SEC Official Asks Public Companies to Focus on Key FASB Standards
Securities and Exchange Commission (“SEC”) official Michael Dusza is advising public companies to consider how the adoption of several standards from the Financial Accounting Standards Board (“FASB”) could impact their financial reporting controls. During a speech last month in Washington D.C., Dusza stressed that the accounting changes for revenue recognition, leases, and credit losses are likely to create significant challenges when public companies test internal controls during the adoption phase. Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is effective January 1, 2018 for public business entities. ASU No. 2016-02, Leases (Topic 842), will be. Read More.
Topics: COSO, Credit Losses, FASB, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Internal Control Reporting, Internal Controls, lease accounting, Leases (Topic 842), Public Companies, Revenue Recognition, SEC, Securities and Exchange Commission "SEC"
Enterprise Risk Management Framework Update Issued
The Committee of Sponsoring Organizations of the Treadway Commission has issued an update to its enterprise risk management (“ERM”) Framework, Enterprise Risk Management–Integrating with Strategy and Performance (“ERM Framework”). Building on the previous version, the update is designed to help companies with managing their risks and create and preserve value. Structured in five components with different viewpoints and operating structures the updated ERM Framework features opinions on the present concepts and applications of enterprise risk management. In addition, the update covers challenges of enterprise risk management that business leaders and boards currently face, such as economic market changes, and evolving. Read More.