CAQ Issues Alert – SAB Topic 11.M - A Focus on Disclosures for New Accounting Standards
Jun 28, 2017
On June 28, 2017, the Center for Audit Quality (CAQ) released the alert, "SAB Topic 11.M – A Focus on Disclosures for New Accounting Standards," which encourages CAQ members to focus on evaluating the adequacy of management’s disclosure of impending changes in accounting principles. The alert addresses requirements that registrants discuss in their interim and annual SEC filings and the potential effects of recently issued accounting standards when adopted in a future period.
The new revenue recognition, leases, and credit losses accounting standards become effective over the next few years, and these new accounting standards are expected to present significant changes for many companies. Even in situations where a new accounting standard is not expected to significantly impact a registrant’s primary financial statements, the alert adds that the accounting standard’s requirements related to footnote disclosures may still be a significant change.
Review the alert on the CAQ's website and the requirements on the SEC's website.
