Conflict Minerals’ Interpretative Guidance Issued
Issued on April 29th, the U.S. Securities and Exchange Commission has announced interpretive guidance based on Release No. 34-67716, Conflict Minerals. Named Statement on the Effect of the Recent Court of Appeals Decision on the Conflict Minerals Rule (“the Statement”), the guidance is in response to the U.S. Court of Appeals for the District of Columbia Circuit’s (“the Court”) April 14th ruling that part of the provision which forces companies to use disclosure language like “DRC conflict free” or “DRC conflict undeterminable” violates the U.S. Constitution’s First Amendment. The interpretive guidance curtails the independent audit requirement for the SEC’s Conflict. Read More.
SEC Commissioners Want Delay in Conflict Minerals Rule
With the U.S. Court of Appeals for the District of Columbia Circuit previously declaring part of a provision unconstitutional, the U.S. Securities and Exchange Commission’s (“SEC”) Daniel Gallagher and Michael Piwowar seek a delay in the entire Conflict Minerals rule’s effectiveness. Per the controversial portion of the SEC’s final rule, companies are required to publicly disclose any use of conflict minerals from the Democratic Republic of the Congo or neighboring countries. Conflict Minerals also mandates issuers to file for the same period notwithstanding when their fiscal year ends. Releasing a joint statement on the matter, the SEC Commissioners believe a. Read More.
FASB Adds Projects to Agenda
At its April 28th meeting, the Financial Accounting Standards Board (“the Board”) focused on four projects the Board has considered adding to its agenda. After discussing the results collected from its staff research, the Board made tentative decisions to include the following projects in its agenda: Presentation issues in cash flow statements. Anticipated to clear up principles in Topic 230, Statement of Cash Flows, this project will offer further guidance regarding what an entity should take into account when determining the classification of certain cash flows. Also under consideration is additional disclosure concerning cash flows. Fees a customer in a. Read More.
SEC Approves FASB’s Accounting Support Fee
Despite controversy over a contribution made by the Financial Accounting Foundation (“FAF”), the U.S. Securities and Exchange Commission (“SEC”) has approved the annual accounting support fee for the generally accepted accounting principles’ (“U.S. GAAP”) standard-setter. Issued on April 3rd, Release No. 33-9569, Order Regarding Review of FASB Accounting Support Fee for 2014 Under Section 109 of the Sarbanes-Oxley Act on 2002 doesn’t reveal how much the Financial Accounting Standards Board (“FASB”; “the Board”) would receive, but a spokesman mentioned it will receive around $24 million. Collected through public companies and publication sales for the standard-setter, this year’s accounting support fee. Read More.
House Committee Holds Second Hearing on Emerging Growth Companies
Following its first hearing on April 9th, a subcommittee of the House Financial Services Committee (“the Committee”) held “Legislative Proposals to Enhance Capital Formation for Small and Emerging Growth Companies, Part II” this week. Taking place in Washington, D.C. at the Rayburn House Office Building, the second hearing covered the impact of new laws on small and emerging growth companies’ capital formation. For information on the May 1st hearing or an archive of the April 9th hearing , visit the Committee’s website.
FASB Turns Attention to Cash Flows and Accounting Methods
Last week, the Financial Accounting Standards Board (“FASB”; “the Board”) met to discuss its cash flows pre-agenda research and the project on accounting for financial instruments. As part of the April 23rd meeting, the Board expressed concern regarding progress on Topic 230, Statement of Cash Flows. Per its discussion, the Board spoke on cash flow problems associated with classifying particular types of cash receipts and cash payments. Also at the meeting, the FASB revisited its proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Board focused on how an entity could. Read More.