AICPA Updates Attest Interpretation No. 4
The American Institute of Certified Public Accountants (“AICPA”) recently amended Attest Interpretation No. 4, Performing and Reporting on an Attestation Engagement Under Two Sets of Attestation Standards, of AT-C section 105, Concepts Common to All Attestation Engagements. Interpretation No. 4 offers guidance on conducting attestation engagements under two sets of attestation standards, such as the AICPA standards and standards from either the PCAOB or the International Auditing and Assurance Standards Board. Practitioners can perform and report an attestation engagement compliant with two sets of attestation standards providing that both sets of standards are followed. The updates impact paragraphs .31 to. Read More.
Topics: Agreed-Upon Procedures Engagement, AICPA, American Institute of Certified Public Accountants "AICPA", Attestation Standards, PCAOB, PCAOB Interim Attestation Standards, Public Company Accounting Oversight Board "PCAOB"
Smaller Banks Can Avoid Using Complex Models in Calculating Loss Reserves
Community bankers could be exempt from using the complex models necessary to comply with the Financial Accounting Standards Board’s (“FASB”) credit loss standard. Banking regulators said that the current expected credit loss model under Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, is flexible enough that smaller lending institutions are not required to purchase expensive software or use complex modeling techniques to meet the standard’s provisions for calculating loss reserves. During a February 27 webcast, the Federal Reserve’s Joanne Wakim stated that small banks could calculate loss reserves. Read More.
FASB Issues Amendments to Financial Instruments Standard
The Financial Accounting Standards Board (“FASB”) has issued a new standard that clarifies guidance under Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10). ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, addresses the following issues: Issue 1: Equity Securities without a Readily Determinable Fair Value — Discontinuation Issue 2: Equity Securities without a Readily Determinable Fair Value — Adjustments Issue 3: Forward Contracts and Purchased Options Issue 4: Presentation Requirements for Certain Fair Value Option Liabilities Issue 5: Fair Value Option Liabilities Denominated in a. Read More.
Topics: Equity Securities, Fair Value Option Liabilities, FASB, FASB Technical Corrections, Financial Accounting Standards Board "FASB", Financial Instruments—Overall (Subtopic 825-10), Forward Contracts and Purchased Options
SEC to Help Companies Disclose Tax Reform Effects
At a recent SEC Speaks event in Washington, D.C., Securities and Exchange Commission (“SEC”) chief accountant Wesley Bricker told attendees that the commission intends to help public companies with disclosures on their periodic filings related to the impact of the Tax Cuts and Jobs Act (“TCJA”). In his remarks, Bricker referenced Staff Accounting Bulletin No. 118, (Topic 5.EE), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was issued in December 2017. The bulletin covers the judgments and assumptions that a company’s management must make when including the effects of tax reform into financial statements. It also. Read More.
Knowledge Commons a Hit at Hampshire College
Centralizing academic services to increase student use is paying off at Hampshire College in Massachusetts. Dubbed the “Knowledge Commons,” the center is located on the first floor of the school’s library and features academic support programs like public speaking, library research and media, art gallery student exhibition support, and teaching and learning. Hampshire College says that since moving to the library, several of these programs have experienced an increase in attendance. In addition to the knowledge commons, the library plans to create a new technology and art commons and community commons. More on Hampshire College’s knowledge commons is available on the Inside Higher Ed. Read More.
SEC Delays Compliance Date for Liquidity Risk Rule
The Securities and Exchange Commission (“SEC”) has postponed the compliance date for specific provisions in a rule requiring mutual funds to oversee their risk and ability to redeem investors’ shares. Announced as part of Release No. IC-33010, Investment Company Liquidity Risk Management Programs; Commission Guidance for In-Kind ETFs, the six-month delay gives fund companies additional time to classify risks in their investment holdings under Rule 22e-4 of the Investment Company Act of 1940. The new compliance date for larger fund groups is June 1, 2019, and the compliance date for smaller funds is December 1, 2019. The new compliance dates. Read More.