With the continuous evolution of technology, the number of organizations transitioning from on-premise technology to cloud computing arrangements has increased rapidly. Cloud computing has many benefits, including increased scalability, higher system availability, disaster recovery optionality, and much more.
This Financial Reporting Alert provides considerations related to the potential effects of the current macroeconomic and geopolitical conditions on an entity’s accounting, financial reporting, disclosures, and internal controls.
This publication highlights some of the important accounting considerations related to the calculations and disclosures entities provide under U.S. GAAP in connection with their defined benefit pension and other postretirement benefit plans.
This roundup highlights: The FASB’s issuance of a final Accounting Standards Update (ASU) clarifying the guidance in ASC 820 on the fair value measurement of an equity security subject to a contractual sale restriction, the SEC’s release of a final rule on pay versus performance, under which certain registrants must provide disclosures about executive pay and company performance within any proxy statement or information statement for which executive compensation disclosures are required and, recent PCAOB activities.
This Heads Up discusses the FASB’s deliberations related to its project on the accounting for and disclosure of digital assets at its August 31, 2022, meeting.
On the heels of a record-breaking year in 2020, SPAC IPOs set a new record in 2021 by raising more than $160 billion in proceeds. Given the continuing success of SPAC transactions, many private operating companies have been merging with SPACs to raise capital rather than using traditional IPOs or other financing activities . As a result, the increased number of SPAC transactions has heightened the level of scrutiny by the SEC. On March 30, 2022, the SEC issued a proposed rule that would “enhance investor protections in IPOs by SPACs and in subsequent business combination transactions between SPACs and private operating companies [also known as de-SPAC transactions].” The objective of the proposed rule is to “more closely align the financial statement reporting requirements in business combinations involving a shell company and a private operating company [the “target” company] with those in traditional IPOs.”
Taking a look back at some of those practical issues that arose during IBOR transition projects and highlight some of the lessons learned so far. As IBORs continue to be retired in coming months and years, more issues may arise.
Key accounting and financial reporting topics addressed in this issue include the following: 1) Challenges associated with inflation, supply chain disruptions, and labor shortages 2) The SEC’s release of various statements, including those on (i) special-purpose acquisition company transactions; (ii) environmental, social, and governance matters; and (iii) the transition away from LIBOR as a reference rate 3) FASB standard-setting developments in 2021 4) The International Accounting Standards Board’s (i) amendments to its guidance on (a) disclosure of accounting policies and (b) deferred taxes related to assets and liabilities arising from a single transaction and (ii) proposals that would enhance the disclosure requirements for supplier arrangements and amend its guidance on classification of long-term debt with covenants 5) The IFRS Foundation’s creation of a new International Sustainability Standards Board.
On November 29, 2021, the SEC issued Staff Accounting Bulletin (SAB) No. 120. Under SAB 120, an entity that grants a share-based payment award while in possession of positive material nonpublic information should consider whether adjustments to the following are appropriate when determining the fair-value-based measure of the award: (1) the current price of the underlying share or (2) the expected volatility of the price of the underlying share for the expected term of the share-based payment award.
This publication highlights some of the important accounting considerations related to the calculations and disclosures entities provide under U.S. GAAP in connection with their defined benefit pension and other postretirement benefit plans.
