AICPA OFFERS FAIR VALUE INVESTMENT GUIDANCE
New York - The American Institute of CPAs has published a set of technical practice aids to help auditors and preparers understand the accounting rules on determining the fair value of investments in entities that calculate a net asset value.
Technical Practice Aids Sections 2200.18-.27 offer non-authoritative implementation guidance to Accounting Standards Update 2009-12, Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), which is effective for reporting periods ending after Dec. 15, 2009. If certain criteria are met, the rule allows an investor, as a practical expedient, to estimate the fair value of an alternative investment on the basis of its net asset value.
The technical practice aids cover several issues, including determining whether a net asset value calculation is consistent with the FASB Codification Topic Financial Services - Investment Companies, determining whether an adjustment to net asset value is necessary, and certain disclosure considerations.
The AICPA believes the practice aids will be especially helpful for investment companies, banks, broker-dealers, health care companies, insurance companies and other organizations that often hold alternative investments.
CALIFORNIA TOUGHENS CPA REQUIREMENTS
Sacramento, Calif. - Under new regulations that took effect on Jan. 1, 2010, the California Board of Accountancy implemented changes to its continuing education regulations in order to heighten ethics awareness for CPAs and increase consumer protection. CPAs licensed in California will need to take additional ethics education in order to renew their active-status licenses. In addition, CPAs will be required to complete coursework specific to the laws and rules governing the practice of public accountancy in California, as well as a minimum number of hours of continuing education yearly.
Also in January, firms in California were required by law to undergo peer review.
For more, visit www.cba.ca.gov.
