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Additional Income Tax Disclosures Proposed

The Financial Accounting Standards Board (“FASB”) wants to increase the disclosure requirements for income taxes. In its Proposed Accounting Standards Update, Income Taxes (Topic 740): Disclosure Framework – Changes to the Disclosure Requirements for Income Taxes, the FASB recommends all entities add the following disclosures: An explanation of a tax law amendment that is likely to impact the entity in a later period. Income or losses from ongoing operations previous to income tax expenses or benefits separated between domestic and foreign. Income tax expenses or benefits from ongoing operations separated between domestic and foreign. Income taxes paid separated between domestic. Read More.

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Smaller Reporting Company Changes Proposed

A proposal by the Securities and Exchange Commission (“SEC”) aims to expand the financial thresholds under its definition for “smaller reporting company,” making it easier for companies to qualify for certain scaled disclosures under Regulation S-K and Regulation S-X. The changes would raise the threshold for a smaller reporting company from $75 million to $250 million. In addition, companies without a public float would be allowed to offer scaled disclosures if their annual revenues are below $100 million, which is double the current threshold. Another proposed change relates to when companies revert from being an accelerated filer back to being. Read More.

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Financial Reporting Manual Updated

On March 17th, the Securities and Exchange Commission’s Division of Corporation Finance issued an updated Financial Reporting Manual that addresses transition issues in regard to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). The updates include implementation guidance for companies that adopt the Financial Accounting Standards Board’s revenue recognition standard using the full retrospective method or modified retrospective approach. Companies that adopt the full retrospective method, for instance, will not have to recalculate their investments in other entities, as stated by Rule 3-09 of Regulation S-X. The revised Financial Reporting Manual also reflects changes from the. Read More.

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Labor Union Wants More Disclosures on Business Acquisitions

In recent comment letters concerning the Securities and Exchange Commission’s (“SEC”) Disclosure Effectiveness program, Unite Here! has asked for additional disclosures about pending company acquisitions. Responding to Release No. 33-9929, Request for Comment on the Effectiveness of Financial Disclosures About Entities Other Than the Registrant, the 250,000-member labor union said that Rule 3-05 of Regulation S-X does not require businesses to give sufficient information suitable for making an informed decision. Disclosure requirements depend on the size of the business acquisition, and Rule 1-02(w) of Regulation S-X details what is significant for financial information. United Here! suggests lowering the threshold of. Read More.

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