FASB to Incorporate Supreme Court’s Definition of Materiality
Addressing one of its top issues from Proposed CON No. 2014-200, the Financial Accounting Standards Board (“FASB”) decided last week to integrate the U.S. Supreme Court’s definition of materiality into Statement of Financial Accounting Concepts (CON) No. 8, Conceptual Framework for Financial Reporting: Chapter 1, The Objective of General Purpose Financial Reporting, and Chapter 3, Qualitative Characteristics of Useful Financial Information (a replacement of FASB Concepts Statements No. 1 and No. 2). The definition of materiality will now reflect a legal concept that differs by jurisdiction, and include the Supreme Court’s description stating information with “dubious significance” can be excluded. Read More.
Jan Sylvis Named GASB Vice Chair
Last week, the Financial Accounting Foundation’s (“FAF”) Board of Trustees (“the Board”) announced that Jan Sylvis has been appointed to Governmental Accounting Standards Board (“GASB”) vice chair. In this reinstated role effective January 1, 2015, she will focus on expanding GASB’s outreach to stakeholders. Currently chief of accountants for the Tennessee Department of Finance and Administration, Sylvis will serve the Board on a part-time basis. For the news release on Sylvis’ appointment, visit the FAF’s website. Also, Cherry Bekaert’s Government Services Group provides effective consulting, audit and compliance services to local and state governmental entities across the country. Check out our Government industry. Read More.
SEC Adopts Regulation Systems Compliance and Integrity
By unanimous vote Thursday, the Securities and Exchange Commission (“SEC”) approved to adopt the Regulation Systems Compliance and Integrity under the Securities Exchange Act of 1934, and corresponding amendments to Regulation ATS. Replacing the voluntary compliance system, the new rules require stock exchanges and certain larger trading platforms to take action against potential market disruptions like technology glitches and natural disasters. Required actions some self-regulatory organizations must take include: Creating and enforcing policies that ensure technology systems are strong and secure; Following minimum testing criteria and maintenance/monitoring inspections; Performing yearly compliance reviews for submission to senior management; and Issuing select notifications to. Read More.
FASB to Review Delaying ASU No. 2014-09’s Effective Date
As work on the new revenue recognition standard continues, Financial Accounting Standards Board (“FASB”) Vice Chairman James Kroeker recently stated there have been multiple requests to delay its effective date. At the October 31st Transition Resource Group meeting, Kroeker said the standard setter plans to do site visits in the fourth quarter this year and evaluate stakeholders’ progression in applying Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. FASB will then review any challenges stakeholders are facing and decide in the second quarter of 2015 whether postponing the implementation date is necessary. Presently, public entities are required to. Read More.
Exposure Draft Proposes Amendments to AICPA Peer Review Standards
Offering amendments to its Standards for Performing and Reporting on Peer Reviews (Peer Review Standards), the American Institute of Certified Public Accountants’ (“AICPA”) Peer Review Board has published the exposure draft , Preparation of Financial Statements Performed under SSARS and the Impact on Enrollment in and the Scope of Peer Review. The exposure draft’s amendments would not require firms that solely perform engagements under the Statement on Standards for Accounting and Review Services (SSARS) Preparation of Financial Statements, but do not perform other engagements to register for the AICPA’s peer review program. Proposed revisions to the Peer Review Standards include updates to. Read More.
FASB Issues Amendments on Pushdown Accounting
On Tuesday, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The ASU allows an acquired entity to choose to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The entity would have the option to use push down accounting. Prior to the ASU, all guidance relating to push down accounting was found in SEC guidance. Effective immediately, the amendments in ASU No. 2014-17 allow an acquired. Read More.