity? This determination is important when implementing new accounting pronouncements, such as FASB ASC 606, on the appropriate effective date. Other updates to this edition are to conform the content to current accounting standards and regulatory requirements. Key benefits and updates include the following: Coverage of regulatory updates from key industry regulators (SEC, Commodity Futures Trading Commission, and Financial Industry Regulatory Authority) Examples of financial statements, disclosures, and supplementary schedules Discussion and interpretive guidance associated with industry specific financial reporting and regulatory compliance Page 1 of 5

2 Entities With Oil and Gas Producing Activities (aag-ogp) First update in 4 years! This edition includes invaluable guidance to help you improve your industry knowledge, fine-tune your strategies, and provide high-quality services to your clients. This 2018 edition provides important technical guidance, summarizes new standards and practices, and delivers "how-to" advice for handling audit and accounting issues that will be critical to your success. As fluctuating oil prices, off-shore drilling, and other energy-related issues impact the way your clients conduct business, it s essential to have a keen understanding of the domestic and international topics and trends facing the oil and gas industry today. An updated illustrative representation letter that contains industry-specific representations Discussion and interpretive guidance associated with FASB ASC 606 Key regulatory updates include the following: FASB Accounting Standards Update (ASU) No , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Discontinued operations and disclosures of disposals of components of an entity FASB ASU No , Revenue from Contract with Customers (Topic 606) Gaming (aag-cas) Invaluable guidance to help you improve your gaming industry knowledge and provide high-quality services to your clients. Most of the accounting and financial reporting practices of entities undertaking gaming or gaming-related activities (collectively referred to as gaming entities ) are essentially the same as those of other industries. However, some activities of gaming entities are unique. Developed by leading experts from industry and public practice, this guide summarizes new standards, guidance, and practices and delivers how-to strategies for handling audit and accounting issues common to entities in the gaming industry. Updated for recent auditing standards, this guide explains the numerous activities specific to gaming entities and provides information regarding accounting and auditing for many types of gaming industry issues. Also included are illustrative independent auditor s reports and financial statements of both a nongovernmental gaming entity and a governmental gaming entity. Provides important technical guidance, summarizes new standards and practices, and delivers how-to advice for handling audit and accounting issues that will be critical to your success Offers clear and practical guidance on recent developments in areas such as online gaming and governmental gaming entities Includes helpful industry coverage of the New Jersey Casino Redevelopment Authority, currency transaction reporting in the gaming industry, the tribal gaming industry, lotteries, and analytical procedures and internal controls unique to the gaming industry Includes an appendix that highlights FASB ASU No Includes an appendix that contains all of the finalized revenue recognition implementation issues specific to gaming entities Health Care Entities (aag-hco) Considered the industry s standard resource, this guide will help you to understand the complexities of the specialized accounting and regulatory requirements of the health care industry. This edition has been prepared and reviewed by industry experts and provides hands-on, practical guidance for those who work in and with health care entities. A critical resource for auditors, this edition includes new accounting standards and relevant GASB and FASB updates (including those related to private companies). Sample illustrative independent auditor s report for a not-for-profit oriented health care entity Page 2 of 5

3 Content related to the revenue recognition accounting standard, including information on the finalized revenue recognition implementation issues related to health care entities Content related to the financial instruments accounting standard, including an appendix discussing the standard Content related to the new not-for-profit financial statements standard, including an appendix discussing the standard benefits Understand and implement changes related to FASB ASU No , Financial Instruments Overall (Subtopic ): Recognition and Measurement of Financial Assets and Financial Liabilities Understand and implement changes related to FASB ASU No , Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities Identify the revenue recognition implementation issues unique to health care entities Gain an understanding of accounting issues that are unique to health care entities Understand the unique audit areas found in audits of health care entities Distinct presentation of GASB category B guidance Key regulatory updates include the following: FASB ASU No FASB ASU No FASB ASU No Statement on Auditing Standards No. 133, Auditor Involvement With Exempt Offering Documents (AU-C sec. 945) GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) GASB No. 83, Certain Asset Retirement Obligations The 2018/19 edition of the following alert is being released: General Auditing and Accounting Developments (ara-gen) Containing descriptions of all recent auditing, accounting, and regulatory developments, this 2018 alert will ensure you have a robust understanding of the business, economic, and regulatory environments in which you and your clients operate. In addition, you will gain a full understanding of emerging practice issues, with targeted analysis of new developments and how they may affect your engagements, including the following: Recent Economic Trends Recent Legislative and PCAOB Developments Developments in Peer Review Recent Ethics Interpretations This useful resource also contains new accounting and auditing guidance related to the following: Comprehensive Income Stock Compensation Internal-Use Software Financial Instruments The following AICPA Guides contain minor editorial changes: Preparation, Compilation, and Review Engagements (aag-crv) Page 3 of 5

4 AUDIT AND ACCOUNTING MANUAL BEST PRACTICES IN PRESENTATION AND DISCLOSURE CHECKLISTS AND ILLUSTRATIVE FINANCIAL STATEMENTS PCAOB STANDARDS AND RELATED RULES PEER REVIEW PROGRAM MANUAL PRACTICE AIDS AND TOOLS PRINCIPLES AND CRITERIA FOR XBRL-FORMATTED INFORMATION AICPA PROFESSIONAL STANDARDS TECHNICAL QUESTIONS AND ANSWERS AICPA TRUST SERVICES CRITERIA Page 4 of 5

5 SUPPORTING DOCUMENT COLLECTION This update includes the following documents: SEC Regulations Committee Meeting Highlights (July 12, 2018) Page 5 of 5