November 8, 2024

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CPAJ News Briefs: AICPA, FASB

CPAJ News Briefs: AICPA, FASB

AICPA News

Mark Koziel Appointed Next CEO of AICPA and CIMA

The Association of International Certified Professional Accountants (AICPA) on October 16, 2024, announced that Mark Koziel, a former AICPA executive, will become its next chief executive officer, succeeding Barry Melancon who will retire at the end of the year. Koziel is president and CEO of Allinial Global, an association of 268 independent accounting and advisory firms around the world with $6 billion in combined revenue. Koziel will assume his new role in January 2025 following a hand-over period. The association is the combined entity of the U.S.-based AICPA and the Chartered Institute of Management Accountants (CIMA) in the United Kingdom. Koziel took the helm of Allinial Global in 2020 after 14 years with the AICPA and the combined association where he served in a number of roles, including executive vice president for firm services. After receiving an accounting degree from Canisius University in 1991, he began working in the profession at Lumsden McCormick CPA in Buffalo, New York. “In a strong field of applicants, Mark was the standout candidate because of his knowledge, understanding, experience, and vision for the profession and the organization,” AICPA chair and co-chair of the association Carla McCall said in a statement. “These are transformative times for our profession. I look forward to working with Mark to seize the opportunities in front of us.”

FASB News

FASB Member Criticizes Outdated IASB Standard for Government Grants

Christine Botosan, a member of the Financial Accounting Standards Board (FASB) and an academic, reiterated her concerns about the board’s use of the International Accounting Standards Board’s (IASB) standard on government grants to develop its upcoming proposal. At a joint educational meeting of the FASB and IASB on October 11, Botosan stressed that International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, was developed in 1983, before the IASB existed. She emphasized that FASB should have prioritized improving financial reporting over simply codifying existing practices, which investors have indicated do not meet their needs. Botosan blasted the “deferred income approach” under IAS 20, saying it could recognize liabilities that don’t meet the definition of a liability and thus “we end up violating our definition.” She added that the “cost accumulation approach” can lead to a failure to recognize assets that do meet the definition of an asset. FASB is poised to release an exposure draft this year, seeking public input on a proposal that builds upon the IASB model rather than duplicating it. But Botosan plans to dissent, saying that the board should have gone “instead to the 958-605 model that’s already in our literature that business entities already have to apply for grants from non-governments and that not-for-profits apply.” IASB Chair Andreas Barckow conceded that some of the IASB’s literature is indeed outdated, echoing concerns raised by Botosan. “With a fresh perspective, we would likely have drafted a completely different model.”

FASB Backs Eased Credit-Loss Rules, Simplified Construction Contract Reporting for Private Companies

In a unanimous vote on October 16, FASB approved the issuance of proposals aimed at simplifying credit-loss reporting for private companies and increasing transparency in construction contract finances. The proposed rules, set to be released in late November or early December, will provide a 45-day window for feedback from the business community, according to the discussions. The decisions come on the heels of recommendations from the Private Company Council (PCC), which sought to streamline the way credit losses are reported on current accounts receivable and contract assets, as well as clarify how private construction contractors should present their contract finances on their balance sheets. “I know the PCC will be thrilled to hear proposal has been endorsed,” FASB Chair Richard Jones said. Under the proposed changes, short-term receivables would be exempt from the current expected credit losses (CECL) standard, affecting both private companies and not-for-profit entities, excluding nonprofit conduit bond obligors. Moreover, private construction companies will get cleaner financial reporting, driven by users of the information, FASB members said. FASB members also favored exploring whether the proposed changes should be extended to public companies, but through a separate initiative, so as not to delay implementation for private companies.


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