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News

SEC (US Securities and Exchange Commission) Image

SEC proposes rules to enhance investor protection

Apr 19, 2018

The SEC has issued a “package” of proposals that would “enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers while preserving access to a variety of types of advice relationships and investment products.”

Specifically, the Commission released the following proposals:

For more information, see the press release and SEC Chairman Jay Clayton’s overview of the rulemaking package on the SEC’s Web site.

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Federal Reserve approves proposal to revise regulatory capital rules and offer phase-in approach for CECL

Apr 13, 2018

The Federal Reserve Board has approved the proposal “Regulatory Capital Rules: Implementation and Transition of the Current Expected Credit Losses [CECL] Methodology for Allowances and Related Adjustments to the Regulatory Capital Rules and Conforming Amendments to Other Regulations,” which the Board jointly issued with two other federal agencies (the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation).

According to the Board’s press release, the joint proposal would revise the Board’s “regulatory capital rules to address and provide an option to phase in the regulatory capital effects of the new accounting standard for credit losses.” The proposal “addresses the regulatory capital treatment of credit loss allowances under the CECL methodology and would allow banking organizations to phase in the day-one regulatory capital effects of CECL adoption over three years. The proposal would revise the Board's regulatory capital rules and other rules to take into consideration the new accounting standard.”

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

For more information, see the proposal on the Federal Reserve Board’s Web site.

CAQ document Image

CAQ issues publication on cybersecurity

Apr 12, 2018

The Center for Audit Quality (CAQ) has released a publication, “Cybersecurity Risk Management Oversight: A Tool for Board Members.”

This publication “provides questions board members charged with cybersecurity risk oversight can use as they engage in discussions about cybersecurity risks and disclosures with management and CPA firms.”

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

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Highlights of the FASB’s April 11 meeting

Apr 12, 2018

At its April 11, 2018, meeting, the FASB discussed its proposed ASUs (1) “Technical Corrections and Improvements to Topic 942, Financial Services — Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans” and (2) “Codification Improvements.”

Elimination of certain outdated special guidance in ASC 942-740 for bad debt reserves of savings and loans

The Board discussed its June 2017 proposed ASU on this topic and made decisions related to:

  • Guidance on the reserve method of accounting.
  • The Comptroller of the Currency’s Banking Circular 202.
  • Effective date and transition.

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.

Codification improvements

The Board discussed its October 2017 proposed ASU on this topic and made decisions related to:

  • Offsetting securities borrowed and loaned transactions.
  • Addressing the measurement of carrying value for other investments.
  • Removing the stable value common collective trust fund from the example in ASC 962-325-55-17.
  • Eliminating three issues from the final ASU.
  • Effective date and transition.

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.

SEC (US Securities and Exchange Commission) Image

SEC updates Q&As on IFRS XBRL Taxonomy

Apr 06, 2018

The SEC staff released an update clarifying its Q&As on the IFRS XBRL Taxonomy.

Specifically, the clarifications indicate that an IFRS registrant should tag required disclosures that are not addressed by the IFRS XBRL Taxonomy by looking to the 2018 SEC reporting and U.S. GAAP taxonomies.

For more information, see the Q&As on the SEC’s Web site.

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FASB discusses disclosures by business entities about government assistance

Apr 06, 2018

At its April 5, 2018, meeting, the FASB discussed the amendments in its proposed ASU “Disclosures by Business Entities About Government Assistance.”

Specifically, the Board directed its staff to further investigate the project’s scope and potential disclosures.

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

SEC (US Securities and Exchange Commission) Image

SEC approves the FASB’s 2018 accounting support fee

Apr 06, 2018

The SEC has published a release announcing its approval of the FASB’s 2018 accounting support fee, a task that the Commission is required to perform annually under the Sarbanes-Oxley Act.

As a condition of the approval, the SEC requested that the FAF and FASB “continue to provide the Commission with quarterly updates of their activities, including but not limited to their efforts to include a wide-range of views from investors, preparers, auditors, academics, and other constituent groups, and their efforts to improve the selection process for FASB and FAF members.”

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

SEC (US Securities and Exchange Commission) Image

SEC staff updates C&DIs on non-GAAP financial measures

Apr 05, 2018

The staff in the SEC’s Division of Corporation Finance has added two questions to its compliance and disclosure interpretations (C&DIs) related to non-GAAP financial measures associated with business combinations.

Specifically, the SEC has added Questions 101.02 and 101.03. The previous Questions 101.02 and 101.03 have been renumbered to 101.04 and 101.05, respectively.

For more information, see the non-GAAP financial measures C&DIs on the SEC’s Web site.

CAQ (US Center for Audit Quality) Image

CAQ issues publication on leases for audit committees

Apr 04, 2018

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

The purpose of the publication is to “help audit committees exercise their oversight responsibilities as companies implement a new leases accounting standard that begins to take effect in January 2019.”

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

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GASB issues guidance on debt disclosures

Apr 03, 2018

The GASB has issued Statement No. 88, “Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements.”

Statement 88 clarifies which “liabilities governments should include in their note disclosures related to debt” and requires that “all debt disclosures present direct borrowings and direct placements of debt separately from other types of debt.”

Statement 88 is effective for reporting periods beginning after June 15, 2018. Early application is encouraged.

For more information, see the press release and Statement 88 on the GASB’s Web site.

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