13 July 2016
Auditor involvement with exempt offering documents
The proposed SAS includes performance requirements when the auditor is involved with an exempt offering document. Involvement is determined by a two-benchmark model: (1)The auditor’s report on financial statements or the auditor’s review report on interim financial information is included or incorporated by reference in an exempt offering document, and (2) The auditor performs one or more specified activities with respect to the exempt offering document. Specified activities which trigger involvement are included in the proposed SAS. Although an auditor is not required to become involved in an exempt offering document unless the benchmarks defining involvement are met, auditors are not precluded from becoming voluntarily involved with an offering document in other circumstances. Comments are due by 13 October 2016.
6 July 2016
Amendment to Statement on Standards for Accounting and Review Services No. 21 Section 90, Review of financial statements
The AICPA Accounting and Review Services Committee (ARSC) issued an exposure draft that would amend the AICPA’s standard on reviews of financial statements. AR-C Section 90 includes requirements and guidance when supplementary information accompanies reviewed financial statements and the accountant’s review report thereon. ARSC determined that certain revisions are necessary to correct the requirements and guidance related to reporting on supplementary information. These revisions would be accomplished by amending paragraphs .05 and .80–.82 of AR-C Section 90, Review of Financial Statements, and the corresponding application paragraphs. Comments are due by 2 September 2016.
28 June 2016
CAQ tool helps audit committees examine use of non-GAAP measures
The CAQ released a new tool to help audit committees continue to assess management's presentation, outside the audited financial statements, of performance metrics that do not conform to Generally Accepted Accounting Principles (GAAP). The publication can assist in the determination of whether non-GAAP indicators provide investors with meaningful financial information.
17 May 2016
Highlights - International Practices Task Force - 17 May 2016
A summary of the issues discussed at the 17 May 2016 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
14 June 2016
EITF Update - June 2016
The EITF reached a final consensus on classification of certain cash receipts and cash payments. The EITF also reached a consensus-for-exposure on employee benefit plan master trust reporting.
3 March 2016
EITF Update - March 2016
The EITF reached a consensus-for-exposure on restricted cash (previously included in EITF Issue No. 15-F, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments).
19 July 2016
19 July 2016 PCC meeting
Members of the PCC and the FASB discussed the FASB’s projects on Liabilities and equity short-term improvements, Balance sheet classification of debt and Disclosures by business entities about government assistance. They also discussed the FASB’s research project on Financial performance reporting and other matters.
13 July 2016
13 July 2016 FASB meeting
The FASB tentatively agreed to allow entities to apply the critical terms match method to a group of forecasted transactions that occur within 31 days of when the hedging derivative matures, without performing a de minimis test. The FASB also discussed its project on Disclosure framework: disclosure review – defined benefit plans.
31 May 2016
GASB Outlook - May 2016
May 2016 electronic newsletter discussing key GASB projects and activities.
29 March 2016
GASB issues enhanced guidance on irrevocable split-interest agreements
The GASB issued recognition and measurement guidance for governments that benefit from irrevocable split-interest agreements.
14 July 2016
Staff Inspection Brief: Information about 2016 Inspections
The PCAOB issued a staff inspection brief detailing the scope, focus, and objectives of its ongoing 2016 inspections of auditors of public companies and other issuers. The information in this brief may help audit firms, investors, and others better understand the risk-based factors that the PCAOB considers when inspecting audits.
14 July 2016
Staff Inspection Brief: Information about 2016 Inspections of Auditors of Brokers and Dealers
The PCAOB issued a staff inspection brief detailing the scope, focus, and objectives of its ongoing 2016 inspections of auditors of brokers and dealers. These 2016 inspections are focusing on audit areas and attestation procedures where inspectors previously found deficiencies, as well as auditor independence and engagement quality review.
21 July 2016
Comment Letter - Regulation S-K concept release
In our comment letter, we recommend the SEC move to a disclosure framework that articulates clear disclosure objectives and allows registrants to more effectively communicate material information to investors. We ask the SEC to consider enhancements to various business and financial disclosures, including those related to the description of the business, risk factors and management’s discussion and analysis. We also suggest that the SEC explore ways to improve the presentation and delivery of information through a company profile approach.
7 July 2016
SEC in Focus - July 2016
Our latest newsletter summarizes developments related to SEC matters, including certain items we have not previously reported in Week in Review. This issue highlights the SEC staff’s continued focus on non-GAAP financial measures and disclosure effectiveness, recent enforcement activities and developments in XBRL. We discuss the SEC's progress on rulemaking and other initiatives, including final rules on payments by resource extraction issuers and proposed changes to the definition of a smaller reporting company.