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SEC Adopts New Rules for Asset-Backed Securities

Announced via press release Wednesday, the Securities and Exchange Commission (“SEC”) has adopted revised rules for overseeing the disclosure, reporting, and offering process for asset-backed securities (ABS). The new rules address problems and significant losses ABS holders suffered from the 2008 financial crisis, as well as increase transparency, enhance investor protection and assist capital formation in the securitization market. Required by the new rules are loan-level reporting for certain assets, including residential and commercial mortgages, and car loans. Further, the rules give investors additional time to review a securitization offering, update the criteria for using an accelerated offering process and make key. Read More.

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FASB Announces Topics for September 3rd Board Meeting

Prepping for its board meeting Wednesday, the Financial Accounting Standards Board (“FASB”) has announced the three topics it will cover: Financial instruments—impairment. FASB will continue to discuss Proposed Accounting Standards Update, Financial Instruments—Credit Losses (Subtopic 825-15). The discussion will focus on write-off guidance and clarifying the term which an entity should estimate its projected credit losses for financial instruments. Disclosure framework: disclosure review—fair value measurement. FASB plans to cover application to fair value disclosures of the concepts in the proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. While no decisions are anticipated from the discussion, prospective. Read More.

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FASB Issues ASU No. 2014-15 to Help Reporting of Going Concern

Helping to disclose substantial doubt concerning a company’s ability to move forward as a going concern, the Financial Accounting Standards Board (“FASB”) has released Accounting Standards Update (ASU) No. 2014-15 , Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Announced on Wednesday, the ASU provides principles and definitions to an organization’s management for decreasing diversity in disclosures that are currently made available in financial statement footnotes. Presently, U.S. GAAP does not provide an organization’s management guidance regarding its responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern. Read More.

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SEC Announces Initiative to Evaluate Municipal Advisors

In a press release Tuesday, the Securities and Exchange Commission (“SEC”) announced the start of its Office of Compliance Inspections and Examinations’ (“the Office”) exam initiative for newly regulated municipal advisors. As part of the initiative, the Office will review municipal advisors in areas like compliance with fiduciary duty to municipal entity clients, books and recordkeeping responsibilities, fair dealing and disclosure. The examinations are planned to take place over the next two years. To view the press release , visit the SEC website. Also discover how Cherry Bekaert can assist with SEC Audit services .

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FASB Announces Itinerary for Wednesday’s Meeting

Scheduled for Wednesday, the Financial Accounting Standards Board (“FASB”) meeting will cover four topics essential to the standard-setter’s ongoing efforts: 1.  Agenda prioritization. FASB plans to review staff research and analysis from a number of prospective projects and which ones will be added to its agenda. 2.  Financial instruments— impairment . Discussions will continue on FASB’s Proposed Accounting Standards Update, Financial Instruments-Credit Losses. In particular, the conversation will focus on impairment guidance for debt securities and clarifying the measurement principle in the Current Expected Credit Losses model. 3.  Insurance— disclosures concerning short-duration contracts . Talks will continue on disclosures on short duration contracts, including disclosures. Read More.

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Ex-SEC Commissioners Blame Companies for Long Disclosures

As the U.S. Securities and Exchange Commission (“SEC”) continues its project on simplifying corporate disclosure requirements, two of the agencies’ former commissioners say companies shoulder some of the blame for the disclosures’ length. At a U.S. Chamber of Commerce conference on July 29th, ex-SEC head Cynthia Glassman commented that the documents are often more for protection from litigation than educating investors, especially if the disclosure is in electronic form. Glassman said if a company had an executive summary that could link to additional disclosures, then a lawsuit could be created since it was considered incomplete. While companies try to cover. Read More.

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