SEC Chairman Clayton Testifies on 2016 Cybersecurity Breach
After announcing on September 20 that the Securities and Exchange Commission’s (“SEC”) computers were breached last year , SEC Chairman Jay Clayton recently provided additional details on the cybersecurity intrusion to the Senate Committee on Banking, Housing and Urban Affairs. During his September 26 testimony, Clayton expressed his concerns over the 2016 breach involving the SEC’s Electronic Data Gathering And Retrieval filing system. He noted that the breach will cause many to pay close attention to the SEC’s approach to cybersecurity, and whether the agency is taking the proper steps to appropriately address its cyber risk. Clayton also reiterated that the SEC’s review and investigation of the matter are. Read More.
Accounting Standards Codification Updated for Revenue Recognition and Leases Standards
The Financial Accounting Standards Board has issued Accounting Standards Update (“ASU”) No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments. This Update adds, amends, and replaces Securities and Exchange Commission (“SEC”) paragraphs of the Accounting Standards Codification (“ASC”) concerning the adoption and transition rules of ASU No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-02, Leases, for public companies. ASU No.. Read More.
Topics: Accounting Standards Update "ASU", Emerging Issues Task Force "EITF", FASB, lease accounting, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, SEC, Securities and Exchange Commission "SEC"
Interpretive Guidance Updated for Revenue Recognition
New interpretive guidance is available regarding revenue recognition. On August 18, the Securities and Exchange Commission (“SEC”) issued Release No. 33-10402, Commission Guidance Regarding Revenue Recognition for Bill-and-Hold Arrangements, which advises public companies to abandon the guidance for bill-and-hold transactions under Accounting and Auditing Enforcement Release (“AAER”) No. 108, In the Matter of Stewart Parness, once they start applying Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. Until then, companies should continue using guidance under AAER No. 108. Another interpretive release issued was Release No. 33-10403, Updates to Commission Guidance Regarding Accounting for. Read More.
Topics: Accounting and Auditing Enforcement Release, Accounting Standards Codification, FASB, Financial Accounting Standards Board "FASB", Revenue Recognition, SEC, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB"
SEC to Offer Interpretive Guidance on Pay Ratio Disclosures
To prepare companies for complying with the pay ratio disclosure requirements early next year, the Securities and Exchange Commission (“SEC”) recently approved new interpretive guidance. The interpretive guidance outlines the market regulator’s views regarding the use of reasonable estimates, assumptions and methodologies, and statistical sampling as allowed by the pay ratio rule. In addition, the guidance clarifies that companies can use applicable existing internal records (e.g., tax or payroll records) when determining whether to include non-U.S. employees and identifying the median employee. It also offers guidance concerning when a company can use widely recognized tests in determining whether its workers. Read More.
SEC Announces New Small Business Advocate Office
In a public statement issued on September 13 , the Securities and Exchange Commission (“SEC”) announced its nationwide search for the agency’s first advocate for small business capital formation. The selected candidate of this new position will support small businesses and their investors, as well as offer assistance and conduct outreach to address their concerns and suggest improvements to the regulatory environment. In addition, the advocate will have to establish and supervise a new SEC office, the Office of the Advocate for Small Business Capital Formation. The small business advocate will be selected by and report to the SEC chairman and commissioners.
Bank Regulators Add Guidance for FASB Credit Loss Standard
Several bank regulators have updated their interpretive guidance regarding the Financial Accounting Standards Board’s (“FASB”) credit loss standard. The revised guidance from Federal Deposit Insurance Corporation, Federal Reserve, the National Credit Union Administration, and the Office of the Comptroller of the Currency will be added to the December 2016-published frequently asked questions document that explains why the FASB issued Accounting Standards Update No. No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance addresses how to handle subjective information when banks estimate their loss reserves when applying ASU No. 2016-13. In. Read More.
Topics: Accounting Standards Update, Banking, FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), National Credit Union Administration, SEC, Securities and Exchange Commission "SEC", U.S. GAAP