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News

SEC document Image

SEC issues guide on EDGAR filings for issuers of asset-backed securities

Sep 24, 2018

The SEC’s Division of Corporation Finance has issued “Staff Guidance for EDGAR Filings for Asset-Backed Securities Issuers.”

The guide includes Q&As related to certain programming changes to the EDGAR system to support revisions to Regulation AB and Exchange Act Rule 15Ga-2.

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

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Highlights of the September 2018 Not-for-Profit Advisory Committee meeting

Sep 21, 2018

At its September 13–14, 2018, meeting, the FASB’s Not-for-Profit Advisory Committee (NAC) discussed (1) contributions received and contributions made, (2) implementation issues related to certain FASB ASUs, (3) updating the definition of “collections,” and (4) other recently issued ASUs and ongoing FASB projects.

Contributions received and contributions made

The NAC discussed feedback on ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.

Im­ple­men­ta­tion issues related to certain FASB ASUs

Committee members discussed implementation issues related to the following guidance:

  • ASU 2014-09, Revenue From Contracts With Customers.
  • ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.
  • ASU 2016-02, Leases.
  • ASU 2016-13, Measurement of Credit Losses on Financial Instruments.

Updating the definition of “collections”

The NAC discussed feedback on its proposed ASU Updating the Definition of Collections.

Other recently issued ASUs and ongoing FASB projects

Committee members discussed recent FASB activity, including:

  • Accounting for goodwill and certain intangibles.
  • Disclosure framework projects (both the entity’s decision process and the Board’s decision process).
  • Financial performance reporting.
  • Balance sheet classification of debt.
  • Cloud computing.
  • Collaborative arrangements.
  • Consolidation reorganization.

Other topics discussed

The NAC also discussed (1) the FASB’s response to the Tax Cuts and Jobs Act; (2) international not-for-profit activities; and (3) recent trends, concerns, and observations related to the NFPs.

For more information, see the meeting recap on the FASB’s Web site.

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SEC proposes rule on single issuer exemption for broker-dealers

Sep 21, 2018

The SEC has issued a proposed rule “Amendment to Single Issuer Exemption for Broker-Dealers,” which would amend the exemption provisions in the broker-dealer annual reporting rule under the Securities Exchange Act of 1934.

Specifically, the rule would “provide that a broker-dealer is not required to engage an independent public accountant to certify the broker-dealer’s annual reports if, among other things, the securities business of the broker-dealer has been limited to acting as broker (agent) for a single issuer in soliciting subscriptions for securities of that issuer.”

Comments on the proposed rule are due 30 days after the date of its publication in the Federal Register. For more information, see the proposed rule on the SEC’s Web site.

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CAQ releases highlights of July 2018 meeting with SEC staff

Sep 19, 2018

The Center for Audit Quality (CAQ) has released the highlights of the July 12, 2018, CAQ SEC Regulations Committee joint meeting with the SEC staff.

Topics dis­cussed at the meeting in­cluded:

  • Disclosures required by ASC 606, Revenue From Contracts With Customers.
  • Letters about serious deficiencies.
  • Smaller reporting companies.
  • SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”
  • Audit requirements for transactions involving special-purpose acquisition companies.
  • Transition from emerging growth company status.
  • Critical audit matters.
  • Non-GAAP measures.

For more in­for­ma­tion, see our related journal entry as well as the press release on the CAQ’s Web site.

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FASB staff proposes taxonomy improvements

Sep 17, 2018

The FASB staff has proposed taxonomy enhancements — including technical and other conforming improvements — related to the 2019 draft versions of the U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy.

Com­ments on the proposed taxonomy improvements are due by October 13, 2018. For more information, see the release notes for the U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy.

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SEC to discontinue return copies of EDGAR submissions

Sep 12, 2018

The SEC has announced that in Release 18.3 of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system filer manual, it will “cease providing filers with access to return copies of EDGAR submissions, even if a return copy is requested as part of the submission process.”

EDGAR Release 18.3 is expected to be implemented on October 1, 2018. The SEC notes that in subsequent EDGAR releases, the option to request a return copy will be removed. The SEC also advises that “[f]ilers who wish to access copies of their submissions should save a copy on their device or storage service prior to submission to EDGAR.”

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

SEC (US Securities and Exchange Commission) Image

Elad Roisman sworn in as SEC commissioner

Sep 12, 2018

On September 11, 2018, SEC Chairman Jay Clayton swore in Elad Roisman as a new SEC commissioner to replace Michael Piwowar, who stepped down in July.

Mr. Roisman’s term expires on June 5, 2023. For more information, see the press release on the SEC’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC modifies expiration date for tick size pilot program

Sep 10, 2018

The SEC has issued a statement announcing a change in the expiration date of its tick size pilot program, which began on October 3, 2016, and is “a two-year pilot program that would widen the minimum quoting and trading increments — or tick sizes — for stocks of certain smaller companies.”

Specifically, the program was previously scheduled to expire on October 2, 2018, but will now end on September 28, 2018. The purpose of the change in expiration date is to “address potential operational and other concerns raised by a mid-week shift in the quoting and trading increments of a large number of NMS stocks.”

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

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Highlights of the FASB’s September 5 meeting

Sep 07, 2018

At its September 5, 2018, meeting, the FASB discussed its projects on (1) Codification improvements to the guidance on financial instruments and (2) variable interest entities.

Codification improvements to guidance on financial instruments

The Board decided to amend various aspects of the following guidance:

  • ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities.
  • ASU 2016-13, Measurement of Credit Losses on Financial Instruments.
  • ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities.

The Board directed its staff to draft a proposed ASU for a vote by written ballot that would include amendments to the above guidance as well as changes proposed by the FASB’s transition resource group on credit losses. For more information, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Consolidation — targeted improvements to related-party guidance for variable interest entities

The FASB “decided that a private company reporting entity cannot apply the private company accounting alternative to a legal entity in which it has a direct or indirect controlling financial interest when considering the General Subsections of Topic 810.” The Board directed its staff to continue drafting a final ASU for a vote by written ballot.

For more information, see the meeting minutes on the FASB’s Web site.

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GASB clarifies guidance on majority equity interests

Sep 04, 2018

The GASB has issued Statement No. 90, “Majority Equity Interests.”

State­ment 90 states that “a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment.” However, for holdings that do not meet the definition of an investment, “a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method.”

In addition, Statement 90 requires that “a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit.”

State­ment 90 is ef­fec­tive for re­port­ing periods be­gin­ning after De­cem­ber 15, 2018. Early ap­pli­ca­tion is en­cour­aged.

For more in­for­ma­tion, see the press release and State­ment 90 on the GASB’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.