Agenda Set for Upcoming Standing Advisory Group Meeting
Announced by the Public Company Accounting Oversight Board (“PCAOB”; “the Board”), the nonprofit organization’s Standing Advisory Group (“SAG”) will hold its meeting June 24th-25th. Chaired by the PCAOB’s Chief Auditor and Director of Professional Standards Martin F. Baumann, SAG is composed of various investors, auditors, public company executives and others. Recently published by the PCAOB, the meeting’s agenda features a discussion regarding the Board’s latest activities. SAG discussions will also be part of the meeting, including topics like: Initiatives to Improve Audit Quality–Root Cause Analysis, Audit Quality Indicators (AQIs), and Quality Control Standards; Initiatives to Improve Audit Quality—Root Cause Analysis, Audit Quality Indicators. Read More.
FASB and IASB Seek Lease Standards Publication Next Year
Hoping to publish final standards late next year, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) will restart discussions this fall on their lease accounting project. It is anticipated that the final standards will be based on FASB’s Proposed Accounting Standards Update No. 2013-270, Leases (Topic 842), and the IASB’s Exposure Draft No. 2013-6, Leases. Both proposals were published in 2013. Before completing work on their project, the FASB and IASB must resolve several disagreements on proposed changes to accounting in U.S. GAAP and International Financial Reporting Standards. Such disagreements include how to handle accounting for. Read More.
IRS Updates Form 5472 Regulations to Eliminate Anachronistic “Duplicate Filing” Requirement
Back in 2011, the Internal Revenue Service (“IRS”) proposed regulations to eliminate the need for duplicate filing of Form 5472 regardless if the filer submits a paper or an electronic income tax return. As a result, the regulations’ only remaining provision for filing Form 5472 separately from the filer’s income tax return applies to cases in which the filer’s return is not timely filed. The 2011 regulations are now finalized without substantive change. The IRS and U.S. Department of Treasury are also proposing the removal of §1.6038A-2(e), which provides for a filer to timely file Form 5472 separately from the. Read More.
SEC Chair Wants to Improve Market Stability
Tackling stock market criticism regarding high-speed computer-driven trading, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White has proposed initiatives “recommending additional measures to further promote market stability and fairness, enhance market transparency and disclosures, and build more effective markets for smaller companies.” Speaking at the Global Exchange and Brokerage Conference last week in New York, White mentioned the drafted proposals require high-frequency traders to list as broker dealers with regulators, exposing them to increased regulatory scrutiny. In addition, the proposal would increase supervision of high-frequency traders and further regulate transactions that happen outside of public exchanges. Also recommended. Read More.
Former SEC Chair Uncertain of U.S. IFRS Adoption
Speaking at the recent “SEC and Financial Reporting Institute Conference”, former U.S. Securities and Exchange Commission (“SEC”) Chair Christopher Cox opined that he doubts a U.S. adoption of International Financial Reporting Standards (IFRS) could occur. Sharing thoughts contradictory from his actions as SEC Chair, Cox concluded that the opportunity for the U.S. to adopt IFRS has passed and too much time had wasted without any significant progress being made. Referencing the lack of a current plan that considers U.S public companies to utilize IFRS voluntarily, Cox used the shortcoming as an example of resistance to convergence. Despite Cox suggesting the. Read More.
FASB Removes Guidance for Development Stage Entities
Issued recently by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update No. 2014-10 (“ASU No 2014-10”), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, eliminates from U.S. GAAP all required incremental financial reporting for development stage entities. Currently, a development stage entity is defined as an entity that gives all of its efforts to creating a new business in which planned principal operations have not begun, or have started but yet to generate any significant revenue. Per current U.S. GAAP standards, a development stage. Read More.