Exposure Draft for Proposed SSAE on Internal Controls Issued
An exposure draft on proposed Statement on Standards for Attestation Agreements (SSAE), Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting: Clarification and Recodification has been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”). Issued as part of the Board’s clarity drafting project, the proposed SSAE will replace AT section 801, Reporting on Controls at a Service Organization, and relate to a service auditor’s examination engagements when reporting on controls at organizations that offer services to user entities when such controls could apply. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Clarification, Controls, Exposure Draft, financial reporting, Recodification, Statement on Standards for Attestation Agreements "SSAE"
The New Revenue Recognition Standard: Step 5 Recognize Revenue as the Performance Obligations are Satisfied
As mentioned in our previous blogs , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 creating a whole new codification topic (ASC 606). The new standard ushers in a new era of revenue recognition by replacing thousands of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, and will be effective for public entities a year earlier. ASC 606. Read More.
FASB Seeking 2015 Release of Financial Instruments Standards
As the Financial Accounting Standards Board (“FASB”; “the Board”) begins work on its scheduled financial instruments accounting project, the standard setter is aiming to release its first two updates during the early part of 2015. The first phase, classification and measurement of financial instruments, is projected to be finished in the next few weeks and sent back to FASB with a final draft. For its asset impairment phase, FASB is expected to make its final decisions next month and possibly give approval for preparing the last update in November. Before the final updates are approved and published next year, the. Read More.
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.