Thought Leadership

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SEC Poised to Expand Audit Attestation Exemption

For most public companies, an auditor’s attestation is required under Section 404(b) of the Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission (SEC) is finalizing a rule that would exempt more than 500 additional companies from this requirement. Several large investor protection…

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Health Care Companies Weigh In on Debt Classification

The Financial Accounting Standards Board (FASB) issued a proposal in September 2019 to simplify the classification of debt. Some health care organizations have raised concerns about the effects of the proposed changes on their financial metrics and debt covenants. The health care sector will get…

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Clarifications on the Credit Loss Standard

Banks and creditor losses reporting from sourced loans will change with Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Accountants have some lingering questions about updated guidance details,…

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Will Naming the Lead Auditor Improve your Audit Quality?

Rule 3211, Auditor Reporting of Certain Audit Participants, has raised doubts on producing the intended benefits as explained in a recent study. The Public Company Accounting Oversight Board (PCAOB) issued the rule at the end of 2015. It requires accounting firms to identify the name of the…

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Puh-LEASE Be Prepared for GASB 87

Are you prepared for the new lease accounting standard for governments? Statement No. 87 (Leases) of the Governmental Accounting Standards Board (GASB) will require major changes in the way governments account for a variety of lease arrangements. It takes effect for reporting periods beginning…

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What is "Materiality"?

Materiality is a concept used to determine what's important enough to be included in, or omitted from a financial statement. In late October, the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) voted to finalize a revised definition of materiality in…

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Lease Terms are Being Revised to Avoid New Lease Accounting Rules

A desire to avoid lease accounting rules for new contracts has debt-strapped private companies exploring new avenues. But why? Some fear that by implementing the guidance, they would violate loan covenant agreements with lenders that limit the liability amounts they’re allowed to carry. However,…

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Measuring Equity-Based Awards' Fair Value

Stock options and other forms of equity-based compensation are often awarded by cash-strapped start-ups and high growth firms to attract and retain skilled employees. These rewards can also provide incentives to boost performance and add value. However, there’s a downside: accounting for these…

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