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XBRL Frequently Asked Questions Updated

This week, Securities and Exchange Commission (“SEC”) staff members revised the  FAQs on the IFRS Taxonomy . The updated version offers additional contact clarification and information for questions regarding structuring disclosures using the IFRS Taxonomy. Additionally, Foreign Private Issuers that prepare financial statements in compliance with International Financial Reporting Standards and are bound by Rule 405 of Regulation S-T must submit their financial statements in eXtensible Business Reporting Language (“XBRL”) via an IFRS Taxonomy listed on the agency’s website. The updated FAQs are available at SEC.gov.  

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SEC’s Corp Fin Revises Guidance on Non-GAAP Measures

The Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”) recently updated its Compliance and Disclosure Interpretation (“C&DI”), Non-GAAP Financial Measures . The revised C&DI features Corp Fin staff interpretations of the provisions for using non-GAAP financial measures. It also adds Questions 101.02 and 101.03, which includes guidance related to business combination transactions, including information about offering non-GAAP financial measures in specific forecasts. Visit SEC.gov to see the updated C&DI.

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New CAQ Tool to Help with Cybersecurity Risk Management Oversight

The Center for Audit Quality (“CAQ”) has developed a new tool to help board members oversee enterprise-wide cybersecurity risk management. Cybersecurity Risk Management Oversight: A Tool for Board Members lists questions board members can ask meeting with management and CPA firms about cybersecurity risks and disclosures. Such questions are divided into the following areas: Understanding how the financial statement auditor considers cybersecurity risk. Understanding the role of management and responsibilities of the financial statement auditor related to cybersecurity disclosures. Understanding management’s approach to cybersecurity risk management. Understanding how CPA firms can assist boards of directors in their oversight of cybersecurity risk management. The tool also collects cybersecurity-related resources from. Read More.

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AICPA Issues Technical Guidance for IRS Audits of Partnerships

A recent Technical Question & Answer (“TQA”) document from the American Institute of Certified Public Accountants provides guidance on complying with the Internal Revenue Service’s (“IRS”) new approach to auditing partnerships for income taxes. TQA 7200.09, Partnerships Tax Accounting Considerations Under Partnership Audit Regime , clarifies whether a previous year’s underpayment signifies an income tax liability of the partnership or the individual partners. Per the guidance, Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes  FASB ASC 740-10-55-226, Income Taxes — Overall — Implementation Guidance and Illustrations — Attribution of Income Taxes to the Entity or Its Owners, through FASB ASC 740-10-55-229, Financial Statements of a Group. Read More.

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PCAOB Standard-Setting Update as of March 31, 2018

Available on the Public Company Accounting Oversight Board’s (“PCAOB”) website is the organization’s most recent standard-setting agenda. Updated as of March 31, the standard-setting agenda features the statuses of the following current PCAOB projects: Auditing Accounting Estimates, Including Fair Value Measurements: Developing a recommendation for action. The Auditor’s Use of the Work of Specialists: Developing a recommendation for action. Supervision of Audits Involving Other Auditors: Reviewing comments and deciding the next steps. Going concern: Outreach, monitoring, and research. The PCAOB also has projects on its research agenda related to: Quality control standards; Changes in how data and technology in audits. Read More.

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Government Watchdog Says SEC’s Climate Change Disclosure Rules are Clear

After a comprehensive review, the Securities and Exchange Commission’s (“SEC”) documents related to its climate change disclosure requirements have received the Government Accountability Office’s (“GAO”) approval. In a March 22 report, the government watchdog group said that the SEC’s disclosure requirements concerning climate-related risks under Release No. 33-9106, Commission Guidance Regarding Disclosure Related to Climate Change, are clear and do not need additional guidance. Release No. 33-9106 requires companies to disclose to investors the climate change risks they face, such as lawsuits or regulatory supervision. Effects caused by climate change could potentially impact a public company’s operations and financial stability.. Read More.

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