Approximately 32 letters were received, most of which generally supported the ED as proposed. The ED was issued August 28, with a comment period ending October 30. Based on a review of the audit literature, the significant areas that would be included in the omnibus project are related party considerations, going concern considerations, subsequent events, and materiality issues.Ĭurrent Developments: The Board reviewed a preballot draft of the proposed standard at the July meeting and voted to issue the ED after reviewing the ballot draft at the August meeting. However, as discussed below, the Board later eliminated that issue from the project.Īccounting and Financial Reporting Issues: The primary issue is identifying, in the SASs, the various accounting and financial reporting requirements that should be incorporated into the accounting and financial reporting level “a” literature. The Omnibus project initially included this “materiality” issue, adapted from the SEC’s staff bulletin, for correcting errors in previously issued financial statements.
That action highlights the fact that these issues have not been addressed in a governmental environment (for example, restatement issues for reporting units). That guidance is applicable to publicly traded companies. 108, which provides authoritative guidance on considering the effects of prior year misstatements when quantifying misstatements in current year financial statements. In September 2006, the United States Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. The responsibility for complying with financial reporting standards is attributable to the preparers of financial statements however, the requirements do not reside in established accounting principles. The GAAP hierarchy portion of the project was later established as a separate project as discussed below.īackground: Representatives of the American Institute of Certified Public Accountants (AICPA) have stated that they would like the standards setters to consider adopting standards for accounting and financial reporting issues that now only reside in the SASs. In its initial form, the project also included incorporation of the hierarchy of generally accepted accounting principles (GAAP hierarchy) to identify, in the GASB’s authoritative literature, the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of state and local governments that are presented in conformity with GAAP. Project Description: This project will consider incorporating accounting and financial reporting standards that are included in current and recently modified Statements on Auditing Standards (SASs) to more effectively present those standards so that these requirements are more clearly the responsibility of the financial statement preparers. GASB Issues an Exposure Draft, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing StandardsĬodification of AICPA Accounting Standards in SASs-Project Plan.56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards, was approved in March 2009.
The GAAP hierarchy portion of the project was later established as a separate project as discussed below. Primary Objective: The objective of this project is to consider incorporating accounting and financial reporting standards that are included in current and recently modified Statements on Auditing Standards (SASs) to more effectively present those standards so that these requirements are more clearly the responsibility of the financial statement preparers. Codification of AICPA Accounting Standards in SASs
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