CPA Practice Advisor - 31

AICPA News is a roundup of the top articles regarding the AICPA each month.

AICPA Makes
Recommendations
Automatic Consent for
Accounting Method
Changes
The AICPA explained that a taxpayer who changes its method
of accounting for the basis on which it regularly computes
income to keep its books must secure the consent of the IRS
Commissioner before computing taxable income under the
new method. Generally, a taxpayer secures approval by filing
Form 3115, Application for Change in Accounting Method. A
taxpayer is considered to have obtained the consent of the
IRS Commissioner for certain automatic accounting method
changes prescribed in Rev. Proc. 2018-31 if it has complied
with all the applicable provisions of Rev. Proc. 2015-13 and
Rev. Proc. 2018-31.
The AICPA's recommendations include, but are not limited
to, the following issues:
■ Provide audit protection for taxpayers under exam when
new guidance is issued;
■ Include audit protection for any method change afforded
automatic consent;
■ Add commissions to the type of compensation eligible for
the automatic consent procedures for deferred compensation, including adding automatic consent for a fiscal year
taxpayer changing its method to comply with Treas. Reg.
§ 1.83-6;
■ Provide cash method taxpayers with automatic consent to
change from impermissible income or expense recognition
methods to permissible methods;
■ Provide automatic consent for method changes to comply
with section 451(c);
■ Provide automatic consent for an accrual method taxpayer
to change from impermissible to permissible methods of
applying the all-events test and economic performance for
liabilities;
■ Include automatic consent for a change to properly apply
the recurring item exception for eligible liabilities; and
■ Permit taxpayers to change from an impermissible to
permissible method of accounting for recognizing income
from tenant improvement allowances. ■

AICPA NEWS

BOARD ISSUES STANDARDS ON
AUDITOR REPORTING
The new suite of auditor reporting standards includes a new AU-C section 701,
Communicating Key Audit Matters in the
Independent Auditor's Report, and replaces
the following AU-C sections in AICPA
Professional Standards:
■ Section 700, Forming an Opinion and
Reporting on Financial Statements
■ Section 705, Modifications to the Opinion
in the Independent Auditor's Report
■ Section 706, Emphasis-of-Matter
Paragraphs and Other-Matter Paragraphs
in the Independent Auditor's Report

SAS No. 134 amends various other
AU-C sections and addresses auditors'
responsibility to form an opinion on the
financial statements and the form and
content of the auditor's report issued as a
result of an audit of financial statements.
It also addresses the auditor's responsibilities, and the form and content of the auditor's report, when the auditor concludes
that a modification to the auditor's opinion
on the financial statements is necessary,
and when additional communications are
necessary in the auditor's report.■

NASBA and AICPA Issue Proposed
Revisions to CPE Provider Standards
Last revised in 2016, among the
most significant of the proposed
revisions is allowing for adaptive
learning self study programs within
the self study standards with references to the methodology to be
used in determining the CPE credit
for an adaptive learning program.
The proposed Standards revisions
also permit the use of review questions or other content reinforcement
tools in a nano learning program.

Additional clarifications have
been made to assist in the
understanding of awarding CPE
credit in the different instructional
delivery methods, in the minimum
number of monitoring mechanisms
required in a group Internet based
program in which fractional CPE
credit is awarded, and in the
solicitation of evaluations for larger
programs and conferences. ■

Diversity Evaluation Tool Gets Enhancements

The AICPA has launched a revamped version of its diversity benchmarking tool. The
Accounting Inclusion Maturity Model (AIMM) is a free tool that was designed to help
accounting firms evaluate their current diversity and inclusion practices and quickly
identify opportunities for improvement. AIMM, which was initially developed in 2015, has
been updated to reflect leading diversity and inclusion practices. In addition, it has been
streamlined to provide a more user-friendly approach, with fewer questions to answer
without sacrificing the quality of the assessment.
Firms and organizations that complete the assessment will receive:
■ A free, customized report based on the responses provided.
■ The ability to benchmark an organization with similar ones who have also completed the
assessment.
■ Access to resources that will help build a more diverse and inclusive organizational
culture.
■ For AICPA members, a discounted consulting session to further analyze your firms
results and provide detailed recommendations. ■

JUNE 2019 ■

www.CPAPracticeAdvisor.com

http://www.CPAPracticeAdvisor.com

CPA Practice Advisor

Table of Contents for the Digital Edition of CPA Practice Advisor