FASB Working to Fix Inconsistencies of U.S. GAAP
The Financial Accounting Standards Board (“FASB”) has released a proposed Accounting Standards Update to eliminate inconsistencies in parts of the U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). Impacting various areas in the FASB Accounting Standards Codification, the proposed changes will apply to all reporting entities within the scope of the related accounting guidance. Some of the amendments under Proposed Accounting Standards Update No. 2017-320 Codification Improvements, impact: Subtopic 718-740, Compensation—Stock Compensation—Income Taxes: The FASB proposes clarifying that an entity must disclose excess tax benefits (or tax deficiencies) in the reporting period when the tax deduction for compensation expense is taken on its. Read More.
Topics: Business Combinations (Topic 805), Fair Value Measurement (Topic 820), FASB, FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", Income Taxes, Proposed Accounting Standards Update, Stock Compensation (Topic 718), U.S. GAAP
AICPA Committee Issues 20 Working Drafts for Implementing Revenue Standard
Twenty working drafts have been created to help companies implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Issued by the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee, the draft implementation guides cover eight industries with respect to airlines, healthcare businesses, energy companies, and telecommunications. The working drafts are as follows: Working Draft: Airlines Revenue Recognition Implementation Issue #2-5A: Timing and Classification of Commissions in Interline Transactions Working Draft: Airlines Revenue Recognition Implementation Issue #2-6G: Changes in the Volume of Mileage Credits Under a Cobranded Credit Card Arrangement Working Draft: Asset Management Revenue Recognition Implementation. Read More.
Topics: AICPA, AICPA Audit and Accounting Guide, AICPA Draft Implementation Guide, AICPA Financial Reporting Executive Committee, Airlines, Energy, healthcare, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Telecommunications, Working Drafts
SEC Introduces Initiatives for Cyber Threats and Retail Investors
Building on its Enforcement Division’s efforts to counter cyber-based threats and safeguard retail investors, the Securities and Exchange Commission (“SEC”) announced on September 25 the creation of the following two initiatives: Cyber Unit: Using the Enforcement Division’s cyber expertise, the new Cyber Unit will target misconduct concerning market manipulation schemes featuring false information distributed electronically and through social media; hacking to acquire private information; and violations related to distributed ledger technology and initial coin offerings. Retail Strategy Task Force: With the Enforcement Division experiencing long-term success at bringing cases such as the sale of unsuitable structured products and microcap pump-and-dump schemes, the Retail Strategy Task Force will create proactive,. Read More.
SEC Chairman Clayton Testifies on 2016 Cybersecurity Breach
After announcing on September 20 that the Securities and Exchange Commission’s (“SEC”) computers were breached last year , SEC Chairman Jay Clayton recently provided additional details on the cybersecurity intrusion to the Senate Committee on Banking, Housing and Urban Affairs. During his September 26 testimony, Clayton expressed his concerns over the 2016 breach involving the SEC’s Electronic Data Gathering And Retrieval filing system. He noted that the breach will cause many to pay close attention to the SEC’s approach to cybersecurity, and whether the agency is taking the proper steps to appropriately address its cyber risk. Clayton also reiterated that the SEC’s review and investigation of the matter are. Read More.
Accounting Standards Codification Updated for Revenue Recognition and Leases Standards
The Financial Accounting Standards Board has issued Accounting Standards Update (“ASU”) No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments. This Update adds, amends, and replaces Securities and Exchange Commission (“SEC”) paragraphs of the Accounting Standards Codification (“ASC”) concerning the adoption and transition rules of ASU No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-02, Leases, for public companies. ASU No.. Read More.
Topics: Accounting Standards Update "ASU", Emerging Issues Task Force "EITF", FASB, lease accounting, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, SEC, Securities and Exchange Commission "SEC"
Revenue Standard Could Have Major Impact on Software Industry
With the Financial Accounting Standards Board’s (“FASB”) new revenue recognition rules becoming effective in three months, the Accounting Standards Update (“ASU”) could have a major effect on the bottom lines of companies in the software industry. Under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), software companies will have to recognize more revenue when the sale occurs. However, companies in the software industry have long-term arrangements with customers, meaning revenue is usually recognized over the life of the contract. One software company already feeling the impact is Microsoft, which was an early adopter of the standard. Under the. Read More.