August Audit & Assurance Newsletter

FASB simplifies accounting for certain financial instruments
Following a Private Company Council recommendation, the Financial Accounting Standards Board (FASB) recently issued a new standard that simplifies the accounting for certain financial instruments with down round features.

Down round features are a provision in an equity-linked financial instrument or embedded feature that provides a downward adjustment of the current exercise price based on the price of future equity offerings. Down round features are common in warrants, convertible preferred shares, and convertible debt instruments issued by private companies and development-stage public companies. read more    – Journal of Accountancy

FASB proposes changes to grant and contribution accounting
Accounting guidance for contributions received and made, primarily by not-for-profits, would change under new rules the Financial Accounting Standards Board (FASB) recently proposed. read more    – Journal of Accountancy

Bitcoin seeks recognition from U.S. GAAP
The Financial Accounting Standards Board (FASB) is conducting early stage research about developing an accounting standard for digital currency and the technology that underpins it. With the use of digital currency increasing, proponents say inconsistent accounting practices are becoming a problem. read more    – Thomson Reuters

FASB eyes cloud computing implementation costs
The Private Company Council discussed the implementation costs of cloud computing during a recent meeting and is asking its associated organization, the Financial Accounting Standards Board (FASB), to provide guidance on how to account for those costs. read more                                   – Accounting Today

GASB proposes changes to debt disclosures
Debt-related disclosures in notes to state and local government financial statements would change under a new proposal issued by GASB. read more    – Journal of Accountancy

ASB issues standard for auditors involved with exempt offering documents
A new auditing standard recently issued by the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board (ASB) establishes when an auditor is involved with an exempt offering document—and describes the procedures an auditor is required to follow when involved with such a document. read more    – Journal of Accountancy

AICPA releases sustainability attestation guide
The American Institute of Ceritified Public Accountants (AICPA) has issued a new guide to help accountants provide assurance on their corporate clients’ environmental information. read more    – Accounting Today

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