• IASB amends definition of business in IFRS Standard on business combinations

    October 22, 2018 The International Accounting Standards Board (Board) has today issued narrow-scope amendments to IFRS 3 Business Combinations to improve the definition of a business. The amendments will help companies determine whether an acquisition made is of a business or a group of assets. The amended definition emphasises that the output of a business is to

  • Critical audit matters coming into focus

    October 1, 2018 Published: Journal of Accountacy By Russ Banham As public company auditors prepare to deliver new information in auditors’ reports, firms need to develop consistent processes for determining what should be disclosed. As auditors prepare for a new auditing standard requiring the disclosure of critical audit matters (CAMs) in their reports, they are

  • SEC Launches New Strategic Hub for Innovation and Financial Technology

    October 18, 2018 Published: SEC The U.S. Securities and Exchange Commission today announced the launch of the agency’s Strategic Hub for Innovation and Financial Technology (FinHub). The FinHub will serve as a resource for public engagement on the SEC’s FinTech-related issues and initiatives, such as distributed ledger technology (including digital assets), automated investment advice, digital marketplace financing, and

  • SEC Investigative Report: Public Companies Should Consider Cyber Threats When Implementing Internal Accounting Controls

    October 16, 2018 Published:SEC The Securities and Exchange Commission today issued an investigative report cautioning that public companies should consider cyber threats when implementing internal accounting controls. The report is based on the SEC Enforcement Division’s investigations of nine public companies that fell victim to cyber fraud, losing millions of dollars in the process. The SEC’s investigations

  • FASAB proposal seeks clearer materiality guidance

    October 16, 2018 Published: Journal of Accountancy By: Jeff Drew  The Federal Accounting Standards Advisory Board (FASAB) is asking for public comment on a proposal to clarify the implementation of materiality concepts in the issuance of federal financial statements. A proposed Statement of Federal Financial Accounting Concepts (SFFAC) titled Materiality, issued Monday by FASAB, would (1)

  • Sustainable finance: what’s it got to do with accountants?

    October 10, 2018 Published: Accountancy Europe By Vita Ramanauskaité and Eleni Kanelli Global goals for a greener planet To keep Europe liveable for all 512 million of us, we will need a more sustainable economy. Having committed to the UN Sustainable Development Goals and the Paris Climate Agreement, Europe needs to fulfil an ambitious agenda

  • SEC’s New Strategic Plan Puts Investors, Innovation, and Performance at Top

    October. 11, 2018 Published: SEC The Securities and Exchange Commission today announced a new strategic plan to guide the agency’s work over the next four years with a primary focus on investors, innovation, and performance. The plan’s goals reflect the agency’s commitment to its longstanding mission while leveraging the opportunities and addressing the challenges that come from

  • CMA launches audit market review

    October 9, 2018 Published: The Accountant Author: Jonathan Minter The Competition and Markets Authority (CMA) has launched a study of the audit sector in the UK, to examine concerns that it is not working well for the economy or investors. It plans to issue provisional findings before Christmas with a view to completing its work

  • FRC to consider banning auditors from providing consultancy services

    October 8, 2018 Published: The Accountant Author: Joe Pickard The UK’s Financial Reporting Council (FRC) is to consider whether auditors should be banned from providing consulting work for bodies they audit as part of a wider review to prevent auditor independence from being compromised. The FRC has said it will work closely with UK’s Competition and

  • IAASB Modernizes Auditing of Accounting Estimates in Support of Audit Quality

    October 03, 2018 Published: IFAC The International Auditing and Assurance Standards Board (IAASB) today released International Standard on Auditing (ISA) 540 (Revised), its revised standard for the audit of accounting estimates and related disclosures. Banks, insurers and other financial services firms have seen revolutionary change in their accounting practices as they moved to new accounting standards

  • Cybersecurity: Three Dynamics Working in Our Favor

    October 3, 2018 Published: The Caq By: Cindy Fornelli, Executive Director at Center for Audit Quality Cybersecurity risk is one born from profound disruption. Just as the internet transformed our businesses and lives for the better, it also spawned new categories of wrongdoing and a true rogue’s gallery of cybercriminals. As once described by Securities and Exchange

  • Best Practice Principles for Audit Tendering

    October 2, 2018 Published: IFAC by Alice Telfer, Head of Business and Public Sector, ICAS and David Wood, Senior Policy Director, ICAS What are best practices for audit tendering? The Institute of Chartered Accountants of Scotland (ICAS) has distilled good practice principles on audit tendering for private companies and public sector organizations, including publicly funded, third sector and not-for-profit organizations. The

  • Coping with Disruption: Lessons from the PCAOB

    October 2, 2018 Published: TheCaq by Cindy Fornelli Worried about disruption? Take a cue from the PCAOB, which is proceeding strategically and deliberately in a financial reporting system poised for transformative change. Leaders in accounting and auditing don’t tend to downplay the potential for emerging technology and other disruptive forces to shape the profession and

  • IOSCO Launches World Investor Week 2018 to Promote Investor Education and Protection

    October 1, 2018 Published: IOSCO The International Organization of Securities Commissions (IOSCO) today launched its second annual World Investor Week (WIW), following its success last year at attracting more than one thousand financial organizations to showcase their initiatives for promoting investor education and protection across the globe. In Japan, where financial markets are the first

  • Stakeholders Have Last Word on Whether Internal Audit Adds Value

    October 01, 2018 Published: Internal Auditor By: Richard Chambers If you were to ask your stakeholders to describe how internal auditing adds value, you might receive a different response from each person you talked to. The CEO might focus on recommendations for improving efficiency, while the chief financial officer might describe audit value in terms

  • GASB proposes changes in government financial reports

    September 28 2018 Published: AccountingToday The Governmental Accounting Standards Board has released two documents proposing a number of improvements in how state and local governments should report information on their financial statements and recognize transactions. In one of the documents, Preliminary Views, Financial Reporting Model Improvements, GASB suggests several enhancements in the financial reporting model for

  • The G20 Presidency and international organizations support IOSCO World Investor Week

    26 September 2018 Published: IOSCO In addition to the Argentine G20 Presidency, various important multilateral institutions have endorsed the second annual World Investor Week (WIW), organized by the International Organization of Securities Commissions (IOSCO) to raise awareness of the importance of investor education and protection around the world. Support for this year´s WIW includes the

  • Voices The potential of blockchain: What accounting execs need to know

    September 21, 2018 Published: Accounting Today In its 2017 Hype Cycle for Emerging Technologies, Gartner estimates it will take five to 10 years before there’s mainstream adoption of blockchain. However, major players in the financial services industry are already seeing benefits from the technology, using blockchain as a game-changing “trust protocol” for financial transactions and keep

  • IOSCO guidance addresses conflicts of interest and conduct risks in equity capital raising

    September 18, 2018 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published guidance to help its members address conflicts of interest and associated misconduct risks that may arise and undermine the equity capital raising process. Conflicts of interest and associated conduct risks stemming from the role of intermediaries can harm

  • Proposed update to the IFRS Taxonomy 2018 on IFRS 13 common practice

    September 20, 2018 Published: IFRS The IFRS Foundation has today published IFRS Taxonomy 2018—Proposed Update 1 Common Practice (IFRS 13 Fair Value Measurement) for public consultation. Those proposed changes result from the analysis of reporting practice relating to the disclosure requirements in IFRS 13 Fair Value Measurement. The common practice elements in the IFRS Taxonomy reflect disclosures that companies applying IFRS

  • New Report Outlines Keys to Sound Governance

    Distinct Roles of Internal Audit & Finance Function Provide Crucial Support September 18, 2018 Published: The Institute of Internal Auditors (IIA)  Effective governance is the outcome of a mosaic of organizational policies, processes, and cross-functional interactions, according to experts featured in a new report from The Institute of Internal Auditors (IIA) and IFAC (the International Federation of Accountants).

  • Investors trust auditors, but confidence in U.S. markets drops

    September 18, 2018 Published: Journal of Accountancy Public company auditors remain the group investors trust most to protect their interests, but investors’ confidence in U.S. capital markets and U.S. public companies has dropped in the past year, according to a Center for Audit Quality (CAQ) survey report released Tuesday. Respondents to the Main Street Investor survey kept

  • PCAOB Enters Into Cooperative Agreement with Austrian Audit Regulator

    Washington, Sept. 13, 2018 Published: PCAOB The Public Company Accounting Oversight Board today announced that it has entered into a cooperative agreement with the Audit Oversight Body of Austria. This agreement provides a framework for joint inspections in the oversight of audit firms subject to the regulatory jurisdictions of both organizations. It also allows for the exchange

  • Cybersecurity risk: time for auditors to take heed?

    September 10, 2018 Published: Chartered Accountants Worldwide The global interest in cybersecurity is growing. As we move into the cyber age, technology has become a huge part of both our everyday lives and today’s business environment, as more and more businesses increase their online presence and digital exposure by leveraging technology for almost every aspect

  • The International Code of Ethics for Professional Accountants: Key Areas of Focus for SMEs and SMPs

    In early April 2018, the IESBA released a completely rewritten and revamped Code of Ethics for professional accountants (PAs). Renamed “International Code of Ethics for Professional Accountants (including International Independence Standards) (“the Code” or “the revised and restructured Code”), the Code will become effective in June 2019. It packages all substantive advancements in ethics and independence

  • Enhanced Audit Reporting – The profession in APAC calls for better awareness and education

    September 7, 2018 Published: Confederation of Asian and Pacific Accountants (CAPA) In the first quarter of 2015, the International Auditing and Assurance Standards Board (IAASB) released its new and revised auditor reporting standards. The most significant enhancement is the new requirement for auditors to communicate “Key Audit Matters” (KAMs), described by the IAASB as ‘those matters that

  • Internal Audit Foundation Releases New Internal Audit Activity Research Report

    September 9, 2018 Published: The Institute of Internal Auditors Aligning Internal Audit Activities and Scope to Organizational Strategy – How the Business Environment and Organizational Strategy Impact Internal Audit The Internal Audit Foundation announced today the release of a new research report, Aligning Internal Audit Activities and Scope to Organizational Strategy – How the Business Environment

  • Professional Skepticism: The Heart of Audit

    September 6, 2018 Published: IFAC By: Katharine Bagshaw, Manager, Auditing Standards, ICAEW Most of us who trained as auditors never really lose the urge to question numbers. The temptation to ask on what basis they were calculated, to generally prod and poke around, and to make sure that they are what they appear to be,

  • Financial system risk is elevated and global standards are essential in managing cross-border infrastructure investment

    September 3, 2018 Published: OECD A new OECD report, the 2018 Business and Finance Outlook, highlights a number of major risks having the potential to disrupt global economic growth. It notes that the gradual normalisation of monetary policy in an environment of growing debt will be a major test of whether the Basel III regulatory reforms

  • Audit Chiefs see Cybersecurity as biggest risk to business

    September 4, 2018 Published: The Accountant By: Joe Pickard Cybersecurity is the biggest risk to organisations across the private and public sector, according to research conducted by Risk in Focus, a collaborative report between seven European institutes of internal auditors. Over two-thirds (68%) of the 300 chief internal auditors questioned said cybersecurity is one of

  • FASB clarifies accounting for grants and contributions

    September 1, 2018 Published: Journal of Accountancy The board also proposed a new definition of collections and issued clarifications on lease accounting and other issues. FASB issued an Accounting Standards Update (ASU) clarifying when a transfer of cash or other assets received and made, primarily by not-for-profits, qualifies as a contribution or an exchange transaction. The ASU,

  • Checking risk oversight can inform audits

    September 1, 2018 Published: Journal of Accountancy By Mark Beasley, CPA, Ph.D. A strong or weak commitment to addressing enterprisewide risks may be an indicator of management’s focus on financial reporting risks. Enterprisewide risk management systems have expanded greatly in recent years, primarily as a tool to help management and the board proactively deal with

  • GAO issues revised government auditing standards

    September 1, 2018 Published: Journal of Accountancy Changes to the Yellow Book reinforce the principles of transparency and accountability. Revised standards issued by the U.S. Government Accountability Office (GAO) are designed to provide a framework for high-qualitygovernmental audits, which include audits of government entities and entities receiving government awards. In a transmittal letter to the standards, U.S.

  • FASB updates accounting for cloud computing costs

    August 29 2018 Published: AccountingToday The Financial Accounting Standards Board released an accounting standards update Wednesday aimed at decreasing the complexity of accounting for costs of implementing a cloud computing service arrangement. The update emerged from a consensus of FASB’s Emerging Issues Task Force that was announced in June (see EITF reaches consensus on accounting for cloud

  • FASB Improves the effectiveness of Disclosures in Notes to Financial Statements

    August 28, 2018 Published: FASB The Financial Accounting Standards Board (FASB) today issued two changes to the FASB’s conceptual framework and two Accounting Standards Updates (ASUs) that improve the effectiveness of disclosures in notes to financial statements. “The two changes to our Conceptual Framework will help the Board identify and evaluate disclosure requirements in accounting standards and

  • Updated guidance highlights key changes in the auditor’s report

    August 27, 2018 Published: AccountingToday Updated staff guidance issued by the PCAOB provides practitioners with information on Auditing Standard 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. The updates build on previous guidance that was issued on Dec. 28, 2017. Issues addressed in the update include: – New information

  • FASB change helps banks adjust to credit loss standard

    August 24 2018 Published: AccountingToday The Financial Accounting Standards Board’s proposed changes to the credit loss standard promise to help private banks and credit unions deal with the transition on a more comfortable timeline. FASB released a proposed accounting standards update this week to amend the transition requirements and scope of the credit losses standard (see FASB proposes

  • SABS: Quality Trumps Locations for Sustainability Disclosure

    23 Aug 2018 Published: The Accountant The location of sustainability data disclosures is not as important as ensuring the data is of sufficient quality, The Sustainability Accounting Standards Board (SASB) has found. Prior to the release of its complete set of codified standards on financially material topics later this year, the SASB consulted with companies

  • We’re Part of the Solution: The Global Accountancy Profession Making a Dent in Corruption

    August 15, 2018 Published: IFAC by Amir Ghandar, Deputy Director, Public Policy and Regulation, IFAC Recently in Buenos Aires, alongside the Group of Twenty (G20) Finance Ministers’ and Central Bank Governors Summit, IFAC hosted a high-level anti-corruption event with the Business 20 (B20) and IFAC member organization, Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE).

  • Proposal would withdraw inter-entity cost guidance

    August 21, 2018 Published: Journal of Accountancy The Accounting and Auditing Policy Committee of the Federal Accounting Standards Advisory Board (FASAB) is proposing to withdraw one of its technical releases on accounting for inter-entity costs for federal government reporting entities. Technical Release 8, Clarification of Standards Relating to Inter-Entity Costs, is no longer consistent with Statement of Federal

  • 3 areas of top concern in broker- dealer audits

    August 20, 2018 Published: Journal of Accountancy Independence issues identified in the PCAOB’s 2017 staff inspections fell compared with the previous year, according to a report the board released Monday. But the percentage of firms found to have deficiencies in their audits dropped just slightly, to 91% (68 of 75), from 97% in the previous year. The

  • SEC Adopts Amendments to Simplify and Update Disclosure Requirements

    August 17, 2018 Published: SEC The Securities and Exchange Commission today announced that it has voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other Commission disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes in the information environment. The amendments are intended to simplify and

  • IPSAS 41 Aims to improve Financial Instruments Reporting

    August 15, 2018 Published: The Accountant The International Public Sector Accounting Standards Board (IPSASB) released IPSAS 41 which aims to improve the relevance of information for financial assets and financial liabilities. IPSAS 41 Financial Instruments establishes new requirements for classifying, recognising and measuring financial instruments to replace those that exist in IPSAS 29, Financial Instruments: Recognition

  • FASB Improves Accounting Guidance for Insurance Companies that Issue Long-Duration Contracts

    August 15, 2018 Published: FASB The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that improves financial reporting for insurance companies that issue long-duration contracts, such as life insurance, disability income, long-term care, and annuities. “The new ASU provides investors and other financial statement users with better and more timely and

  • FASB proposes narrow-scope improvements to accounting for lessors

    August 13, 2018 Published: FASB The Financial Accounting Standards Board (FASB) today issued a proposal that would reduce costs and ease implementation of the Leases standard for financial statement preparers. The proposal would also clarify a specific requirement in the standard related to lessor accounting. Stakeholders are encouraged to review and provide comment on the proposal by

  • Tips for teaching accounting ethics

    August 14, 2018 Published: Journal of Accountancy By Lea Hart Considering accountants deal with the intimate financial details of individuals and businesses, it’s important that they abide by strict ethical standards. “Ethics are the ‘why’ before the ‘how’ — why we do accounting; why accounting is important to society.” said Jeff Hillard, CPA, DM, associate

  • PCAOB Seeks Public Comment on its Draft Five-Year Strategic Plan

    Washington, DC, Aug. 10, 2018 Published: PCAOB The Public Company Accounting Oversight Board today released a draft of its five-year strategic plan, for the first time inviting public comment on its areas of strategic focus in fulfilling its mission to protect investors and the public interest through high quality audit reports. After its own careful study

  • IIRC offers research database on integrated reporting

    August 08, 2018 Published: AccountingToday The International Integrated Reporting Council unveiled an <IR> Academic Database on Wednesday, featuring more than 200 academic studies on the ramifications of integrated reporting, as well as discussing some of the best practices emerging in the field. Integrated reporting combines financial reporting and sustainability reporting, along with information about the governance, strategy,

  • FSB and standard-setting bodies consult on effects of reforms on incentives to centrally clear over-the-counter derivatives

    August 7, 2018 Published: IOSCO The Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published today a consultative document on Incentives to centrally clear over-the-counter (OTC) derivatives. Centrally clearing standardised OTC derivatives is a pillar of

  • Beyond robotics: How AI can help improve the audit process

    Aug 01, 2018 Published: AICPA by Guest Blogger The CPA profession has been hearing a lot about Robotic Process Automation (RPA), a software technology that can help auditors sift through structured data. But RPA can only do so much. Abigail Zhang, a PhD student in the Department of Accounting and Information Systems at Rutgers Business