AICPA Adopts New Guidance for Reviews
Recently, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Center (“FRC”) added more guidance under Section 9150, Compilation and Review Engagements. Per the new guidance, TIS Section 9150.34 aides private companies that have implemented Accounting Standards Update No. 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements, on their present year’s financial statements, but not in previous years. The new guidance is under paragraph 34, entitled, “Modification to the Accountant’s Compilation or Review Report When a Client Adopts a Private Company Council Accounting Alternative That Results in a Change to a Previously Issued. Read More.
Student Loan Borrowers Being Automatically Placed in Default
Reviewing over 2,300 complaints concerning private student loan companies, a report by the Consumer Financial Protection Bureau (“the Bureau”) indicated that some borrowers are being placed in default when their cosigner dies or files for bankruptcy. In some instances, borrowers were placed in default even when payments were being made on time or without having a chance to pay the full balance. While it is unknown how often this practice occurs, the Bureau’s Rohit Chopra hoped lenders “might review these policies and consider alternatives,” but also stated, “most of the larger players in this industry do have contracts that contain. Read More.
IIRC and GISR Reveal Memorandum of Understanding
Working in support of corporate reporting and ratings frameworks, the International Integrated Reporting Council (“IIRC”) and the Global Initiative for Sustainability Ratings (“GISR”; “the Global Initiative”) have announced a Memorandum of Understanding (“MoU”; “Memorandum”). The IIRC and GISR’s Memorandum symbolizes the organizations’ joint collaboration and continuing efforts in creating cohesive global reporting and ratings’ standards and frameworks. The IIRC has designed an International Framework, which is aimed to deliver principles-based guidance for organizations and bring about better innovation in global corporate reporting. As the IIRC’s partner, the Global Initiative is focused on increasing the clarity and efficiency of sustainability ratings,. Read More.
Upcoming Opportunity for Innovative Systems for Military Missions
Despite all the concerns about budgets, force drawdowns and sequestration, the Defense Advanced Research Projects Agency (“DARPA”) Tactical Technology Office (“TTO”) has announced its intention to issue a Broad Agency Announcement (“BAA”) calling for “executive summaries, white papers and proposals for advanced research, development and demonstration of innovative systems.” “Innovative systems” enable revolutionary improvements to the capability, efficiency and effectiveness of the military. TTO is interested in research, design, development and demonstration of systems which create a decisive overmatch or asymmetric capability, particularly organizations with experience in systems engineering, manned-unmanned teaming and autonomous systems. Such proposals should address rapid experimentation,. Read More.
Cost-Type Contracting: A Cautionary Tale
Armed Services Board of Contract Appeals (“ASBCA”; “the Board”) Nos. 56581 and 58038, Appeals of PHI Applied Physical Sciences, Inc. (“PHI”), involve cost overruns allegedly incurred in performance of a cost-reimbursable contract. However, this case illustrates some important points which every contractor, particularly those new to cost-type contracting, should keep in mind. PHI was awarded a cost-plus-fixed-fee (“CPFF”) contract by the U.S. Army to develop a miniature fluorometer for the Defense Advanced Research Projects Agency (“DARPA”) and demonstrate it at the U.S. Department of Defense’s Small Business Innovation Research Program (“SBIR”) Phase II and Beyond Conference. The total estimated cost. Read More.
SEC’s Conflict Minerals Rule Declared Unconstitutional
After being disputed in court, the U.S. Court of Appeals for the District of Columbia Circuit (“the Court”) ruled that the U.S. Securities and Exchange Commission’s (“SEC”) final rule on conflict minerals is a violation of the Constitution’s First Amendment. Per the Court’s ruling, the SEC’s rule stated that companies are obliged to “state on their website that any of their products have not been found to be…conflict free.” Despite the ruling, a cautionary approach was suggested for the requirement. The Court remarked: “…that an issuer use the particular descriptor ‘not been found to be ‘DRC conflict free’’ may arise. Read More.