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

SEC (US Securities and Exchange Commission) Image

SEC expands draft registration statement processing procedures and publishes new C&DIs on Securities Act forms

Aug 21, 2017

The SEC has updated its June 29, 2017, announcement that it expanded to all companies benefits similar to those related to the confidential review process for draft initial registration statements under the Jumpstart Our Business Startups (JOBS) Act. The updates are intended to clarify the factors a company considers in determining whether it is eligible to use the expanded nonpublic review process.

The nonpublic review process is “available for Securities Act registration statements prior to the issuer’s initial public offering date and for Securities Act registration statements within one year of the IPO. In identifying the initial public offering date, we will refer to Section 101(c) of the JOBS Act. The nonpublic review process is available for the initial registration of a class of securities under Exchange Act Section 12(b) on Form 10, 20-F or 40-F.”

In addition, the SEC’s Division of Corporation Finance has published two new compliance and disclosure interpretations (C&DIs) related to Securities Act forms. The new C&DIs (Question 101.04 and Question 101.05) clarify when an emerging growth company (EGC) and a non-EGC company, respectively, may omit from its draft registration statement interim and annual financial information that it reasonably believes will not need to be presented separately at the time it files its registration statement publicly. Question 101.05 was added to reflect the updates the SEC made to Question 1 of its Fixing America's Surface Transportation (FAST) Act C&DIs.

For more information about the SEC’s updated announcement, see the press release on the SEC’s Web site. For a summary of the SEC’s June 29, 2017, announcement, see Deloitte’s June 30, 2017, article.

 

SEC (US Securities and Exchange Commission) Image

SEC updates interpretive guidance on revenue recognition

Aug 21, 2017

The SEC has issued the following two releases to update its interpretive guidance on revenue recognition: “Commission Guidance Regarding Revenue Recognition for Bill-and-Hold Arrangements” and “Updates to Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile.” In addition, the SEC’s Office of the Chief Accountant and its Division of Corporation Finance have issued Staff Accounting Bulletin (SAB) No. 116.

The bill-and-hold interpretive release states that upon their adoption of the FASB’s guidance on revenue recognition (ASC 606), “registrants should no longer rely on the guidance in Securities Exchange Act Release No. 23507 and Accounting and Auditing Enforcement Release No. 108, In the Matter of Stewart Parness, which set forth the criteria to be met in order to recognize revenue when delivery has not occurred.”

The vaccines and bioterror interpretative release and SAB 116 conform existing SEC guidance with ASC 606.

For more information, see Deloitte's related journal entry as well as the press release on the SEC’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB chairman to depart organization

Aug 18, 2017

SEC Chairman Jay Clayton has announced that PCAOB Chairman James Doty will be stepping down from his position as soon as his successor and new Board members are appointed.

Chairman Doty began his tenure at the PCAOB in 2011 and, as mentioned in Clayton’s public statement, “has played a critical role in the development and success of the organization.”

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

Report document — Deloitte green Image

OCC updates its Bank Accounting Advisory Series

Aug 18, 2017

The Office of the Comptroller of the Currency (OCC) has updated its Bank Accounting Advisory Series (BAAS). The BAAS provides “views on accounting topics relevant to national banks and federal savings associations (collectively, bank or institutions, unless otherwise specified).”

The 2017 edition was updated for FASB standards related to recognition and measurement of financial statements, leases, and revenue recognition and includes frequently asked questions from the industry and examiners.

For more information, see the press release and 2017 BAAS on the OCC’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC staff issues report on capital and market liquidity

Aug 09, 2017

The SEC’s Division of Economic and Risk Analysis has issued a report, “Access to Capital and Market Liquidity.”

The report is being issued in re­sponse to a congressional directive to analyze the effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other regulations on “(1) access to capital for consumers, investors, and businesses; and (2) market liquidity, including U.S. Treasury and corporate debt markets.” Among other things, the report “identifies trends for unregistered offerings, such as those under Regulation D and Regulation Crowdfunding, as well as fixed income transactions, fixed income quotations, and broker-dealer financial positions.”

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

FASB meeting Image

Highlights from the FASB’s August 2 meeting

Aug 04, 2017

At its August 2, 2017, meeting, the FASB discussed its projects on (1) long-duration insurance contracts, (2) leases implementation, and (3) asset acquisitions and business combinations.

Insurance — targeted improvements to the accounting for long-duration insurance contracts

The Board discussed its proposed ASU, Targeted Improvements to the Accounting for Long-Duration Contracts, and made tentative decisions related to the assumptions used in measuring the liability for future policy benefits, discount rate used in measuring this liability, and transition.

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

Leases implementation

The Board made tentative decisions related to land easements and its transition implications in the new leases standard. In addition, the Board directed its staff to draft a proposed ASU for a vote by written ballot.

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

Improving the accounting for asset acquisitions and business combinations

The Board made tentative decisions related to the direction of this project. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

FASB document Image

FASB proposes to clarify its guidance on contributions

Aug 04, 2017

The FASB has issued a proposed Accounting Standards Update (ASU), “Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.”

The pro­posed ASU would enhance the framework under which not-for-profit entities assess whether to account for a transaction as a contribution or exchange. According to FASB Chairman Russ Golden, the proposal is being released in response to concerns from stakeholders that “there is difficulty and diversity in practice among not-for-profits with characterizing grants as exchanges or contributions, and in distinguishing between conditional and unconditional contributions.”

Com­ments on the pro­posed ASU are due by November 1, 2017. For more in­for­ma­tion, see the press release, FASB in Focus newslet­ter, and pro­posed ASU on the FASB’s Web site.

AICPA (American Institute of CPAs) Image

AICPA issues three revenue working drafts

Aug 02, 2017

The AICPA’s revenue recognition task forces have released for public comment three working drafts on accounting issues associated with the implementation of the new revenue standard for depository and lending institutions, engineering and construction contractors, and power and utility entities.

The working drafts address the fol­low­ing topics:

Com­ments on the working drafts are due by October 2, 2017. For more in­for­ma­tion, see the revenue recog­ni­tion page on the AICPA’s Web site.

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

SEC opens comment period on the PCAOB’s changes to the auditor’s report

Jul 28, 2017

On July 28, 2017, the PCAOB’s proposed rules on the auditor’s report on the audit of financial statements were published in the Federal Register. Comments on the proposed rules are due to the SEC by August 18, 2017.

If approved by the SEC, the new standard will significantly modify the auditor’s reporting model. While the new standard will retain the current “pass/fail” approach, it will also significantly increase the informational value of auditors’ reports.

For more information, see the related SEC release as well as Deloitte’s June 1, 2017, article and June 20, 2017, Heads Up on the standard.

AICPA document Image

AICPA issues new technical practice aids

Jul 26, 2017

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

Specifically, the following Q&As have been added to TIS Section 9160:

  • .31, “Following Accounting Standards as Promulgated by FASB by a State or Local Governmental Entity.”
  • .32, “Reporting on Accounting Standards as Promulgated by FASB by a State or Local Government.”
  • .33, “Engagement Acceptance When a State or Local Government Elects to Follow a Special Purpose Framework.”
  • .34, “Accounting Standards as Promulgated by FASB as a Special Purpose Framework.”
  • .35, “Reporting on Indian Tribe Financial Statements Prepared in Accordance With Accounting Standards as Promulgated by FASB.”

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