SEC Approves FASB’s Accounting Support Fee
Despite controversy over a contribution made by the Financial Accounting Foundation (“FAF”), the U.S. Securities and Exchange Commission (“SEC”) has approved the annual accounting support fee for the generally accepted accounting principles’ (“U.S. GAAP”) standard-setter. Issued on April 3rd, Release No. 33-9569, Order Regarding Review of FASB Accounting Support Fee for 2014 Under Section 109 of the Sarbanes-Oxley Act on 2002 doesn’t reveal how much the Financial Accounting Standards Board (“FASB”; “the Board”) would receive, but a spokesman mentioned it will receive around $24 million. Collected through public companies and publication sales for the standard-setter, this year’s accounting support fee. Read More.
House Committee Holds Second Hearing on Emerging Growth Companies
Following its first hearing on April 9th, a subcommittee of the House Financial Services Committee (“the Committee”) held “Legislative Proposals to Enhance Capital Formation for Small and Emerging Growth Companies, Part II” this week. Taking place in Washington, D.C. at the Rayburn House Office Building, the second hearing covered the impact of new laws on small and emerging growth companies’ capital formation. For information on the May 1st hearing or an archive of the April 9th hearing , visit the Committee’s website.
Permanent Tax Extender Bills to Lower Federal Revenues
Earlier this week, The Committee on Ways and Means approved six bills that are expected to lower federal revenues by $310 billion over the next ten years. Referred to as ‘tax extenders’, the bills permanently extend several expired business tax provisions and specifically address the following: Research and experimentation tax credit (H.R. 4438); ‘Look-through’ treatment for controlled foreign corporations (H.R. 4464); Subpart F exceptions for active financing income (H.R. 4429); Increased Section 179 ‘small business’ expensing limits (H.R. 4457); A reduced recognition period for S corporation built-in gains (H.R. 4453); and Basis adjustments to stock of S corporations that provide. Read More.
AICPA-Supported Act Passes the House
With support from the American Institute of CPAs (“AICPA”), the U.S. House of Representatives unanimously passed the Digital Accountability and Transparency Act (“DATA Act”) on Monday. With its passing, the DATA Act creates the groundwork to publish federal spending information and places into law key elements of President Barack Obama’s Open Data Policy. The DATA Act also makes technology like Extensible Business Reporting Language and XBRL more available for financial reporting. “This is a good-government bill that will provide taxpayers and policy makers alike with more transparent access to information about how federal agencies spend taxpayer dollars. We are especially. Read More.
FASB Turns Attention to Cash Flows and Accounting Methods
Last week, the Financial Accounting Standards Board (“FASB”; “the Board”) met to discuss its cash flows pre-agenda research and the project on accounting for financial instruments. As part of the April 23rd meeting, the Board expressed concern regarding progress on Topic 230, Statement of Cash Flows. Per its discussion, the Board spoke on cash flow problems associated with classifying particular types of cash receipts and cash payments. Also at the meeting, the FASB revisited its proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Board focused on how an entity could. Read More.
Pilot Program Created for Audit Quality Indicators
After publishing a set of possible Audit Quality Indicators (AQIs) in its paper, CAQ Approach to Audit Quality Indicators, the Center for Audit Quality (“CAQ”) has announced a pilot program for testing the new indicators. Through its paper, the CAQ details the proper approach how to communicate the prospective AQIs, which will be tested by CAQ member firms that have select audit committees. The set of AQIs are viewed as guidance for audit committees in overseeing audit processes. In putting together the AQIs, the CAQ collected feedback from key stakeholders and the audit profession. Member firms also determined which audit. Read More.