Will Changes to Overtime Compensation Impact You?
Virtually all employers in America are facing a significant increase in payroll expenses, whether it is due to increases in minimum wage or the rising cost of providing employee benefits. Another major area for increasing payroll expenses, however, is overtime pay. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” [under the Fair Labor Standards Act (“FLSA”)]. In November 2014, the Department of Labor (“DoL”) indicated that it expected to issue proposed regulations related to overtime in February. Although the proposed regulations have. Read More.
GASB Statement on Fair Value Measurement Issued
The Governmental Accounting Standards Board (“GASB”) has published its final standard on fair value measurements, GASB Statement No. 72, Fair Value Measurement and Application. GASB Statement No. 72 details accounting and financial reporting matters associated with fair value measurements. Specifically, the new standard explains how fair value is to be measured, which assets and liabilities must be assessed, and what information should be disclosed within the notes of financial statements. Further, GASB Statement No. 72 defines fair value as the established price for an asset to be sold or paid to transfer a liability in an arranged transaction between market. Read More.
FASB Revisits Proposal on Hedge Accounting
After a five-year hiatus, the Financial Accounting Standards Board (“FASB”) recently continued talks on its proposal to simplify hedge accounting. At its meeting last Wednesday, the standard setter revisited Proposed Accounting Standards Update (ASU) No. 1810-100, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities—Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815). The updated ASU calls for hedge accounting changes to be incorporated among other financial instrument reporting improvements. While no decisions came out of FASB’s meeting, considerations were made on how hedge accounting could be revised. For instance, the FASB will. Read More.
Financial Accounting Foundation to Update Strategic Plan
Offsetting criticism over its strategic plan, the Financial Accounting Foundation (“the Foundation”; “FAF”) agreed Tuesday to revise the document to provide more transparency between the roles of FAF trustees and Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”) members. Released in December, the draft version of the Foundation’s strategic plan outlines the organization’s long-term vision and mission, as well as its oversight of the FASB and GASB. However, some ex-FASB members said the plan included language that appears to give the Foundation influence when setting standards, and does not promote the independence of the roles between FAF. Read More.
Private Companies Not Allowed to Early Adopt Exemption in Financial Instruments Standard
In response to private companies’ requests for early adoption of an exemption in the Financial Accounting Standards Board’s (“FASB”) planned financial instruments standard, the standard setter’s Private Company Council (“the Council”) agreed last week that all companies will have to implement the standard in its entirety on the effective date. The standard, which was drafted as Proposed Accounting Standards Update No. 2013-220, Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, features an exemption that impacts the disclosure requirements for securities shown at amortized cost. Many private companies believe the exemption is the standard’s most attractive. Read More.
SEC Could Implement Audit Firm Tenure Disclosure Requirement
While support remains uncertain for the Public Company Accounting Oversight Board’s (“PCAOB”) proposal to disclose an audit firm’s tenure at a particular client, staff members of the Securities and Exchange Commission (“SEC”) are considering including the requirement in an updated version of its audit committee report. Expected to be issued in a concept release later this year, inclusion of the audit firm tenure requirement is in response to SEC chair Mary Jo White’s call for updates to the provisions for proxy statements and audit committee reports. In her comments last May, White remarked that she wants investors to receive more. Read More.