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AICPA

23 June 2014

Comment Letter - AICPA’s proposed statement on standards for attestation engagements
In our comment letter on the Proposed Statement on Standards for Attestation Engagements, Subject-Matter Specific Attestation Standards: Clarification and Recodification, we supported clarifying the standards in accordance with the clarity drafting conventions used in the proposed general attestation standard.

16 June 2014

Breach of an independence interpretation
The AICPA’s Professional Ethics Executive Committee (PEEC) is restructuring the Institute’s ethics standards to improve the AICPA Code of Professional Conduct (Code) so that members and others can apply the rules and reach correct conclusions more easily and intuitively. The PEEC is exposing for comment proposed standards revisions which provide guidance to members in public practice concerning a breach of an independence interpretation. Comments are due 16 September 2014.

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CAQ

27 August 2014

Professional judgment resource
The CAQ issued the Professional Judgment Resource, designed to provide auditors with an example of a decision-making process to facilitate important auditing and accounting judgments in a professionally skeptical manner.

23 July 2014

Financial restatement trends in the United States: 2003-2012
Analysis of the trends in and characteristics of restatements of public company financial statements provides useful information for all stakeholders in the capital markets. Preparers, auditors, and investors benefit from information on the types of restatements, the accounting issues that resulted in the need for a restatement, and the severity of those issues. This study, authored by Professor Susan Scholz of the University of Kansas, focuses on the decade following the implementation of the Sarbanes-Oxley Act of 2002. It examines developments in the number and seriousness of restatements over this period and chronicles key policy changes that may have had an impact on restatements.

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COSO

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.

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EITF

13 June 2014

EITF Update - June 2014
The EITF reached final consensuses on measuring the financial assets and financial liabilities of a consolidated financing entity and reclassification of certain government insured residential mortgage loans upon foreclosure by a creditor. The EITF also discussed but didn’t reach a final conclusion on how to determine whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity.

14 April 2014

March 2014 EITF meeting minutes
The EITF reached a final consensus on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The EITF reached a consensus-for-exposure on the recognition of new accounting basis (pushdown) in certain circumstances.

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FASB

10 September 2014

10 September 2014 FASB meeting
The Board discussed a summary of comments received on the proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements and discussed possible next steps for the project. The staff updated the Board on its research into potential simplifications and improvements of the accounting for share-based payment.

3 September 2014

3 September 2014 FASB meeting
The Board discussed financial instruments - impairment and also discussed potential changes to fair value measurement disclosure requirements on the basis of the concepts and decision questions in the proposed concepts statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements.

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GASB

18 August 2014

The GASB Report - August 2014
The August 2014 newsletter about the work of the Governmental Accounting Standards Board (GASB).

4 August 2014

GASB Outlook - August 2014
August 2014 electronic newsletter discussing key GASB projects and activities.

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PCAOB

9 September 2014

Staff Audit Practice Alert No. 12: Matters related to auditing revenue in an audit of financial statements
The PCAOB issued a Staff Audit Practice Alert to highlight for auditors the requirements for auditing revenue under PCAOB standards, in light of significant audit deficiencies in this area that have been frequently observed during PCAOB inspections. PCAOB inspection reports have consistently identified revenue as one of the most common areas for audit deficiencies.

19 August 2014

PCAOB issues staff consultation paper seeking comment on auditing accounting estimates and fair value measurements
The PCAOB issued for public comment a Staff Consultation Paper on standard-setting activities related to auditing accounting estimates and fair value measurements. The paper was prepared by the Office of the Chief Auditor as part of its outreach efforts to seek input related to the potential need for changes to the PCAOB standards in this important area and a possible approach for a new auditing standard.

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SEC

8 September 2014

Treatment of certain communications involving security-based swaps that may be purchased only by eligible contract participant
The SEC proposed a rule, under the Securities Act of 1933, to provide that certain communications involving security-based swaps that may be purchased only by eligible contract participants will not be deemed for purposes of Section 5 of the Securities Act to constitute offers of such security-based swaps or any guarantees of such security-based swaps that are securities. Under the proposed rule, the publication or distribution of price quotes relating to security-based swaps that may be purchased only by persons who are eligible contract participants and are traded or processed on or through a facility that either is registered as a national securities exchange or as a security-based swap execution facility, or is exempt from registration as a security-based swap execution facility pursuant to a rule, regulation, or order of the Commission, would not be deemed to constitute an offer, an offer to sell, or a solicitation of an offer to buy or purchase such security-based swaps or any guarantees of such security-based swaps that are securities for purposes of Section 5 of the Securities Act.

5 September 2014

SEC names Brent J. Fields to lead office of the secretary
The SEC announced that Brent J. Fields has been appointed as the agency’s Secretary, who is responsible for overseeing the administrative aspects of Commission meetings, rulemakings, and procedures.

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