In a recently released tool for the Audit Committees, the Center for the Audit Quality stated that it is “urgent that audit committees understand how management is assessing the impact of the new revenue recognition standard”. ASC 606 (which is … Continue reading
Category Archives: Accounting Policies
A Big Change in Bank of America’s Accounting Policy
Voluntary changes in accounting principle are usually disclosed in so-called preferability letters, but occasionally a significant change will be disclosed in an 8-K current report. Last Friday, Bank of America did just that, disclosing that they would be changing their method of … Continue reading
Gift Cards a Present to Bottom Line
It’s already the end of April, with Christmas just a distant memory. And if you are anything like us, you’ve probably lost track of that gift card or two you weren’t able to use right away (or add to some smartphone app). Luckily … Continue reading
Profession in Focus: Interview with the CAQ
Audit Analytics CEO Mark Cheffers was recently interviewed by Cindy Fornelli, executive director of the Center for Audit Quality, in an episode of the CAQ’s video series “Profession in Focus.” During the interview, Cheffers and Fornelli discussed the second edition … Continue reading
Adopting the Spot-Rate in Pension Accounting
A wave of change appears to be forming in the arcane area of pension accounting. About a year ago, AT&T made a change to the way it calculates the present value of future pension obligations. Typically, companies used the “weighted-average” method … Continue reading
Is Contract Accounting under the Microscope?
Last week, news came out that the SEC was investigating Boeing Co. for possible irregularities in the company’s long-term contract accounting. (Bloomberg) The U.S. Securities and Exchange Commission is investigating whether Boeing Co. properly accounted for the costs and expected … Continue reading
SEC Staff Addresses Developments in Pension Accounting
At last week’s AICPA Conference on Current SEC and PCAOB Developments, the topic of pension accounting came up more than once. In one session, Ashley Wright, a Professional Accounting Fellow in the SEC’s Office of the Chief Accountant, discussed a recent … Continue reading