FASB to Vote on Revenue Recognition Standard’s Effective Date
With many U.S. companies saying they will not have enough time to apply the Financial Accounting Standards Board’s (“FASB”) historic revenue recognition standard, the accounting board is expected to vote Wednesday on a possible deferral of proposed Accounting Standards Update Revenue from Contracts with Customers (Topic 606). At present, public companies don’t have to implement the new rules until the 2017 first-quarter of their financial statements. Although some companies prefer the 2017 effective date since their financial reporting systems are already prepared for the standard, unprepared companies need an extra year to implement the changes to their systems. Along with pressure. Read More.
New York State Politician Accused of Misusing Public Funds
A New York state legislator recently found himself in hot water over an alleged misappropriation of public funds. Based on a report from the New York Daily News, Assembly Speaker Carl Heastie purportedly steered over $600,000 to a nonprofit organization with no official board or tax filings. The group, the Bronx Business Alliance, was once awarded a state grant to renovate buildings owned by a partnering nonprofit board member. However, the owner used the money for something other than the property. In response to the report, Heastie claimed he wasn’t responsible for checking if the public dollars the Bronx Business. Read More.
SEC Approves Regulation A+, Increases Regulation A Offering Limit
By unanimous vote this week, the Securities and Exchange Commission (“SEC”) has adopted rules and forms associated with the offer and selling of securities in accordance with Section 3(b) of the Securities Act of 1933 to carry out Section 401 of the JOBS Act. Section 401 features provisions (called Regulation A+) that allow public offerings of up to $50 million during a 12-month timeframe, without requiring compliance to the SEC’s customary registration requirements. The adopted rules form the following two-tiered system: Featuring the current Regulation A, Tier 1 raises the public offerings limit from the existing $5 million worth of. Read More.
Guidance Issued on Waivers under Regulation A and Regulation D
Offering guidance for the process to allow disqualification waivers, the staff of the Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”) recently issued Waivers of Disqualification under Regulation A and Rules 505 and 506 of Regulation D. Discussed in the guidance are topics such as Regulation A and Rule 505 of Regulation D, Rule 506 of Regulation D, and the factors Corp Fin considers during waiver requests. The disqualification requirements per Rules 262 and 505 under the Securities Act of 1933 cause registration exemptions under Regulation A and Rule 505 of Regulation D to be nullified for. Read More.
Pulse of Internal Audit Survey Report Published
Featuring feedback from over 300 chief audit executives and directors, the 2015 North American Pulse of Internal Audit survey report has been released by the Institute of Internal Auditors (“IIA”). The report analyzes the survey’s findings and provides varying perspectives regarding chief audit executives, the challenges they face, and ways to handle those challenges. According to the survey, there are major concerns over appropriately identifying emerging risks. Additionally, the survey discovered that chief audit executives are unable to gain the most sought-after skills required for tackling the shortfall. More notables included the expressed concern over cyberattacks and other security issues. Most internal audit leaders ranked such matters as either. Read More.
SEC Drops Remaining Pushdown Accounting Guidance
Announced by the Securities and Exchange Commission’s (“SEC”) Shelly Luisi at last week’s Emerging Issues Task Force (“EITF”) meeting, the remaining guidance related to pushdown accounting has been removed from the Accounting Standards Codification. Previously part of the generally applied accounting standards (U.S. GAAP), the guidance was considered ineffective after the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting (a Consensus of the FASB Emerging Issues Task Force), and the SEC issued Staff Accounting Bulletin No. 115, to remove the guidance in SAB Topic 5.JNew Basis of Accounting Required in Certain. Read More.