2017 PCAOB Budget and Accounting Support Fee Approved
Last month, the Securities and Exchange Commission approved the Public Company Accounting Oversight Board’s (“PCAOB”) budget and accounting support fee for 2017. This year, the PCAOB’s budget will be $268.5 million and funded by an accounting support fee collection equaling $268 million. The budget is a four-percent increase from 2016 ($257.7 million). Additionally, 2017’s accounting support fee is a six-percent jump from the 2016 fee ($253.3 million).
ASBCA Holds that Leases are not Necessarily Subject to CAS 404
In Exelis, Inc., ASBCA No. 60131 (29 Aug. 2016), the Armed Services Board of Contract Appeals (“ASBCA”) held that a concern whether a building lease was a capital lease or an operating lease is not subject to Cost Accounting Standards (“CAS”) 404. In 2007, the Defense Contract Audit Agency (“DCAA”) released its audit of Exelis’ 2004 final indirect cost rates. DCAA questioned Exelis’ lease costs, finding that the building lease was a capital lease instead of an operating lease as claimed by Exelis and that Exelis could only include building depreciation in its indirect cost pool rather than the entire. Read More.
Topics: Armed Services Board of Contract Appeals "ASBCA", Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Federal Acquisition Regulation "FAR", GAAP, Indirect Cost Rates, leases
Jay Hanson Resigns from PCAOB
RSM McGladrey’s Jay Hanson has resigned from the Public Company Accounting Oversight Board (“PCAOB”). Announced on December 23, 2016, Hanson’s resignation was unexpected and comes two years before his second term was supposed to end. Hanson gave no reason for, or indication of, stepping down, but his last public decision was being the sole objecting vote against the PCAOB’s budget for 2017. No explanation was given for Hanson’s resignation, and the PCAOB has not indicated when his replacement would be announced.
FASB Announces Top Priorities for 2017
After issuing several key Accounting Standards Updates and announcing new board members last year, the Financial Accounting Standards Board (“FASB”) is preparing for a busy 2017. In a five-minute video, FASB Technical Director Sue Cosper outlines the FASB’s top priorities for this year. The FASB’s top priorities for 2017 include: Finalizing the hedging and long-duration insurance standards; Supporting the implementation of its revenue recognition, leases, and credit losses standards; Potential improvements to nonprofit financial reporting, particularly distinguishing between exchanges and contributions; and Redeliberating feedback on the Invitation to Comment and continuing to focus on its Conceptual Framework. Click here to watch the video.
Topics: Accounting Standards Update "ASU", Conceptual Framework Project, FASB Nonprofit Standard, Financial Accounting Standards Board "FASB", Hedging, Invitation to Comment, leases, Leases (Topic 842), Long-Duration Insurance, Revenue from Contracts with Customers (Topic 606), Revenue Recognition
SEC Called Out for Lack of Staff Oversight
A report by the Government Accountability Office (“GAO”) says the Securities and Exchange Commission (“SEC”) has made limited progress on improving oversight of the agency’s staff. Published on December 29, the report notes that the SEC continues to provide insufficient management of staff members and has yet to develop procedures for reviewing performance, improving collaboration efforts, and regularly assessing progress made. The SEC’s Division of Corporation Finance received some of the blame for not giving supervisors expectations in how to resolve workplace problems and train employees.
Nonprofits Receive Updated Consolidation Reporting Guidance
Helping nonprofits with consolidated reporting disclosures, the Financial Accounting Standards Board (“FASB”) recently issued Accounting Standards Update (“ASU”) No. 2017-02, Not-for-Profit Entities—Consolidation (Subtopic 958-810): Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. ASU No. 2017-02 clarifies when nonprofits that are general partners should consolidate their holdings in a for-profit limited partnership. The ASU will move the current content from Subtopic 810-20, Consolidation—Control of Partnerships and Similar Entities, that was deleted in ASU 2015-02 and move it to Subtopic 958-810 for nonprofits. The FASB says the. Read More.