AICPA and Healthcare Trade Group to Issue Guidance for Revenue Standard
To help healthcare companies with Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), the Healthcare Financial Management Association and the American Institute of Certified Public Accountants are planning to offer additional industry-specific guidance. The interpretive guidance is expected to address when healthcare providers should record revenue from special state funding methods that cover deficits between Medicaid reimbursements and patient care costs. Frustration over recognizing revenue related to provider tax programs was discussed at last month’s meeting between the FASB and the Healthcare Financial Management Association’s Principles and Practices Board. Brian Conner, a national practice leader for hospitals. Read More.
Dodd-Frank Executive Compensation Rules Still Delayed
For the last eight years, the Securities and Exchange Commission (“SEC”) has been working to finish the Dodd-Frank Act’s executive compensation rules. Based on recent comments by William Hinman, the rules are far from being completed. Speaking on April 26 before the House Financial Services Committee’s Capital Markets subcommittee, the director of the agency’s Division of Corporation Finance said the executive compensation rules would not be finished this fiscal year. Minnesota Rep. Keith Ellison pressed Hinman about why the SEC is taking so long to complete the executive compensation rules. During his questioning, Ellison referenced unfinished rules on clawbacks (Release. Read More.
FASB Proposes Improved Collaborative Arrangements Guidance
A newly proposed Accounting Standards Update (“ASU”) by the Financial Accounting Standards Board (“FASB”) offers organizations improved guidance regarding collaborative arrangements. The proposed ASU, Collaborative Arrangements (Topic 808): Targeted Improvements , focuses on changes to generally accepted accounting principles related to collaborative arrangements. One proposed change includes adding unit-of-account guidance under Topic 808, which would align the guidance with Topic 606, Revenue from Contracts with Customers, limited to when a company is reviewing the nature of Topic 606. The FASB also proposes two clarifications, such as defining when certain transactions concerning collaborative participants must be accounted for as revenue under Topic 606 when the collaborative member. Read More.
Report Discusses Risks of Artificial Intelligence Data Use
In its new research report, Artificial Intelligence – The Data Below , the Internal Audit Foundation aims to help practitioners distinguish how artificial intelligence (“AI”) uses data differently than standard information technology. The report analyzes how AI-based applications’ use of data impacts auditing AI applications. It also covers how and why internal auditors must change their audit approach to manage data use by AI applications. Topics covered in the report include the difference between auditing AI applications and auditing traditional information technology; the challenges of how AI leverages data and how an auditor should comprehend data concepts and controls and AI methods to data analysis when creating. Read More.
SEC Proposes New Broker-Dealer Regulations and Interpretations
The following proposed rules and interpretations by the Securities and Exchange Commission (“SEC”) aim to improve transparency regarding investors’ relationships with investment advisers and broker-dealers: Regulation Best Interest would require a broker-dealer to act in a retail customer’s best interest when recommending any securities transaction or investment strategy concerning securities to a retail customer. This regulation attempts to clarify that a broker-dealer cannot place its financial interests before a retail customer’s interests when making recommendations. A proposed interpretation would clarify the SEC’s opinion of the fiduciary duty investment advisers owe to clients. By stressing principles important to the fiduciary duty,. Read More.
PCAOB Requests Feedback on 2018-2022 Strategic Planning
Seeking the public’s input on future objectives, the Public Company Accounting Oversight Board (“PCAOB”) has issued a brief survey on its strategic plan for 2018 to 2022. The survey asks participants to share their thoughts regarding the PCAOB’s approach to achieving its mission. Survey responses are due Tuesday, May 15. The survey follows the PCAOB’s December 2017 appointment of five new members and the organization’s desire for a fresh look at its ongoing efforts. It also comes at a time when the PCAOB is undergoing the annual preparation of its five-year strategic plan. As part of this year’s planning process, the PCAOB wants to hear from outside parties. Read More.