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The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, that clarifies the application of the new leases guidance to land easements. Lease amendments (ASU 2016-02 and 2018-01) are effective for public entities with annual periods beginning after December 15, […]

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released the ERM (Enterprise Risk Management) Framework: Enterprise Risk Management–Integrating with Strategy and Performance on September 6, 2017. This is COSO’s first significant update to the original 2004 ERM document, Enterprise Risk Management–Integrated Framework. The provisions of the updated ERM framework become testable on the […]

FASB Simplifies Financial Instruments

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The provisions of the new ASU are effective for fiscal years beginning after December 15, 2018. The content becomes testable on the CPA Exam January 1, 2019. ASU No. 2017-12 […]

Statement of Auditing Standards (SAS) No. 133, Auditor Involvement With Exempt Offering Documents, was issued July 26, 2017, and provides performance requirements for auditors involved with documents for exempt offerings such as municipal securities; securities issued by not-for-profit religious, education, or charitable organizations; crowdfunding; small issues of securities such as Regulation A offerings; and franchise […]

FASB Simplifies Financial Instruments

The FASB issued Accounting Standards Update No. 2017-11, which simplifies accounting for certain financial instruments and will be testable on the CPA Exam in April 2019. Taking FAR in Q2 2019 or later? You’ll want to know this material!

Statement of Cash Flows

On November 17, 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.

income taxes

The FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This will be eligible for testing on the CPA exam in July 2018.

ssars

SARS No. 22 – Compilation of Pro Forma Financial statement, which supersedes SSARS No. 14, is testable on the CPA Exam in July 2017. SSARS No. 22 takes effect for compilation reports on pro forma financial information dated on or after May 1, 2017.

The FASB issued Accounting Standard Update 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The update was designed to improve existing standards, and is eligible to be tested on the CPA Exam in January 2018.

Due to early implementation, ASU No. 2015-15 will become testable on the CPA Examination six months after its issue date, in the October-November 2015 test window.