New Tool to Help with Implementing FASB Leases Standard
The Center for Audit Quality (“CAQ”) has designed a tool to support audit committees in their implementation of Accounting Standard Codification Topic 842, Leases, by the Financial Accounting Standards Board (“FASB”). Preparing for the Leases Accounting Standard: A Tool for Audit Committees includes a synopsis of Topic 842 and the standard’s requirements. The new tool also lists which questions audit committee members should consider for a successful application. Topic 842, Leases, will be effective in January 2019. A recent poll, however, found that only 21 percent of professionals say their organizations are either “extremely” or “very” prepared to implement the new leases standard.
Cathie Stanton Hears Supreme Court Case on Sales & Use Tax
Today, April 17, the Supreme Court of the U.S. heard oral arguments for a landmark sales and use tax case, South Dakota v. Wayfair, Inc. et al. What did each side say, and how persuaded did the justices seem? What was the discussion surrounding the burden on businesses of collecting sales tax across multiple jurisdictions? Get the initial impressions of Cathie Stanton, National Leader of State and Local Tax Services at Cherry Bekaert, who was in the courtroom for the arguments and shared this video from outside the Supreme Court building in Washington, D.C.
AICPA Names Bob Dohrer Chief Auditor
In a March 27 press release, the American Institute of Certified Public Accountants (“AICPA”) announced the appointment of Robert “Bob” Dohrer, CPA, as the organization’s chief auditor. Dohrer will replace Charles Landes, CPA, who is also the AICPA’s vice president of professional standards – public accounting. Landes will retire in early 2019, but he will help with the transition when Dohrer joins the AICPA in October. Dohrer currently serves as global leader, quality and risk, for a multi-national network of accounting firms based in London. In his role as AICPA chief auditor, he will serve as the organization’s expert on. Read More.
GAO Asks Regulators to Increase Fintech Protections
The Government Accountability Office (“GAO”) wants securities regulators to step up their efforts in safeguarding investors and consumers from financial technology (“fintech”) products. In its March 22 report, the GAO said fintech products present the same risks as traditional products, but current laws and regulations may not sufficiently address such risks. How much fintech firms must comply with applicable federal laws differs. Regulators like the Securities and Exchange Commission (“SEC”) can supervise fintech investment advisors just as they do traditional advisors, but the GAO said that digital assets could create unique risks to investors. The SEC, however, believes digital assets. Read More.
FASB Issues GAAP Taxonomy Improvements and Implementation Guidance
The Financial Accounting Standards Board (“FASB”) has issued GAAP Taxonomy improvements and implementation guidance concerning the following Accounting Standards Updates (“ASU”): ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU No. 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) More on these Taxonomy Improvements is available on. Read More.
Topics: Accounting Standards Update "ASU", FASB, Financial Accounting Standards Board "FASB", Financial Instruments—Overall (Subtopic 825-10), GAAP Taxonomy, Income Taxes (Topic 740), Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980), SEC Staff Accounting Bulletin
Financial Executives Slowly Warming to Risk Management Planning
Despite the American Institute of Certified Public Accountants’ (“AICPA”) latest survey revealing organizations have inadequate risk management practices, the numbers compared to the inaugural survey have improved. The AICPA discovered that 31 percent of companies have created processes for enterprise risk management. That number is 22 percentage points higher than in 2009; only nine percent of organizations surveyed that year reported having risk management processes. The survey is part of the AICPA and North Carolina State University’s Enterprise Risk Management Initiative. Mark Beasley, the director of NC State’s ERM Initiative, said this year’s survey shows that more senior executives and. Read More.