Pittsburgh, USA

US GAAP Simplification of Accounting for Stock Compensation

By Jeffrey A. Ford, Grossman Yanak & Ford LLP

The FASB ASU 2016-09, Improvements to Share-Based Payment Accounting, simplified several aspects of accounting for share-based payment awards (SPAs) to employees. Here, we focus on those simplifications related to forfeitures, excess tax benefits and tax deficiencies, statement of cash flows classification, and practical expedients for non-public companies. This guidance does not apply to awards to nonemployees.

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Determining Risk Assessment in a Financial Statement Audit

By Ira M. Talbi, Prager Metis International LLC

The American Institute of Certified Public Accountants (AICPA) issues, as necessary, Statements on Auditing Standards (“SAS”). Of the current total of 130+ SAS, numbers 104 to 111 are collectively referred to as the Risk Assessment Standards (“RAS”) and have been in effect since December 2006.

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Brussels, Belgium

New ISA 315: Be Prepared for a Still More Complex Audit Model

By Prof Dr Michel De Wolf, DGST Réviseurs d’entreprises

With the consent of the Public Interest Oversight Board, the International Auditing and Assurance Standards Board (IAASB), at the end of 2019, approved a revised International Standard on Auditing: “Identifying and assessing the risks of material misstatement”. Remarkably, only 15 of its 18 present members carried an affirmative vote in favour of the new standard 1 (see footnote below).

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mobile payment

Disaster Wirecard: Who Is Liable?

By Dr Thomas Ditges, DITGES Rechtsanwälte Wirtschaftsprüfer Steuerberater

The case is unprecedented. A DAX company is insolvent! The market capitalisation was higher than that of Deutsche Bank AG, but the company’s rise was also faster, and the claims of the board of managing directors were more flamboyant. There was no lack of alarms. Since the middle of 2019, the journalists of the Financial Times have remained undaunted. They did not let themselves be dissuaded from their complaints about discrepancies. Banks refused to provide financing.

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Arc de Triomphe - Paris, France

New Audit Thresholds Leading to New Audit Standards Applied to SMEs in France

By Carole Hong Tran and Dominique Le Roi, FIDAG SARL

In France, since the introduction of the new law on audit thresholds adopted in May 2019, a number of SMEs are now exempt from statutory audit. A new audit mission has therefore been designed especially for those still wishing to have their annual accounts certified by an auditor, known as Audit Légal des Petites Entreprises (“ALPE”), which offers the following advantages:

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Lombard Street, San Francisco, California

AICPA Issues New Description of the Concept of Materiality

By Tom Parry, Navolio & Tallman LLP

The AICPA Auditing Standards Board (ASB) has issued a Statement on Auditing Standards (SAS) No. 138, Amendments to the Description of the Concept of Materiality. The ASB’s description of the concept of materiality has been consistent with the definition used by the International Accounting Standards Board (IASB) and the International Auditing and Assurance Standards Board (IAASB). Following the decision by the Financial Accounting Standards Board (FASB) in August 2018 to return to its original definition of materiality, which was in effect from 1980 until 2010, this amendment aligns the definition with the description of materiality used by the US judicial system, the Public Company Accounting Oversight Board, the US Securities and Exchange Commission, and the FASB.

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Toronto during wintertime

Beware the EBITDA Multiple Trap

By Douglas Nix, Stillwater Capital Corporation

In today’s M&A environment, an EBITDA multiple is by far the most common methodology used to discuss and assess the value of a privately owned business. It is used because of its simplicity and ease of calculation.

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Wall Street, New York

The Future of LIBOR

By Aaron Caskey and Jon Connor, Dressman Benzinger LaVelle psc

LIBOR (London Interbank Offered Rate) is an interest rate index setting forth the rate at which major financial institutions will lend to each other. The rate is calculated as an average of the estimates from various leading banks. But LIBOR is not just for investors on Wall Street.

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Amsterdam, The Netherlands

Highlights about Improving Audit Quality

By Andrea van der Giezen, JAN© Auditors & Tax Advisers B.V.

The International Forum of Independent Audit Regulators (IFIAR; the international alliance of independent supervisors for the auditing branch) published a report about audit quality last May.

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The Response of the ARC PG to the IAASB Discussion Paper on Audit of Less Complex Entities

By Boris Michels, Andrew Jones and Prof Dr Michel De Wolf, GGI ARC Practice Group

The International Auditing and Assurance Standards Board (IAASB) seeks to further understand the challenges of using ISAs in audits of less complex entities – and views about possible actions to address these challenges. It recognises the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the International Standards on Auditing. Continuing the debate on these strategic issues, the IAASB published a Discussion Paper in order to get views of various stakeholders on how to support auditors working in this increasingly evolving environment.

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GGI Geneva Group
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