September

Heads Up on July PCAOB Standing Advisory Group meeting

01 Sep 2010

Deloitte (United States) has published a new Heads Up Newsletter discussing the meeting of the PCAOB's Standing Advisory Group (SAG) held on 15 July 2010. The SAG discussed the following: broker-dealer audit considerations, FASB projects and their potential impact on auditors, and the auditor's consideration of subsequent events.

In addition, the PCAOB staff summarised comments it has received on its proposed audit committee communications standard and gave an update on its plans to undertake a project on the auditor's reporting model.

In relation to the impacts of the current IASB-FASB convergence process and the move to more 'principles-based' standards, the Heads Up notes the following:

There was considerable debate and discussion regarding the proposed timeline for the completion of current and upcoming FASB projects, with many voicing concerns about the potential for compromising quality in standards if the current timeline were to be strictly followed. In addition, many SAG members expressed concern about (1) resources and the ability to respond within compressed time frames and (2) capacity constraints that could cause diversions from financial reporting needs, potentially affecting the quality of financial reporting.

SAG members also discussed the increase in judgment that will be needed as a result of the FASB's move to more principles-based accounting standards. These same individuals encouraged the PCAOB and the SEC to implement the recommendation of the SEC's Advisory Committee on Improvements to Financial Reporting and develop a judgment framework for both issuers and auditors to help them arrive at well-reasoned judgments.

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Draft US-GAAP XBRL taxonomy released for comment

01 Sep 2010

The United States Financial Accounting Foundation (FAF) has announced the availability of the proposed 2011 US-GAAP Financial Reporting Taxonomy for public review and comment.

The updated taxonomy contains updates for accounting standards and other recommended improvements to the official taxonomy currently in use by filers in the United States Securities and Exchange Commission's (SEC) EDGAR system.

The deadline for comments is 30 October 2010. Click for:

 

FASB issues proposed ASU update on multiemployer plans

01 Sep 2010

The FASB has issued a proposed Accounting Standards Update (ASU) to Subtopic 715-80 Compensation—Retirement Plans—Multiemployer Plans.

The ASU proposes additional quantitative and qualitative disclosures from employers, including:

  • A description of the plans in which the employer is involved
  • The employer's contractual commitments to the plans
  • The expected impact of participating in the plans on the employer's future cash flows (including the potential impact of plan withdrawal obligations).

If approved, the proposed ASU would require a public company to provide the enhanced disclosures for fiscal years ending after 15 December 2010. Comment are due on or before 1 November 2010.

Click for FASB press release (link to FASB website).

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