Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"
SEC’s Release No. IC-31184 to Remove Credit Ratings from Money Market Fund Rule
Issued by the U.S. Securities and Exchange Commission (“the Commission”), Release No. IC-31184, Removal of Certain References to Credit Ratings and Amendment to the Issuer Diversification Requirement in the Money Market Fund Rule, was approved unanimously on July 23rd. The proposal aims to help the Commission lessen reliance on credit ratings in its rules due to the 2008 financial crisis. Among the changes proposed, most were part of Release No. 33-9408, Money Market Fund Reform, and relate to provisions in Rule 2a-7 of the Investment Company Act of 1940. The Dodd-Frank Act ordered regulatory groups to review rules that use. Read More.
House Members Want Update to 1982 Mining Industry Guidance
Signed by thirteen members of the House of Representatives, a July 7th letter sent to the U.S. Securities and Exchange Commission (“SEC”) requested that the agency update a 32-year-old portion of its interpretative guidance for mining companies. In the House members’ view, the guidance in Industry Guide No. 7, Description of property by issuers engaged or to be engaged in significant mining operations, does not fall in line with modern industry practices and puts U.S. mining companies at a disadvantage. By updating the guidance, lawmakers hope U.S. companies can become more competitive globally against foreign companies and offer better clarity. Read More.
Board of Directors Concerned About Cybersecurity
In a recent survey, over 250 corporate directors responded to questions regarding their companies’ top non-financial concerns. For the survey’s second straight year, reputational risk was listed as the highest concern among all respondents (72 percent), and second was cybersecurity and information technology (62 percent). Despite cybersecurity risk experiencing a nine percent jump from 2013, the survey revealed CFOs and CEOs lag on a strong understanding of the topic. Visit the CGMA Magazine for the survey’s complete results. Also check out our Industry section for the Firm’s services within the Technology sector.
Institutional Prime Money Market Funds Move to Floating NAV
With a 3-2 vote, the U.S. Securities and Exchange Commission (“SEC”) yesterday adopted a final rule to restrict investors’ risk on money market funds. Voted at an open meeting, the rule requires institutional prime money market funds to shift from a $1 per share net asset value (NAV) to a floating NAV. The floating NAV will apply only to institutional prime money market funds, but the rule also contains discretionary liquidity fees and gates for non-government funds. Also at yesterday’s meeting, the SEC voted to re-propose amendments that would take out credit ratings references from Rule 2a-7, as required by. Read More.
IASB Releases IFRS 9 Financial Instruments
Announced on Thursday , the International Accounting Standards Board issued IFRS 9 Financial Instruments, the final component of its response to the financial crisis. Effective January 1, 2018, IFRS 9 features a logical model for classification and measurement, an “expected loss” impairment model and a reformed method to hedge accounting. Originally planned to be a convergence project with the FASB, Financial Instruments was one project where the Financial Accounting Standards Board (“FASB”) and IASB were unable to come to agreement. The FASB is currently working to finish its project on classification & measurement as well as impairment. Early application of IFRS 9 will. Read More.