Proposed SSAE, Reporting on Compiled Prospective Financial Statements When the Practitioner’s Independence Is Impaired.

The AICPA Accounting and Review Services Committee (ARSC) has issued a Proposed Statement on Standards for Attestation Engagements (SSAE) Reporting on Compiled Prospective Financial Statements When the Practitioner’s Independence Is Impaired. The proposed SSAE is a result of SSARS No. 19 which, as you are aware, permits, but does not require, the accountant to disclose the reasons he or she was not independent when performing a compilation of historical financial statements.

The ARSC determined that the attestation standards should also be revised so that the practitioner, if he or she chooses, can disclose the reasons for an independence impairment in the compilation report on compiled prospective financial information. The proposed SSAE would amend paragraph .23 of AT section 301, Financial Forecasts and Projections (AICPA, Professional Standards, vol. 1), to permit, but not require, the accountant to disclose the reason(s) for an independence impairment in a report on compiled prospective financial information.

The proposed SSAE was issued June 3, 2010. The comment period ends September 10, 2010

The proposed SSAE would be effective for compilations of prospective financial statements for periods ending on or after December 15, 2010, with early implementation permitted.

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