This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

News

SEC (US Securities and Exchange Commission) Image

SEC issues interpretive guidance on pay ratio disclosures

Sep 22, 2017

The SEC has issued interpretive guidance, “Commission Guidance on Pay Ratio Disclosure.”

The interpretive guidance will “assist companies in their efforts to comply with the pay ratio disclosure requirement mandated by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.” In addition, the SEC’s staff has issued guidance on the pay ratio rule that includes “hypothetical examples of use of sampling and other reasonable methodologies.”

Further, the staff of the SEC’s Division of Corporation Finance has updated the compliance and disclosure interpretations related to Regulation S-K to reflect the pay ratio guidance contained in the interpretive release. The update revises 128C.01, withdraws 128C.05, and adds 128C.06.

For more information, see the press release, interpretive guidance, and staff guidance on the SEC’s Web site.

FASB meeting Image

FASB discusses its technical agenda

Sep 21, 2017

At its September 20, 2017, meeting, the FASB discussed financial reporting issues identified in its agenda consultation project.

The FASB decided to add to its agenda three projects on the following topics:

  • Distinguishing liabilities from equity.
  • Disaggregation of performance information.
  • Segment reporting.

In addition, the Board removed the following four topics from its research agenda:

  • Accounting for financial instruments: interest rate risk disclosures.
  • Pensions and other postretirement employee benefit plans.
  • Intangibles (however, as part of its disclosure framework project, the Board will retain the portion of the intangibles project that focuses on developing qualitative disclosures).
  • The segment disclosure component of phase 2 of its project related to the financial statements of not-for-profit entities.

For more information, see the press release and tentative Board decisions on the FASB’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC details its approach to cybersecurity

Sep 21, 2017

SEC Chairman Jay Clayton has issued a statement on cybersecurity.

The cybersecurity statement addresses the following:

  • Collection and use of data by the Commission.
  • Management of internal cybersecurity risks.
  • Incorporation of cybersecurity considerations into the Commission’s disclosure-based and supervisory efforts.
  • Coordination with other governmental entities.
  • Enforcement of the federal securities laws.                                         

The cybersecurity statement also provides examples of intrusions at the SEC, including the recent discovery that a 2016 breach of the EDGAR filing system may have lead to illicit gain through trading.

For more information, see the press release and statements by SEC Chairman Jay Clayton and SEC Commissioner Michael Piwowar on the SEC’s Web site.

FASB document Image

FASB proposes reorganization of consolidation guidance

Sep 20, 2017

The FASB has issued a proposed Accounting Standards Update (ASU), “Reorganization,” which affects the current organization of the consolidation guidance in ASC 810.

The pro­posed ASU will create a new Codification topic, ASC 812, that reorganizes and clarifies certain aspects of the consolidation guidance. The goal of the proposed ASU is to make “navigating and understanding consolidation guidance easier without affecting how consolidation analyses are currently performed.”

Com­ments on the proposal are due by December 4, 2017. For more in­for­ma­tion, see the pro­posed ASU on the FASB’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC staff updates C&DIs on Securities Act rules

Sep 20, 2017

The staff in the SEC’s Division of Corporation Finance has released an update to certain compliance and disclosure interpretations (C&DIs) related to Securities Act rules.

Specifically, the changes “reflect updates for the amendments to Rules 147 and 504, the repeal of Rule 505, and non-substantive changes throughout the Rule 147 and Regulation D C&DIs based on the Commission’s current rules (e.g., changes to correct outdated rule and statutory references).” In addition, Regulation D C&DIs that are not directly related to the Commission’s current rules have been removed.

For more in­for­ma­tion, see the C&DIs on the Se­cu­ri­ties Act rules on the SEC’s Web site.

PCC meeting Image

PCC holds September 2017 meeting

Sep 20, 2017

At its September 19, 2017, meeting, the Private Company Council (PCC) discussed the FASB’s projects on cloud computing and balance sheet classification of debt as well as the FASB staff’s research on readily determinable fair value.

The next PCC meeting is sched­uled for December 8, 2017. For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

SEC speeches (green) Image

SEC chief accountant provides update on OCA activities

Sep 15, 2017

In a recent speech, SEC chief accountant Wesley Bricker discussed recent issues the Office of the Chief Accountant has been focusing on.

In particular, Mr. Bricker discussed the following:

  • The role of financial reporting in our financial and capital markets.
  • The FASB’s standard on current expected credit losses.
  • Financial reporting implications of certain initial coin offerings.

The full speech is available on the SEC’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC evaluating the effects of recent hurricanes on capital markets

Sep 15, 2017

The SEC is evaluating the impact of Hurricane Irma and Hurricane Harvey on investors and capital markets.

Specifically, the SEC will consider granting “relief from filing deadlines and other regulatory requirements for those affected by the storms.”

For more in­for­ma­tion, see the press release on the SEC’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC staff publishes C&DIs on securities act rules

Sep 15, 2017

The staff in the SEC’s Division of Corporation Finance has released three compliance and disclosure interpretations (C&DIs) related to securities act rules.

The three C&DIs discuss the following:

  • Whether financial statements in the post-qualification amendment to a Form 1-A must be current at the time it is qualified (Question 182.21).
  • When an issuer whose “qualified Form 1‑A did not contain financial statements for the last full fiscal year preceding the fiscal year of effectiveness of a Form 8-A [is] required to file an annual report on Form 10-K for the preceding fiscal year” (Question 182.22).
  • When an issuer whose “qualified Form 1‑A did not contain financial statements for one or more quarterly periods that followed the most recent annual or semiannual period for which financial statements were included in the Form 1-A and that were completed prior to effectiveness of the Form 8-A [is] required to file quarterly reports for these quarterly periods” (Question 182.23).

For more in­for­ma­tion, see the C&DIs on the se­cu­ri­ties act rules on the SEC’s Web site.

FASB meeting Image

FASB discusses balance sheet classification of debt

Sep 15, 2017

At its September 13, 2017, meeting, the FASB discussed its project on simplifying the balance sheet classification of debt.

The Board made tentative decisions on the following issues:

  • Classification principle.
  • Scope.
  • Waivers of debt covenant violations.
  • Separate presentation in a classified balance sheet.
  • Refinancing after the balance sheet date.
  • Disclosures.
  • Implementation guidance and illustrative example.
  • Transition and transition disclosures.
  • Effective date.
  • Cost benefit.

In addition, the Board directed its staff to draft an ASU for a vote by written ballot.

For more in­for­ma­tion, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.