SEC and SBA to Co-Host Events on Small Business Capital Raising
Partnering with the Small Business Administration (“SBA”), the Securities and Exchange Commission (“SEC”) has announced a joint venture to host events for informing small business owners and entrepreneurs on new options to help raise capital under the Jumpstart Our Business Startups (JOBS) Act. In a news release this week, the SEC said the joint events are geared toward current and prospective small businesses, such as those owned by minorities, women, and veterans. The events will also cover the JOBS Act, which increases the options businesses could use to raise capital, and other ways small businesses can raise funds per current and proposed. Read More.
SEC Chair Pushes for Increased Gender Diversity on Corporate Boards
Speaking at a global conference on women in Washington, D.C. this week, Securities and Exchange Commission (“SEC”) chair Mary Jo White criticized the lack of women in boardrooms. In her remarks, White expressed frustration at the slow progress of gender diversity among corporate boardrooms and top management. Despite companies using mandatory quotas and other efforts to increase the representation of women on boards, White does not believe such methods are the best answer to boosting diversity. Citing recent data numbers and research, White said increased board diversity creates stronger boards since women have a higher understanding of employee and customer. Read More.
SEC Nearing Decision on IFRS Adoption
As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant. Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance,. Read More.
FASB to Create Advisory Panel for Adoption of Asset Impairment Standard
Expected to issue its standard for recording loan losses next year, the Financial Accounting Standards Board (“FASB”) is creating an advisory panel to assist companies in the implementation of Proposed Accounting Standards Update No. 2012-260, Financial Instruments—Credit Losses (Subtopic 825-15). Responding to investors’ complaints about banks using the incurred-loss model for reporting losses during the global financial crisis, the standard will help disclose bad loans and securities, as well as adopt a current-expected-credit-loss (CECL) model. The new model will require banks to evaluate forthcoming losses on loans going bad and establish reserves based on such estimates. Commenting on the advisory. Read More.
Accounting for PCC Issue on Identifiable Intangible Assets Finalized
Announced by the Private Company Council (“PCC”), the accounting for identifiable intangible assets in PCC Issue No. 13-01A, “Accounting for Identifiable Intangible Assets in a Business Combination” has been finalized. In preparation for endorsement by the Financial Accounting Standards Board (“FASB”), a final Accounting Standards Update (ASU) is being prepared. The ASU will feature amendments stating an entity would not identify non-competition agreements, and customer-related intangible assets not able to be sold or licensed separately from other assets in a business combination. Once endorsed, the amendments would go into effect for business combinations agreed upon in the first annual period. Read More.
FASB and IASB to Address Revenue Recognition Standards Concerns
With worries rising over the transition to the recently issued revenue recognition standards, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) have scheduled a meeting next month to review the 2017 effective date. Set for October 31st, the Transition Resource Group meeting is expected to add the effective date as part of its agenda and include a discussion on how both standard-setters should address concerns. The standards in question are FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Considered the most notable. Read More.