Higgins Highlights Corp Fin Initiatives in Congress Testimony
Promoting his division’s current initiatives and directives, the U.S. Securities and Exchange Commission’s (“SEC”) Corp Fin (“the Division”) Director Keith Higgins testified recently in front of the U.S. House of Representatives Committee on Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises. Some of the notables from Higgins’ testimony included: Review of Registrant Filings: Higgins stated that Corp Fin is dedicated to the financial statements and disclosures of the companies that make up 98 percent of total market capitalization. Based on the work completed thus far in fiscal 2014, Higgins believes the Division’s review of 4,500 reporting companies will be in. Read More.
Topics: Audit, Capital Markets, Division of Corporation Finance "Corp Fin", Financial Accounting Standards Board "FASB", financial services, Government Sponsored Enterprises, Keith Higgins, U.S. House of Representatives, U.S. Securities and Exchange Commission "SEC"
ASU No. 2014-14 to Help Creditors with Government-Guaranteed Mortgage Loans
Issued by the Financial Accounting Standards Board, Accounting Standards Update (ASU) No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, impacts creditors with government-guaranteed mortgage loans, counting those guaranteed by the Federal Housing Administration and the U.S. Department of Veterans Affairs. Per the ASU’s amendments, a mortgage loan is required to be derecognized and a separate other receivable be recognized upon foreclosure if the conditions below are met: The loan includes a government guarantee that is inseparable from the loan prior to foreclosure. The creditor plans to transfer the real. Read More.
Topics: Accounting Standards Update "ASU", Creditors, Debt Restructuring, Federal Housing Administration, Financial Accounting Standards Board "FASB", Foreclosure, Government-Guaranteed Mortgage Loans, U.S. Department of Veterans Affairs
Chamber of Commerce Seeks Additional Information on PCAOB’s Related Parties Standard
Citing lack of analysis in the Public Company Accounting Oversight Board’s (“PCAOB”) related parties standard concerning the financial impact on emerging growth companies and their auditors, the U.S. Chamber of Commerce (“the Chamber”) has asked the U.S. Securities and Exchange Commission (“SEC”) to send Release No. 2014-002, Auditing Standard (AS) No. 18—Related Parties, back to the PCAOB for additional details. In a comment letter to the SEC on July 28th, the Chamber’s sentiments reflect their belief that the PCAOB hasn’t been thorough in assessing the standard’s costs on emerging growth companies. Issued in June and awaiting SEC approval, AS 18. Read More.
European Commission Wants Feedback on IFRS
Available to interested groups or individuals, a public consultation on international financial reporting standards’ (IFRS) effect within the European Union (“EU”) has been released by the European Commission (“the Commission”). Hoping to receive input from capital market participants and companies that apply IFRS, the Commission wants to know if the international standards have improved efficiency by simplifying financial statements. Also, the Commission wants feedback on the provisions in which future IFRS should meet to become EU law, and the costs and benefits that are usually related to the standards. With comments by October 31st, the European Commission plans to present. Read More.
Unbilled Accounts Receivable: Real or Imagined Assets?
Unbilled accounts receivable (A/R) represents recorded revenue that has not yet been billed on a contract. There can be many different reasons for having unbilled A/R recorded on the balance sheet (B/S). Government contractors with cost reimbursable contracts tend to have greater unbilled accounts that stay on the B/S longer. The most common reasons for unbilled A/R are the following: Timing differences: These can exist due to the normal timeframe of processing employee timesheets and invoices through the accounting system. These amounts should be billed as soon as possible in accordance with contractual terms. Rate variances: These can exist when. Read More.
AICPA Committee to Review Proposed Statement on Standards
Starting next Tuesday, the American Institute of Certified Public Accountants’ Accounting and Review Services Committee (“the Committee”) will hold a three-day meeting to discuss the proposed Statement on Standards for Accounting and Review Services (SSARS): Clarification and Recodification. Meeting in Providence, Rhode Island, the Committee will vote to release the SSARS as a final standard and discuss certain components such as Preparation of Financial Statements, Compilation Engagements and Review of Financial Statements. In addition, the Committee will discuss the proposed SSARS, Compilation of Prospective Financial Information and Pro Forma Financial Information. For the meeting’s full agenda , visit the AICPA website. Also. Read More.
Topics: Accounting and Review Services Committee "ARSC", American Institute of Certified Public Accountants "AICPA", Financial Statements, Statemet on Standards for Accounting and Review Services "SSARS"