German Treaty Favors S Corporations
In its decision on June 26, 2013, the German Federal Fiscal Court (“the Court”), cited I R 48/12, IStR 2013, p.880, overruled a lower court case and found in favor of the taxpayer. Using logic similar to Canada Revenue Agency’s established position that an S corporation is a U.S. resident corporation that has elected not to be subject to tax, the Court concluded that an S corporation holding at least 10 percent interest in a German GmbH suffers withholding on dividends from the GmbH at a rate not to exceed 5 percent. Were the treaty not to apply, the rate. Read More.
Next FAF Quarterly Meeting Set for May 21st
Providing updates to the Foundation’s trustees, the Financial Accounting Foundation (“FAF”; “the Foundation”) will hold its quarterly meeting on May 21st. Taking place in Washington D.C., the meeting will discuss recent accounting standard-setting happenings by the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). FAF Chairman Jeffrey Diermeier, and President and CEO Teresa Polley, FASB Chairman Russell Golden and GASB Chairman David Vaudt are scheduled to share their reports, as well as the FAF’s Standard-Setting Process Oversight Committee Chairman and treasurer. Along with the updates, the Foundation plans to review concerns over its estimated $3 million donation. Read More.
Conflict Minerals’ Effective Date Gets a Stay
Announced on May 2nd, the U.S. Securities and Exchange Commission (“the Commission”; “SEC”) issued a stay of the effective date for companies to comply with parts of its final rule, Conflict Minerals. The stay affects parts of Exchange Act Rule 13p-1 and Form SD, which mandates public disclosure of a company’s use of conflict minerals from the Democratic Republic of the Congo or neighboring countries. Due to last month’s decision by the Court of Appeals for the District of Columbia Circuit (“the Court”), such disclosure was ruled as violating the First Amendment. As companies move forward applying the final rule. Read More.
Topics: Assurance & Accounting "A&A", Conflict Minerals, Court of Appeals, Democratice Republic of Congo "Congo", Division of Corporation Finance "Corp Fin", U.S. Securities and Exchange Commission "SEC"
SEC Approves Amendments to PCAOB Rules
With most taking effect June 1st, amendments to the Public Company Accounting Oversight Board’s rules (“PCAOB”; “the Board”) conforming to the Dodd-Frank Act have been approved by the U.S. Securities and Exchange Commission (“SEC”). Adopted by the PCAOB, the rules reference audits, and auditors of brokers and dealers in the Board’s provisions. Further, the rules make certain that the PCAOB can carry out its oversight power, which was established under the Dodd-Frank Act regarding audits, and auditors of brokers and dealers registered with the SEC. The amendments include provisions such as: Adding references to audits and auditors of broker-dealers in. Read More.
Standard on Going Concern to be Published in June
Approved by a 5-2 vote, the Financial Accounting Standards Board (“FASB”) will publish a standard requiring management to make a quarterly evaluation of a company’s financial well-being. Per the accounting standard, companies must disclose in its financial statement and to investors if there is “substantial doubt” regarding its survival. The FASB anticipates publishing the standard in June. The May 7th decision ends a near half-decade dispute regarding how generally accepted accounting principles (U.S. GAAP) can attain doubts concerning a company’s survival odds. Currently, the external auditor handles such uncertainties for a company. According to critics, however, the downside to this. Read More.
AICPA Auditing Standards Board to Meet in Las Vegas
Scheduled for May 13th-15th, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“ASB”) will meet to cover various matters. Taking place at the Wynn Las Vegas and Encore Hotel in Las Vegas, Nevada, the ASB’s meeting will discuss numerous topics like: The Attestation Standards: Clarification and Recodification exposure draft; Proposed statement, An Audit of Internal Control Over Financial Reporting That is Integrated With an Audit of Financial Statements; An International Auditing and Assurance Standards Board update; An update on the Public Company Accounting Oversight Board; and The ASB Work/Strategic Plan. For meeting information and materials or the three-day agenda , visit the AICPA’s. Read More.