Recently the AICPA’s Board of Examiners (BOE) concluded that the existing exam Policy on New Pronouncements was no longer aligned with the needs of the CPA Exam. Specifically, the BOE concluded that (1) newly licensed CPAs are likely to have limited exposure to and involvement with a new pronouncement during any early adoption period and (2) the simultaneous testing of new and existing standards during any early adoption period could result in unnecessary candidate confusion.
At the recent October 2, 2015, BOE meeting, revisions were made to the policy on new pronouncements to reflect their conclusions. To summarize, the revisions move the eligibility date for testing new accounting and auditing pronouncements to the later of (1) the first testing window beginning after the pronouncement’s earliest mandatory effective date or (2) the first testing window beginning 6 months after the pronouncement’s issuance date. The revisions also remove the ability to test new and existing pronouncements simultaneously. The revised policy becomes effective with the testing window beginning on April 1, 2016, and will be applied to all accounting and auditing pronouncements issued after July 1, 2015. Standards issued prior to July 1, 2015, remain subject to the former CPA Exam Policy on New Pronouncements.