Paul Sobel Named COSO Chairman
The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) has appointed Paul Sobel as the organization’s new chairman. Knowledgeable on matters such as governance, enterprise risk management, and internal control, Sobel was selected due to his distinguished background in corporate spaces and professional services. He will serve a three-year term effective February 2018. Currently the vice president and chief audit executive at Georgia-Pacific, Sobel manages the company’s internal audit function and provides oversight and guidance regarding risk management and compliance programs. Sobel was on the Advisory Council for the recently updated COSO Enterprise Risk Management Framework. His background also. Read More.
Corp Fin Director Shares Upcoming Priorities
Earlier this month during a speech in London, William Hinman, director of the Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”), discussed his office’s future priorities. One of Corp Fin’s priorities includes improving the efficiency of its internal processes by reviewing filing procedures and no-action requests, and assessing whether the office can better its response times. Corp Fin is also planning to update and simplify its Financial Reporting Manual and Compliance and Disclosure Interpretation. Several aspects of Corp Fin’s future guidance and rulemaking are likely to receive priority, such as disclosures regarding cybersecurity and resource extraction. Corp. Read More.
SEC Office Unveils Examination Priorities for 2018
On February 7, the Securities and Exchange Commission’s (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) revealed its annual list of exam priorities. This year’s examination priorities are divided into five categories: Compliance and risks in critical market infrastructure Matters of importance to retail investors, including seniors and those saving for retirement FINRA and MSRB Cybersecurity Anti-money laundering programs More on the OCIE’s 2018 examination priorities is available in the news release.
FASB Finalizes Standard Related to Tax Reform
The Financial Accounting Standards Board (“FASB”) has issued an Accounting Standards Update (“ASU”) concerning certain stranded income tax effects in accumulated other comprehensive income caused by the Tax Cuts and Jobs Act. ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, gives financial statement preparers the option to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings in every period wherein the impact of the new corporate income tax rate in the new tax law (or portion thereof) is recognized. As a result of the new guidance,. Read More.
Topics: Accounting Standards Update "ASU", Accumulated Other Comprehensive Income, Comprehensive Income (Topic 220), FASB, Financial Accounting Standards Board "FASB", Stranded Income Tax Effects, Tax Cuts and Jobs Act, Tax Reform
Simplified Transition to Lease Standard Offered for Land Easements
Thanks to the Financial Accounting Standards Board’s (“FASB”) latest Accounting Standards Update (“ASU”), companies with land easements contracts should have an easier time applying the board’s lease standard. ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, offers a simplified transition to ASU No. 2016-02, Leases (Topic 842), for businesses with the right to use another entity’s land for purposes such as running pipelines or burying transmission wires. The amendments ensure that businesses can successfully transition to ASU No. 2016-02 without impacting the information investors receive about land easements. The FASB addresses the issue. Read More.
FinREC Releases Working Drafts for Implementing Revenue Standard
Last week, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) issued industry-specific working drafts featuring proposed guidance for implementing Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board (“FASB”). The working drafts, which could be added to Audit and Accounting Guide: Revenue Recognition, are as follows: Aerospace and Defense Revenue Recognition Implementation Issue # 1-5: Transfer of Control on Non-US Federal Government Contracts — Clarification on Whether a Contract Priced at a Loss Could Qualify for Over Time Recognition in Accordance with FASB ASC 606-10-25-27(c): This proposal clarifies FinREC. Read More.
Topics: Accounting Standards Update "ASU", Aerospace, Audit and Accounting Guide: Revenue Recognition, FASB, Financial Reporting Executive Committee "FinREC", FinREC, Gaming, Health Care, insurance, Revenue From Contracts With Customers, Revenue Recognition, Telecommunications