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.
Corp Fin’s Higgins Aims for Improved Disclosure Effectiveness
Speaking at the American Bar Association’s Business Law Section Spring Meeting, the U.S. Securities and Exchange Commission (“SEC”) Division of Corporation Finance’s (“Corp Fin”; “the Division”) Keith Higgins pointed out how the SEC can make the current disclosure regime more effective. In his April 11th speech, the Director of Corp Fin touched on multiple actions the Division may carry out, including: New requirements might be suggested if Corp Fin finds any potential gaps in disclosure or chances to improve the clarity of information given to investors. An examination into whether disclosure documents can be improved upon through use of structured. Read More.
Implications of the Mobile Workforce State Income Tax Simplification Act of 2013
An issue currently moving its way through federal legislation is uniform treatment of multistate employees subject to state withholding of income tax, known as the “Mobile Workforce State Income Tax Simplification Act of 2013”. In this article, we will examine the issue of multistate employment tax withholding and the implications of this proposed legislation. Current Practices Currently, most manufacturing or distribution firms don’t proactively address or track employees working in multiple states. For instance, if an employee lives in Georgia but is assigned to work on a project in North Carolina, the state income taxes should be withheld for North. Read More.
PCAOB Seeks Standing Advisory Group Nominations
With 14 members’ terms expiring this year, the Public Company Accounting Oversight Board (“PCAOB”) is currently seeking potential replacements for its Standing Advisory Group (“SAG”). The PCAOB is looking for individuals with a combination of experience in accounting, auditing, corporate finance or governance, and/or investing in public companies. Also, nominees are recommended to have experience in auditing or financial reporting associated with broker-dealers and smaller public companies. The SAG, which meets two or three times a year, helps the PCAOB on numerous topics concerning standard-setting and other activities. Such topics have included how auditors detect fraud, changes to the auditor’s. Read More.
FASB and IASB Make Progress on Joint Standard
Moving closer to a final standard that will mandate companies to add most of their lease liabilities on balance sheets, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) have come to an agreement on several provisions of their lease accounting project. Meeting on April 23rd via videoconference, the boards sought to curtail differences that are keeping them from creating a joint standard for FASB’s Proposed Accounting Standards Update No. 2013-270, Leases (Topic 842), and IASB’s Exposure Draft No. 2013-5, Leases, as well as offer more clarity about lease contract revisions. Most notable from the four-hour meeting,. Read More.