New PCAOB Leadership Approves Budget Increases
By a unanimous vote on November 15, the Public Company Accounting Oversight Board (“PCAOB”) approved its budget for 2019. Next year’s PCAOB budget will be $273.7 million, a $13.8 million rise from 2018. PCAOB member Jay Brown remarked that the 2019 budget reflects careful consideration of the resources the audit regulator needs to carry out its mission to protect the interest of investors and the public. Such resources include the addition of several positions, like chief compliance officer and chief risk officer. Brown also said next year’s budget adds liaison positions responsible for conducting outreach to the PCAOB’s stakeholders. The. Read More.
Investment Companies Receive Update to Interpretive Guidance
The Securities and Exchange Commission’s (“SEC”) Division of Investment Management has revised its interpretive guidance to help investment companies meet updated reporting requirements. Issued under the Investment Company Reporting Modernization Frequently Asked Questions, the updated guidance clarifies the final rules in Release No. 33-10231, Investment Company Reporting Modernization. Release No. 33-10231 increases fund company disclosures regarding investment holdings. The update to the Investment Company FAQs states that reports on Form N-PORT, a new monthly portfolio form, do not need to be filed if a fund has been liquidated, merged or terminated and has no investments remaining despite not yet deregistering with. Read More.
2018 Audit Committee Transparency Barometer Released
The Center for Audit Quality and Audit Analytics have issued the fifth edition of their Audit Committee Transparency Barometer , an annual report aimed to help companies and audit committees improve how they communicate to investors, regulators and the public. Per this year’s report, investors and other stakeholders continue to have more information disclosed to them. In addition, more S&P 500 companies are disclosing their considerations in appointing an audit firm, and sharing criteria for reviewing an audit firm. Download the 2018 Audit Committee Transparency Barometer from the Center for Audit Quality website.
Task Force Proposes Amended Accounting for TV Production
In response to the rapidly evolving television production and distribution business models like online streaming services, the Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“EITF”) has proposed an update to U.S. GAAP. Issued by the FASB as Proposed Accounting Standards Update (“ASU”) No. 2018-280, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials, a Consensus of the FASB’s Emerging Issues Task Force, the proposal would update Accounting Standards Codification (“ASC”) 926-20, Entertainment—Films—Other Assets—Film Costs, to require television show creators to account for production costs similarly. Read More.
SEC Updates Disclosure Rules for Mining Companies
Mining companies must give investors more comprehensive details on their properties. The decision is a result of the Securities and Exchange Commission’s (“SEC”) issuance of Release No. 33-10570, Modernization of Property Disclosures for Mining Registrants. Release No. 33-10570 requires mining companies to make available certain specified information regarding mineral resources and mineral reserves, which would help investors make better decisions. The final rules also bring the SEC’s disclosure requirements for mining companies more in line with industry practices and the Committee for Reserves International Reporting Standards. The final rules will be effective 60 days after being published in the Federal Register,. Read More.
FASB Distinguishes Revenue and Collaborative Arrangements Standards
In its efforts to clarify when collaborative arrangements between companies generate revenue instead of payments between partners, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-18— Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. Per the narrow update, when a collaborative participant acts as a customer, the contract should be accounted for under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. The accounting must include the recognition, measurement, presentation, and disclosure provisions. ASU No. 2018-18 also allows companies to disclose units of account in collaborative arrangements within the. Read More.