Reporting Issuers to Get Regulation A Exemptions from SEC
In response to the passing of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Securities and Exchange Commission (“SEC”) plans to offer Regulation A exemptions to reporting issuers. SEC’s Division of Corporation Finance director William Hinman said the agency will act quickly to make the exemptions available to companies bound by reporting under Section 13 or 15(d) of the Securities and Exchange Act. The SEC initially planned to issue a proposal on the Regulation A exemptions in September 2019, but Hinman noted that the agency will accelerate the matter by skipping its formal rulemaking process. If any questions. Read More.
PCAOB Awaits Congress Vote before Proposing Audit Inspection Program
Before it proposes a permanent inspection program for auditors of brokerage firms, the Public Company Accounting Oversight Board (“PCAOB”) wants Congress to pass a bill that curbs broker-dealers’ audit requirements. Speaking earlier this month at the PCAOB’s Investor Advisory Group meeting, William Duhnke stated that the board is waiting for Congress to vote on the Small Business Audit Correction Act this year to allow for legislative movement. If the bill is not passed by the end of the current session, the PCAOB chairman said the board will prioritize its program early next year to address what the inspection program will. Read More.
Steve Ursillo Discusses How Technology Will Impact Audit
In a short video for the International Federation of Accountants (“IFAC”), Steve Ursillo, Jr. , shares his thoughts on how technology will affect audit and assurance services. Ursillo, Cherry Bekaert’s National Leader for the Information Assurance & Cybersecurity practice, says new accounting technologies will likely impact the way auditors perform engagements and client services. Watch the video on the IFAC website.
FinREC Issues Proposed Guidance for Inventory Fair Value Measurement
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has proposed new guidance for companies when measuring their inventory’s fair value when purchasing or merging with another company. Issued as a working draft on November 19, the proposed guidance is meant for Audit and Valuation Guide: Business Combinations. The working draft features non-authoritative guidance and illustration for estimating the fair value of inventory acquired in a business combination under FASB ASC 820, Fair Value Measurement. The proposed guidance also offers general principles and two examples presenting how companies should value finished goods and inventory considered a work. Read More.
FASB to Monitor Financial Reporting Impact of Tax Reform
The Financial Accounting Standards Board (“FASB”) has no plans to issue new guidance on the Tax Cuts and Jobs Act (“TCJA”). During a November 14 meeting on the financial reporting impact of tax reform, FASB researchers said Big Four firms’ guidance, FASB accounting staff’s technical inquiries, and U.S. GAAP have helped companies answer some of the complicated financial reporting issues caused by the tax law change. Despite holding off on issuing new tax reform guidance, the FASB still plans to monitor whether any necessary future action should be taken. The staff will especially keep a close eye on the global. Read More.
Upcoming Changes to the SOC 2 Reporting Framework
Is your organization prepared for the upcoming changes to the SOC 2 reporting framework? All SOC 2 reports issued with a reporting period ending after December 15, 2018, must comply with the new Trust Services Criteria (also known as TSP 100) issued by the Assurance Services Executive Committee of the American Institute of Certified Public Accountants. SOC 2 reports evaluate the effectiveness of controls over the security, availability, processing integrity, confidentiality, and privacy of information processed by systems at an entity, division, or operating unit level. Revisions to the trust services criteria include an alignment of criterion with the Committee. Read More.