neoaccounting

As companies prepare for the new revenue accounting standard that takes effect in 2018, there’s no shortage of apprehension among financial executives. Given both the impact of the forthcoming changes as well as the adjustments companies need to make, companies still have plenty of work to do. Revenue recognition is a critical and often complex accounting area that companies can't afford to get wrong. Many boards and investors will want to know what to expect. Regulators will also be looking for increased disclosures throughout 2017 as adoption draws closer. Given this backdrop, we included a question on the greatest challenges pertaining to the new regulation as part of a recent survey of more than 700 accounting and finance executives conducted by PwC and the Financial Executives Research Foundation. When asked to rank the difficulty of different revenue recognition implementation issues, a significant majority of respondents saw all of the issues as somewhat or very difficult...

Tax audits don’t always lead to greater compliance down the road, according to a research paper that was one of several recently released in the 2016 IRS Research Bulletin . If an audit doesn’t result in an additional tax assessment, it may actually result in a drop in compliance, according to “Do Audits Deter Future Noncompliance?,” one of several papers included in the Research Bulletin, which features papers from the latest IRS-Tax Policy Center Research Conference at the Urban Institute in Washington, D.C., last summer. The conference highlighted research on tax compliance and current tax issues affecting tax administration, and facilitated dialogue among IRS researchers, tax experts from other countries, academic researchers, federal agencies and private sector experts. Papers include: • “Do Audits Deter Future Noncompliance?” examining the number of IRS audits annually and the amount of tax recovered, the impact of enforcement activit...

Among the many disruptive technology trends impacting the way we do business, blockchain is one that is less well known within the accounting community. However, given its potential impact, blockchain is certainly not a trend that accountants can afford to overlook any longer. Defined as an open, distributed ledger, blockchain technology records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint.” Blockchains are resistant to modification of data and cannot be altered retroactively. Here are some potential uses for blockchain in accounting and audit: • Traceable audit trails; • Automated audit processes; • Authentication of transactions; • Tracking ownership of assets; • Development of “smart contracts;” and, • Registry and inventory system for any asset, ranging from...

IFRS 9 changes. In summary, IFRS 9 will replace IAS 39 Financial Instruments and bring together the following aspects of accounting for financial instruments: classification and measurement; impairment; and hedge accounting. IFRS 9 is relevant to many different companies but will have the greatest effect on financial institutions. In practice, the most significant change will be in the way financial institutions account for loan losses. IFRS 9 replaces the incurred loan loss model of IAS 39 with an expected loan loss model. The new model is likely to result in greater loan loss provisions by financial institutions and will provide investors with useful information on changes in credit risk exposure. IFRS 15 changes. IFRS 15 will replace IAS 18 Revenue and IAS 11 Construction Contracts. It will establish a comprehensive framework for determining when to recognise revenue and how much revenue to recognise. It is expected to increase comparability among companies across sectors and ...

A Guide to the IFRS Education Initiative. The objective of the education initiative is to reinforce the IFRS Foundation’s goal of promoting the adoption and consistent application of a single set of high-quality international accounting standards. In fulfilling its objective, the education initiative takes account of the special needs of small and medium-sized entities and emerging economies.　 To achieve its objective, the education initiative will make available an appropriate range of high-quality, understandable and up-to-date material and services about standard-setting and IFRSs. Click here for a list of recent publications. Click here for a list of forthcoming IFRS events.  Framework-based teaching of principle-based standards. The IFRS Foundation education initiative is developing comprehensive free to download teaching material to support those teaching IFRS to develop their students' ability to make the judgements and estimates to apply IFRS with rigour...

The International Federation of Accountants has tasked the Association of National Accountants to use its available manpower to grow the Nigerian economy. The President, IFAC, Mrs. Olivia Kirtley, said this on Wednesday in Abuja at a breakfast meeting with the President of ANAN, Mr. Anthony Nzom; Chairman, Economic and Financial Crimes Commission, Mr. Ibrahim Magu, and other members of the association. In a statement by the association, Kirtley said that to grow the Nigerian economy, the roles of accountants were very important. According to her, Nigeria has been named as one of the three countries that produced 75 per cent of accountants in Africa, noting that Nigeria has a strong base as far as the accounting profession is concerned. She said, ANAN should educate politicians and governments at all levels on the need to have stronger professional accountants. Accountants need to establish good relations with government at all levels and the political class to have firm regulation of...

PREAMBLE One of the strategic goals of the Pan Africa Federation of Accountants (PAFA) is to develop [and engage in] global knowledge and solutions on issues that will impact the economy, society and the profession (thought Leadership). To achieve this goal, PAFA plans to partner with accountancy academics in Africa Universities to conduct research on emerging issues. As a first phase, PAFA is collaborating with African Accounting & Finance Association (AAFA) to implement the 2017 Africa call for research papers initiative. The African Accounting and Finance Association (AAFA) is coordinating this initiative as a platform for emerging and established scholars with a passion for research in Africa to support their research goals and contribute towards the development and advancement of accounting knowledge. Specifically, this partnership will benefit both Academics and the accountancy profession in Africa. It will increase the profile, capacity, and performance of African Univers...

Small- and medium-sized Practices (SMPs) are a critically important part of the profession: they constitute the vast majority of accountancy practices worldwide and, in many areas of the world, are believed to employ the majority of professional accountants working in practice. Furthermore, SMPs typically serve small- and medium-sized entities (SMEs), commonly referred to as engines of growth and innovation. There is no standard definition of what constitutes an SME, but Edinburgh Group research estimates indicate that more than 95% of enterprises across the world are SMEs, accounting for approximately 60% of private sector employment and contributing significantly to countries gross domestic product (GDP). SMEs are crucial to the health, stability, and sustainable economic growth of both developed and developing economies. It is well recognized that professional accountants are often the preferred source of advice for SMEs, typically forming long-term relationships founded on trust...