Coops: GAAP, GAAS, and SSARS Issues

Author: Pat Patterson

This course explains the varied and unusual details of Cooperative Association (COOPS) and the Generally Accepted Accounting Principles (GAAP), the Generally Accepted Audit Standards (GAAS), and the Statements on Accounting and Review Standards (SSARS) positions of the Common Industry Realty Association (CIRA) Industry. There are specific Topics in the Financial Accounting Standards Board (FASB) that deal with the CIRA industry and Cooperatives. The CIRA industry has auditing standards that relate often to state laws and rules for Cooperative Associations.

Publication Date: January 2022

Designed For
CPAs, Property Managers, Investors, and other accounting professionals working in the accounting and audit areas of Coops. The tasks include audits, reviews of financial statements of the associations as well as Compilations, and Preparation engagements. The AICPA’s Code of Professional Conduct is also important to understand as it relates to Independence, documentation, and form and content of financial statements.

Topics Covered

• Overview of CIRAs
• A Few Statistics
• Accounting Overview
• Nonprofit???
• ASU 2014-09, Revenue from Contracts with Customers (FASB ASC 606)
• COOP Specific Revenue Situations
• Summary of Effective Dates for ASUs
• Accounting for Common Property
• GAAS Issues - Changes from Revisions to Auditing Standards
• AICPA Auditing Standards 2021
• Illustration No. 1
• Preparation, Compilation, and Review for CIRAs
• SSARS 22: Compilation of Pro Forma Financial Information
• SSARS 23: Omnibus Statement on Standards for Accounting and Review Services 2018
• SSARS 24
• SSARS No. 25, Materiality in a Review of Financial Statements and Adverse Conclusions February 11, 2020

Learning Objectives

• Identify the types of engagements available to a Cooperative Association, such as, audits, reviews, compilations, and preparation engagements
• Describe the mechanics of providing financial statements to a CIRA depending on the type of CIRA and the level of attention needed
• Recognize the procedures that CIRAs may make concerning revenue, capitalization issues, and deductions for the association
• Identify when an owner/member of an association may be affected by the CIRA's accounting implications
• Identify and explain the capitalization policy of a Cooperative Association
• Identify ways shares are acquired by the cooperative housing corporation
• Recognize standards prescribed by the accountant's responsibilities with respect to going concern
• Identify the effective date for the new CECL standard for private entities
• Describe the three primary functions of all CIRAs
• Identify which ASC Topic prescribes the appropriate accounting treatment for many transactions and events encountered by CIRAs
• Describe ancillary
• Recognize which SAS provides guidance with respect to audit evidence

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Basics of CIRA accounting. GAAP, GAAS, and SSARS standards are also important in the industry.

Advance Preparation
None