Standard Setters Still at Odds over Lease Project
At their July 23rd joint meeting, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) resumed efforts to converge U.S. GAAP and IFRS. In particular, the top focus was FASB’s Proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842), and IASB’s Exposure Draft (ED) No. 2013-6, Leases. Conflicted on recognizing the gains for sale-leaseback transactions, the boards continue to have opposing attitudes toward their lease accounting project. During the meeting, FASB agreed to allow sellers of assets to recognize the full gain from the time of the transaction. On the conflicting end, IASB agreed to let. Read More.
Participants Wanted for SASB’s Consumption Sector Project
Continuing its efforts to create sustainability accounting standards for over 80 industries and ten sectors, the Sustainability Accounting Standards Board (“SASB”) is looking for experts to help its Industry Working Groups (IWGs) for the consumption sector. Seeking individuals knowledgeable in areas like market participants, corporations and industry associations, and other stakeholders, participants will provide feedback on disclosure items regarding material sustainability for the consumption industries. The consumption sector project is divided into two segments. Starting August 6th, the Consumption I IWG features industries producing items such as meat, poultry, agricultural products and beverages. On October 29th, the Consumption II IWG will include industries like. Read More.
Corp Fin’s Higgins Responds to Lawmakers’ IFRS Questions
With tension mounting among lawmakers requesting the U.S. Securities and Exchange Commission (“SEC”) propose a rule on IFRS adoption, Keith Higgins addressed the agency’s consideration of the international standards. At the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises on July 24th, the director of SEC’s Corporation Finance Division referenced Mary Jo White’s May speech by reiterating her expectations to use IFRS more aggressively and have a clear strategy on the standards by year’s end. Higgins, however, did not mention whether U.S. companies would have the option to adopt IFRS. Reflecting a letter sent by members of. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Corporate Finance Division, House Financial Services Subcmmittee on Capital Markets and Government Sponsored Enterprises, IFRS, International Standards, U.S. Securities and Exchange Commission "SEC"
Senators Propose Merging Internet Tax Bills
With the House of Representatives recent passing a permanent extension of the Internet Tax Freedom Act, a group of Senate Democrats are moving forward with their 10-year extension proposal to merge the bill with the Marketplace Fairness Act. If successful, the proposal would unite a bill that gives states power to charge sales tax on online purchases with the bill prohibiting states from imposing taxes on Internet access. Although a vote could occur as early as this week, several lawmakers have little interest in the proposal. Visit The Hill for the complete story. Visit our website to find out more about our. Read More.
CAQ Study Shows Big Drop in Financial Restatements
Evaluating financial restatement trends over the ten-year period after the Sarbanes-Oxley Act’s (SOX) implementation, the Center for Audit Quality (CAQ) recently released the findings of its study, Financial Restatement Trends in the United States: 2003–2012. Authored by University of Kansas Professor Susan Scholz, the report focuses on restatement activity that was disclosed by U.S. Securities and Exchange Commission-registered filers. Per Scholz’s analysis and findings, it was determined that financial restatements have dramatically decreased over the years. Major takeaways from the report include the following: Contributed to the implementation of SOX Section 404 internal control reporting, restatement announcements reached its peak. Read More.
Topics: Audit, Banking, Center for Audit Quality "CAQ", Chemicals, Energy, Financial, insurance, Internal Control Reporting, Mining, Restatement, Sarbanes-Oxley Act "SOX", Software, Technology, U.S. Securities and Exchange Commission "SEC"
Updated Conceptual Framework Proposal Comment Letter Approved
During its July 15th teleconference, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) approved an updated draft comment letter related to the Financial Accounting Standards Board’s (“FASB”) Proposed Statement of Financial Accounting Concepts (CON) No. 2014-200, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. Despite not providing official guidance to users of financial statements, the proposal offers guidelines for writing U.S. GAAP disclosure requirements. Signed by FinREC’s Richard Paul and Rick Day, the seven-page letter orders FASB to review current disclosure requirements, and remove repetitive disclosures and insufficient information. Per the letter, the simplification of disclosures will. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", disclosure, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Financial Statements, U.S. GAAP