PCAOB Updates Project Agendas
The Public Company Accounting Oversight Board’s (“PCAOB”) Office of the Chief Auditor recently published an update to its standard-setting and research project agenda. The revised agenda includes the Office’s present standard-setting agenda, planned milestones, and important recent developments. The PCAOB’s standard-setting agenda includes the following projects: Auditor’s Reporting Model: Adopted in June and approved by the Securities and Exchange Commission on October 23rd. Auditing Accounting Estimates, Including Fair Value Measurements: Reviewing comments on exposure draft of the proposed standard. The Auditor’s Use of the Work of Specialists: Reviewing comments on exposure draft of the proposed standard. Supervision of Audits Involving. Read More.
Topics: Auditing Accounting Estimates (AS 2501), Auditor's Reporting Model, Auditor's Use of the Work of Specialists, PCAOB, PCAOB Office of the Chief Auditor, PCAOB Standard-setting Agenda, Public Company Accounting Oversight Board "PCAOB", Quality Control
SEC to Offer Hurricane Victims Regulatory Relief
Announced in a September 28 news release, the Securities and Exchange Commission (“SEC”) will provide regulatory relief to publicly traded businesses, investment companies, municipal advisors and others impacted by Hurricanes Harvey, Irma and Maria and their aftermaths. Property loss, power outages, and the lack of transportation and mail delivery are creating compliance issues for some individuals and companies. As a result, the SEC will conditionally exempt those affected by the hurricanes from certain provisions of the federal securities laws for periods following the storms. Additionally, the SEC extended the filing deadlines for specified reports and forms that entities must file in accordance with Regulation Crowdfunding and Regulation. Read More.
AICPA Revenue Recognition Task Force Issues Exposure Drafts
In response to Financial Accounting Standards Board Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) Revenue Recognition Task Force has issued the following revenue recognition exposure drafts for comment: Brokers and Dealers Issue 3-4: Underwriting Revenues Telecommunications Issue 15-8 – Determining the Transaction Price Comments on the exposure drafts are due January 2, 2018. The AICPA is seeking comment on the issues. The comment period ends January 2, 2018.
Topics: Accounting Standards Update "ASU", AICPA, AICPA Revenue Recognition Task Forces, American Institute of Certified Public Accountants "AICPA", Brokers & Dealers, FASB, Financial Accounting Standards Board "FASB", Revenue Recognition, Telecommunications
Investor Advisory Group Seeks Audit Standards for Non-GAAP Measures
Regulators searching for a reliable way to evaluate non-GAAP financial measures so that they aren’t misleading to investors should define their standards based on key performance indicators (“KPIs”) for specific industries. This guidance is the latest recommendation to come from a working group of the Investor Advisory Group (“IAG”), which is part of the Public Company Accounting Oversight Board (“PCAOB”). Many public companies feel that U.S. GAAP metrics don’t reflect how they manage their businesses as well as some non-GAAP metrics do. However, non-GAAP measures pose an issue for auditors. The IAG’s working group is trying to balance. Read More.
Debt Presentation Rules Change for Healthcare Companies
Hospitals, clinics and other healthcare organizations will calculate debt much differently under the new revenue rules put forth by the Financial Accounting Standards Board (“FASB”). Under the new rules, which public organizations have to comply with for fiscal years beginning after December 15, 2017, discounts that healthcare organizations regularly give for procedures will no longer be considered bad debt. Instead, total revenues will include an adjustment for the amount the organization doesn’t expect to collect. For example, if a hospital charges $1,000 for a procedure but agrees to take $400 for the service from an uninsured patient, under the. Read More.
New AICPA Technical Questions and Answers Issued on Public Businesses
The American Institute of Certified Public Accountants (“AICPA”) has issued new Technical Questions and Answers (“TQAs”) offering guidance for related terminology and other matters concerning public business entities. Section 7100, Definition of a Public Business Entity, features 16 new questions and answers to help a company determine its status as a public business. Included in the TQAs is detailed guidance addressing depository institutions, broker-dealers, insurance companies and nonprofits. A press release on Section 7100 is available on the AICPA website.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", Broker-Dealers, Depository Institutions, Insurance Companies, Nonprofit, Public Business Entities, Technical Questions & Answers