DeVry Accused of Misleading Employment and Income Statistics
The Federal Trade Commission (“FTC”) has filed a lawsuit against DeVry University and the DeVry Education Group. DeVry and its parent company are being accused of making false claims regarding the job placement rates and earnings of its graduates. The FTC alleges that the for-profit school claimed 90 percent of graduates land jobs within six months of graduation, and its graduates achieve 15 percent higher incomes one year after graduation than those at all other colleges. On the same day the FTC filed its lawsuit, the U.S. Department of Education issued a limitations notice to prevent DeVry from making deceptive. Read More.
Exposure Drafts on Retirement Benefits Issued
Announced on January 26th , the following Exposure Drafts have been issued by the Financial Standards Accounting Board: Proposed Accounting Standards Update (ASU), Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . Proposed ASU, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans . Comments on these Exposure Drafts are due Monday, April 25th. Electronic Feedback Forms are available to submit comments regarding the proposed ASUs on Compensation—Retirement Benefits (Topic 715) and Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) .
FASB to Propose Slight Changes to Revenue Standard
As the Financial Accounting Standards Board (“FASB”) prepares its annual project for making technical corrections to U.S. GAAP, the standard setter is concurrently planning to issue a separate proposal featuring minor changes to its revenue recognition standard. The proposed revenue corrections cover several areas, including the clarification of contracts within the scope of Topic 944, Financial Services — Insurance. Hoping to issue the revenue clarifications by the end of March, the FASB decided to release the amendments separately due to the prominence of Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Upon release, the proposed changes will have. Read More.
SAS No. 131 Issued by AICPA Auditing Standards Board
The American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board has issued Statement on Auditing Standards (SAS) No. 131, Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards, AU-C sec. 700). SAS No. 131 provides clarity in regard to the format of the auditor’s report that must be issued when an audit is performed in accordance with the Public Company Accounting Oversight Board’s (“PCAOB”) standards, but is outside of the PCAOB’s jurisdiction. In such cases, SAS No. 131 says that the auditor is required to do the. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Auditing Standards Board "ASB", Generally Accepted Auditing Standards "GAAS", Public Company Accounting Oversight Board "PCAOB", Statement on Auditing Standards "SAS"
Small Business Size Standards: Inflation Adjustment to Monetary Based Size Standards
On January 25, 2016, the Small Business Administration (“SBA”) finalized an interim rule which adjusts the monetary amounts used by small businesses to determine a company’s small business status. The interim final rule, which was originally issued on June 12, 2014, became effective on July 15, 2014, with the comment period ending August 11, 2014, and the final interim rule being established in December of 2014. The size standards are effective February 26, 2016. To summarize, the SBA increased all industry specific monetary small business size standards by 8.73 percent. Additionally, the rule increased the alternate size standards for tangible net worth and. Read More.
North Carolina Initiative Targets Manufacturing Skills Gap
In a recent nationwide survey, over 80 percent of manufacturers said that the shortage of skilled workers impairs their business. To help close this “skills gap”, the North Carolina Chamber Foundation has become the certifying organization for the NC Works Certified Work Ready Communities initiative. The program seeks to align education and workforce at county levels, which will support the state’s manufacturing sector find workers with the skills necessary to help their companies thrive. Currently, there are 30 North Carolina counties either certified or working toward certification. Counties looking to apply for local certification are encouraged to download and complete. Read More.