Audit & Accounting Alert Newsletter

Issue 4 |July 2017


At-A-Glance

Gerry HerterThis past month I worked an exhibit booth in Las Vegas at the AICPA ENGAGE mega-conference, alongside Integra Global Administrator, Laurie Daschuk. There, I talked with CPAs from across the United States, describing how they could reap the rich benefits from membership in Integra International that my firm has enjoyed over these past twenty years. A side bonus, when the Exhibit Hall was not available to the 3,000 plus attendees, was the opportunity to partake of various accounting and keynote sessions. A common thread, whether in the National Advanced Accounting and Auditing Technical Symposium track, the Practitioners Symposium/TECH Conference track, or the other four tracks, was the impact of rapid changes and their implications. In our first article, I touch on some of the highlights.

AICPA Las VegasWhile there were significant and justified concerns at the conference that pervasive technological changes will eliminate many traditional accounting jobs, a focus on new emerging services provided hopeful and stimulating opportunities for those ready and willing to step out boldly and grasp onto the future trends. One of those trends is the evolving recognition of the importance of sustainability and integrated reporting. Our second article covers developments in this area, including a new guide from The Prince of Wales' Accounting for Sustainability Project (A4S). Finally, our Worldwide Update covers news from organizations across the globe.



Are You Future Ready?

AICPA ENGAGE mega conference focuses on
rapidly approaching changes

O'LearyA much anticipated annual spring event that my colleagues and I have looked forward to these past three decades has been the AICPA Practitioners Symposium. After a long, hectic busy season, the conference provides the opportunity to catch up on developments in the profession. Recently, the 2017 event brought the latest iteration which quintupled the size to over three thousand participants for AICPA ENGAGE. The increase was accomplished by combining six of the AICPA’s most popular educational offerings. While the old version provided a broad array of practice management, accounting, tax, technology, advisory and marketing topics, the new rendition drilled down extensively on each of these areas. While crowd control was an issue, the wealth of options for developing skills and knowledge was overwhelming.

An advantage of an assembly of this magnitude is the opportunity to draw top name speakers. A highlight was an engaging and practical keynote presentation by television’s Shark Tank star, Kevin O’Leary, known on the show as “Mr. Wonderful.” He shared his philosophies for growing a successful business and prudent personal investing. But more about that later.

More "Are You Future Ready..."


Sustainability and Integrated
Reporting Gain Traction


New guide from Prince of Wales Group addresses
practicalities of social and human capital accounting

Prince of WhalesAs mentioned in the above article, accountants in the not so distant future will need to focus on more sophisticated aspects of analysis and advisory services as advanced technological applications take over an increasingly greater share of routine functions, even seemingly complex ones.

One of the areas becoming accessible to the analytical skills of accountants encompasses the elusive domain of sustainability and the related reporting platforms. Worldwide efforts have gone into researching and developing methodologies for measuring sustainability. In recent years, several organizations have added resources, such as the International Federation of Accountant’s report, The 2030 Agenda for Sustainable Development, A Snapshot of the Accountancy Profession’s Contribution (December 2016 A & A Alert), the Sustainability Accounting Standards Board’s Sustainability Accounting Standards (January 2015 A & A Alert), and the International Integrated Reporting Council’s International Integrated Reporting Framework (January 2014 A & A Alert).

More "Sustainability and Integrated Reporting...."



Worldwide updateWorldwide Update

Periodic roundup of recent and
upcoming actions and activities
by Audit and Accounting
organizations throughout the world

IASB – International Accounting Standards Board (www.ifrs.org)

  1. Insurance Contracts: IFRS 17 - issued May 18, 2017, replaces IFRS 4, and standardizes the accounting for insurance obligations using current values, eliminating the variety of methods previously used. The effective date is January 1, 2021, with earlier adoption allowed.
  2. Exposure Draft - Property, Plant and Equipment—Proceeds before Intended Use (Proposed amendments to IAS 16)–published June 20, 2017, “would prohibit deducting sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use. Instead, the company would recognise those sales proceeds and related costs in profit or loss” The comment period ends October 19, 2017.

More "Worldwide Update...."



Additional A&A News

What’s driving change in the audit environment?

(https://www.accountancyage.com/2017/06/14/whats-driving-change-in-the-audit-environment/)

New accounting system expected to cause transfer-pricing challenges in India

(http://www.livemint.com/Companies/qRY6HtQJukHP4zeVgZhbWK/IndAS-the-new-accounting-puzzle-for-MNCs.html)

Auditors focusing more on fraud detection

(https://www.accountingtoday.com/news/auditors-focusing-more-on-fraud-detection)

What audit committees need to know about PCAOB’s Form AP

(http://www.journalofaccountancy.com/news/2017/jun/pcaob-form-ap-for-audit-committees-201716915.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=21Jun2017)

The Technology That Will Change Accounting

https://www.forbes.com/sites/forbesfinancecouncil/2017/06/14/the-technology-that-will-change-accounting/#65e973166916)

Earnings Report Readability Pays Off

(https://ww2.cfo.com/investor-relations-banking-capital-markets/2017/06/earnings-report-readability-pays-off-study/)

Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.

Editor Gerald E. Herter ~ HMWC CPAs & Business Advisors, 17501 E. 17th Street, Suite 100, Tustin CA
email: gerry.herter@integra-international.net