26 November 2013
Framework for performing and reporting on compilation and review engagements
This exposure draft would supersede paragraphs .01 - 04 and .09 - .51 of AR section 60, Framework for Performing and Reporting on Compilation and Review Engagements. Comments are due by 2 May 2014.
26 November 2013
Omnibus proposal - Proposed revised and new interpretations
The Professional Ethics Executive Committee is exposing for comment revised Interpretation No. 102-2, "Conflicts of interest for members in public practice," and new Interpretation No. 102-7, "Conflicts of interest for members in business," under Rule 102, Integrity and Objectivity which provide guidance to members in public practice and business concerning conflicts of interest. Comments are due by 27 January 2014.
22 November 2013
Governance leaders issue "Call to Action" to enhance the audit committee report
The Center for Audit Quality (CAQ), together with other corporate governance and policy organizations (The National Association of Corporate Directors, Corporate Board Member/NYSE Euronext, Tapestry Networks, The Directors’ Council and the Association of Audit Committee Members, Inc.) published a report on Enhancing the Audit Committee Report: A Call to Action. The report recommends that audit committees of public companies enhance public disclosures to better inform investors and the public about how they fulfill their duties. The report also provides examples of emerging disclosure practices and cites the recent EY paper, Audit committee reporting to shareholders,which highlights notable changes in disclosure practices between 2012 and 2013.
25 September 2013
Highlights - CAQ SEC Regulations Committee - 25 September 2013
At this meeting, the SEC staff discussed its views on, among other things, SEC enforcement initiatives, including the use of the Accounting Quality Model to flag high-risk activities, application of the temporary scope exception from management’s assessment of internal control over financial reporting to the acquisition of a business through a merger of entities under common control, and potential practice issues related to the FASB’s proposals to permit private companies to apply alternative accounting principles.
17 January 2013
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.
18 September 2012
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.
15 November 2013
EITF Update - November 2013
The EITF reached final consensuses on measuring the financial assets and financial liabilities of a consolidated financing entity, accounting for service concession arrangements, accounting for investments in affordable housing projects and reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The EITF reached a consensus-for-exposure on the classification of certain government insured residential mortgage loans upon foreclosure by a creditor. The EITF also discussed but didn’t reach a final conclusion about whether, when and how public and nonpublic companies should establish a new accounting basis in an acquired entity’s standalone financial statements.
31 October 2013
Summary of issues for the 14 November 2013 EITF meeting
The EITF issued a summary of the issues on the proposed agenda for the 14 November 2013 EITF meeting.
3 December 2013
FASB responds to post-implementation review of Statement 109 on income taxes
The FASB released its response to the Post-Implementation Review (PIR) of its standard on accounting for income taxes. The review was conducted by the FAF. In its response, the FASB acknowledged the PIR findings that Statement 109 adequately resolved the issues underlying its stated need but that Statement 109 may not have reduced complexity associated with accounting for income taxes. Specifically, the FASB noted that preparers and auditors find certain aspects of Statement 109 to be operationally challenging, including intraperiod tax allocation, intercompany transfer of assets, and situations in which a deferred tax liability is not recognized for temporary differences related to earnings determined to be indefinitely reinvested in foreign subsidiaries.
25 November 2013
Financial Accounting Foundation appoints 10 new members to the Financial Accounting Standards Advisory Council
The Board of Trustees of the Financial Accounting Foundation (FAF) appointed 10 new members to the Financial Accounting Standards Advisory Council (FASAC). The FASAC is responsible for advising theFASB on strategic issues, project priorities, and other matters that affect accounting standard setting. The new members will serve a one-year term beginning 1 January 2014, and are eligible to be reappointed for three additional one-year terms.
19 November 2013
FAF issues final policy on GASB scope of authority
The Financial Accounting Foundation (FAF) Board of Trustees adopted a new policy that clarifies the characteristics of the information the GASB may incorporate into the financial accounting and reporting concepts, standards, and guidance that it issues for state and local governments.
11 November 2013
GASB Toolkit helps pension plans implement new accounting standards
A new online toolkit designed to help preparers and auditors of state and local government pension plans implement new accounting and financial reporting standards was released by the GASB. The toolkit is available at no cost at the GASB website.
3 December 2013
PCAOB announces Standing Advisory Group members
The PCAOB announced 17 new and reappointed members to its Standing Advisory Group (SAG). These members will serve three-year terms beginning in January 2014. The advisory group includes experts in the fields of accounting, auditing, financial reporting, corporate finance and corporate governance, as well as experts in investing in public companies. With the new and reappointed members, the SAG now stands at 42 members.
27 November 2013
PCAOB to consider reproposal on improving transparency through disclosure of engagement partner and certain other participants in audits
The PCAOB announced that it has scheduled an open meeting for 9:30 a.m. on Wednesday, 4 December to consider reproposing for public comment amendments to PCAOB auditing standards that would require the disclosure in the auditor's report of the engagement partner and certain other participants in the audit. Also, the Board will consider adoption of proposed amendments that conform PCAOB rules and forms to the Dodd-Frank Act requirements, particularly those establishing PCAOB oversight over audits of brokers and dealers, as well as amendments to certain rules based on the Board's administrative experience.
2 December 2013
Comment Letter - Pay ratio disclosure
In our comment letter, we focus on certain aspects of the proposal, including sampling methods and pay ratio computation. We also make recommendations that we believe would reduce the cost and burden on issuers, promote disclosure and enhance comparability. The proposal would require most issuers to disclose the median annual compensation of all of their employees (excluding the principal executive officer) and the ratio of that amount to the annual compensation of their principal executive officer.
5 November 2013
SEC to hold roundtable on proxy advisory services
The SEC announced that its staff will host a public roundtable on 5 December to discuss the use of proxy advisory firm services by institutional investors and investment advisers.