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.


SEC staff releases FAQs on IFRS taxonomy and updates FAQs on inline XBRL

Apr 27, 2017

The SEC staff has issued FAQs on the IFRS taxonomy, which became available on March 1, 2017, for use by foreign private issuers that submit their financial statements in accordance with IFRSs.

In addition, the SEC staff has updated its FAQs on inline XBRL, which enables entities to embed XBRL data directly into HTML.

For more information, see the FAQs on the IFRS taxonomy and inline XBRL on the SEC’s Web site.

AICPA issues framework related to cybersecurity risk management

Apr 27, 2017

The AICPA has issued a framework related to cybersecurity risk management.

The purpose of the framework is to “enable all organizations — in industries worldwide — to take a proactive and agile approach to cybersecurity risk management and to communicate on those activities with stakeholders.”

For more information, see the press release and system and organization controls for cybersecurity page on the AICPA’s Web site. In addition, see Deloitte’s cybersecurity risk management examination discussion on

AICPA issues new Technical Practice Aids

Apr 27, 2017

The AICPA has issued five new Q&As related to its Technical Practice Aids on internal controls.

Specifically, the following Q&As have been added to TIS Section 8200:

  • .17, “Obtaining an Understanding of Business Processes Relevant to Financial Reporting and Communication.”
  • .18, “Obtaining an Understanding of Internal Control Relevant to the Audit.
  • .19, “Obtaining an Understanding of the Controls Relevant to the Audit.”
  • .20, “Control Activities That Are Always Relevant to the Audit.
  • .21, “Control Activities That May Be Relevant to the Audit.

For more information, see the recently issued technical questions and answers page on the AICPA’s Web site.

IASB proposes minor amendments to IFRS 9

Apr 21, 2017

The IASB has published an exposure draft (ED), “Prepayment Features With Negative Compensation — proposed amendments to IFRS 9,” which addresses concerns about how certain prepayable financial assets are classified under IFRS 9, “Financial Instruments.”

Under the ED, certain prepayable financial assets with so-called negative compensation could be measured at amortized cost or at fair value through other comprehensive income (depending on a company's business model) if two conditions are met:

  • The assessment that the prepayment amount is not solely a payment of principal and interest on the principal amount outstanding only hinges on the fact that “the party that chooses to terminate the contract early . . . may receive reasonable additional compensation for doing so.”
  • “[W]hen the entity initially recognises the financial asset, the fair value of the prepayment feature is insignificant.”

The ED also contains proposed amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, and IFRS 7, Financial Instruments: Disclosures.

These amendments concern situations in which it is impracticable to assess whether the fair value of a prepayment feature was insignificant at initial recognition.

The amendments would become effective on January 1, 2018, to coincide with the effective date of IFRS 9. Comments on the ED are due by May 24, 2017.

For more information, see the press release and ED on the IASB’s Web site.

Highlights from the FASB’s April 19 meeting

Apr 21, 2017

At its April 19, 2017, meeting, the FASB discussed its projects on (1) liabilities and equity and (2) revenue recognition of grants and contracts by not-for-profit entities.

Liabilities and equity — targeted improvements

The Board tentatively decided that (1) a “down-round” feature should not preclude equity classification for an instrument that contains the feature and (2) public business entities should recognize the effect of the trigger of a down-round feature as an adjustment to earnings per share. The Board asked the staff to perform additional research.

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

Revenue recognition of grants and contracts by not-for-profit entities

The Board discussed issues related to its forthcoming proposed ASU, including (1) right of return or a release of the promisor from its obligation to transfer assets, (2) accounting from the resource provider’s perspective, (3) disclosures, (4) transition, and (5) effective date and early adoption.

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

AICPA issues proposed SAS on employee benefit plans

Apr 21, 2017

The AICPA’s Auditing Standards Board has issued a proposed Statement on Auditing Standards (SAS) that addresses audits of financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA).

The proposed SAS is being issued in response to a 2015 Department of Labor report that criticized the quality of employee benefit plan audits.

The proposed SAS would be effective for audits of financial statements for periods ending on or after December 15, 2018.

Comments on the proposed SAS are due by August 21, 2017. For more information, see the proposal on the AICPA’s Web site.

SEC staff publishes C&DI on offers and sales

Apr 20, 2017

The staff in the SEC’s Division of Corporation Finance has released a compliance and disclosure interpretation (C&DI) related to offers and sales under Rule 147A.

For more information, see Question 141.06 of the Securities Act rules C&DIs on the SEC’s Web site.

SEC extends comment deadline for changes to Industry Guide 3

Apr 19, 2017

The SEC has extended by two months the comment deadline for its March 1, 2017, “Request for Comment on Possible Changes to Industry Guide 3.”

Comments were originally due by May 8, 2017; the new deadline is July 7, 2017.

For more information, see our original article as well as the extension of the comment period and the request for comments on the SEC’s Web site.

CAQ issues publication on assessing external auditors

Apr 18, 2017

The Center for Audit Quality (CAQ) has released an updated version of its publication, “External Auditor Assessment Tool.”

The purpose of the publication is “to assist audit committees in carrying out their responsibilities of appointing, overseeing, and determining compensation for the external auditor.” The update takes into account “upcoming changes in accounting rules and standards and other potential risk areas.”

For more information, see the press release, publication, and video on the CAQ’s Web site.

Federal court remands conflict minerals case to SEC

Apr 11, 2017

The U.S. District Court for the District of Columbia has issued a final judgment in the litigation related to the SEC’s conflict minerals rule and has remanded the case to the Commission.

Editor’s Note: In April 2014, the U.S. Court of Appeals for the District of Columbia Circuit (the “Appellate Court”) held that parts of the SEC’s final rule on conflict minerals and of Section 1502 of the Dodd-Frank Act Wall Street Reform and Consumer Protection Act violate the First Amendment of the U.S. Constitution to the extent that they require “regulated entities to report to the Commission and to state on their website that any of their products have ‘not been found to be “DRC conflict free.” ’ ” In August 2015, the Appellate Court upheld the ruling.

After the April 3, 2017, ruling by the district court, the SEC announced that it is suspending enforcement of some requirements in the conflict minerals rule. According to the press release:

The court’s remand has now presented significant issues for the Commission to address. At the direction of the Acting Chairman, we have considered those issues. In light of the uncertainty regarding how the Commission will resolve those issues and related issues raised by commenters, the Division of Corporation Finance has determined that it will not recommend enforcement action to the Commission if companies, including those that are subject to paragraph (c) of Item 1.01 of Form SD, only file disclosure under the provisions of paragraphs (a) and (b) of Item 1.01 of Form SD. This statement is subject to any further action that may be taken by the Commission, expresses the Division’s position on enforcement action only, and does not express any legal conclusion on the rule. [Emphasis added]

For more information, see the press release and Michael Piwowar’s public statement on the SEC’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.