Business Frame Weekly - FAF Debuts Free Access to ASC and GARS / IRS Posts Final Regs on E-Filing Requirements / Assurance Levels Up in ESG Reporting

The Financial Accounting Foundation (FAF) unveiled free online access to the Accounting Standards Codification (ASC) and the Governmental Accounting Research System (GARS) on Monday.

According to the IRS, final regulations were released on Tuesday that will reduce the threshold for the e-filing requirement and expand the list of returns that must be e-filed.

Accounting firms obtaining assurance on data related to environmental, social, and governance (ESG) is decreasing as 57% of audit firms conducted ESG assurance engagements in 2021, down from 63% in 2019.

In this newsletter:

• Financial Accounting Foundation Debuts Enhanced Free Access to Online Accounting Standards Codification and Governmental Accounting Research System
• Final Regs. Expand Company E-Filing Requirements
• Opportunity Knocks for Firms as ESG Reporting, Assurance Levels Rise
• Small Biz Owners Stress Out at Tax Time
• Survey: Global Economy Subdued with Weaknesses Persisting
• Accounting Automation Evolution: Augmented or Artificial Intelligence

February 28, 2023

Financial Accounting Foundation Debuts Enhanced Free Access to Online Accounting Standards Codification and Governmental Accounting Research System

The Financial Accounting Foundation (FAF) on Monday released its free, enhanced online access to the Accounting Standards Codification (ASC) and the Governmental Accounting Research System (GARS), which was announced to stakeholders last month. The ASC is the complete, official version of GAAP published by FASB and used by public companies, private companies, not-for-profit organizations, and employee benefit plans in the United States. GARS is the complete and official version of GAAP published by GASB and used by states, cities, and other governmental entities.

Final Regs. Expand Company E-Filing Requirements

Final regulations (T.D. 9972) requiring certain companies to e-file their tax returns and other documents will take effect in 2024, the IRS said Tuesday. The final regulations reduce the threshold for the e-filing requirement and expand the list of returns that must be e-filed. The regulations, which will be published Thursday in the Federal Register, require certain companies to e-file for tax years ending on or after Dec. 31, 2023. They affect filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports, and certain excise tax returns.

Opportunity Knocks for Firms as ESG Reporting, Assurance Levels Rise

The percentage of large companies around the world disclosing and obtaining assurance on data related to environmental, social, and governance (ESG) is on the rise, but the percentage of assurance provided by accounting firms is heading in the opposite direction. Ninety-five percent of companies reported some ESG information, and 64% obtained some level of assurance on that data in 2021, according to The State of Play: Sustainability Disclosure & Assurance. In 2019, 91% of companies reported some ESG information, and 51% obtained some assurance. In 2021, 57% of ESG assurance engagements were conducted by audit firms, down from 63% in 2019.

Small Biz Owners Stress Out at Tax Time

Most small-business owners feel stressed when it comes time to do their taxes, according to a new survey. The survey, released last week by the small-business accounting software company FreshBooks, found that 80% of American small-business owners feel at least some stress at tax time. Nearly 63% of business owners rate their tax time stress at 3 or more on a scale of 5.

Survey: Global Economy Subdued with Weaknesses Persisting

The global economy shows signs of steadying, however, many indicators remain weaker than a year ago, according to the "Global Economic Conditions Survey (GECS)" for Q4 2022 from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants). GECS is the largest regular economic survey of accountants carried out globally each quarter by IMA and ACCA.

Accounting Automation Evolution: Augmented or Artificial Intelligence

What is the reality of Artificial Intelligence tools utilized today in your accounting practice? Unfortunately, there is no clear answer, and in actuality it depends on your interpretation of AI and how you apply tools incorporating touting various “AI” capabilities. Recent accounting articles have focused on how such chat tools can be utilized for developing marketing content, analyzing and summarizing financial data, and possibly in providing online responses to common accounting questions.

Random Ramblings

• The move to improve sustainable accounting worldwide.
• Remembering ahead: 10 years into the future of accounting.
• When should you hire a CPA?
• The importance of cybersecurity in accounting.
• How to conduct a market analysis for your business.