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News

SEC (US Securities and Exchange Commission) Image
PCAOB (US Public Company Accounting Oversight Board) Image

SEC opens comment period on the PCAOB’s proposals related to auditing accounting estimates and the use of specialists

Apr 05, 2019

The SEC has issued two notices of filing in which it announces that it has opened the comment periods for the PCAOB’s proposed rules on (1) auditing accounting estimates, including fair value measurements, and amendments to PCAOB auditing standards and (2) amendments to auditing standards on the auditor’s use of the work of specialists.

Comments on both releases are due 21 days after the date of their publication in the Federal Register. For more in­for­ma­tion, see the notices of filing on the PCAOB’s proposed rules on auditing accounting estimates and use of specialists on the SEC’s Web site. In addition, see Deloitte’s January 16, 2019, Audit & Assurance Update for more information about the two proposals.

CAQ (US Center for Audit Quality) Image

CAQ updates publication on assessing external auditors

Apr 05, 2019

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.”

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

SEC (US Securities and Exchange Commission) Image

SEC makes announcement about exhibits containing immaterial, competitively harmful information

Apr 05, 2019

The SEC has posted to its Web site an announcement on the new rules and procedures in the Commission’s recently issued final rule “FAST Act Modernization and Simplification of Regulation S-K.”

The announcement addresses issues related to exhibits containing immaterial and competitively harmful information. Specific topics discussed in the announcement include (1) new rule requirements related to the identification of where information has been omitted from a filed exhibit, (2) the review process for registrant filings for compliance, and (3) transition issues.

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

SEC (US Securities and Exchange Commission) Image

President Trump nominates new SEC commissioner

Apr 05, 2019

President Donald Trump has announced the nomination of Allison Herren Lee to serve as SEC commissioner.

If con­firmed by the Senate, Ms. Lee will succeed Kara Stein.

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

FASB meeting Image

Highlights of the FASB’s April 3 meeting

Apr 04, 2019

At its April 3, 2019, meeting, the FASB discussed (1) implementation issues related to credit losses and (2) distinguishing liabilities from equity (including convertible debt).

Financial instruments — implementation issues related to credit losses

The Board decided not to add a project to “explore modifying the accounting for expected credit losses by requiring that an entity bifurcate expected credit losses in net income and other comprehensive income.” In addition, the Board decided that an “entity is not required to disclose gross writeoffs and gross recoveries by vintage.”

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

Distinguishing liabilities from equity (including convertible debt)

The Board made tentative decisions related to convertible instruments, the derivatives scope exception for contracts on an entity’s own equity, other consequential amendments, and transition. In addition, the Board directed the staff to draft a proposed Accounting Standards Update for external review.

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

FASAC meeting Image

Highlights of the March 2019 FASAC meeting

Apr 04, 2019

At its March 29, 2019, meeting, the FASB’s Financial Accounting Standards Advisory Council (FASAC) discussed the (1) conceptual framework, (2) accounting for highly inflationary economies, and (3) implementation of major standards.

Conceptual framework

The FASAC dis­cussed the role of the conceptual framework and noted that the framework is “most useful as a foundation for the Board in standard setting and as a communication tool.”

Accounting for highly inflationary economies

FASAC members discussed potential improvements to the accounting for highly inflationary economies but suggested that a potential project related to this topic should be a lower priority on the FASB’s agenda.

Implementation of major standards

FASAC members praised the FASB’s efforts to provide implementation guidance and suggested that use of transition resource groups should be expanded to address all future major standards.

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

SEC document Image

SEC staff issues guidance on investment contract analysis of digital assets

Apr 03, 2019

The SEC staff has issued guidance, “Framework for ‘Investment Contract’ Analysis of Digital Assets.”

The purpose of the staff guidance is to “provide a framework for analyzing whether a digital asset has the characteristics of one particular type of security – an ‘investment contract.’"

For more information, see the public statement, staff guidance, and no-action letter on the SEC’s Web site.

FAF (old) Image

FAF solicits nominations for FASB and GASB chairmen

Apr 03, 2019

The board of trustees of the Financial Accounting Foundation (FAF) has announced that it is searching for new FASB and GASB chairmen.

Current FASB Chairman Russell Golden and current GASB Chairman David Vaudt will conclude their terms on June 30, 2020. The FAF board of trustees is looking for candidates with “varied backgrounds and experience from diverse talent pools.”

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

SEC (US Securities and Exchange Commission) Image

SEC approves the FASB’s 2019 accounting support fee

Mar 26, 2019

The SEC has published a release announcing its approval of the FASB’s 2019 accounting support fee, a task that the Commission is required to perform annually under the Sarbanes-Oxley Act.

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

FASB document Image

FASB issues proposed ASU to enhance income tax disclosure requirements

Mar 26, 2019

The FASB has issued a proposed ASU, “Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes,” which is intended to enhance the income tax disclosure requirements in U.S. GAAP.

In addition to modifying certain existing income tax disclosure requirements, the proposed ASU would prescribe several new requirements. The purpose of the proposal, which is part of the Board’s disclosure framework project, is to increase the relevance of income tax disclosures for financial statement users.

Comments on the proposed ASU are due by May 31, 2019. For more information, see Deloitte's related Heads Up newsletter as well as the press release on the FASB’s Web site.

On April 29, 2019, the FASB issued for comment Proposed Taxonomy Improvements for Proposed Accounting Standards Update—Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes (Revision of Exposure Draft Issued July 26, 2016). Comments on the proposed taxonomy improvements are due by May 31, 2019.

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