FDIC Issues Guide for Community Banks
Published by the Federal Deposit Insurance Corporation (“FDIC”), the New Capital Rule Community Guide (the Guide) summarizes important changes from the present general risk-based capital rule for exposures normally held by community banking organizations. The Guide is aimed to assist small, non-complex community banks with parts of the capital rule important to their operations. Effective January 1, 2015, sections of the new capital rule were adopted recently by federal banking agencies. The PDF of the Guide is available for download on the FDIC’s website. Don’t forget that Cherry Bekaert is also available to provide community banks guidance regarding the new capital rule. If you are interested,. Read More.
CAQ Study Shows Big Drop in Financial Restatements
Evaluating financial restatement trends over the ten-year period after the Sarbanes-Oxley Act’s (SOX) implementation, the Center for Audit Quality (CAQ) recently released the findings of its study, Financial Restatement Trends in the United States: 2003–2012. Authored by University of Kansas Professor Susan Scholz, the report focuses on restatement activity that was disclosed by U.S. Securities and Exchange Commission-registered filers. Per Scholz’s analysis and findings, it was determined that financial restatements have dramatically decreased over the years. Major takeaways from the report include the following: Contributed to the implementation of SOX Section 404 internal control reporting, restatement announcements reached its peak. Read More.
Topics: Audit, Banking, Center for Audit Quality "CAQ", Chemicals, Energy, Financial, insurance, Internal Control Reporting, Mining, Restatement, Sarbanes-Oxley Act "SOX", Software, Technology, U.S. Securities and Exchange Commission "SEC"
Financial Instruments Proposal Concerns NCBA Members
As external auditors for the North Carolina Bankers Association (“NCBA”), Cherry Bekaert’s Financial Services Group responded to the Reference 2012-260: Financial Instruments – Credit Losses proposal on May 7, 2014. Submitted by the NCBA on behalf of its membership, the letter expresses concern over the proposed accounting standard from several perspectives. The Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board proposals are not converged standards, which result in different accounting models. The proposed standard appears to be a departure from the FASB’s conceptual framework for assets reported at amortized cost. There are also concerns around the complexity of implementation, as well as the reliability. Read More.