Updated Conceptual Framework Proposal Comment Letter Approved
During its July 15th teleconference, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) approved an updated draft comment letter related to the Financial Accounting Standards Board’s (“FASB”) Proposed Statement of Financial Accounting Concepts (CON) No. 2014-200, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. Despite not providing official guidance to users of financial statements, the proposal offers guidelines for writing U.S. GAAP disclosure requirements. Signed by FinREC’s Richard Paul and Rick Day, the seven-page letter orders FASB to review current disclosure requirements, and remove repetitive disclosures and insufficient information. Per the letter, the simplification of disclosures will. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", disclosure, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Financial Statements, U.S. GAAP
Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"
DCAA Issues new Guidance on Establishment of Provisional Billing Rates
On June 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 14-PPS-012(R) Guidance on Establishing Provisional Billing Rates . The new guidance is effective October 1, 2014, but early implementation is encouraged. This new guidance should help to ease issues that have arisen between DCAA and contractors regarding a contractor’s obligation to submit a proposal to establish billing rates. In the past, some of our clients have had DCAA auditors cite them for having deficient accounting systems because the contractor did not submit a “timely” proposal to establish billing rates. This was inappropriate because there is no specific requirement in the FAR for a contractor to submit. Read More.
SEC’s Release No. IC-31184 to Remove Credit Ratings from Money Market Fund Rule
Issued by the U.S. Securities and Exchange Commission (“the Commission”), Release No. IC-31184, Removal of Certain References to Credit Ratings and Amendment to the Issuer Diversification Requirement in the Money Market Fund Rule, was approved unanimously on July 23rd. The proposal aims to help the Commission lessen reliance on credit ratings in its rules due to the 2008 financial crisis. Among the changes proposed, most were part of Release No. 33-9408, Money Market Fund Reform, and relate to provisions in Rule 2a-7 of the Investment Company Act of 1940. The Dodd-Frank Act ordered regulatory groups to review rules that use. Read More.
House Members Want Update to 1982 Mining Industry Guidance
Signed by thirteen members of the House of Representatives, a July 7th letter sent to the U.S. Securities and Exchange Commission (“SEC”) requested that the agency update a 32-year-old portion of its interpretative guidance for mining companies. In the House members’ view, the guidance in Industry Guide No. 7, Description of property by issuers engaged or to be engaged in significant mining operations, does not fall in line with modern industry practices and puts U.S. mining companies at a disadvantage. By updating the guidance, lawmakers hope U.S. companies can become more competitive globally against foreign companies and offer better clarity. Read More.
Board of Directors Concerned About Cybersecurity
In a recent survey, over 250 corporate directors responded to questions regarding their companies’ top non-financial concerns. For the survey’s second straight year, reputational risk was listed as the highest concern among all respondents (72 percent), and second was cybersecurity and information technology (62 percent). Despite cybersecurity risk experiencing a nine percent jump from 2013, the survey revealed CFOs and CEOs lag on a strong understanding of the topic. Visit the CGMA Magazine for the survey’s complete results. Also check out our Industry section for the Firm’s services within the Technology sector.