IASB Issues First Disclosure Initiative Update
Featuring projects for enhancing financial report information, the International Accounting Standards Board’s (“IASB”) Disclosure Initiative just received its first update . The update covers three topics, “Principles of Disclosure”, “Targeted Improvements to Disclosure Requirements” and “Materiality”. An integral part of the Disclosure Initiative, the “Principles of Disclosure” project seeks to substitute three of the IASB’s current standards with one or more disclosure standards. The second topic, “Targeted Improvements to Disclosure Requirements”, relates to the IASB’s exposure draft of proposed amendments to IAS 1 Presentation of Financial Statements. Rather than change current IAS 1 requirements, the amendments would provide more clarity, as. Read More.
AICPA Issues Updated Code of Professional Conduct
Modified as part of its Professional Ethics Executive Committee’s (“PEEC”) codification project and for easier usage, the American Institute of Certified Public Accountants (“AICPA”) has issued a revision of its Code of Professional Conduct . Released on May 20th, the updated code is split into three sections that separately apply to public accountants, business accountants, and all other accountants, including those who are retired or unemployed. The AICPA recommends accountants with multiple roles to check all applicable parts of the code and utilize the most restrictive requirements. Approved by the PEEC earlier this year, the updated Code of Professional Conduct takes effect December 15th.. Read More.
Agenda Set for Upcoming Standing Advisory Group Meeting
Announced by the Public Company Accounting Oversight Board (“PCAOB”; “the Board”), the nonprofit organization’s Standing Advisory Group (“SAG”) will hold its meeting June 24th-25th. Chaired by the PCAOB’s Chief Auditor and Director of Professional Standards Martin F. Baumann, SAG is composed of various investors, auditors, public company executives and others. Recently published by the PCAOB, the meeting’s agenda features a discussion regarding the Board’s latest activities. SAG discussions will also be part of the meeting, including topics like: Initiatives to Improve Audit Quality–Root Cause Analysis, Audit Quality Indicators (AQIs), and Quality Control Standards; Initiatives to Improve Audit Quality—Root Cause Analysis, Audit Quality Indicators. Read More.
FASB and IASB Seek Lease Standards Publication Next Year
Hoping to publish final standards late next year, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) will restart discussions this fall on their lease accounting project. It is anticipated that the final standards will be based on FASB’s Proposed Accounting Standards Update No. 2013-270, Leases (Topic 842), and the IASB’s Exposure Draft No. 2013-6, Leases. Both proposals were published in 2013. Before completing work on their project, the FASB and IASB must resolve several disagreements on proposed changes to accounting in U.S. GAAP and International Financial Reporting Standards. Such disagreements include how to handle accounting for. Read More.
IRS Updates Form 5472 Regulations to Eliminate Anachronistic “Duplicate Filing” Requirement
Back in 2011, the Internal Revenue Service (“IRS”) proposed regulations to eliminate the need for duplicate filing of Form 5472 regardless if the filer submits a paper or an electronic income tax return. As a result, the regulations’ only remaining provision for filing Form 5472 separately from the filer’s income tax return applies to cases in which the filer’s return is not timely filed. The 2011 regulations are now finalized without substantive change. The IRS and U.S. Department of Treasury are also proposing the removal of §1.6038A-2(e), which provides for a filer to timely file Form 5472 separately from the. Read More.
SEC Chair Wants to Improve Market Stability
Tackling stock market criticism regarding high-speed computer-driven trading, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White has proposed initiatives “recommending additional measures to further promote market stability and fairness, enhance market transparency and disclosures, and build more effective markets for smaller companies.” Speaking at the Global Exchange and Brokerage Conference last week in New York, White mentioned the drafted proposals require high-frequency traders to list as broker dealers with regulators, exposing them to increased regulatory scrutiny. In addition, the proposal would increase supervision of high-frequency traders and further regulate transactions that happen outside of public exchanges. Also recommended. Read More.