Data Collection Stifling Companies’ Lease Implementation Efforts
Officials from Avis Budget Group Inc. and General Dynamics Mission Systems say collecting data during the implementation process for the Financial Accounting Standards Board’s (“FASB”) leases standard has slowed compliance efforts. At a December 6 conference in Washington, D.C., company officials described their adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842), as being more intensive than expected. The FASB issued the standard to simplify lease accounting for companies. However, since corporations lease a wide range of items, the assets could produce a massive amount of data to gather and review. Adena Lerner of General Dynamics Missions Systems, for. Read More.
SEC Appoints New Members to PCAOB
The Public Company Accounting Oversight Board (“PCAOB”) will soon receive five new members. Announced by the Securities and Exchange Commission (“SEC”) on December 12, the new members are as follows: Robert Brown: A law professor at the University of Denver, Brown previously served on the PCAOB’s Standing Advisory Group and the SEC’s Investor Advisory Committee. William Duhnke: The staff director and general counsel to the Senate Committee on Rules and Administration, Duhnke was a Republican staffer in the Senate Banking Committee. Kathleen Hamm: The Global Leader in Securities and Fintech Solutions at Promontory Financial Group, Hamm has prior experience with. Read More.
FASB Standard Addresses New SEC Guidance
A new Accounting Standards Update (“ASU”) features amendments to select Securities and Exchange Commission (“SEC”) paragraphs under the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Issued as ASU No. 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), the standard amends the Accounting Standards Codification to incorporate the following SEC guidance: SEC Staff Accounting Bulletin (“SAB”) No. 116: SAB No. 116 aligns current SEC staff guidance with ASC Topic 606, Revenue from Contracts with Customers. This bulletin updated SAB Topic 13, Revenue Recognition, SAB Topic 8, Retail Companies,. Read More.
Topics: Accounting Standards Codification, Accounting Standards Update "ASU", FASB, Financial Accounting Standards Board "FASB", Income Statement, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, SEC, SEC Staff Accounting Bulletin, Securities and Exchange Commission "SEC", Vaccines for Federal Government Stockpiles
Staff Guidance Published for Implementing Auditor’s Report Changes
New staff guidance by the Public Company Accounting Oversight Board (“PCAOB”) details updates to the auditor’s report that will be effective for audits during fiscal years ending on or after December 15, 2017. Released on December 4, the staff guidance covers critical changes to the auditor’s report, including the disclosure of auditor tenure and a statement on auditor independence. Also covered under the guidance are requirements concerning Critical Audit Matters (“CAMs”). Auditors can communicate CAMs voluntarily, but auditor communication will be required for audits of large accelerated filers for fiscal years ending on or after June 30, 2019. For all other inspections, the requirement is effective for. Read More.
Corp Fin’s Financial Reporting Manual Updated
The Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”) has revised its Financial Reporting Manual , which provides informal guidance for Corp Fin staff members. Publicly available to help with the preparation of SEC filings, the updated manual includes revised guidance concerning the pro forma impact of adopting recently issued accounting standards. It also addresses the adoption of such standards after an entity loses its Emerging Growth Company status and clarifies the effective dates for certain public companies for Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, and ASU No. 2016-02, Leases, by the Financial Accounting Standards. Read More.
SEC Corp Fin to Tweak Cybersecurity Guidance
David Fredrickson of the Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance (“Corp Fin”) has announced that the SEC will update its 2011 document, Disclosure Guidance: Topic No. 2, Cybersecurity. A refresh of the commission’s cybersecurity interpretive guidance, the update would address investors’ complaints that public companies are not providing timely or informative disclosures regarding cyber-attacks on their computer systems. Fredrickson, Corp Fin’s chief counsel, noted that the SEC’s staff is considering updates to disclosure controls and procedures, as in how quickly are cybersecurity breaches identified and brought to the attention of senior management for proper disclosure. The commission. Read More.