• Audit Analytics Reports on Top Issues in 2016 SEC Comment Letters

    USA January 30 2017 Audit Analytics recently released its “big picture” review of SEC comment letter activity for the first six months of 2016. The SEC issued 2,491 comment letters to 808 reporting companies in the first six months of 2016, a considerable decline compared to 3,166 and 4,348 letters filed in the first six

  • A GAAP-Happy Month in SEC Enforcement

    Drinker Biddle & Reath LLP – Stephen G. Stroup USA February 1 2017 In January, the SEC settled no fewer than seven enforcement proceedings with companies that involved alleged violations of generally accepted accounting principles (GAAP). While the sheer number of settlements would have been remarkable on its own, when examined individually, these proceedings reveal

  • IFRS 9 and IFRS 15—one year to go

    03 January 2017   The final countdown has started to the effective date of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. Companies will have to apply the two Standards for reporting periods beginning on or after 1 January 2018. Now is good time for a recap on the changes the

  • CAQ celebrates 10th anniversary with accounting all-stars in Washington

    The Center for Audit Quality marked its 10th anniversary at an event in Washington, D.C., on Monday featuring a roster of high-profile figures in the accounting profession. CAQ executive director Cindy Fornelli kicked off a series of roundtable panel discussions. “Ten years ago today, on this very day, the public company auditing profession announced the

  • FASB updates goodwill impairment standard

    The Financial Accounting Standards Board has released a new standard that promises to simplify the goodwill impairment test, allowing many companies that don’t already apply the private company accounting alternative for goodwill to skip an extra step. The new standard requires a one-step impairment test, in which a goodwill impairment loss is measured as the

  • AICPA works through revenue recognition issues

    The American Institute of CPAs has been producing guidance for how different industries can deal with the new revenue recognition standard that will be taking effect at the end of the year, along with the distinct issues they will be facing. A working group at the AICPA representing the eight largest accounting firms has been

  • SEC ´Prioridades 2017

    Drinker Biddle & Reath LLP USA January 23 2017 On January 12, 2017, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) announced its examination priorities for 2017. This year’s priorities are focused around three topics: (1) retail investors, (2) senior investors and retirement investments, and (3) market-wide risks. These priorities affect investment advisers, investment companies, broker-dealers,

  • Yahoo enfrenta investigación en EE.UU. por filtración de datos

    Por Aruna Viswanatha y Robert McMillan lunes, 23 de enero de 2017 12:52 EDT Las autoridades de Estados Unidos investigan si se tendría que haber informado antes a los inversionistas sobre las dos filtraciones masivas de datos de Yahoo Inc., según fuentes al tanto, lo que podría suponer la mayor prueba para determinar cuándo exigir

  • New cybersecurity regulation hits New York financial firms March 1

    The rules, which include having written policies and procedures and a designated chief information security officer, could become a model for other states.   New cybersecurity rules for financial services providers are set to take effect March 1 for all firms doing business in New York, and the new requirements may be showing up around

  • 5 strategies to efficiently implement the new lease accounting standard

    Sabine Vollmer (Sabine.Vollmer@aicpa-cima.com) is a JofA senior editor.   As mandated by regulators, Sealed Air is implementing the new lease accounting standard on schedule. The standard will take effect Jan. 1, 2019, for public companies and one year later for private companies. Implementation requires public companies to restate 2017 and 2018 and private companies to

  • UK Government to implement Cyber Security Directive

    UK Government to implement Cyber Security Directive Bond Dickinson LLP European Union, United Kingdom January 17 2017 The UK Government has recently published its ‘Cyber Security Regulation and Incentives Review’ in which it confirms that it will be implementing the European Network and Information Security Directive – more colloquially known as the Cyber Security Directive

  • SEC- SQM

    Chemical and Mining Company in Chile Paying $30 Million to Resolve FCPA Cases FOR IMMEDIATE RELEASE 2017-13 Washington D.C., Jan. 13, 2017 —The Securities and Exchange Commission today announced that Chilean-based chemical and mining company Sociedad Quimica y Minera de Chile S.A. (SQM) agreed to pay more than $30 million to resolve parallel civil and

  • Enhancing Organizational Reporting: Integrated Reporting Key

      Enhancing Organizational Reporting: Integrated Reporting Key Policy Position Paper #8 Integrated reporting is the way to achieve a more coherent corporate reporting system, fulfilling a need for a single report that provides a fuller picture of organizations’ ability to create value. Integrated reporting can be used as an “umbrella” report for an organization’s broad

  • IASB proposes amendments to 3 IFRS standards

    By Neil Amato January 12, 2017 The International Accounting Standards Board (IASB) proposed amendments Thursday to three IFRS standards as part of the board’s annual improvements process. The IASB is proposing amendments to standards related to income taxes, borrowing costs, and investments in associates and joint ventures. The proposed amendments are: International Accounting Standard (IAS)

  • International Accounting Standards Board consults on clarifications to IFRS Standards

    12 January 2017 The International Accounting Standards Board (the Board) has today published proposed amendments to three Standards for public consultation as part of its annual improvements process. The document contains proposed amendments to IAS 12 Income Taxes, IAS 23 Borrowing Costs and IAS 28 Investments in Associates and Joint Ventures. The proposed amendments to IAS 12 clarify that an

  • FASB addresses debt classification, inventory disclosures

    By Ken Tysiac January 10, 2017   In separate proposals issued Tuesday, FASB addressed balance sheet classification of debt and the disclosure requirements for inventory under the board’s Disclosure Framework. The proposed Accounting Standards Update on debt classification is designed to simplify guidance used to determine whether debt should be classified as current or noncurrent

  • FINRA Publishes 2017 Regulatory and Examination Priorities Letter

    USA January 6 2017 On January 4, the Financial Industry Regulatory Authority published its Annual Regulatory and Examinations Letter (Priorities Letter), which outlines the key areas on which FINRA intends to focus during its 2017 exam period. The areas of emphasis set forth in the Priorities Letter are based on observations from FINRA’s regulatory programs

  • SEC-Denuncia

    SEC Awards $5.5 Million to Whistleblower FOR IMMEDIATE RELEASE 2017-1 Washington D.C., Jan. 6, 2017 —The Securities and Exchange Commission today announced an award of more than $5.5 million to a whistleblower who provided critical information that helped the SEC uncover an ongoing scheme. According to the SEC’s order, the whistleblower was employed at the

  • FASB clarifies definition of a business

    FASB clarified the definition of a business Thursday in an effort to help financial statement preparers evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The clarification is described in Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. “Stakeholders expressed concerns that

  • AICPA exposes more revenue recognition working drafts

    Four new working drafts of accounting issues related to implementation of FASB’s new revenue recognition standard were issued Tuesday by the AICPA Financial Reporting Executive Committee (FinREC). These were the latest of numerous working drafts issued by FinREC in its development of a new AICPA revenue recognition guide. The drafts discuss considerations designed to help

  • Voices Recodifying SOC reports: What SSAE No. 18 means for SOC 1s

    For as long as organizations have relied on other third-party providers for the delivery of outsourced services, those organizations have had a need for information about the third parties they use for those outsourced services. Whether the information was specific to how the third party ensured quality in its services provided to the organization, the

  • PCAOB staff offers guidance on audit firms’ work in China

    The Public Company Accounting Oversight Board published a document Friday providing answers from staff members to questions about the obligations of PCAOB-registered firms when performing audits in China. The staff Q&A document relates to the obligations of auditing firms based outside of Mainland China, particularly those based in the U.S., that provide issuer audit services

  • The tremendous impact of the Dodd-Frank Whistleblower Program in 2016

    By Eduardo Singerman Paul Hugel Published December 28 2016, 12:03pm EST   In its 2016 annual report to Congress, the Securities and Exchange Commission acknowledged that fiscal year 2016 was historic for the Dodd-Frank Whistleblower Program. Since the beginning of the program in August 2011 through Sept. 30, 2016, the Commission has awarded over $111

  • Toshiba prevé rebaja contable por filial nuclear en EE.UU.

    PorTakashi Mochizuki martes, 27 de diciembre de 2016 10:15 EDT TOKIO (EFE Dow Jones)— Toshiba Corp. anunció el martes que contabilizará una rebaja de valor de miles de millones de dólares relacionada con su negocio nuclear en Estados Unidos, lo que empaña los esfuerzos de la compañía por pasar la página tras el escándalo contable

  • AICPA groups recommend field-testing of FASB long-duration insurance proposal

    By Ken Tysiac December 16, 2016 The AICPA Financial Reporting Executive Committee (FinREC) and the AICPA Insurance Expert Panel recommended that FASB field-test its proposed targeted improvements to accounting for long-duration insurance contracts before finalizing them. In a joint comment letter sent Wednesday, FinREC and the Insurance Expert Panel supported FASB’s efforts to improve the

  • FASB issues GAAP taxonomy

    By Michael Cohn Published December 20 2016, 12:40pm EST The Financial Accounting Standards Board has released the 2017 GAAP Financial Reporting Taxonomy, although final acceptance by the Securities and Exchange Commission is still pending. The GAAP Financial Reporting Taxonomy includes updates for accounting standards and other improvements to the official taxonomy already in use by

  • IFRS for SMEs Fact Sheet has been updated

    21 December 2016 The Fact Sheet on the IFRS for SMEs, which summarises activities since the IFRS for SMEs was issued, has been updated. The Fact Sheet includes information about adoptions, translations, training, the SME Implementation Group and other SME activities. It also contains an up-to-date list of SME resources that are available for free

  • Noticia SEC

    Company Violated Rule Aimed at Protecting Potential Whistleblowers FOR IMMEDIATE RELEASE 2016-268 Washington D.C., Dec. 19, 2016 —The Securities and Exchange Commission today announced that a technology company has agreed to pay a penalty of $180,000 to settle charges involving its severance agreements that impeded at least one former employee from communicating information to the

  • FASB issues technical corrections

    FASB issued numerous technical corrections and clarifications to GAAP on Wednesday that are designed to remove inconsistencies in the board’s accounting guidance. The changes were issued in Accounting Standards Update No. 2016-19, Technical Corrections and Improvements. The amendments apply to all reporting organizations that are within the scope of the affected accounting guidance. Most of

  • PCC seeks accounting relief for smallest private companies

    By Ken Tysiac Concerns about accounting compliance overload at the smallest private companies bubbled to the surface Tuesday as Private Company Council (PCC) members debated whether to initiate a formal review of the Private Company Decision-Making Framework. – Overload has become a big issue as financial statement preparers are working to implement new high-impact FASB

  • SEC Moves to Identify ‘High-Quality’ Non-GAAP Measures

    Non-GAAP Measures BY MICHAEL COHN DEC 12, 2016 6:53PM ET Some non-GAAP financial measures are more kosher than others, and the Securities and Exchange Commission is looking to provide better guidance on which types are sanctified or sanctioned. At last week’s AICPA conference on current SEC and PCAOB developments in Washington, D.C., Mark Kronforst, chief

  • Two-part FASB proposal addresses accounting for certain financial instruments

    By Ken Tysiac December 7, 2016 Accounting Compliance and Reporting (US) FASB issued a two-part proposal Wednesday that is designed to address the complexity related to applying GAAP to certain financial instruments associated with liability and equity. In Part I of the proposal, FASB addresses the complexity of accounting for certain financial instruments with down

  • International Accounting Standards Board issues minor changes to IFRS Standards

    08 December 2016 The International Accounting Standards Board (the Board) has today issued several amendments to IFRS Standards and an Interpretation that clarifies the requirements in particular Standards. These changes are part of the Board’s process to maintain IFRS Standards. The changes include: annual improvements to IFRS Standards—these are minor amendments that clarify, correct or remove

  • Accounting Officials Scrutinize Non-GAAP Measures

    Washington, D.C. (December 5, 2016) By Michael Cohn Officials from the Securities and Exchange Commission and the Center for Audit Quality discussed the effort to rein in the use of non-GAAP financial measures during an American Institute of CPAs conference Monday.   Wesley Bricker “Turning now to non-GAAP reporting, good practices in this area begin

  • Audit Deficiencies Decreasing, but Still High

    Atlanta (December 2, 2016) By Daniel Hood Audit deficiencies at public companies decreased for the first time in five years in 2015, but remain high, according to a new analysis. The analysis, part of the fifth annual Survey of Fair Value Audit Deficiencies by Atlanta CPA firm Acuitas Inc., which examines recent Public Accounting Oversight

  • AICPA’s FinREC Responds to FASB’s Proposed Hedging Improvements

    Washington, D.C. (November 30, 2016) By Danielle Lee The American Institute of CPAs’ Financial Reporting Executive Committee (FinREC) submitted comments to the Financial Accounting Standards Board regarding FASB’s targeted improvements to accounting for hedging activities. The letter, in response to FASB’s Proposed Accounting Standards Update, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for

  • FASB proposal would improve hedge accounting, AICPA committee says

    By Ken Tysiac A FASB proposal for targeted improvements to accounting for hedging activities would simplify and improve the current model, according to a comment letter sent Monday by the AICPA Financial Reporting Executive Committee (FinREC). In an effort to improve the hedge accounting model, FASB on Sept. 8 issued Proposed Accounting Standards Update, Derivatives

  • IFRS for SMEs Update

    The IFRS for SMEs Update is a staff update about news relating to the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The Update is published on a regular basis, with news about adoptions, resources, and implementation guidance. Past editions are accessible below. To receive the IFRS for SMEs Update as

  • PCAOB Sets Strategic Plan

    Washington, D.C. (November 23, 2016) By Michael Cohn The Public Company Accounting Oversight Board approved its fiscal year 2017 budget of approximately $268.5 million, along with a strategic plan through 2020 to guide its programs and operations. James Doty The 2017 budget represents a 4.2 percent increase of the PCAOB’s 2016 budget of $257.7 million.

  • FASB aims for consistency in modification accounting

    By Ken Tysiac November 18, 2016 Financial statement preparers would receive specific guidance on when to apply modification accounting under a proposal FASB issued Thursday. Proposed Accounting Standards Update, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, would clarify which changes to the terms or conditions of a share-based payment award require application of modification

  • SEC names Bricker chief accountant

    By Ken Tysiac November 22, 2016 Wesley Bricker, a CPA and former PwC partner who has a law degree and is a member of the New York State Bar Association, was named chief accountant by the SEC on Tuesday. Bricker has served as interim chief accountant since July while James Schnurr has been recovering from

  • November IFRIC Update published

    23 November 2016 The November 2016 IFRS Interpretations Committee Update (IFRIC Update) has been published. View this IFRIC Update and previous Updates. Items on the current agenda IAS 12 Income Taxes—Uncertainty over Income Tax Treatments—due process steps (Agenda Paper 4) IFRS 9 Financial Instruments—Modification or exchange of financial liabilities that do not result in derecognition

  • JPMorgan Chase Paying $264 Million to Settle FCPA

    FOR IMMEDIATE RELEASE 2016-241 Washington D.C., Nov. 17, 2016 — The Securities and Exchange Commission today announced that JPMorgan Chase & Co. has agreed to pay more than $130 million to settle SEC charges that it won business from clients and corruptly influenced government officials in the Asia-Pacific region by giving jobs and internships to
  • FASB Proposes Changes in Accounting for Stock Compensation

    By Michael Cohn The Financial Accounting Standards Board has released a proposed accounting standards update related to the scope of modification accounting for stock-based compensation. FASB is issuing the proposed update to provide more clarity and discourage differences in practice when applying the guidance in the standards for stock compensation about a change to the

  • Goodwill Impairment on the Rise at U.S. Companies

    New York (November 16, 2016) By Michael Cohn Public companies in the U.S. recorded $57 billion in goodwill impairment last year, more than double the amount of impairment they recorded the previous year, according to a new study. Greg Franceschi The study, by the valuation and corporate finance advisor Duff & Phelps, found this record

  • IFAC Reaches Out to Pope Francis on Role of Accountants

    New York (November 17, 2016) By Michael Cohn The International Federation of Accountants has sent a letter to Pope Francis on how the accounting profession can help him with the fight against financial fraud and corruption.   Olivia Kirtley Outgoing IFAC president Olivia Kirtley, a former chair of the American Institute of CPAs, wrote to

  • Election Creates ‘Very Real Possibility’ of Tax Reform

    Trump and GOP tax plans suddenly look achievable November 9, 2016 By Michael Cohn , Roger Russell , Sean McCabe , Daniel Hood With Donald Trump having aligned his tax plans with those of Congressional Republicans over the course of the campaign, his election puts the GOP in a position to enact significant changes in

  • Trump’s Tax Challenge: Finding A Way to Pay for Cuts

    November 9, 2016 By Roger Russell Donald Trump has already done the impossible by winning the presidency, but once he takes office he may have to do so again – by finding a way to pay for the across-the-board tax cuts he promised during his campaign. “Trump’s plan is vague on the ‘pay-fors’”, said Mark

  • Developments in the IASB research project Primary Financial Statements

    07 November 2016 The Primary Financial Statements project is an early-stage research project examining possible changes to the structure and content of the primary financial statements. It is an important part of the International Accounting StandardsBoard’s (the Board’s) better communication theme. To learn more about the Board’s plan for better communication in financial reporting click here. Upcoming

  • FASB proposes new guidance for service concession arrangements

    By Ken Tysiac November 4, 2016 FASB proposed new guidance Friday that is designed to eliminate diversity in practice in how operating entities determine who is the customer in service concession arrangements. In a service concession arrangement, an operating entity operates infrastructure (such as airports, roads, bridges, tunnels, prisons, and hospitals) for a public-sector grantor