FASB to Review Backwards Tracing Related to Tax Reform
The Financial Accounting Standards Board’s (“FASB”) research team plans to review how the tax code changes stemming from the Tax Cuts and Jobs Act (“TCJA”) will impact backwards tracing, which is a practice U.S. GAAP currently prohibits. Backwards tracing is a practice in which the impact of a change in a deferred tax credit or charge is included in the same line item wherein the deferred taxes were initially recorded. According to FASB staff member Jason Bond, the board wants to review the costs of backwards tracing and consider alternatives to determine whether the benefits outweigh the costs. Bond remarked. Read More.
FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts
SEC Approves 2018 GAAP Financial Reporting Taxonomy
Announced in a press release by the Financial Accounting Standards Board (“FASB”), the Securities and Exchange Commission (“SEC”) has accepted the 2018 GAAP Financial Reporting Taxonomy. This year’s edition features accounting standards updates and other suggested improvements. The market regulator has also accepted the 2018 SEC Reporting Taxonomy (“SRT”). A new edition this year, the SRT covers the essentials needed to meet provisions for SEC-required financial schedules, condensed consolidating financial information for guarantors, and disclosures regarding oil- and gas-producing activities. FASB staff will discuss the 2018 GAAP Financial Reporting Taxonomy and SRT tomorrow during its live webcast . The event will start at 1:00 pm. ET.
AICPA Committee Proposes Updated Information System Services Interpretation
The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee (“PEEC”) has proposed amendments to its interpretation of an independence rule concerning nonattest services associated with an attest client’s information systems. Outlined in the exposure draft Proposed Revised Interpretation – Information System Services (formerly Information, Systems Design, Implementation, or Integration) , the proposed changes relate to the PEEC’s review of the “Nonattest Services” subtopic under the “Independence Rule” as well as its application to existing information technology services provided to clients. During the project, the PEEC has examined its “Information Systems Design, Implementation, or Integration” interpretation to assess major threats to independence that could occur when such services are offered. The PEEC’s proposed. Read More.
Nominations Being Accepted for 2018 Roaring Twenties Awards
Together with SC Biz News, nationally recognized public accounting firm Cherry Bekaert LLP (“the Firm”) is proud to once again sponsor the annual Roaring Twenties program, which honors the fastest growing companies in South Carolina. The Roaring Twenties recognizes the top middle-market South Carolina businesses that have contributed to the state’s economic growth. Selected companies will be divided into “Small” ($10 million and under) and “Large” (over $10 million) categories and ranked according to their revenue growth over a one-year period. Dollar and percentage increases will be considered in the rankings. Eligible companies must meet the following criteria: Have a physical presence in. Read More.
CAQ Report to Help Audit Committees with Non-GAAP Oversight
In its new report, Non-GAAP Measures: A Roadmap for Audit Committees , the Center for Audit Quality (“CAQ”) offers oversight guidance to audit committees concerning financial measures outside of U.S. Generally Accepted Accounting Principles (“GAAP”). The CAQ advises audit committees to take the following actions with companies: Evaluate whether the disclosed non-GAAP measures and related information support a company’s general strategy and performance. Decide whether management’s internal policy features guidelines for defining how non-GAAP measures are created, calculated, and disclosed. Talk with management about how a company decides to change non-GAAP measures it discloses and its rationale for making such changes. Ask a company to compare its. Read More.