SEC Chair Supports Idea for Supplemental IFRS Information
One year after Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr suggested allowing public companies to voluntarily supplement International Financial Reporting Standards (IFRS) information with their U.S. GAAP financial statements, the SEC’s Mary Jo White endorsed the plan during a speech in December. At the American Institute of Certified Public Accountants’ Conference on Current SEC and Public Company Accounting Oversight Board Developments, the agency chair said Schnurr’s idea could potentially be helpful as the next step in U.S. companies increasing their use of global accounting standards. Also at the conference, White mentioned that staff members have developed a recommendation. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
Staff Audit Practice Alert Issued for Going Concern
Reminding auditors to continue abiding by its current standards in spite of recent U.S. GAAP changes related to recognizing a company’s ability to continue as a going concern, the Public Company Accounting Oversight Board (“PCAOB”) has issued Staff Audit Practice Alert No. 13 , Matters Related to the Auditor’s Consideration of a Company’s Ability to Continue as a Going Concern. The alert informs auditors to reference the appropriate financial reporting framework, U.S. GAAP or International Financial Reporting Standards (IFRS), to review management’s going concern evaluation and its related financial statement disclosures. Staff Audit Practice Alert No. 13 also advises auditors to continue using PCAOB AU sec.. Read More.
SEC Nearing Decision on IFRS Adoption
As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant. Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance,. Read More.
FASB and IASB to Address Revenue Recognition Standards Concerns
With worries rising over the transition to the recently issued revenue recognition standards, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) have scheduled a meeting next month to review the 2017 effective date. Set for October 31st, the Transition Resource Group meeting is expected to add the effective date as part of its agenda and include a discussion on how both standard-setters should address concerns. The standards in question are FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Considered the most notable. Read More.
FASB Chairman Comments on Possible International Accounting Group
In an effort to boost the organization’s outreach to foreign standard-setters, Financial Accounting Standards Board (“FASB”) chairman Russell Golden has announced plans to create an informal network of accounting bodies. At the American Institute of Certified Public Accountants’ National Conference on Banks and Savings Institutions last week, Golden said the international group would acknowledge the International Accounting Standards Board’s (“IASB”) one size fits all approach is not conducive to ongoing U.S. GAAP and International Financial Reporting Standards (IFRS) convergence efforts, and differences among accounting standards will continue to occur. Hoping to hold the first meeting by year’s end, the network. Read More.
IFRS 10 and IAS 28 Amendments Released
Effective for annual periods starting on or after January 1, 2016, amendments to International Financial Reporting Standards (IFRS) 10, Consolidated Financial Statements, and International Accounting Standards (IAS) 28, Investments in Associates and Joint Ventures (2011) have been released by the International Accounting Standards Board (“IASB”). Issued as “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture,” the amendments address inconsistencies concerning requirements in both IFRS 10 and IAS 28 (2011), related to the sale or contribution of assets among an investor, and its associate or joint venture. The significance of these amendments is that a. Read More.