Conflict Minerals’ Effective Date Gets a Stay
Announced on May 2nd, the U.S. Securities and Exchange Commission (“the Commission”; “SEC”) issued a stay of the effective date for companies to comply with parts of its final rule, Conflict Minerals. The stay affects parts of Exchange Act Rule 13p-1 and Form SD, which mandates public disclosure of a company’s use of conflict minerals from the Democratic Republic of the Congo or neighboring countries. Due to last month’s decision by the Court of Appeals for the District of Columbia Circuit (“the Court”), such disclosure was ruled as violating the First Amendment. As companies move forward applying the final rule. Read More.
Topics: Assurance & Accounting "A&A", Conflict Minerals, Court of Appeals, Democratice Republic of Congo "Congo", Division of Corporation Finance "Corp Fin", U.S. Securities and Exchange Commission "SEC"
Financial Instruments Proposal Concerns NCBA Members
As external auditors for the North Carolina Bankers Association (“NCBA”), Cherry Bekaert’s Financial Services Group responded to the Reference 2012-260: Financial Instruments – Credit Losses proposal on May 7, 2014. Submitted by the NCBA on behalf of its membership, the letter expresses concern over the proposed accounting standard from several perspectives. The Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board proposals are not converged standards, which result in different accounting models. The proposed standard appears to be a departure from the FASB’s conceptual framework for assets reported at amortized cost. There are also concerns around the complexity of implementation, as well as the reliability. Read More.
SEC Approves Amendments to PCAOB Rules
With most taking effect June 1st, amendments to the Public Company Accounting Oversight Board’s rules (“PCAOB”; “the Board”) conforming to the Dodd-Frank Act have been approved by the U.S. Securities and Exchange Commission (“SEC”). Adopted by the PCAOB, the rules reference audits, and auditors of brokers and dealers in the Board’s provisions. Further, the rules make certain that the PCAOB can carry out its oversight power, which was established under the Dodd-Frank Act regarding audits, and auditors of brokers and dealers registered with the SEC. The amendments include provisions such as: Adding references to audits and auditors of broker-dealers in. Read More.
Growing Call for SBA Control Over Vets First Program
A bill brought before the House of Representatives last summer may soon bring significant changes to the Vets First Program. The 2013 Improving Opportunities for Service-Disabled Veteran-Owned Small Business Act, which was introduced in July 2013 by Rep. Mike Coffman (R-CO), calls for the Small Business Administration (“SBA”) to take over control and administration of the Vets First Program from the U.S. Department of Veterans Affairs (“VA”). This transfer of control would include the responsibility for verification of service disability. Under the Vets First Program, the VA issues set-aside government contracts to eligible Veteran-Owned Small Businesses and Service-Disabled Veteran-Owned Small. Read More.
Standard on Going Concern to be Published in June
Approved by a 5-2 vote, the Financial Accounting Standards Board (“FASB”) will publish a standard requiring management to make a quarterly evaluation of a company’s financial well-being. Per the accounting standard, companies must disclose in its financial statement and to investors if there is “substantial doubt” regarding its survival. The FASB anticipates publishing the standard in June. The May 7th decision ends a near half-decade dispute regarding how generally accepted accounting principles (U.S. GAAP) can attain doubts concerning a company’s survival odds. Currently, the external auditor handles such uncertainties for a company. According to critics, however, the downside to this. Read More.
AICPA Auditing Standards Board to Meet in Las Vegas
Scheduled for May 13th-15th, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) will meet to cover various matters. Taking place at the Wynn Las Vegas and Encore Hotel in Las Vegas, Nevada, the ASB’s meeting will discuss numerous topics like: The Attestation Standards: Clarification and Recodification exposure draft; Proposed statement, An Audit of Internal Control Over Financial Reporting That is Integrated With an Audit of Financial Statements; An International Auditing and Assurance Standards Board update; An update on the Public Company Accounting Oversight Board; and The ASB Work/Strategic Plan. For meeting information and materials or the three-day agenda , visit the AICPA’s. Read More.