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

FASB meeting Image

Highlights of the FASB’s May 8 meeting

May 13, 2019

At its May 8, 2019, meeting, the FASB discussed (1) agenda prioritization and (2) its project on Codification improvements to hedge accounting.

Agenda prioritization

The Board discussed the results of staff research and decided to add two projects to the EITF’s agenda: (1) a financial instruments project on clarifying the interactions between ASC 321 and ASC 323 and (2) a revenue recognition project on contract modifications of licenses of intellectual property. In addition, the Board decided to expand the scope of its project on improving the accounting for asset acquisitions and business combinations.

For more information, see Deloitte’s related journal entry as well as the meeting minutes on the FASB’s Web site.

Codification improvements — hedge accounting

The Board discussed ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, and made tentative decisions related to hedged risk in a cash flow hedge, contractually specified components, dual fair value and net investment hedges, the use of the term “prepayable” under the shortcut method, and transition guidance.

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

SEC (US Securities and Exchange Commission) Image

SEC proposes changes to cross-border security-based swap transactions

May 10, 2019

The SEC has issued “Proposed Rule Amendments and Guidance Addressing Cross-Border Application of Certain Security-Based Swap Requirements,” which the Commission describes as “a package of rule amendments and interpretive guidance to improve the framework for regulating cross-border security-based swaps transactions and market participants.”

Specifically, the proposed amendments would “improve the regulatory framework by pragmatically addressing implementation issues and efficiency concerns, and in some cases further harmonizing the regulatory regime governing security-based swaps administered by the Commission with the regulatory regime governing swaps administered by the Commodity Futures Trading Commission.”

Comments on the proposed amendments are due 60 days after the date of their publication in the Federal Register. For more information, see the press release and proposals on the SEC’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB issues staff inspection brief

May 10, 2019

The PCAOB has published a staff inspection brief, “Staff Preview of 2018 Inspection Observations.”

Topics covered in the inspection brief include (1) observations and good practices related to efforts to improve audit quality; (2) common audit deficiencies observed in 2018; and (3) observations on technology, implementation of new accounting and auditing standards and rules, and audit committee communications.

CAQ (US Center for Audit Quality) Image

CAQ issues publication on credit losses

May 10, 2019

The Center for Audit Quality (CAQ) has released a publication, “Preparing for the New Credit Losses Standard: A Tool for Audit Committees.”

This publication “is designed to help audit committees exercise their oversight responsibilities as companies implement a new credit losses accounting standard that begins to take effect in January 2020.”

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

AICPA (American Institute of CPAs) Image

AICPA issues SAS 134 and SAS 135

May 10, 2019

The AICPA’s Auditing Standards Board has published two Statements on Auditing Standards (SASs): No. 134, “Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements,” and No. 135, “Omnibus Statement on Auditing Standards — 2019.”

SAS 134 “addresses the auditor’s responsibility to form an opinion on the financial statements and the form and content of the auditor’s report issued as a result of an audit of financial statements.” This SAS also discusses “the auditor’s responsibilities, and the form and content of the auditor’s report, when the auditor concludes that a modification to the auditor’s opinion on the financial statements is necessary, and when additional communications are necessary in the auditor’s report.”

SAS 135 “is intended to more closely align [AICPA] guidance with the PCAOB's standards by primarily amending AU-C section 260, Communications With Those Charged With Governance, AU-C section 550, Related Parties, and AU-C section 240, Consideration of Fraud in a Financial Statement Audit, in AICPA Professional Standards.”

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

CAQ (US Center for Audit Quality) Image

CAQ updates publication on ICFR

May 09, 2019

The Center for Audit Quality (CAQ) has released an updated version of its 2013 publication “Guide to Internal Control Over Financial Reporting [ICFR].”

The publication provides an overview of ICFR and focuses on “key ICFR concepts” such as the control environment, control activities, reasonable assurance, and the hierarchy of ICFR deficiencies. The 2019 edition includes “additional information highlighting the significant body of research demonstrating the importance of ICFR to enhancing investor confidence and strengthening the financial reporting process.”

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

SEC (US Securities and Exchange Commission) Image

SEC proposes to amend definitions of “accelerated filer” and “large accelerated filer”

May 09, 2019

The SEC has issued a proposed rule, “Amendments to the Accelerated Filer and Large Accelerated Filer Definitions.”

The proposal would amend Exchange Act Rule 12b-2 and “reduce costs for certain lower-revenue companies by more appropriately tailoring the types of companies that are categorized as accelerated and large accelerated filers while maintaining effective investor protections.”

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register.

For more information, see Deloitte's related Heads Up newsletter as well as the press release and proposed rule on the SEC’s Web site.

SBAC meeting Image

SBAC holds May 2019 meeting

May 06, 2019

At its May 2, 2019, meeting, the Small Business Advisory Committee (SBAC) discussed technology in financial reporting, certain identifiable intangible assets, goodwill, disclosure by business entities about government assistance, financial performance reporting, and the disclosure framework related to income taxes.

The SBAC also received updates on the FASB’s projects on distinguishing liabilities from equity, simplifying the balance sheet classification of debt, and improvements made to the FASB’s disclosure requirements in response to the SEC’s final rule related to disclosure update and simplification.

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

FASB document Image

FASB issues proposed ASU to align certain SEC disclosure requirements with Codification guidance

May 06, 2019

The FASB has issued a proposed ASU, “Disclosure Framework — Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.”

The purpose of the proposed amendments is to “clarify or improve disclosure and presentation requirements of a variety of Codification Topics” by aligning “the requirements in the Codification with SEC’s regulations.”

Com­ments on the pro­posed ASU are due by June 28, 2019. For more in­for­ma­tion, see the proposed ASU on the FASB’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC proposes improvements to disclosures about acquisitions and dispositions of businesses

May 03, 2019

The SEC has issued a proposed rule, “Amendments to Financial Disclosures About Acquired and Disposed Businesses.”

The proposal would “improve the disclosure requirements for financial statements relating to acquisitions and dispositions of businesses, including real estate operations and investment companies.”

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register. For more information, see our related Heads Up newsletter as well as the press release and proposed rule 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.