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May

SEC proposes rules on investment fund research reports

May 24, 2018

The SEC has issued proposed rules and amendments, “Covered Investment Fund Research Reports,” that would “promote research on mutual funds, exchange‑traded funds, registered closed-end funds, business development companies, and similar covered investment funds.”

The proposal “would reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public entities.”

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

FAF issues 2017 annual report

May 24, 2018

The Financial Accounting Foundation (FAF) has released its 2017 annual report.

The report highlights the standard-setting activities of the FASB and GASB in 2017 and how the boards “ensure standards work for all stakeholders.” In addition to summarizing those organizations’ accomplishments over the past year, the annual report contains a section on management’s discussion and analysis and audited financial statements.

For more information, see the press release and annual report on the FAF’s Web site.

GASB issues implementation guide on recent pronouncements

May 22, 2018

The GASB has issued Implementation Guide No. 2018-1, “Implementation Guidance Update — 2018,” which consists of Q&As that “clarify, explain, or elaborate on” certain GASB Statements.

Topics addressed in the guide’s Q&As include:

  • Pensions and postemployment benefits other than pensions.
  • Cash flow statements.
  • The statistical section.
  • Regulatory process related to applying GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
  • Tax abatements.

In addition, the implementation guide amends certain Q&As from previously issued implementation guides.

For more information, see the press release and implementation guide on the GASB’s Web site.

FASB discusses improvements to related-party guidance for VIEs

May 18, 2018

At its May 16, 2018, meeting, the FASB discussed targeted improvements to its related-party guidance for variable interest entities (VIEs).

Specifically, the Board discussed feedback received on its June 2017 proposed ASU, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, and made tentative decisions on the accounting alternative for private companies, decision-making fees, and VIE related-party guidance. The Board directed its staff to begin drafting a final ASU for a vote by written ballot.

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

CAQ releases highlights of March 2018 meeting with SEC staff

May 18, 2018

The Center for Audit Quality (CAQ) has released the highlights of the March 13, 2018, joint meeting with the SEC staff.

Topics dis­cussed at the meeting in­cluded:

  • Financial reporting implications of tax reform legislation.
  • Waivers of financial statements required by Regulation S-X, Rule 3-09, “Separate Financial Statements of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons.”
  • New accounting standards.
  • Use of most recent year-end financial statements in the assessment of significance in an IPO under Regulation S-X, Rule 1-02(w), “Significant Subsidiary.”
  • Audit requirements for pretransaction periods after a reverse merger involving two operating companies.

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

SBAC holds May 2018 meeting

May 17, 2018

At its May 10, 2018, meeting, the Small Business Advisory Committee (SBAC) discussed disclosures by business entities about government assistance, income taxes, and revenue recognition. The SBAC also held an open discussion on considerations related to small public companies.

The next SBAC meeting is scheduled for November 1, 2018. For more information, see the meeting recap on the FASB’s Web site.

AICPA issues working draft on valuation of portfolio company investments

May 17, 2018

The AICPA’s Financial Reporting Executive Committee has released for public comment a working draft of its accounting and valuation guide, “Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies.”

The working draft “provides nonauthoritative guidance and illustrations for preparers of financial statements, independent auditors, and valuation specialists regarding the accounting for and valuation of portfolio company investments held by investment companies within the scope of FASB ASC 946 (including private equity funds, venture capital funds, hedge funds, and business development companies).”

Comments on the working draft are due by August 15, 2018. For more information, see the press release as well as part I and part II of the working draft on the AICPA’s Web site.

FASB member to step down

May 14, 2018

FASB member Harold Monk has announced that he will resign from the Board on May 31, 2018.

Mr. Monk joined the FASB on January 1, 2017. The FAF trustees will soon begin their search for a successor; in the meantime, the Board will operate with six members.

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

SEC staff publishes C&DIs on proxy rules and Schedules 14A/14C

May 11, 2018

The staff in the SEC’s Division of Corporation Finance has issued 45 new compliance and disclosure interpretations (C&DIs) related to proxy rules and Schedules 14A/14C.

On its Web site, the SEC describes the C&DIs as follows:

[The C&DIs] replace the interpretations published in the Proxy Rules and Schedule 14A Manual of Publicly Available Telephone Interpretations and the March 1999 Supplement to the Manual of Publicly Available Telephone Interpretations (“Telephone Interpretations”). In particular, C&DIs 124.01, 124.07, 126.02, 151.01, 161.03, and 163.01 reflect substantive changes to the Telephone Interpretations. C&DIs 126.04, 126.05, 158.01, and 158.03 reflect technical revisions to the Telephone Interpretations. The remaining C&DIs reflect only non-substantive changes to the Telephone Interpretations.

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

FASB discusses improvements to the accounting for asset acquisitions and business combinations

May 10, 2018

At its May 9, 2018, meeting, the FASB discussed alternatives for improving the accounting for asset acquisitions and business combinations.

The Board discussed how the following areas could be aligned: (1) contingent consideration, (2) in-process research and development, and (3) acquisition-related costs. No decisions were made.

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

Correction list for hyphenation

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