16 May 2016
The AICPA Professional Ethics Executive Committee (PEEC) is exposing for comment an independence interpretation that provides guidance to members on the provision of hosting services to clients. The PEEC believes hosting services involve situations where a client engages a member to have custody or control of data or records that the client uses to conduct its operations. As it is management’s responsibility to have custody and control over its assets, the PEEC believes providing hosting services creates threats to independence that are not at an acceptable level and cannot be reduced to an acceptable level by the application of safeguards; therefore, impairing independence. Comments are due by 18 July 2016.
8 December 2015
Compilation of prospective financial information, compilation of pro forma financial information, and Omnibus statement on standards for accounting and review services - 2016
The proposed SSARS Compilation of Prospective Financial Information provides the requirements and guidance with respect to compilations of prospective financial information. Requirements and guidance with respect to examinations and engagements to apply agreed-upon procedures to prospective financial information are retained in the clarified attestation standards. Those clarified standards have been finalized by the Auditing Standards Board and are expected to be issued in late December of 2015 or early January 2016. The proposed SSARS Compilation of Pro Forma Financial Information represents the clarity redraft of AR section 120, Compilation of Pro Forma Financial Information. The proposed SSARS Omnibus - 2016 represents revisions to AR-C sections 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services; 70, Preparation of Financial Statements; 80, Compilation Engagements; and 90, Review of Financial Statements. Comments are due by 6 May 2016.
27 January 2016
Center for Audit Quality - 2015 Year in Review
The CAQ has published the latest edition of its annual Year in Review. The publication documents key efforts and accomplishments of the CAQ and the public company auditing profession during calendar 2015. Among other topics, the Year in Review covers the CAQ’s proactive work to enhance audit quality, its ongoing support for independent research, its partnership with important stakeholders, and its new initiatives to bolster the profession's role and relevance.
12 January 2016
New report highlights efforts on audit quality indicators and explores the path ahead
The CAQ issued a new report that provides insights from a global series of roundtable discussions with audit committee members and other stakeholders on a potential set of audit quality indicators. This outreach, together with the results from pilot testing of the CAQ’s Approach to Audit Quality Indicators, suggests a path forward on efforts to identify the most effective way to assess audit quality.
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).
15 January 2016
November 2015 EITF meeting minutes
At this meeting, the The Emerging Issues Task Force (EITF) reached final consensuses on recognition of breakage for prepaid stored-value products, effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also reached a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows. The EITF discussed but didn’t reach a consensus-for-exposure on the cash flow classification of restricted cash. It plans to discuss this topic at a later date.
18 May 2016
Technical corrections and improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606)
The Board issued this Exposure Draft to solicit public comment on proposed changes to Topic 606. The amendments in this proposed Update are of a similar nature to the items typically addressed in the Technical Corrections and Improvements project. However, the Board decided to issue a separate proposed Update for technical corrections and improvements to Topic 606 and other Topics amended by Update 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to Update 2014-09. Comments are due by 2 July 2016.
12 May 2016
Simplifying the accounting for goodwill impairment
The amendments in this proposed Update would modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity would not determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Because these amendments remove Step 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. Comments are due by 11 July 2016.
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.
24 March 2016
GASB publishes new implementation guidance to assist stakeholders with recent pronouncements
The GASB issued implementation guidance containing questions and answers intended to clarify, explain, or elaborate on recent GASB Statements.
11 May 2016
The auditor's report on an audit of financial statements when the auditor expresses an unqualified opinion
The PCAOB issued a revised proposal that would require auditors to include significantly more information in the auditor’s report. Auditors would be required to discuss critical audit matters (CAMs), which would be defined as items communicated to or required to be communicated to the audit committee that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective or complex auditor judgment. The revised proposal would also require disclosure of auditor tenure, among other things. The communication of CAMs would not be required for audits of brokers and dealers reporting under the Securities Exchange Act of 1934 Rule 17a-5, investment companies other than business development companies and employee benefit plans. Comments are due by 15 August 2016.
10 May 2016
PCAOB rules to improve transparency by disclosing engagement partner name and information about other audit firms are approved by SEC
The PCAOB announced that its rules to improve the transparency of the audit by disclosing the names of audit engagement partners, as well as information about other firms that participate in the audits, were approved by the SEC. The PCAOB expects to release shortly staff guidance and other tools for firms to use in implementing the new rules.
16 May 2016
Incentive-based compensation arrangements
Six federal agencies are inviting public comment on a proposed rule to prohibit incentive-based compensation arrangements that encourage inappropriate risks at covered financial institutions. The proposed rules would apply to covered financial institutions with total assets of $1 billion or more. The requirements are tailored based on assets, and covered institutions would be divided into three categories. The deadline for comments on the proposed rule, which was submitted for publication in the Federal Register, is 22 July 2016.
3 May 2016
SEC adopts amendments to implement JOBS Act and FAST Act changes for Exchange Act registration requirements
The SEC has approved amendments to revise the rules related to the thresholds for registration, termination of registration, and suspension of reporting under Section 12(g) of the Securities Exchange Act of 1934. These amendments implement provisions of the JOBS Act and the FAST Act. With the adoption of these amendments, the Commission has completed all of the rulemaking mandated under the JOBS Act.