William Duhnke Sworn in as PCAOB Chairman
Longtime Republican staffer William Duhnke was sworn in last week as chairman of the Public Company Accounting Oversight Board (“PCAOB”). Replacing Chairman James Doty, Duhnke previously served as an aide to Alabama Senator Richard Shelby and was the staff director and general counsel for the Senate Committee on Rules and Administration. In his first act as chairman, Duhnke appointed Francis Dymond as the PCAOB’s chief of staff. At the same event, former Treasury Department counselor Kathleen Hamm was sworn in as chair to the PCAOB. Duhnke and Hamm were appointed as new PCAOB members in December by the Securities and Exchange Commission. The remaining newly elected members, Robert Brown, Duane DesParte and James Kaiser, will be sworn. Read More.
PCAOB Standard-Setting Update as of December 31, 2017
The following reflects the Public Company Accounting Oversight Board’s (“PCAOB”) updated standard-setting agenda as of December 31, 2017: Auditing Accounting Estimates, Including Fair Value Measurements: Considering a recommendation for the next PCAOB action. The Auditor’s Use of the Work of Specialists: Considering a recommendation for the next PCAOB action. Supervision of Audits Involving Other Auditors: Reviewing comments on the supplemental request for comments and planning the next steps. Going concern: Covering outreach, monitoring, and research efforts. Along with the release of its revised standard-setting agenda, the PCAOB has added four projects to its research agenda. The projects involve quality control standards, changes in the use of data and technology in audits, the auditor’s role. Read More.
AICPA Committee Updates Independence Rule Interpretations
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee (“PEEC”) has updated Interpretations under its Independence Rule. The revised Interpretations include the following: Entities Included in State and Local Government Financial Statements (ET sec. 1.224.020) Simultaneous Employment or Association With an Attest Client (ET sec. 1.275.005) Member of a Credit Union (ET sec. 1.280.040) Actual or Threatened Litigation (ET sec. 1.290.010) General Requirements for Performing Nonattest Services (ET sec. 1.295.040) Bookkeeping, Payroll, and Other Disbursements (ET sec. 1.295.120) Executive or Employee Recruiting (ET sec. 1.295.135) Forensic Accounting (ET sec. 1.295.140) Internal Audit (ET sec. 1.295.150) Application of. Read More.
Recap of Private Company Council’s December Meeting
At its December 8 meeting, the Private Company Council provided feedback on the following topics: Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract: Council members declared that implementation costs are to be capitalized in such arrangements, except fees for a cloud computing arrangement that are considered a service contract. Financial Performance Reporting: Council members examined the results of Financial Accounting Standards Board (“FASB”) staff’s research on private company financial statements, and the possible impact disaggregation of performance information may have on the private company sector.. Read More.
FASB to Clarify Troubled Debt Restructurings Guidance
Guidance for troubled debt restructurings under the Financial Accounting Standards Board’s (“FASB”) credit losses standard will soon receive an update. The FASB intends to clarify the recognition and measurement of troubled debt restructurings by allowing banking institutions that calculate allowances for credit losses on modified loans to select a prepayment-adjusted effective interest rate when implementing Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The clarified guidance would allow banks that calculate allowances for their credit losses on troubled debt restructurings to select a prepayment-adjusted effective interest rate when. Read More.
FASB to Review Revenue Standard Implementation Costs
The Financial Accounting Standards Board (“FASB”) plans to examine how companies implement its revenue recognition standard when the guidance goes into effect next year. At a December 14 meeting, FASB Chairman Russell Golden stated that the board would undertake a comprehensive review of Accounting Standards Codification 606, Revenue From Contracts With Customers, to adjust its education process for future guidance, boost outreach with financial software providers, and find ways that could reduce implementation costs of significant standards. Golden said the review would focus on companies that have already implemented revenue. In particular, the FASB wants to know what were the. Read More.