• PCAOB plans further changes on inspections and quality control

    December 3, 2019 Published: Accounting Today Public Company Accounting Oversight Board Chairman William Duhnke said Tuesday the PCAOB with its reconstituted board is making changes in its inspections regime and quality control standards for auditing firms, while also doing more outreach to audit committees. “Currently, the PCAOB is in the middle of significant change,” he

  • Mark Carney appointed as un´s special envoy on climate action and finance

    December 2, 2019 Published: International Accounting Bulletin Bank of England Governor Mark Carney has been appointed as UN special envoy for climate action and finance. He will start his new position once his term at the Bank of England comes to an end. As special envoy, he will focus on the implementation of climate action,

  • SEC Proposes to Modernize Regulation of the Use of Derivatives by Registered Funds and Business Development Companies

    November 25, 2019 Published: SEC The Securities and Exchange Commission has voted to propose a new rule designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds (ETFs) and closed-end funds, as well as business development companies. The proposed rule would provide an updated and more comprehensive

  • Accountants Can Support Sustainable Corporate Governance

    November 20, 2019  Published: IFAC By: Olivier Boutellis-Taft  The time is now! World leaders, the US Business Roundtable, scientists, students and the new European Commission agree on the need for immediate action on sustainability. Making our economy sustainable is not about doing good: it is about staying in business and still having a liveable planet for

  • OECD launches automatic exchange of information programme

    November 26, 2019 Published: The Accountant The Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme’s Tax Inspectors Without Borders initiative (TIWB) has launched a project on automatic exchange of information (AEOI). The TIWB initiative is to launch a number of pilot programmes in an effort to support developing countries’ efforts

  • FASB issues narrow-scope changes to credit losses standard

    November 26, 2019 Published: Journal of Accountancy FASB issued narrow-scope improvements Tuesday to its new accounting standard for credit losses. The new Accounting Standards Update (ASU), Codification Improvements to Topic 326, Financial Instruments — Credit Losses, addresses concerns voiced by accountants and other stakeholders regarding implementation of the new credit losses standard, ASU No. 2016-13, Financial Instruments — Credit Losses

  • Voices: Three ways to recruit top talent to your firm in 2020

    November 21, 2019 Published: Accounting Today By: Leah Machado The tight labor market is impacting every industry, including accounting. As the national rate of unemployment hovers near a 50-year low, firms of all sizes are struggling to find and retain quality employees. The 2019 “Paychex Pulse of HR Survey” found that talent is among the top factors impacting

  • Valuation in spotlight as SEC mulls expanding investment opportunities

    November 20, 2019 Published: Journal of Accountancy As the SEC explores new possibilities for “Main Street” investors to have access to offerings that are now considered exempt, private-equity firm financial statement auditors may find even more investors relying on their work. In June, the SEC issued a concept paper seeking comment on whether to make a broader

  • ICAEW publishes guide to provide better understanding of assurance

    November 20, 2019 Published: The Accountant The Institute of Chartered Accountants in England and Wales (ICAEW) and the World Business Council for Sustainable Development (WBCSD) has published a guide to help businesses better understand how non-financial assurance works. The ICAEW and WBCSD have found that companies believe that the market place for assurance services on

  • PCAOB Approves 2020 Budget, Reaffirms Strategic Direction

    November 19, 2019 Published: PCAOB The Public Company Accounting Oversight Board today approved its fiscal year 2020 budget and five-year strategic plan in an open meeting. The Board’s strategic plan guides the PCAOB’s programs and operations and serves as the foundation for the budget. “We are proud of the progress we made to execute our strategic plan in year one,”

  • An Overview of KAMs in the European Banking Sector

    November 15, 2019 Published: Accountancy Europe Source: Audit Analytics This article has been published by Audit Analytics. It is about the second annual survey we performed on the auditor’s reporting of key audit matters (KAMs) in the European banking sector since KAMs became required by EU law and international standards in 2017. One of the main goals of the

  • FASB officially delays 4 major standards

    November 15, 2019 Published: Journal of Accountancy On Friday, FASB issued two new Accounting Standards Updates (ASU) that delay many of the effective dates for new standards on leases, hedging, current expected credit losses (CECL), and long-duration insurance contracts. The updates came a month after FASB voted unanimously to delay certain effective dates for leases, hedging, and

  • Exploring Talent Management Challenges and Opportunities

    November 12, 2019 Published: The Institute of Internal Auditors Internal audit talent management has become increasingly complex in the world of rapidly developing technology and ever-dwindling budgets. Identifying the right mix of skill sets and finding top talent who possess them is only one part of the equation. Creating a culture and developing a recruitment

  • Accounting for Value Creation and Encouraging the Rise of the Chief Value Officer

    November 7, 2019 Published: IFAC By: Kevin Dancey, Charles Tilley Accounting is a time-tested discipline. It’s been around since Luca Pacioli invented double entry bookkeeping over five centuries ago. It is the means to capture the monetary value that has been realized through transactions. For the better half of the last millennia, accounting has been the language

  • Demand for sustainability assurance is growing

    November 12, 2019 Published: Journal of Accountancy The demand for sustainability assurance is likely to grow in the coming years, according to a new survey conducted by The Conference Board. Thirty-seven of the 57 large U.S. and European companies participating in the survey said they obtain assurance on at least some of their publicly reported

  • FASB proposes clarifications to certain areas of the derivatives and hedging standard

    November 12, 2019 Published: FASB The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) to clarify certain sections of its 2017 hedge accounting standard.  Stakeholders are asked to review and comment on the proposed ASU by January 13, 2020. “During our outreach to help stakeholders understand and implement the new hedging standard,

  • SEC Division of Enforcement Publishes Annual Report for Fiscal Year 2019

    November 6, 2019 Published: SEC The Securities and Exchange Commission’s Division of Enforcement today issued its annual report for fiscal year 2019. The report details the division’s efforts and initiatives on behalf of investors, highlights several significant actions, and presents the activities of the division from both a qualitative and quantitative perspective. “The results depicted in

  • Statement on IOSCO study of emerging global stablecoin proposals

    November 4, 2019 Published: IOSCO At its meeting on 30th October in Madrid, the Board of the International Organization of Securities Commissions (IOSCO) met, amongst other things, to consider the risks and benefits arising from ‘stablecoin’ initiatives with a potential global reach (‘global stablecoins’), and how securities market regulation may apply to such initiatives. This

  • IFAC seeks consistency, accountants’ engagement in corporate reporting

    November 7, 2019 Published: Journal of Accountancy As currently constructed, the corporate reporting system does not help organizations to communicate effectively or enable stakeholders to easily understand companies’ ability to create sustainable value over time, according to the International Federation of Accountants (IFAC). In a position paper published Thursday, IFAC stated that investors and other stakeholders are

  • Auditors need to improve their challenge of management urgently

    November 5, 2019 Published: FRC Audit quality is still not consistently reaching the necessary high standards expected, according to the Financial Reporting Council’s (FRC) Developments in Audit report, particularly when challenging management and performing routine procedures such as revenue recognition. High quality audit is essential to ensure confidence in financial reporting by UK companies. The FRC is working with

  • How audit committees can improve disclosure

    November 6, 2019 Published: Journal of Accountancy The percentage of audit committees providing public disclosure on many key metrics has increased in recent years, but opportunities for greater transparency remain, according to a yearly report published Wednesday by Audit Analytics and the Center for Audit Quality (CAQ), which is affiliated with the AICPA. An examination

  • New Education Standards Focus on Enhancing Accountancy’s Technology and Skepticism Skills

    October 21, 2019 Published: IAESB The International Accounting Education Standards Board (IAESB) today released four revised International Education Standards (IESs) addressing learning and development for information and communications technologies (ICT) and professional skepticism. As market expectation increases for ICT skills and professional skepticism, these standards were developed to address the competencies, skills, and behaviors for

  • FRC sets out expectations for corporate reporting to improve trust in business

    30 October 2019 Published: FRC The Financial Reporting Council (FRC) has today called for improvements to corporate reporting in an open letter to all Audit Committee Chairs and Finance Directors. The letter reflects findings from the FRC’s Annual Review of Corporate Reporting 2018/19 (published today) and the scope for companies to improve their reporting to address matters of increasing

  • CIMA updates Code of Ethics

    October 28, 2019 Published: The Accountant The Chartered Institute of Management Accountants (CIMA) has updated its Code of Ethics with the aim of better helping finance professionals deal with ethics and independence challenges in a modern digital business world. The updated code will come into effect 1 January 2020. Key changes to the code include:

  • 2019 OECD SME and Entrepreneurship Outlook Highlights

    October 25, 2019 Published: IFAC By: Sandrine Kergroach  As the predominant form of business and employment, small and medium-sized enterprises (SMEs) are main drivers of productivity and key actors for building more inclusive and sustainable growth. Across the OECD, almost one out of three employees work in a micro firm with less than 10 employees and

  • Sustainable Finance Call to action

    Achieving high quality & consistent reporting October 22, 2019 Published: Accountancy Europe Today’s economy needs to undergo an urgent and radical transformation to achieve climate-neutrality and sustainability. To realise such a shift, we need high-quality data on environmental, social and governance (ESG) matters, as this data is the basis for sustainable decision-making. Companies are increasingly reporting on ESG matters. However, the relevance, quality and comparability of the reported information needs to improve in order to meet stakeholder expectations. Better non-financial information will improve the assessment of ESG risks and opportunities and will eventually lead

  • ASB addresses compliance with GAAS, PCAOB standards

    October 24, 2019 Published: Journal of Accountancy The AICPA Auditing Standards Board (ASB) issued a new interpretation Wednesday that provides guidance on how an auditor complies with AU-C Section 700A, Forming an Opinion and Reporting on Financial Statements, in the AICPA Professional Standards when the communication of critical audit matters as described in PCAOB standards is required. The

  • UK´s FRC launches updated Stewardship Code

    October 24, 2019 Published: The Accountant The UK’s Financial Reporting Council has launched a revision to the UK Stewardship Code. The new code raises expectations for how money is invested on behalf of UK savers and pensioners. The Code establishes a benchmark for stewardship as the responsible allocation, management and oversight of capital to create

  • Lease accounting: Keep pushing ahead

    October 21, 2019 Published: Journal of Accountancy By Thomas Faineteau, CPA In February 2016, FASB issued new lease accounting requirements in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under its core principle, a lessee recognizes a right-of-use (ROU) asset and a lease liability on its balance sheet for most leases, including operating leases. This

  • UK´s FRC: Investors seek clearer Reporting on Climate – Related Issues

    October 22, 2019 Published: The Accountant Companies are falling short of investors’ expectations for clearer reporting on climate-related issues, according to the UK’s Financial Reporting Council’s (FRC) Financial Reporting Lab. The report, Climate-related corporate reporting, highlighted the gap between current reporting and investor expectations as economies increasingly transition towards low carbon futures. Climate-related reporting outlines what investors

  • Sustainability standards seen as too fragmented

    October 17, 2019 Publushed: Accounting Today Environmental, social and governance reporting is filled with competing sets of sustainability-related standards that are in need of simplification and consolidation, according to accounting standard-setters and experts. “What we need in the world of ESG is a convergence project,” said International Accounting Standards Board Chairman Hans Hoogervorst during an

  • Organizations increasingly vulnerable to fraud

    October 17, 2019 Publushed: Accounting Today Companies lack adequate anti-fraud staff and resources and are seen as more likely to fall prey to fraud than in the past, according to a new report. The report, released Thursday by the Association of Certified Fraud Examiners at a Fraud Risk Management Summit in New York, polled 886 ACFE

  • FASB votes to delay effective dates for 3 major standards

    October 16, 2019 Published: Journal of Accountancy Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses (known as CECL), and hedging after a unanimous vote Wednesday by FASB. FASB directed its staff to draft an Accounting Standards Update (ASU) that will change the

  • Corporate Boards May Be Blind to Risks

    October 15, 2019 Published: The Institute of Internal Auditors (IIA) Unique Survey Finds Critical Gap Between What Boards Think Is Going On and What’s Really Happening Boards are significantly overconfident when it comes to addressing the thorniest issues facing organizations today. Board members have greater confidence in their organizations’ ability to manage key risks than members of

  • IFAC sees greater adoption of global accounting standards

    October 14, 2019 Published: Accounting Today The International Federation of Accountants issued a report Monday indicating strong support for international accounting and auditing standards, particularly in areas where IFAC member organizations are involved in the process from beginning to end. The report includes data from more than 170 professional accountancy organizations that make up IFAC’s

  • FRC reviews of disclosures relating to reporting requirements

    October 10, 2019 Published: FRC Companies have responded positively to newly introduced reporting requirements for Revenue Recognition and Financial Instruments but there is still considerable scope for them to improve the quality of their annual report disclosures. The findings relate to three thematic reviews conducted by the Financial Reporting Council (FRC) to analyse companies’ disclosures for the

  • OECD leading multilateral efforts to address tax challenges from digitalisation of the economy

    October 9, 2019 Published: OECD The OECD Secretariat published a proposal to advance international negotiations to ensure large and highly profitable Multinational Enterprises, including digital companies, pay tax wherever they have significant consumer-facing activities and generate their profits. The new OECD proposal brings together common elements of three competing proposals from member countries, and is based on

  • To rebuild trust in auditors, we need the courage to speak up

    October 7, 2019 Published: Accountancy Europe Marie-Pauline Lauret, Global Head of Internal Audit of a large Dutch listed company, tells us about how auditors can help rebuild trust in the profession by speaking up and looking beyond the scope of their role. Auditors can change culture! Auditors have the power to change corporate culture from

  • Key audit matters in European Banking sector – update 2019

    Auditors identifying risks October 7, 2019 Published: Accountancy Europe Key audit matters (KAMs) are the most significant risks in the audit of financial statements. They have the biggest impact on overall strategy and the allocation of resources in an audit. KAMs are communicated by the auditor in their report. Reporting on KAMs opens the way

  • 21% of JSE-Listed Companies have changed their auditors ahead of MAFR deadline

    October 8, 2019 Published: The Accountant With less than four years remaining until the effective date of Mandatory Audit Firm Rotation (MAFR) (1 April 2023) in South Africa, roughly 21% of the JSE Ltd main board listed companies have voluntarily rotated auditors since the Independent Regulatory Board for Auditors (IRBA) started tracking audit firm rotations

  • Critical audit matters: What firms are reporting

    October 4, 2019 Published: Journal of Accountancy By: Maria L. Murphy, CPA Some important themes are emerging in auditors’ reporting of critical audit matters, which are the key component of the biggest change to public company auditor reporting in 70 years. Goodwill and intangible assets, revenue, and income taxes were the most frequent topical areas reported

  • IOSCO publishes updates to peer reviews of regulation of MMFs and securitization

    October 2, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published two update reports entitled Update to the IOSCO Peer Review of Regulation of Money Market Funds and Update to the IOSCO Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation. These reports summarize IOSCO’s ongoing efforts to monitor implementation of

  • Research supports the FRC taking firmer action on regulation

    October 2, 2019 Published: The Accountant The UK’s Financial Reporting Council (FRC) citizens’ juries believe the FRC should take firmer action to hold companies to account, says new research. The citizens’ juries allowed participants to be presented with, and have time to discuss topics including corporate reporting, corporate governance, audit and the FRC’s work in

  • New TQAs discuss 2019 Compliance Supplement’s guidance for performing single audits

    September 24, 2019 Published: Journal of Accountancy By: Ken Tysiac New Technical Questions and Answers (TQAs) posted Tuesday by the AICPA provide nonauthoritative guidance related to single audits. The Office of Management and Budget’s 2019 Compliance Supplement contains new guidance for single audits, which are compliance audits performed under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for

  • Alliance of accounting organisations finds multidisciplinary firm structure benefits audit quality

    September 27, 2019 Published: The Accountant A global alliance of accounting organisations has found firms that offer both audit and non-audit services are best positioned to deliver robust and reliable assurance. A report published by Chartered Accountants Australia and New Zealand (CA ANZ), the Association of Chartered Certified Accountants (ACCA) and the International Federation of

  • OECD: Use of Digital Technologies set to increase Tax compliance

    September 24, 2019 Published: The Accountant The recently published eighth edition of the OECD’s Tax Administration Series reveals how tax administrations are increasingly moving to e-administration and using a range of technology tools, data sources and analytics to increase tax compliance. According to the report, an increase in e-administration are creating more options for online filing of

  • Voices: Operating vs. finance leases: The impact of the new standard

    September 24, 2019 Published: AccountingToday By: Kevin Rhode The clock is ticking on the countdown to the implementation of the new lease accounting standard for private companies. According to reports from the Securities and Exchange Commission and the U.S. Chamber of Commerce, U.S. companies currently have an estimated $2.8 trillion in operating lease obligations that are

  • Climate Action in a Climate Emergency

    September 19, 2019 Published: IFAC By: Kevin Dancey, Chief Executive Officer, IFAC Climate change is serious. The threat is immediate. There is no long-term planning horizon. It is one of those big, scary, multi-faceted societal problems that will require serious, coordinated vision and leadership to solve. This is not a problem we can wish away

  • Taxes on polluting fuels are too low to encourage a shift to low-carbon alternatives

    September 20, 2019 Published: OECD Taxing polluting sources of energy is an effective way to curb emissions that harm the planet and human health, and the income generated can be used to ease the low-carbon transition for vulnerable households. Yet 70% of energy-related CO2 emissions from advanced and emerging economies are entirely untaxed, offering little incentive

  • The IIA Releases New Practice Guide on Demonstrating the Core Principles for the Professional Practice of Internal Auditing

    September 19, 2019 Published: The Institute of Internal Auditors The IIA’s Core Principles for the Professional Practice of Internal Auditing are part of the IPPF’s Mandatory Guidance. The principles validate the effectiveness, credibility, and value of the internal audit activity within an organization’s governance structure.   This new practice guide explains the concepts embodied in the