New AICPA Technical Questions and Answers Issued on Public Businesses
The American Institute of Certified Public Accountants (“AICPA”) has issued new Technical Questions and Answers (“TQAs”) offering guidance for related terminology and other matters concerning public business entities. Section 7100, Definition of a Public Business Entity, features 16 new questions and answers to help a company determine its status as a public business. Included in the TQAs is detailed guidance addressing depository institutions, broker-dealers, insurance companies and nonprofits. A press release on Section 7100 is available on the AICPA website.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", Broker-Dealers, Depository Institutions, Insurance Companies, Nonprofit, Public Business Entities, Technical Questions & Answers
Senate Bill Gives Sarbanes-Oxley Exemption to Small Banks
Banks holding less than $1 billion in assets could receive an exemption from the auditor attestation requirements of Section 404(b) under the Sarbanes-Oxley Act of 2002. Under S. 1962, the Community Bank Access to Capital Act of 2017, the proposed Senate bill frees smaller banks from the more complicated and expensive reforms under Sarbanes-Oxley. S. 1962 also requires public companies to hire an external auditor to attest to management’s internal controls over financial reporting. The bill’s co-sponsor, Senator Mike Rounds (R-S.D.), stated the proposed measure would promote growth among community banks and help them support their communities. Section 404(b) advocates. Read More.
FASB Agrees on Guidance for Troubled Debt Restructurings
The Financial Accounting Standards Board (“FASB”) plans to clarify its guidance for troubled debt restructurings under Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. During its September 6 meeting, the FASB agreed that lenders should assess the impact of the restructuring when the individual troubled loan is known. In certain situations, banks are free to make estimates based on historic data, which the FASB refers to as a “portfolio-level” approach. FASB member Christine Botosan remarked that the decision allows banks to estimate troubled debt restructurings earlier, wherein the estimation. Read More.
Bank Regulators Add Guidance for FASB Credit Loss Standard
Several bank regulators have updated their interpretive guidance regarding the Financial Accounting Standards Board’s (“FASB”) credit loss standard. The revised guidance from Federal Deposit Insurance Corporation, Federal Reserve, the National Credit Union Administration, and the Office of the Comptroller of the Currency will be added to the December 2016-published frequently asked questions document that explains why the FASB issued Accounting Standards Update No. No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance addresses how to handle subjective information when banks estimate their loss reserves when applying ASU No. 2016-13. In. Read More.
Topics: Accounting Standards Update, Banking, FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), National Credit Union Administration, SEC, Securities and Exchange Commission "SEC", U.S. GAAP
Regulators Uncertain About Virtual Currency Market Oversight
As exchange-traded funds (“ETFs”), other kinds of exchange-traded products, and bitcoin-related items grow in popularity, regulators are still uncertain about how to oversee the virtual currency market. The topic became a point of discussion on September 8 at the Securities and Exchange Commission-New York University Dialogue on Securities Market Regulation in Washington, D.C. During the discussion, Kathleen Moriarty of international law firm Arnold & Porter Kaye Scholer LLP said that the SEC has held off on its oversight because the virtual currency markets are still in their early stages and are not policed well. Moriarity remarked that from her viewpoint,. Read More.
Banks Express Concerns over FASB Credit Loss Standard
Banking institutions of all sizes are preparing to implement the Financial Accounting Standards Board’s (“FASB”) new standard that requires the calculation of future losses on bad loans versus disclosing losses that have already occurred. While the largest accounting update in years for banks requires an additional workload, some lenders are uncertain about how to sift through their data for estimating future losses and setting aside cash reserves. At the American Institute of Certified Public Accountants’ National Conference on Banks & Savings Institutions last week, Federal Savings Bank executive vice president and CFO James Brannen touched on the difficulties a small. Read More.
Topics: Accounting Standards Update "ASU", AICPA National Conference on Banks & Savings Institutions, Banks, FASB credit loss standard, Financial Instruments - Credit Losses (Topic 326), Securities and Exchange Commission "SEC"