• CAQ Alert #2017-01 – AICPA Publishes Criteria to Evaluate and Report on Cybersecurity

    As the discussion around cybersecurity has grown, so has the auditing profession’s engagement with key stakeholders in the capital markets. The auditing profession is in a strong position to play an important role in advancing cybersecurity risk management practices, bringing to bear its deep expertise in providing independent evaluations of a broad range of subject

  • Study questions value of auditor rotation

    Mandatory rotation of auditing firms and engagement partners doesn’t necessarily foster greater professional skepticism, according to a new academic study. The study polled 233 pairs of auditors and their contact persons at client firms (mainly CEOs or CFOs) on their attitudes towards mandatory rotation and found that trust and professional skepticism can work hand in

  • IASB proposes tweaks to financial instruments standard

    The International Accounting Standards Board has proposed a set of minor amendments to the financial instruments standard to make it easier to implement. The changes to IFRS 9 would allow companies using International Financial Reporting Standards to measure certain prepayable financial assets with so-called “negative compensation” at amortized cost. They come in response to comments

  • IASB proposes minor amendments to IFRS 9 to aid implementation

    21 April 2017   The International Accounting Standards Board (the Board) has today proposed minor amendments to the financial instruments Standard, IFRS 9, to enable companies to measure at amortised cost certain prepayable financial assets with so-called negative compensation. The amendments respond to comments received by the IFRS Interpretations Committee and are intended to improve

  • 4 in 10 Americans say technology leads them to pay more for convenience

    By Samiha Khanna Technology has made it easier for consumers to save money on goods and services, but the convenience it offers can lead to increased spending. In a recent AICPA survey, 41% of Americans said that their use of personal technology makes them more likely to pay extra for convenience. The survey, conducted in

  • IASB Meeting April 2017

    Scheduled meeting of the Board. The meeting will take place on 24 and 27 April 2017 Location: IASB Boardroom, First Floor, 30 Cannon Street, London EC4M 6XH   Observers: To register for this meeting, please send an email to meetings@ifrs.org. Please state your name, company, and details of which days/sessions you would like to attend. Webcast Registration You

  • GAO proposes changes in Government Auditing Standards

    The Government Accountability Offices is asking for feedback on a set of proposed changes to Government Auditing Standards, commonly known as the “Yellow Book,” the first revision since 2011. The GAO originally issued the standards in 1972. The 2017 exposure draft of proposed changes takes into account some of the developments in the auditing, accountability

  • SEC: Payments for Bullish Articles on Stocks Must Be Disclosed to Investors

    Press Release 27 Firms and Individuals Charged With Fraudulent Promotion of Stocks FOR IMMEDIATE RELEASE 2017-79 Washington D.C., April 10, 2017— The Securities and Exchange Commission today announced enforcement actions against 27 individuals and entities behind various alleged stock promotion schemes that left investors with the impression they were reading independent, unbiased analyses on investing

  • SEC: Payments for Bullish Articles on Stocks Must Be Disclosed to Investors

    27 Firms and Individuals Charged With Fraudulent Promotion of Stocks FOR IMMEDIATE RELEASE 2017-79 Washington D.C., April 10, 2017— The Securities and Exchange Commission today announced enforcement actions against 27 individuals and entities behind various alleged stock promotion schemes that left investors with the impression they were reading independent, unbiased analyses on investing websites while

  • Expectations and paths don’t always align for controllers

    Most controllers are expected to shape and execute strategic initiatives, an evolution of the finance role that mirrors that of the CFO. Yet, few companies clearly define a path for controllers to take on greater responsibility, according to a report by Deloitte released Wednesday. Ninety-two percent of North American controllership professionals say the CFO and

  • Publicada la Actualización del IASB de marzo de 2017

    07 April 2017 El IASB se reunió el 21 y 22 de marzo de 2017 y se ha publicado un resumen de esta reunión. Los temas que se trataron fueron: Información corporativa más amplia Plusvalía y deterioro del valor Tasas de descuento-mediciones del valor presente Contratos de seguro (actualización verbal) Estados Financieros Principales El Marco

  • New audit data standard addresses inventory subledger

    By Ken Tysiac April 6, 2017   A new audit data standard issued by the AICPA Assurance Services Executive Committee addresses the inventory subledger and is intended to accommodate basic analysis of the inventory process. Through its Emerging Assurance Technologies Task Force, the Assurance Services Executive Committee is developing audit data standards designed to make

  • Revenue recognition working drafts issued for 4 industries

    The airlines, gaming, hospitality, and time-share industries are represented in the latest group of revenue recognition working drafts exposed by the AICPA Financial Reporting Executive Committee (FinREC). FinREC is seeking comment on issues that will be included in its industry-specific guide to implementing FASB’s new revenue recognition standard. The guide, which has been published online,

  • IBM Watson using Blockchain to protect Electronic Medical Records (EMRs)!

    USA March 31 2017 Computerworld announced that “IBM’s Watson Health artificial intelligence unit has signed a two-year joint-development agreement with the U.S. Food and Drug Administration (FDA) to explore using blockchain technology to securely share patient data for medical research and other purposes.” The January 11, 2017 article entitled “IBM Watson, FDA to explore blockchain

  • Welcome to the IFRS for SMEs Update

    The IFRS for SMEs Update is a quarterly staff summary of news, events and other information about the IFRS for SMEs Standard and related SME activities. The staff summary has not been reviewed by the International Accounting Standards Board (the Board). Past issues are available in both HTML and PDF format on the IFRS®Foundation website

  • IASB outlines steps to improve disclosures in financial statements

    30 March 2017   The International Accounting Standards Board (the Board) has today published a Discussion Paper that suggests principles to make disclosures in financial statements more effective. The Discussion Paper Disclosure Initiative—Principles of Disclosure seeks public feedback on disclosure issues the Board has identified through outreach as well as its preliminary proposals to resolve

  • Revenue recognition standard will require new disclosures

    The new revenue recognition standard is going to force many companies to make new disclosures, but they shouldn’t wait until the last minute to get ready, warns a recent report. The report, from Deloitte, notes that some public companies might put off considering the revenue recognition standard’s new disclosure requirements until early 2018, after the

  • Voices Blockchain, accounting and audit: What accountants need to know

    By Jon Baron Published March 27 2017, 7:48am EDT Among the many disruptive technology trends impacting the way we do business, blockchain is one that is less well known within the accounting community. However, given its potential impact, blockchain is certainly not a trend that accountants can afford to overlook any longer. Defined as an

  • March 2017 IFRIC Update published

    The March 2017 IFRS Interpretations Committee Update (IFRIC Update) has been published. View this IFRIC Update and previous Updates. Topics discussed at the March 2017 meeting: Items on the current agenda   IFRS 3 Business Combinations and IFRS 11 Joint Arrangements—Previously held interests (Agenda Paper 9) IAS 19 Employee Benefits—Plan amendments, curtailments or settlements (Agenda

  • SEC proposes switch to Inline

    The Securities and Exchange Commission has proposed a rule to require companies and mutual funds to use Inline XBRL, a version of Extensible Business Reporting Language, in their operating company financial statement information and mutual fund risk/return summaries. The SEC adopted rules in 2009 requiring companies to file their financial statements and periodic reports in

  • Voices SEC regulators should adopt global financial reporting language for better business

    By Alex Malley Published March 21 2017, 2:06pm EDT While issues of immigration, trade and freedom of the Fourth Estate are dominating the media cycle, there are other significant areas of policy flux worthy of consideration as President Donald Trump’s term gathers momentum. This includes rules for corporate governance and disclosure that may move in

  • GASB aborda amplia gama de problemas de contabilidad

    By Ken Tysiac March 20, 2017 In a new standard issued Monday, GASB addressed a wide range of accounting challenges that state and local government financial statement preparers have encountered while implementing and applying a variety of GASB statements. GASB Statement No. 85, Omnibus 2017, addresses issues related to blending component units, goodwill, fair value

  • Women and minorities increasingly attain CFO position

    More women and minorities are becoming CFOs at Fortune 500 companies, according to new research. The annual CFO Index, from the executive recruiting and leadership development firm Spencer Stuart, found that in 2016, slightly less than 13 percent (61) of Fortune 500 CFOs were women, a slight reduction from 2015. But that figure was nearly

  • Credit loss standard implementation tips

    By Ken Tysiac March 16, 2017 Accounting and finance employees at banks are quickly learning that FASB’s new expected credit loss standard presents significant implementation challenges. That’s why experts are advising banks not to delay their implementation efforts. More than two-thirds (70%) of 31 banks participating in a recent Deloitte survey had plans to begin

  • How to improve fraud controls in complex accounting areas

    By Ken Tysiac It stands to reason that accounting areas that are highly subjective and complex also are prone to fraud, errors, and breakdowns in internal controls. A recent study by the Anti-Fraud Collaboration discovered challenges in these accounting areas and has led to new recommendations for company accounting policies and internal control over financial

  • Why Your Company Should Review its Insurance Policies Now in Light of Tough New Cybersecurity Regulations

    Newmeyer & Dillion LLP USA March 6 2017 New York’s new cybersecurity regulations just went into effect on March 1, 2017 and companies across the United States should take note. Inspired by the blockbuster proportion breaches that tanked stocks of massive corporations including several Fortune 100 companies, these regulations are recognized as the most stringent

  • Why ‘complete ERM’ is a myth

    By Neil Amato   Risk oversight has grown in importance among all types of organizations this decade, but some of the gains can be attributed to public companies responding to the SEC’s rules related to risk disclosures. Even entities not subject to SEC oversight have started to take a broader approach to enterprise risk management

  • SEC Acusa de fraude

    Press Release Executives Charged With Manipulating Company’s Accounting Systems to Steal Money FOR IMMEDIATE RELEASE 2017-64 Washington D.C., March 10, 2017— The Securities and Exchange Commission today charged two former executives at a credit card processing company with masterminding a fraudulent scheme to steal millions of dollars through phony expense reimbursements, inflated invoices, and other

  • SEC ACCEPTS 2017 GAAP FINANCIAL REPORTING TAXONOMY

    Norwalk, CT, March 9, 2017—The Financial Accounting Standards Board (FASB) today announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2017 GAAP Financial Reporting Taxonomy. The FASB staff is responsible for the ongoing development and maintenance of the GAAP Financial Reporting Taxonomy, which is applicable to public issuers registered with the SEC.

  • The IFRS Foundation publishes the IFRS Taxonomy 2017

    09 March 2017   The IFRS Foundation today published the IFRS Taxonomy 2017, which reflects the IFRS® Standards as issued by the International Accounting Standards Board at 1 January 2017, including Standards published but not yet effective at that date. The IFRS Taxonomy 2017 is available for both the full IFRS Standards and the IFRS for SMEs.

  • FASB proposes changes in accounting for nonemployee share-based payments

    The Financial Accounting Standards Board has proposed a new accounting standards update for simplifying the financial reporting for nonemployee share-based payments. The proposed update would expand the scope of the current standard on stock compensation, which now covers only payments to employees, so it also includes payments for goods and services to nonemployees. That way,

  • Dispute over Arthur Andersen name heats up

    The Paris-based firm that recently announced the relaunch of a new Arthur Andersen network of accounting firms is fighting back against Andersen Tax, as both entities claim to hold the rights to the Andersen name, with the head of the new Andersen accusing its rival of “ego, arrogance, lies and greed.” Last week, the new

  • Mexican homebuilder charged in $3.3B accounting fraud exposed by satellite images

    A Mexican homebuilding company, Desarrolladora Homex S.A.B. de C.V., has agreed to settle accounting fraud charges with the Securities and Exchange Commission after it allegedly falsified sales of over 100,000 homes to inflate revenue on its financial statements for three years in a row, claiming to have built homes for which satellite images showed not

  • FinREC exposes 5 revenue recognition issues

    The AICPA Financial Reporting Executive Committee (FinREC) published working drafts for five new revenue recognition issues for public comment Wednesday in its ongoing project to produce an accounting and auditing guide for revenue recognition. After reviewing public comment on the issues, FinREC will add them to the guide, which includes the work of 16 industry

  • Trump gives hints on tax reform and ACA in address to Congress

    President Trump outlined a wide range of priorities, including tax reform and a health care overhaul, in his first speech before a joint session of Congress on Tuesday night. While many of the concepts were familiar from the campaign trail and his first month in office, the tone of Trump’s speech was far more measured

  • February 2017 IASB Update published and the Work Plan updated

     27 February 2017         The topics for discussion were: – Insurance Contracts – Financial Instruments with Characteristics of Equity – Symmetric Prepayment Options – Post-implementation review of IFRS 13 Fair Value Measurement – Definition of a Business – Research Programme – Rate-regulated Activities – The Conceptual Framework for Financial Reporting – Modifications

  • Voices Proven ways for accountants to instill ethics in companies

    The Volkswagen emissions fraud and the multiple Wells Fargo scandals are just two high-profile examples of business leaders allowing (knowingly or not) unethical behavior to take root in their organization’s culture. The public fallout from these scandals reinforces that acting ethically is as important and material to a company’s performance as ensuring the financials are

  • AICPA changes going concern audit standard

    By Michael Cohn Published February 22 2017, 12:02pm The American Institute of CPAs’ Auditing Standards Board has revised its standard for going concern opinions. The new standard, Statement on Auditing Standards No. 132, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (AICPA, Professional Standards, AU-C sec. 570), supersedes SAS No.

  • Voices Does automation mean job losses for accountants?

    While opinions vary on the number of jobs that can be “automated away,” it’s clear a large number of positions now handled by people, including accounting jobs, will be supplemented or replaced in some way by intelligent machines. The utterance of the word “automation” conjures up gloomy images of job losses and people left behind

  • Trump’s Deregulation-Oriented Executive Orders: How Will They Impact Recent CFPB Regulatory Actions and Other Financial Regulations?

    USA February 17 2017 How will President Donald J. Trump’s recent executive order—(i) the “one-in-two-out” cap on new regulations and (ii) the mandated review of existing financial regulations—impact financial regulation, including regulations promulgated by the Consumer Financial Protection Bureau (CFPB)? It depends. What happened There are at least two executive orders making waves throughout the

  • SEC Targets Severance Agreements That Impede Whistleblowers

    SEC Targets Severance Agreements That Impede Whistleblowers Blog Employers’ Lawyers Blog Holland & Hart LLP USA February 7 2017 The U.S. Securities and Exchange Commission (SEC) is cracking down on severance agreements that prohibit former employees from contacting regulators or accepting whistleblower awards under threat of losing their severance payments or other post-employment benefits. More

  • FASB business definition guidance will aid some companies, but not all

    By Michael Cohn The Financial Accounting Standards Board’s guidance on the definition of a business could be of special benefit to the real estate, pharmaceutical, biotech and financial services industries, but doesn’t go as far as some had hoped. FASB issued the accounting standards update last month (see FASB clarifies business definition). The update clarifies

  • FASB goodwill impairment simplification proves to be popular

    At least one of the Financial Accounting Standards Board’s simplification initiatives is proving to be so popular that some companies want to adopt it as of yesterday. It involves eliminating an extra step for goodwill impairment tests. Late last month, FASB released a new standard to simplify the goodwill impairment test, allowing many companies that

  • Melancon: CPA firms will be unrecognizable in 5-10 years

    The number of changes facing the accounting profession will leave most practices radically altered in the near future, according to Barry Melancon, the president and CEO of the American Institute of CPAs. Speaking at a gathering of technology vendors hosted by CPA.com and the institute, Melancon told attendees, “We are in a change management profession.

  • Supreme Court decision creates liability risk for CPA profession regulators

    By Joseph P. Petito, Esq. February 9, 2017 Members of state boards of accountancy may be vulnerable to lawsuits following a 2015 Supreme Court decision that state regulators could be held personally liable for potential antitrust actions taken on behalf of the regulatory body. The ruling applies to all state regulatory boards that are made

  • Leases implementation webcast series: Lease modification for lessees to be discussed

    09 February 2017 In response to feedback received from stakeholders the IASB staff will be recording a webcast addressing modifications for lessees. In the new webcast, IASB staff will talk about the modification requirements in IFRS 16 and questions received from those currently implementing the new Standard. The webcast is expected to be published in March

  • Voices Preparing for the new rev rec standards: Choosing the right adoption method

    As companies prepare for the new revenue accounting standards that take effect for all public companies in 2018, a wide range of accounting and financial executives are tasked with evaluating what adjustments will need to be made and what new procedures will need to be put in place for recording various financial metrics. Revenue recognition

  • China planea crear una nueva comisión para prevenir ciberataques

    La iniciativa se encargará de evaluar qué productos y hardware podrían ser vulnerables, para incrementar el control de la red y flujos de datos. 06 de Febrero de 2017 | 12:43 | EFE 1 Reuters BEIJING.- El Gobierno chino está considerando crear un nuevo organismo para estrechar el control del ciberespacio y prevenir ataques del

  • Global Data & Privacy Update – February 2017

    Clyde & Co LLP Welcome to the February Global Data & Privacy Update. This update is dedicated to covering the latest legislative developments affecting the way data is managed and protected, as well as reporting on the most recent news governing data breaches and industry developments. ICO fines RSA for data protection breach The ICO

  • 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