Tax & Accounting Update: Certified Public Accountant

ABSTRACT

Clearly, the COVID-19 pandemic is a triggering event that would cause many companies to test goodwill for impairment on an interim basis-i.e., before the scheduled annual testing date, said Scott Ehrlich, president of Mind the GAAP, LLC. Because of the overall decline in market values, more reporting units would likely fail the goodwill (impairment test... the fair value) of the reporting unit will be less than its carrying amount. PCAOB News Auditors Obligated to Provide High-Quality Audits during Crisis With the unprecedented challenges presented by COVID-19, the PCAOB has issued a staff guide to remind independent auditors of their obligations to follow applicable rules and standards diligently as they complete their audit work. GASB News No Deferral Planned for Interest Rate Reform Standard GASB has said its decision to defer the effective date of some critical accounting standards to ease implementation hurdles brought on by the COVID-19 pandemic will not include rules on reference rate reform.