2014 U.S. GAAP Financial Reporting Taxonomy Released
Announced earlier this week, the Financial Accounting Foundation (“FAF”) and Financial Accounting Standards Board (“the Board”) has adopted the 2014 U.S. GAAP Financial Reporting Taxonomy . Used by U.S. Securities and Exchange Commission (“SEC”) issuers, the new taxonomy improves upon last year’s edition and offers accounting standard updates. Both the FAF and Board share responsibility for revisions to the taxonomy, which affects SEC-registered public issuers. For guidance on applying the new taxonomy for submitting SEC-compliant eXtensible Business Reporting Language-tagged interactive data files or any other related questions, please contact the SEC .
New PCAOB Standard & Amendments to Improve Auditing Process
Enhancing auditor performance requirements, the Public Company Accounting Oversight Board (“PCAOB”) has adopted a new standard and amendments reflecting three essential areas of the auditing process. Agreed upon at its recent meeting, the PCAOB concluded that current requirements in the related areas of the auditing process provide insufficient mandated procedures and are inadequately risk-based. Further, inspection and enforcement activities show these areas continue to be major weaknesses among auditors. As a result, the PCAOB has implemented Auditing Standard No. 18, Related Parties (“AS 18”). Taking the place of interim standard AU sec. 334, Related Parties, AS 18 reflects transactions and. Read More.
IASB Chairman, Ex-SEC Chair Swap Words over U.S. IFRS Adoption
After hearing former U.S. Securities and Exchange Commission (“SEC”) Chairman Christopher Cox drop support of the U.S. adopting International Financial Reporting Standards (IFRS), International Accounting Standards Board (“IASB”) Chairman Hans Hoogervorst expressed disproval of Cox’s newfound stance. Although Cox supported U.S. adoption last fall, his comments at the June 5th University of Southern California’s Financial Reporting Conference reflect criticisms of the IASB and the IFRS Foundation. Cox claimed the IASB lacked independence from regional predispositions, accountability to regulators and other standard-setting bodies, and believes the board is unresponsive to the country’s interests. Regarding Cox’s reversal of opinion, Hoogervorst reaffirmed the IASB’s support of serving investors, and believed Cox’s viewpoint has changed from. Read More.
Aguilar Speech Stresses Planning for Cyber-Attacks
Advising corporate boards to invest more time and resources for addressing cyber-attacks, the U.S. Securities and Exchange Commission’s (“SEC”) Luis A. Aguilar was a guest speaker at the recent “Cyber Risks and the Boardroom Conference”. During his speech , the SEC Commissioner touched on cyber-risks, what boards of directors should do to protect their organizations, as well as having a thorough plan consistent with the companies’ best practices for their industry. In regards to the boards’ efforts, Aguilar said, “board oversight of management’s efforts to address these issues is critical to preventing and effectively responding to successful cyber-attacks and, ultimately, to protecting. Read More.
SEC Chair Wants to Improve Market Stability
Tackling stock market criticism regarding high-speed computer-driven trading, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White has proposed initiatives “recommending additional measures to further promote market stability and fairness, enhance market transparency and disclosures, and build more effective markets for smaller companies.” Speaking at the Global Exchange and Brokerage Conference last week in New York, White mentioned the drafted proposals require high-frequency traders to list as broker dealers with regulators, exposing them to increased regulatory scrutiny. In addition, the proposal would increase supervision of high-frequency traders and further regulate transactions that happen outside of public exchanges. Also recommended. Read More.
Former SEC Chair Uncertain of U.S. IFRS Adoption
Speaking at the recent “SEC and Financial Reporting Institute Conference”, former U.S. Securities and Exchange Commission (“SEC”) Chair Christopher Cox opined that he doubts a U.S. adoption of International Financial Reporting Standards (IFRS) could occur. Sharing thoughts contradictory from his actions as SEC Chair, Cox concluded that the opportunity for the U.S. to adopt IFRS has passed and too much time had wasted without any significant progress being made. Referencing the lack of a current plan that considers U.S public companies to utilize IFRS voluntarily, Cox used the shortcoming as an example of resistance to convergence. Despite Cox suggesting the. Read More.