PCAOB Amendments to Rule 4003 Receive SEC Approval
Amendments to Public Company Accounting Oversight Board (“PCAOB”) Rule 4003, Frequency of Inspections, have been approved by the Securities and Exchange Commission (“SEC”). Effective immediately, the amendments address how often the audit regulator performs inspections of various groups of registered public accounting firms. The amendments also: Remove the triennial inspection requirement for “substantial role only” firms, and replace it with a requirement to inspect at minimum five percent of such firms annually; Preserve the requirement to inspect firms that issue audit reports for an issuer but give the PCAOB permission to decline an inspection for any firm that does not. Read More.
GASB Announces New Equity Interest Ownership Consultative Group
Governmental Accounting Standards Board (“GASB”) Chair David Vaudt recently appointed 16 professionals to a new consultative group that will help the board’s research examine equity interest ownership of legally separate businesses. The consultative group members serve various positions and include state auditors, college professors, accounting firm partners and managers, and chief financial officers. The full list of members are available on the GASB website.
It’s About Time: GSA Finally Releases Alliant 2 Request for Proposals
On June 24, 2016, the General Services Administration (“GSA”) released its Request for Proposal (“RFP”) for the long-awaited Alliant 2 Small Business (“A2SB”) Governmentwide Acquisition Contract (“GWAC”). The government estimates that a maximum of 80 awards will be made for A2SB, which has a $15 billion ceiling over 10 years. A2SB will be an contract that provides IT solutions through a broad range of services. For contractors deciding or preparing to bid on A2SB, it is imperative to gain sufficient information about the RFP and its scoring methodology. GSA officials are adamant that respondents read the entire 174 page RFP,. Read More.
Topics: Alliant 2, Alliant 2 Small Business "A2SB", Cognizant Federal Agency "CFA", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Forward Pricing Rate Agreements, forward pricing rate recommendations "FPRR", General Services Administration "GSA", Governmentwide Acquisition Contract "GWAC", indefinite-delivery indefinite-quantity “IDIQ”, Request for Proposal "RFP"
Brexit: What It Could Mean for High Growth Companies
On June 23, 2016, 52 percent of the United Kingdom voted to exit the European Union. This process will not happen immediately and could take at least two years to complete. So, what will this mean to U.S. companies and how will it impact high growth companies? In working with innovative, high growth companies in the technology, health and industrial industries, Cherry Bekaert found that most executives believe there will be some type of impact on their business, but that impact will be minimal. Currency risks seem to be the top concern as this decision could hurt the British pound. Read More.
Banks to Change Practices for FASB Credit Loss Standard
A day after the Financial Accounting Standards Board (“FASB”) published its final standard for writing down bad loans and securities, federal banking regulators announced that banks will change how they set aside loss reserves under the new guidance. Regulators want banks to apply Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in a practical and reasonable manner with respect to their size and risk profile. Smaller banking institutions, for instance, are expected to modify their current allowance procedures to meet the FASB’s new requirements without using expensive and complex. Read More.
Revenue Recognition Working Drafts Issued for Nine Industries
Earlier this month, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) issued 20 working drafts of interpretative guidance for implementation issues related to the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The working drafts offer industry-specific examples for implementing the revenue recognition standard, and pertain to the following sectors: Aerospace and Defense Airlines Broker-dealers Engineering and Construction Contractors Gaming Health Care Asset Management Nonprofits Software Comments on the working drafts must be submitted by Thursday, September 1.
Topics: Aerospace, Airlines, Asset Management, Broker-Dealer, Engineering and Construction Contractors, Financial Reporting Executive Committee "FinREC", Gaming, Health Care, Nonprofits, Revenue Recognition, Software