One-Year Deferral of IFRS 15 Effective Date Proposed
Similar to the Financial Accounting Standards Board (“FASB”), the International Accounting Standards Board (“IASB”) has agreed to publish an exposure draft for the possible one-year delay of the effective date for its revenue recognition standard, International Financial Reporting Standards (IFRS) 15, Revenue from Contracts with Customers. Announced on Tuesday, April 28th , the proposed delay of IFRS 15 follows the FASB’s proposed decision earlier this month to defer the effective date of its associated revenue recognition standard, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. In May 2014, IFRS 15 and ASU No. 2014-09 were jointly issued with an effective date of January 1, 2017. While the FASB’s. Read More.
SEC to Propose New Executive Compensation Rules
After a recent 3-2 vote, the Securities and Exchange Commission (“SEC”) plans to propose new rules for helping shareholders decide if executive compensation properly corresponds with a public entity’s financial performance. Labeled as either “pay-for-performance” or “pay-vs-performance”, the proposed rules would require the disclosure of a company’s relationship between the “actually paid” executive compensation and the company’s financial performance according to overall shareholder return. A new figure, the “actually paid” amount, is based on the overall compensation entities currently use for calculating executives with the highest salaries. However, the new figure excludes certain elements of compensation that executives don’t take. Read More.
AICPA Publishes Technical Q&As on Section 9540
The American Institute of Certified Public Accountants (“AICPA”) recently issued five attest technical questions and answers (Technical Q&As) on Section 9540, Attest Engagement:American Land Title Association Best Practices Framework. Listed under the American Land Title Association Best Practices Framework (the Framework), the new Technical Q&As include: Section 9540.01, Types of Engagement. Technical Q&A 9540.01 discusses the engagements a practitioner might complete for a title insurance and settlement company to help management and third parties determine compliance and implementation of the Framework. Per the guidance, a practitioner may include attestation or consulting engagements. Section 9540.02, Applicability to an Attest Engagement. Technical. Read More.
Apple Wants Additional Time to Adopt Revenue Standard
Despite the Financial Accounting Standards Board (“FASB”) proposing a one-year deferral of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, earlier this month, Apple Inc. (“Apple”) has told the standard-setter and International Accounting Standards Board (“IASB”) that more time is needed for the company and other U.S. multinationals’ foreign units to adopt the new revenue recognition standard. In a comment letter to both accounting boards last week, the tech giant said additional time is necessary due to complications partially caused by differences between Apple and its foreign units’ fiscal year-ends. Further, Apple discloses financial results in U.S. generally accepted. Read More.
AICPA Committee Issues Exposure Draft on Revised “Affiliate” Definition
Featuring a revised definition of “affiliate” and clarifying whether practitioners should recognize multiemployer employee benefit plans as affiliates of their funding employers, the exposure draft, Affiliate: Proposed Revised Definition, has been released by the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee (“PEEC”). The exposure draft is the result of feedback regarding whether or not it was applicable to include all multiple employer and multiemployer plans as affiliates of participating and sponsoring employers. After consulting with the Department of Labor and the Internal Revenue Service’s rules regarding plan governance, the PEEC took the position that all multiple. Read More.
SEC Commissioner Discusses Digital Data in the Marketplace
Speaking at the SIMFA Operations Conference in San Diego, California, recently, Securities and Exchange Commission (“SEC”) Commissioner Kara Stein shared her thoughts on the presence of digital data. Noting the growing reliance on digital data in financial markets, Stein explained how the data-driven market structure has created a number of issues. For instance, with almost every trade occurring electronically, the human aspect of the securities market is slowly diminishing. Stein also said while the presence of technology provides new opportunities and benefits, it also simultaneously creates huge risks. Suggesting the need for oversight and regulation, Stein expressed support for the. Read More.