North Carolina House Passes State Budget
With a 93-23 vote Friday, the North Carolina House (“the House”) passed a $22.1 billion spending plan for the next two years. The passage comes after a week of debate held up by the introduction of numerous amendments. Almost 40 amendments were proposed on the floor, and another 60 had been considered in the House Appropriations Committee. The budget package contains a 6.3 increase in general fund spending ($1.3 billion), a change from the 2 percent increase recommended by Governor Pat McCrory’s budget. Further, the House budget includes the anticipated $400 million revenue increase that was announced in early May.
AICPA Publishes Six-Point Plan to Improve Audits
On Thursday, May 14th, the American Institute of Certified Public Accountants (“AICPA”) announced its proposal for enhancing audit performance. Published as the Six-Point Plan to Improve Audits , the AICPA’s planned roadmap focuses on financial statement audits for private entities, employee benefit plans and governmental bodies around the country. The proposed plan reflects feedback from stakeholders, practitioners and other profession leaders on approaches for improving audit quality. Per its roadmap, the organization’s six points to improve audit quality are: Pre-Licensure. This point features an updated version of the CPA exam is intended to increase measurement of higher-order skills. Standards and Ethics. This point relates to support. Read More.
SEC’s Schnurr Says Recommendation on Incorporating IFRS Could Arrive Soon
Speaking at the 2015 Baruch College Financial Reporting Conference last month, Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr stated that the agency’s staff is close to offering its recommendation for U.S. public businesses to begin incorporating International Financial Reporting Standards (IFRS). Although no specific information was given, Schnurr has implied that companies might be permitted to present financial results using IFRS, along with their required reports under domestic accounting guidelines. Additionally, Schnurr noted that there is nearly non-existent support to require IFRS for all registrants, and a lack of support for offering an option permitting U.S. companies to. Read More.
SEC Proposes Updated Reporting Rules for Investment Companies and Investment Advisers
Aimed to enhance the quality of information reported by investment companies and investment advisers, the Securities and Exchange Commission (“SEC”) has proposed two new rules, Amendments to Form ADV and Investment Advisers Act Rules and Investment Company Reporting Modernization . The new rules would modernize information reported by investment companies and investment advisers, as well as help the agency more effectively utilize the data collected. The proposed rules would improve data reporting for mutual funds, exchange-traded funds (ETFs) and similar registered investment companies. In addition, the rules introduce new monthly portfolio reporting (Form N-PORT) and annual reporting (Form N-CEN) forms that would require census-type information. Proposed amendments to the investment adviser registration and. Read More.
IFRS for SMEs Amendments Issued
In the wake of a comprehensive review, the International Accounting Standards Board has released limited amendments to International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Instead of changing IFRS for SMEs’ underlying requirements, most of the amendments simplify existing requirements or add supplementary guidance. For most SMEs and their financial statement users, the amendments are projected to clarify the understanding of current requirements without having a major impact on SMEs’ financial reporting procedures and statements. Initially started in 2012, the comprehensive review identified targeted improvements that were deemed necessary. More significantly, changes associated with transactions frequently. Read More.
FASB Issues Proposal for Measurement-Period Adjustments
The Financial Accounting Standards Board (“FASB”) has released the proposed Accounting Standard Update, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. Presently, if the accounting for a business combination is not finalized by the close of the reporting period that the combination occurs, the acquirer includes in its financial statements provisional amounts for the items that are not yet finalized. In the measurement period, after new information is acquired regarding items that if identified, could have impacted the amounts originally recognized or potentially resulted in recognizing other assets or liabilities, provisional amounts recognized at the acquisition date must. Read More.