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Companies Fined for Failing to Remediate Internal Control Problems

Four public companies have settled with the Securities and Exchange Commission (“SEC”) after being charged with failing to resolve their internal control reporting failures. The SEC said the companies disclosed material weaknesses in internal control over financial reporting (“ICFR”) for seven to ten straight annual reporting periods. Such weaknesses involved certain high-risk areas of the companies’ financial statement presentation. Grupo Simec, a Mexican iron and steel manufacturer, disclosed material weaknesses in its filings from 2008 to 2017. However, in 2015 and 2016, company management did not test its controls. The SEC alleged Grupo Simec failed develop a control structure and. Read More.

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Banks Clash over FASB’s Credit Losses Proposal

Supporters of a proposal to change a key part of the Financial Accounting Standards Board’s (“FASB”) credit losses standard attempted to make progress at the board’s recent public roundtable. Held at the FASB’s headquarters, the roundtable served as an opportunity to strengthen banker support for the proposed change on Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Despite the efforts, however, the roundtable discussion exposed the divide among bankers concerning whether and how the FASB should amend its standard. Representatives from mid-sized banks called for tweaks to ASU No.. Read More.

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AICPA Issues Guidance for Implementing Credit Losses Standard

The American Institute of Certified Public Accountants (“AICPA”) has issued a new Audit and Accounting Guide to help banking institutions and insurers implement the Financial Accounting Standards Board’s credit losses standard. Published last week, the guidance highlights key requirements of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. It also describes the Financial Reporting Executive Committee’s (“FinREC”) understanding of customary or sole industry practice regarding certain issues. The guide notes FinREC prefers another practice outside of the customary or sole industry practice. The AICPA said the guide will address implementation issues its. Read More.

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Cherry Bekaert to Host Webinar on Section 199A Deduction

Are you struggling to understand the section 199A pass-through deduction introduced by the Tax Cuts and Jobs Act? If so, Cherry Bekaert encourages you to join us this Friday for our webinar! Led by Ron Wainwright, CPA , and Andrew Kosoy, CPA , this live course will help you understand the pass-through deduction and nuances within Specified Service Trades or Businesses (“SSTBs”). The webinar will also cover Internal Revenue Service-issued (“IRS”) guidance on methods for calculating W-2 wages for section 199A. By the end of the webinar, you will be able to: Identify opportunities for the section 199A pass-through deduction; Consider the nuances in SSTBs; Describe IRS. Read More.

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FAQs Outline SEC’s Functions During Government Shutdown

With the Securities and Exchange Commission (“SEC”) required to cease regular activities during a government shutdown, the agency’s Division of Corporation Finance (“Corp Fin”) has issued staff guidance detailing the agency’s limited functions during the shutdown. The guidance is in the form of nine frequently asked questions (“FAQs”) that were previously issued on December 21, 2018, ahead of the shutdown. The FAQs include updates to the following questions: Question 4: If my registration statement was declared effective prior to the shutdown (my effective date was December 26, 2018 or earlier) what happens if I don’t price my offering within the 15-day time period provided in. Read More.

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