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News

FASB meeting Image

FASB discusses income taxes

Sep 05, 2019

At its September 4, 2019, meeting, the FASB discussed its project on simplifying the accounting for income taxes.

The Board discussed comments received on its May 2019 proposed ASU, Simplifying the Accounting for Income Taxes, and made decisions related to (1) redeliberation issues, (2) transition and effective date, and (3) analysis of costs and benefits. The Board directed its staff to begin drafting a final ASU for a vote by written ballot.

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

FASB (US Financial Accounting Standards Board) Image

FASB and ASBJ hold biannual meeting

Aug 30, 2019

On August 29–30, 2019, the FASB met with the Accounting Standards Board of Japan (ASBJ) in Norwalk, Connecticut. The meeting is the 26th in a series of biannual meetings the two standard setters hold to further their “cooperative efforts to develop high-quality global accounting standards.”

In ad­di­tion to giving updates on their re­spec­tive stan­dard-set­ting ac­tiv­i­ties at the meeting, the two boards ex­changed views on tech­ni­cal topics in which they both have an in­ter­est, in­clud­ing accounting for goodwill and intangibles, reference rate reform, accounting for leases, and financial performance reporting and disclosures.

The next meeting between the FASB and ASBJ is ex­pected to be held in the first quarter of 2020 in Tokyo, Japan. For more in­for­ma­tion about the latest meeting, see the press release on the FASB’s Web site.

FAF (US Financial Accounting Foundation)  Image

FAF appoints new GASAC member

Aug 29, 2019

The trustees of the Financial Accounting Foundation (FAF) have appointed Fiona Ma to the Governmental Accounting Standards Advisory Council (GASAC).

Ms. Ma’s initial term is effective immediately and will conclude on December 31, 2020.

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

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB issues report on 2018 interim inspections of broker-dealers

Aug 29, 2019

The PCAOB has published a report on its 2018 interim inspections of broker-dealer auditors.

The purpose of the inspections is to “assess firms’ compliance with applicable laws, rules, and professional standards when performing audit and attestation engagements for broker-dealers.” Overall, the report found that “the percentage of deficiencies for audit and attestation engagements remained high and continued improvement is needed.”

For more in­for­ma­tion, see the report on the PCAOB’s Web site.

AICPA (American Institute of CPAs) Image

AICPA issues proposed SAS to align recent guidance

Aug 29, 2019

The AICPA has issued a proposed Statement on Auditing Standards (SAS), “Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 134.”

The pro­posed SAS would align the AU-C 800 series with the relevant auditor reporting standards in SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, issued in May 2019.

Com­ments on the pro­posed SAS are due by October 28, 2019. For more in­for­ma­tion, see the pro­posed SAS on the AICPA’s Web site.

AICPA (American Institute of CPAs) Image

AICPA issues discussion paper on materiality in an attestation engagement

Aug 23, 2019

The AICPA has issued a discussion paper (DP), “Materiality Considerations for Attestation Engagements Involving Aspects of Subject Matters That Cannot Be Quantitatively Measured.”

The DP (1) highlights potential challenges that practitioners may encounter when exercising professional judgment related to materiality and (2) outlines the AICPA’s approaches to addressing those challenges.

Comments on the DP are due by October 31, 2019. For more information, see the DP on the AICPA’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB issues staff guidance on auditing estimates and the work of specialists

Aug 23, 2019

The PCAOB has issued four staff guidance documents on the Board’s new requirements related to auditing estimates and the work of specialists, which are effective for financial statement audits for fiscal years ending after December 15, 2020.

The staff guidance highlights “aspects of the new standard and enhancements made to integrate the Board’s risk assessment requirements when auditing accounting estimates, including fair value measurements . . . [and] aspects of new requirements that apply when auditors use the work of specialists in an audit and when an auditor uses the work of a company specialist as audit evidence.”

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

FASB meeting Image

Highlights of the FASB’s August 21 meeting

Aug 22, 2019

At its August 21, 2019, meeting, the FASB discussed (1) hedging — last-of-layer method and (2) reporting of gifts-in-kind by not-for-profit entities.

Hedging — Last-of-layer method

During this educational session, the Board discussed issues related to accounting for basis adjustments and multiple-layer hedging strategies under the last-of-layer method. No decisions were made.

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

Reporting of gifts-in-kind by not-for-profit entities

The Board decided to add a project to its technical agenda to address the presentation and valuation of gifts-in-kind (GIKs) received by not-for-profit organizations. The project aims “to provide additional transparency in the reporting of GIKs through potential enhancements to presentation and disclosure.”

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

 

FASB document Image

FASB proposes to defer effective date for standard on long-duration insurance contracts

Aug 22, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Financial Services — Insurance (Topic 944): Effective Date,” which would give insurance companies additional time to implement the Board’s August 2018 standard on long-duration contracts, ASU 2018-12.

The proposed ASU states the following regarding how entities would be affected by the deferral:

For SEC filers, excluding entities eligible to be [smaller reporting companies] as defined by the SEC, the amendments in Update 2018-12 would be effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. . . . Early application of the amendments in Update 2018-12 would be permitted.

For all other entities, the amendments in Update 2018-12 would be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early application of the amendments in Update 2018-12 would be permitted.

The proposed deferral is consistent with the FASB’s new philosophy to stagger the effective dates of major standards so that the standards are effective for larger public companies at least two years before they are effective for all other entities.

Comments on the proposed ASU are due by September 20, 2019. For more information, see the proposal and press release on the FASB’s Web site.

SEC document Image

SEC clarifies investment advisers’ proxy voting responsibilities

Aug 22, 2019

The SEC has issued “Commission Interpretation and Guidance Regarding the Applicability of the Proxy Rules to Proxy Voting Advice.”

The guidance addresses “the ability of investment advisers to establish a variety of different voting arrangements with their clients and matters they should consider when they use the services of a proxy advisory firm.”

The guidance will become effective upon the date of its publication in the Federal Register. For more information, see the press release and guidance on the SEC’s Web site.

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