What's new

Review of Financial Statements
As part of its Clarity Project, the Accounting and Review Services Committee (ARSC) has separated the review standards into two separate proposed standards. The proposed SSARS Review of Financial Statements addresses those areas that are applicable to a basic review engagement, and the proposed SSARS Review of Financial Statements -- Special Considerations addresses those areas that are less frequently encountered. The proposed SSARSs would supersede paragraphs 1.07-.08 and 3.01-.73 of SSARS No. 19, Compilation and Review Engagements. The comment period for the exposure draft of the proposed SSARSs ends on April 26.

Financial Reporting Framework for Small-and Medium-Sized Entities
The Framework is an other comprehensive basis of accounting (also known as a special purpose framework) that, when finalized, will offer small- and medium-sized entities a reliable, relevant, and simplified financial reporting solution that addresses marketplace demands. Comments are due by January 30, 2013.

An analysis of alleged auditor deficiencies in SEC fraud investigations: 1998 - 2010
This report examines auditor involvement in fraudulent financial reporting cases cited in SEC enforcement actions issued from 1998-2010. During the 13-year period, there were 87 sanctions against external auditors in SEC fraud investigations involving publicly traded companies. It highlights insights for the audit profession related to the 87 instances of alleged auditor deficiencies involving fraudulent financial reporting.

Financial Statement Disclosure Effectiveness: Forum Observations Summary
The FASB and CAQ issued a report summarizing the observations of financial reporting stakeholders at two forums on disclosure effectiveness. The discussion focused on aspects of the FASB’s recent Invitation to Comment on a disclosure framework, as well as financial reporting issues beyond the scope of that document.

Comment letter - COSO’s revised internal control framework and compendium of approaches and examples
We support COSO’s efforts to update its 1992 Internal Control – Integrated Framework to reflect changes in the business and operating environment and believe the Compendium will provide users with helpful guidance. In our comment letter, we expressed our support for COSO’s efforts to update and enhance the framework to enable users to better develop, implement and monitor systems of internal control. We also expressed certain concerns and suggested modifications to the revised framework and compendium, including, among others, enhancing the guidance related to an organization’s assessment of the effectiveness of its internal controls; modifying its definitions of deficiencies and major deficiencies; providing guidance about the precision of management review controls; and providing additional guidance on the application of the Revised Framework to smaller organizations.

Internal control over external financial reporting and internal control-integrated framework
COSO released for public comment its Exposure Draft on Internal Control over External Financial Reporting. COSO seeks comment on this draft, and on two related documents: (1) the revised Internal Control - Integrated Framework (pdf, 1.7mb) and (2) the proposed Illustrative Tools for Assessing Effectiveness of a System of Internal Control (pdf, 1.1mb) , by November 20.

EITF Update - March 2013
The EITF reached two final consensuses on recognition and measurement of services received by a not-for-profit entity from personnel of an affiliated entity for which the affiliate does not charge the recipient not for profit and accounting for the difference between the fair value of the assets and the fair value of the liabilities of a consolidated collateralized financing entity. The EITF also reached a consensus-for-exposure on the accounting for investments in qualified affordable housing projects and discussed pushdown accounting but did not reach any conclusions.

Issue 13-B: Accounting for investments in affordable housing tax credits
This summary addresses the accounting for investments in affordable housing tax credits.

In Focus - The leases project
On 20 May, the FASB and the IASB will host In Focus: The leases project, a live webcast taking place from 10:30 to 11:30 a.m. EDT. The webcast will feature FASB member Russell Golden, IASB member Darrel Scott, and FASB and IASB staff members discussing the proposal and answering questions submitted by viewers. US viewers of the live broadcast will be eligible for up to 1 hour of CPE credit.

Leases (revised)
The IASB and the FASB published for public comment a revised Exposure Draft outlining proposed changes to the accounting for leases. The proposal aims to improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organization uses in its operations and the risks to which it is exposed from entering into leasing transactions. Comments are due by 13 September 2013.

The GASB Report - April 2013
The April 2013 newsletter about the work of the Governmental Accounting Standards Board (GASB).

The GASB Report - March 2013
The March 2013 newsletter about the work of the Governmental Accounting Standards Board (GASB).

PCAOB reproposes auditing standard, Related parties, and related amendments
The PCAOB reproposed for public comment an auditing standard, Related Parties, and related amendments to other standards to address areas that have been contributing factors in a number of financial reporting frauds. The reproposed standard and amendments include revisions to respond to public comments on the Board's initial proposal issued on 28 February 2012. Comments are due by 8 July 2013.

Re-proposed exposure draft on related parties
The PCAOB reproposed for public comment an auditing standard, Related Parties, and related amendments to other standards to address areas that have been contributing factors in a number of financial reporting frauds. The reproposed standard, if adopted, would increase the auditor's focus on the evaluation of a company's identification of, accounting for, and disclosure of its relationships and transactions with related parties. Comments are due 8 July 2013.

Commissioner Daniel Gallagher makes remarks at 12th European corporate governance & company law conference in Dublin, Ireland
Commissioner Daniel Gallagher talked about the increasing role that governments - particularly, in the United States - play in corporate governance as well as the increasingly prominent influence of proxy advisory firms on how companies are governed and on how shareholders vote.

SEC names Keith F. Higgins as director of division of corporation finance
The SEC named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public companies about securities offerings, mergers and acquisitions, compliance, and corporate governance.