SBA Adjusts Size Standards
On June 12, 2014, the Small Business Administration (“SBA”) published an interim rule with request for comments in the Federal Register making inflation adjustments to its revenue-based size standards. The new size standards become effective on July 14, 2014. Parties interested in making comments on the interim rule must submit their comments by August 11, 2014. SBA policy is to review its revenue-based size standards every five years to determine if an adjustment for inflation is warranted. This does not mean that the size standards will be revised every five years based upon specific criteria as the Truth in Negotiations Act threshold. Read More.
New FASB Repurchase Disclosure Standard Released
Recently issued by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update (ASU) No. 2014-11 , Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting. In addition, the ASU requires separate accounting separate accounting for a transfer executive with a repurchase agreement with the same counter party resulting in secured borrowing accounting for the repurchase agreement. Finally, the ASU adds new disclosures to provide for transparency with respect to the transaction. The effective dates are as followed: Public Private Public Interim Private Interim Accounting Changes beginning after December 15, 2014 beginning after December 15,. Read More.
AICPA Names Top Developments for Nonprofit CPAs
With nonprofit Certified Public Accountants still facing challenges stemming from the 2008 financial crisis, the American Institute of Certified Public Accountants (“AICPA”) has pinpointed significant developments that reflect such obstacles. At its Not-for-Profit Industry Conference last Thursday, the AICPA noted the following current happenings: The Financial Accounting Standards Board’s proposal that enhances financial reporting disclosures will be issued as an exposure draft later this year. Consistent organization policies on gifts and ethics must be implemented. Younger nonprofit donors need more details on where their contributions are being spent. To offer performance information, several nonprofits are testing quarterly earnings calls. The. Read More.
Aguilar Speech Stresses Planning for Cyber-Attacks
Advising corporate boards to invest more time and resources for addressing cyber-attacks, the U.S. Securities and Exchange Commission’s (“SEC”) Luis A. Aguilar was a guest speaker at the recent “Cyber Risks and the Boardroom Conference”. During his speech , the SEC Commissioner touched on cyber-risks, what boards of directors should do to protect their organizations, as well as having a thorough plan consistent with the companies’ best practices for their industry. In regards to the boards’ efforts, Aguilar said, “board oversight of management’s efforts to address these issues is critical to preventing and effectively responding to successful cyber-attacks and, ultimately, to protecting. Read More.
IASB Issues First Disclosure Initiative Update
Featuring projects for enhancing financial report information, the International Accounting Standards Board’s (“IASB”) Disclosure Initiative just received its first update . The update covers three topics, “Principles of Disclosure”, “Targeted Improvements to Disclosure Requirements” and “Materiality”. An integral part of the Disclosure Initiative, the “Principles of Disclosure” project seeks to substitute three of the IASB’s current standards with one or more disclosure standards. The second topic, “Targeted Improvements to Disclosure Requirements”, relates to the IASB’s exposure draft of proposed amendments to IAS 1 Presentation of Financial Statements. Rather than change current IAS 1 requirements, the amendments would provide more clarity, as. Read More.
AICPA Issues Updated Code of Professional Conduct
Modified as part of its Professional Ethics Executive Committee’s (“PEEC”) codification project and for easier usage, the American Institute of Certified Public Accountants (“AICPA”) has issued a revision of its Code of Professional Conduct . Released on May 20th, the updated code is split into three sections that separately apply to public accountants, business accountants, and all other accountants, including those who are retired or unemployed. The AICPA recommends accountants with multiple roles to check all applicable parts of the code and utilize the most restrictive requirements. Approved by the PEEC earlier this year, the updated Code of Professional Conduct takes effect December 15th.. Read More.