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.
Spending Bill to Help SEC, Block Political Spending Disclosures
Congress’ latest budget bill provides the Securities and Exchange Commission (“SEC”) $50 million for information technology upgrades and $244 million for potentially relocating the agency’s headquarters. Signed by President Trump on March 23, the $1.3 trillion spending bill increases the SEC’s budget to help pay for IT improvements. The upgrades address criticism the SEC has faced in recent years over its information securities practices and inability to keep up with an automated market. Criticism increased last year after the SEC’s Electronic Data Gathering And Retrieval system was hacked . The spending bill also offers the SEC financial support for the construction of a new headquarters. Leases for the agency’s. Read More.
SEC Staff Revises FAQs on IFRS Taxonomy
The Securities and Exchange Commission (“SEC”) staff recently updated the Frequently Asked Questions (“FAQs”) section regarding the International Financial Reporting Standards (“IFRS”) Taxonomy. The revised guidance addresses how IFRS Taxonomy should be used in company filings. It also includes an access link to XBRL submissions prepared through the IFRS Taxonomy in financial statement and footnote data sets. Read the updated FAQs at SEC.gov.
FASB Removes Outdated SEC Interpretive Guidance for Financial Instruments Standard
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“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to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, which eliminates out-of-date interpretive guidance from the Securities and Exchange Commission (“SEC”) on financial instruments. The change to U.S. GAAP was made in response to ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The U.S. GAAP update is highlighted in Staff Accounting Bulletin (“SAB”) No. 117, in which. Read More.
Topics: Accounting Standards Update "ASU", Debt Securities, FASB, Financial Accounting Standards Board "FASB", Financial Instruments, Financial Liabilities, SEC, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB"
SEC Guidance on Tax Reform Added to FASB Codification
Last month, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends certain Securities and Exchange Commission (“SEC”) guidance under Topic 740 related to the Tax Cuts and Jobs Act. ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, adds guidance to the FASB Accounting Standards Codification that answers questions regarding how certain income tax effects from the Tax Cuts and Jobs Act should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. More on ASU No. 2018-05 is available on FASB.org.
Topics: Accounting Standards Update "ASU", FASB, Financial Accounting Standards Board "FASB", Income Taxes (Topic 740), SEC, Securities and Exchange Commission "SEC", Tax Cuts and Jobs Act, Tax Reform
FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts