FASB Q&A Issued for Staff Accounting Bulletin on Tax Reform
The Financial Accounting Standards Board (“FASB”) has published a Staff Q&A regarding whether private entities and nonprofits can apply Staff Accounting Bulletin (“SAB”) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act). In its Staff Q&A, the FASB says it does not oppose private entities and nonprofits applying the Securities and Exchange Commission’s interpretive guidance for tax reform . The document also notes that such companies and organizations that employ SAB No. 118 would comply with GAAP. SAB No. 118 was issued in response to the Tax Cuts and Jobs Act. The guidance allows an entity, in certain situations, to include in its financial statements. Read More.
Topics: FASB, FASB Staff Q&A, Financial Accounting Standards Board "FASB", Nonprofits, SEC Interpretive Guidance, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB", Tax Cuts and Jobs Act, Tax Reform
SEC Commissioners Receive Senate Approval
For the first time in over two years, the Securities and Exchange Commission (“SEC”) will soon have a complete five-member complement. On December 21, the U.S. Senate confirmed Hester Peirce and Robert Jackson as the market regulator’s next commissioners. The vote occurred following Senator Tammy Baldwin’s decision to lift a hold on both nominees after they answered questions on her financial regulatory priorities. A senior research fellow at George Mason University’s Mercatus Center, Peirce will replace Daniel Gallagher. Jackson, a Columbia University law professor, takes over for former SEC Commissioner Luis Aguilar. Gallagher and Aguilar left the SEC near the. Read More.
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"
FAST Act Investment Advisors Rules Amended
In the final rule, Amendments to Investment Advisers Act Rules to Reflect Changes Made by the Fast Act, the Securities and Exchange Commission (“SEC”) offers amendments to the provision that defines a venture capital fund and the rule implementing the private fund adviser exemption in the Investment Advisers Act to reflect changes by Title LXXIV, Sections 74001 and 74002 of the Fixing America’s Surface Transportation Act (“FAST Act”). As part of the new amendments, the venture capital fund definition under Title LXXIV, section 74001 of the FAST Act will include small business investment companies. The SEC is also amending the. Read More.
Topics: Assets Under Management, Fixing America’s Surface Transportation Act "FAST Act", Investment Advisers Act of 1940, SEC, Securities and Exchange Commission "SEC", Small Business Investment Companies, Venture Capital Fund
New SEC Interpretive Guidance Addresses Tax Reform
In response to the passing of the Tax Cuts and Jobs Act, the Securities and Exchange Commission (“SEC”) has released interpretive guidance to help public companies and auditors adapt to the tax changes and comply with accounting for income taxes. The first guidance is in the form of Staff Accounting Bulletin (“SAB”) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act). Under SAB No. 118, companies preparing their 2017 fourth-quarter and end-of-year financial statements and regulatory filings will be allowed to provide what the SEC calls “reasonable estimates” and “provisional amounts” for tax-related line items.. Read More.
Topics: Compliance and Disclosure Interpretations "C&DIs", FASB, Financial Accounting Standards Board "FASB", Income Taxes (Topic 740), Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB", Tax Cuts and Jobs Act, Tax Reform
SEC Appoints New Members to PCAOB
The Public Company Accounting Oversight Board (“PCAOB”) will soon receive five new members. Announced by the Securities and Exchange Commission (“SEC”) on December 12, the new members are as follows: Robert Brown: A law professor at the University of Denver, Brown previously served on the PCAOB’s Standing Advisory Group and the SEC’s Investor Advisory Committee. William Duhnke: The staff director and general counsel to the Senate Committee on Rules and Administration, Duhnke was a Republican staffer in the Senate Banking Committee. Kathleen Hamm: The Global Leader in Securities and Fintech Solutions at Promontory Financial Group, Hamm has prior experience with. Read More.