In August 2018 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2018-15 (ASU 2018-15).  Included in this update is subtopic 350-40 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.  This subtopic provides guidance on which Cloud Computing Arrangement (CCA) implementation costs should be capitalized as an asset […]

The Chief Financial Officer (CFO) role has always been one of great importance but the role has actually increased in importance in the past decade, due in large part to the role of digital technology in most companies.  No longer is the CFO role a strictly functional one; the position is considered a strategic one […]

The implementation of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 842 is one of the most significant changes in accounting in recent history.  This codification replaces Generally Accepted Accounting Principles (GAAP) ASC 840. This standard went into effect January 1, 2019, for public companies, certain not-for-profit companies, and employee benefit plans.  Both lessees […]

With the current economic climate, it is imperative for companies to have a strong audit committee to provide oversight of the financial reporting and audit processes and to monitor a company’s internal controls and compliance with laws and regulations.  An audit committee is required for all listed publicly traded companies in the United States and […]

Auditors have varying responsibilities when it comes to client-prepared reports.  The auditor’s role in auditing the financial statements is clear but there are other reports that may require the auditor’s attention as well. Company-Prepared Financial Statements and the Internal Control over Financial Reporting: The auditor has an extensive role when it comes to the audit […]

Reliable, comparable financial statements are a key component of high-quality financial reporting.  For financial statements to be considered reliable and comparable they must be free of material misstatements.  Accounting changes in previous financial statements reduce the reliability and comparability of the financial statements and they cannot be depended upon by users if they are not […]

As companies are scrambling to develop and implement alternative working arrangements for many employees, it is easy to see how maintaining high levels of security over company data could get lost in the shuffle. Hackers recognize the increased levels of vulnerabilities caused by the upheaval with COVID-19 and are ready and willing to take advantage […]

This blog post delves further into the types of accounting changes addressed in Accounting Standards Codification (ASC 250), Accounting Changes and Error Corrections, specifically addressing the steps in the process of correcting an error in the financial statements.  Part one of this post was published on March 9, 2020. There is a three-step process to follow to […]

The economic fallout from the COVID-19 crisis has emphasized the current and future need for timely and high-quality financial reporting by all companies.  On April 8, 2020, the SEC Chairman and the SEC Division of Corporation Finance Director released a joint statement which included the following summarizing statement: “Company disclosures should reflect [the] state of […]

There are many challenges for auditors in the wake of the COVID-19 virus.  Auditors are finding new creative ways to ensure they are still meeting audit standards requirements while conducting test work during this quarantine phase.  This level of remote auditing is new for the public accounting profession and has been implemented quickly to stay […]