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NIST Publishes Draft 2 of Cybersecurity Framework Version 1.1

On December 5, 2017, the National Institute for Standards and Technology (“NIST”) published Draft 2 of Cybersecurity Framework version 1.1 (the “Framework”). The draft is intended to provide a flexible, voluntary, and effective tool to help organizations better manage their cybersecurity risks. For those unfamiliar with the Framework, it was developed in response to growing awareness that the national and economic security of the United States depends on the reliable functioning of critical information technology infrastructure and that cybersecurity threats place the nation at risk. On February 12, 2013, President Obama issued Executive Order 13636, “Improving Critical Infrastructure Cybersecurity” (the. Read More.

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FASB Q&A Issued for Staff Accounting Bulletin on Tax Reform

The Financial Accounting Standards Board (“FASB”) has published a Staff Q&A regarding whether private entities and nonprofits can apply Staff Accounting Bulletin (“SAB”) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act). In its Staff Q&A, the FASB says it does not oppose private entities and nonprofits applying the Securities and Exchange Commission’s interpretive guidance for tax reform . The document also notes that such companies and organizations that employ SAB No. 118 would comply with GAAP. SAB No. 118 was issued in response to the Tax Cuts and Jobs Act. The guidance allows an entity, in certain situations, to include in its financial statements. Read More.

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2018 NDAA: Changes to TINA Threshold and Incurred Cost Audits

In November, the conference committee for the National Defense Authorization Act (“NDAA”) for fiscal year 2018 completed one of the final steps in the NDAA process filing its report reconciling the differences between the House version and the Senate version of the legislation. Shortly after the reports were reconciled, the conference report was officially enacted into law as the fiscal year 2018 NDAA. This bill authorizes fiscal year 2018 appropriations and sets forth policies for Department of Defense (“DOD”) programs and activities. One of the major changes in the fiscal year 2018 NDAA, Section 811, is the increase in the. Read More.

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SEC Commissioners Receive Senate Approval

For the first time in over two years, the Securities and Exchange Commission (“SEC”) will soon have a complete five-member complement. On December 21, the U.S. Senate confirmed Hester Peirce and Robert Jackson as the market regulator’s next commissioners. The vote occurred following Senator Tammy Baldwin’s decision to lift a hold on both nominees after they answered questions on her financial regulatory priorities. A senior research fellow at George Mason University’s Mercatus Center, Peirce will replace Daniel Gallagher. Jackson, a Columbia University law professor, takes over for former SEC Commissioner Luis Aguilar. Gallagher and Aguilar left the SEC near the. Read More.

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No More DCAA Performing ICS Audits?

No more Defense Contract Audit Agency (“DCAA”) auditors auditing your company’s incurred cost submission? It could happen! As a result of the 2018 National Defense Authorization Act (“NDAA”) signed by President Trump on December 12, 2017, it is a real possibility for an independent accounting firm to audit your incurred cost submission instead of auditors from the DCAA. Under the NDAA, which outlines defense spending priorities for the new fiscal year and established federal funding levels, there is a provision for the Department of Defense (“DoD”) to start using private auditors to perform some incurred cost audits. The idea is. Read More.

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SEC Official Asks Public Companies to Focus on Key FASB Standards

Securities and Exchange Commission (“SEC”) official Michael Dusza is advising public companies to consider how the adoption of several standards from the Financial Accounting Standards Board (“FASB”) could impact their financial reporting controls. During a speech last month in Washington D.C., Dusza stressed that the accounting changes for revenue recognition, leases, and credit losses are likely to create significant challenges when public companies test internal controls during the adoption phase. Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is effective January 1, 2018 for public business entities. ASU No. 2016-02, Leases (Topic 842), will be. Read More.

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