Former SEC Chair Uncertain of U.S. IFRS Adoption
Speaking at the recent “SEC and Financial Reporting Institute Conference”, former U.S. Securities and Exchange Commission (“SEC”) Chair Christopher Cox opined that he doubts a U.S. adoption of International Financial Reporting Standards (IFRS) could occur. Sharing thoughts contradictory from his actions as SEC Chair, Cox concluded that the opportunity for the U.S. to adopt IFRS has passed and too much time had wasted without any significant progress being made. Referencing the lack of a current plan that considers U.S public companies to utilize IFRS voluntarily, Cox used the shortcoming as an example of resistance to convergence. Despite Cox suggesting the. Read More.
FASB Removes Guidance for Development Stage Entities
Issued recently by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update No. 2014-10 (“ASU No 2014-10”), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, eliminates from U.S. GAAP all required incremental financial reporting for development stage entities. Currently, a development stage entity is defined as an entity that gives all of its efforts to creating a new business in which planned principal operations have not begun, or have started but yet to generate any significant revenue. Per current U.S. GAAP standards, a development stage. Read More.
Gallagher Criticizes SEC’s Disclosure Rules
Following his criticisms about the lack of amendments related to pension plan accounting for state and local governments, U.S. Securities and Exchange Commission’s (“SEC”) Daniel Gallagher is now voicing his displeasure over mandatory reporting and disclosure requirements. At his speech during the annual SEC Historical Society meeting last week, the SEC Commissioner remarked that trends regarding sustainability reporting and other nonfinancial disclosures add useless information to corporate filings. According to Gallagher, companies should be given the option to offer additional information. In his opinion, companies can provide disclosures based on their reviews and own means of delivering the information. However, Gallagher is apprehensive the voluntary approach will eventually become an SEC requirement. Gallagher’s comments reflect the. Read More.
Revenue Recognition Will Never Be the Same
It has taken over five years of debate to develop, but on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers: Topic 606, creating a new codification topic and ushering in a new era of revenue recognition. This new standard is a major achievement of the International Accounting Standards Board (“IASB”) and FASB joint project to converge U.S. GAAP and International Financial Reporting Standards (“IFRS”). With this release, the FASB has now replaced hundreds of industry specific guidance pages with a single, comprehensive standard applicable to virtually all industries that. Read More.
Topics: Accounting Standards Update "ASU", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Revenue Recognition
Updated IRS Guidance on FBARs to be filed June 30th
The updated guidance is important for individuals holding interests in mutual funds through bank or brokerage accounts. On a recent webinar hosted by the Internal Revenue Service (“IRS”; “the Service”), Service representatives stated that mutual funds held in brokerage accounts generally do not have to be separately reported. Instead, taxpayers report foreign brokerage accounts in which the mutual funds are held. The physical location of the account determines whether it is foreign — not whether the bank itself is U.S.-based or foreign-based. For instance, an account at a branch of a foreign bank located in the U.S. is not a. Read More.
Ray Quintin featured in Tampa Bay Business Journal
In today’s “One Question, One Minute” segment on the Tampa Bay Business Journal website, Cherry Bekaert’s Ray Quintin was highlighted as the guest participant. Quintin, an Audit Partner in the Firm, recently moved to Cherry Bekaert’s Tampa office. Aside from his video appearance, Quintin’s transition and interest in biotech companies will be featured in the weekly magazine’s June 13th edition. To see Quintin’s appearance, click here .