9 January 2017
Proposed revised and new interpretations applicable to members in business
The Professional Ethics Executive Committee exposed for comment, revisions to the “Knowing Misrepresentations in the Preparation of Financial Statements or Records” interpretation under the “Integrity and Objectivity Rule”, applicable to members in business. Comments are due by 17 April 2017.
15 December 2016
Client and attest client: Proposed revised definitions of client and attest client as well as related definitions, interpretations, and other guidance
The AICPA Professional Ethics Executive Committee is exposing for comment revisions to the definitions of “Client” and “Attest Client,” including the relocation of the government provision from the definition of “Client” to the “Simultaneous Employment or Association With an Attest Client” interpretation under the Independence Rule. Comments are due by 15 May 2017.
17 November 2016
Highlights - International Practices Task Force - 17 November 2016
A summary of the issues discussed at the 17 November 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.
27 September 2016
Highlights - CAQ SEC Regulations Committee - 27 September 2016
At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and implementation of the Compliance and Disclosure Interpretations, condensed consolidating information for complying with Regulation S-X Rule 3-10, the 93 day rule when preparing pro forma financial information combining companies that have different fiscal year ends and SEC reporting issues related to transition to the new accounting standards on leases and revenue.
23 December 2016
November 2016 EITF meeting minutes
At this meeting, the Emerging Issues Task Force (EITF) reached a final consensus on employee benefit plan master trust reporting.
21 November 2016
EITF Update - November 2016
The EITF reached a final consensus on employee benefit plan master trust reporting.
7 February 2017
Comment Letter - FASB proposal on accounting for instruments with down round features
In our comment letter, we support the FASB’s objective to reduce the cost and complexity of accounting for certain financial instruments with down round features, and we believe the proposal would meet that objective by requiring fewer equity-linked financial instruments (or embedded features) with down round features that have to be accounted for at fair value. However, we believe the proposed guidance could cause confusion about whether a convertible instrument with an adjustment provision that could result in the recognition of a contingent beneficial conversion feature (BCF) would be in the scope of the proposed recognition and measurement guidance for down round features (i.e., ASC 480-20). Therefore, we recommend that the FASB clarify the proposed guidance on convertible instruments with down round features that are also subject to the contingent BCF guidance in ASC 470-20. We do not believe these instruments should be in the scope of ASC 480-20, because applying both the guidance in ASC 480-20 and the contingent BCF guidance in ASC 470-20 would be too complex.
12 January 2017
Public roundtable meetings on the board's decision process under the disclosure framework and materiality
The FASB will host two public roundtable meetings to discuss proposals related to its Disclosure Framework project. The meetings will be held on Friday, 17 March 2017, at the FASB offices. The purpose of the roundtable meetings is to obtain feedback on whether the proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements (Chapter 8) , is useful in identifying relevant disclosures.
7 December 2016
Financial reporting model improvements - Governmental funds
This Invitation to Comment is being issued to obtain stakeholder feedback on potential improvements to the existing financial reporting model for governmental funds. It addresses potential improvements to fundamental issues of the GASB’s financial reporting model reexamination project: (1) the measurement focus and basis of accounting for governmental funds and (2) the presentation of governmental fund financial statements. Comment are due by 31 March 2017.
16 November 2016
Implementation guide No. 201X-Y, Implementation guidance update - 201X
The proposed Implementation Guide addresses a wide array of practice issues, including questions related to the GASB’s accounting and financial reporting standards on pensions, cash flow statements, the financial reporting entity, certain investments, external investment pools, fund balance, and tax abatements. The proposed Implementation Guide also includes amendments to previously issued implementation guidance. Comments are due by 31 January 2017.
18 August 2016
PCAOB issues annual report on inspections of broker-dealer auditors
The PCAOB issued an annual report on its interim inspection program for auditors of brokers and dealers. The annual report describes results of inspections conducted in 2015, the first inspection year in which all inspected engagements were governed by the SEC’s 2013 amendments to Exchange Act Rule 17a-5, including the new requirement that broker-dealer audits be performed in accordance with PCAOB standards. The report shows high levels of deficiencies similar to inspection results in previous years.
29 July 2016
Comment Letter - PCAOB proposal on audits involving other auditors
In our comment letter, we supported the PCAOB’s efforts to strengthen the requirements for the lead auditor in an audit involving other auditors. However, we suggested that the lead auditor determination needs further study. We also offered some suggestions to make the amendments more scalable based on assessed risk and to allow lead auditors to rely on their firm’s system of quality controls when evaluating other auditors that are in their network.
19 January 2017
Comment letter - SEC’s annual review under the Regulatory Flexibility Act
In our comment letter, we recommend that the Commission consider making the periodic review required by the Regulatory Flexibility Act more transparent and more robust to encourage broader and meaningful participation by constituents. We believe an effective post-implementation review process should determine whether a rule has accomplished its objective, evaluate the compliance cost for all issuers and the benefits for investors and provide feedback to inform and improve the rulemaking process.
12 January 2017
SEC announces 2017 examination priorities
The SEC announced its Office of Compliance Inspections and Examinations’ 2017 priorities. Areas of focus include electronic investment advice, money market funds, and financial exploitation of senior investors. The priorities also reflect a continuing focus on protecting retail investors, including individuals investing for their retirement, and assessing market-wide risks. The 2017 examination priorities address issues across a variety of financial institutions, including investment advisers, investment companies, broker-dealers, transfer agents, clearing agencies, private fund advisers, national securities exchanges, and municipal advisors.