GASB Task Force to Review Financial Reporting by Native American Tribes
The Governmental Accounting Standards Board (“GASB”) has formed a task force responsible for examining financial reporting options for Native American tribes. Several tribes rely on the GASB’s guidance regarding any issues they come across. Task force members were chosen due to their knowledge of tribal accounting. Members of the task force are as follows: Heather Acker, Baker Tilly Virchow Krause LLP partner Lacey Horn, Cherokee Nation treasurer Christopher Lee, Key Bank vice president—head of government credit Paul Mansour, Conning Holdings Ltd. managing director and head of municipal research Hattie Mitchell, Native American insurance company AMERIND Risk director of finance and. Read More.
End of SEC Tax Reform Grace Period Could Increase Disclosures
Last December after the Tax Cuts and Jobs Act (“TCJA”) was signed into law, the Securities and Exchange Commission (“SEC”) issued interpretative guidance that allows companies to use good faith estimates to adapt to the income tax effects. With the guidance expiring soon, the agency is advising businesses to apply the income tax disclosure requirements under U.S. GAAP once the grace period ends. SEC Staff Accounting Bulletin (“SAB”) No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, allows businesses to use reasonable estimates and provisional amounts to calculate the new tax law’s impact. SAB No. 118 also. Read More.
FASB Issues Update to its Conceptual Framework
The Financial Accounting Standards Board (“FASB”) continues to advance efforts to write consistent and effective disclosure rules in its standards. On August 28, the board published Concepts Statement (“CON”) No. 8, Conceptual Framework for Financial Reporting: Notes to the Financial Statements, which the FASB will use as a guide clarifying what information to consider when developing new disclosure requirements for future Accounting Standards Updates. Known as the “disclosure framework,” CON No. 8 will attempt to resolve a years-long debate over how much information should the board require from companies without them overloading financial statement footnotes with irrelevant details. The framework explains why. Read More.
PCAOB Seeks Feedback on Draft Strategic Plan
For the first time ever, the Public Company Accounting Oversight Board (“PCAOB”) is seeking public comments on the draft version of its strategic plan. The draft of Strategic Plan: 2018-2022 outlines the PCAOB’s long-term objectives for improving audit quality and the board’s efforts to improve its communication to financial markets and the accounting field. The PCAOB’s draft plan includes providing accounting firms more timely responses following inspections and giving quick feedback to auditing profession and financial reporting changes. Additionally, the audit regulator wants its enforcement efforts to focus on issues that are of greater risk to investors and will discourage. Read More.
SEC Deputy Chief Accountant Discusses Impact of Tax Reform
Earlier this month at the 37th annual Securities and Exchange Commission (“SEC”) and Financial Reporting Institute Conference, SEC deputy chief accountant Sagar Teotia spoke on the financial reporting impact of the Tax Cuts and Jobs Act. In particular, Teotia shared his observations on Staff Accounting Bulletin (“SAB”) No. 118, which was issued in January to help public companies and auditors adjust to the tax changes . He noted that SAB No. 118 does not offer companies an option to defer the application of the income tax guidance and splits the accounting for the income tax effects caused by the Act into three “buckets”. Teotia also cautioned that the disclosure guidance under SAB No. 118 offers financial statement users vital information concerning how. Read More.
Revised White Paper Issued on Governmental and Business Financial Reporting
Helping distinguish between governmental and business financial reporting, a revised White Paper has been issued by the Governmental Accounting Standards Board (“GASB”). The White Paper, Updated: Why Governmental Accounting and Financial Reporting Is—and Should Be—Different , elaborates that the difference between governmental accounting and reporting standards and the standards for for-profit businesses require independent standards so that the information provided meets the needs of stakeholders when assessing government accountability, as well as to help make political, social and economic decisions. The White Paper also provides guidance on specific questions that typically arise regarding why general purpose governments cannot use accounting standards developed for for-profit businesses. Download the White Paper from the GASB website.