6 September 2016
Comment Letter - ASB’s going concern proposal
In our comment letter, we support the issuance of the Proposed Statement on Auditing Standards, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, to promote consistency between the auditing standards and ASU 2014-15, Presentation of Financial Statements – Going Concern, which will require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. However, we disagree with the proposed requirement for the auditor to make inquiries of management about its knowledge of conditions or events beyond the period of management’s evaluation that raise substantial doubt about the entity’s ability to continue as a going concern.
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.
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.
14 June 2016
Highlights - CAQ SEC Regulations Committee - 14 June 2016
At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and related implementation issues, reporting issues related to transition to the new leasing and revenue standards and confirmed that the disclosure threshold for time deposits under the SEC’s Industry Guide 3 is not linked to Federal Deposit Insurance Corporation insurance limit.
23 September 2016
EITF Update - September 2016
The EITF reached a final consensus on restricted cash. The EITF also reached a consensus-for-exposure on accounting for service concession arrangements.
22 July 2016
June 2016 EITF meeting minutes
At this meeting, the Emerging Issues Task Force (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.
22 September 2016
Premium amortization on purchased callable debt securities
The FASB issued a proposed ASU that would amend the amortization period for callable debt securities purchased at a premium. The Board is proposing to shorten the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. Comments are due by 28 November 2016.
19 September 2016
Additional corrections: Technical corrections and improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606)
The amendments in this proposed Update affect narrow aspects of the guidance issued in Update 2014-09. The proposed Update issued on 18 May 2016 included nine technical corrections and improvements, which the Board is in the process of redeliberating. The amendments in this proposed Update include four additional items that were brought to the Board’s attention after the initial deliberations of the May 2016 proposed Update. Comments are due by 4 October 2016.
7 September 2016
GASB forms OPEB implementation guidance consultative group
The GASB has formed a consultative group to assist with the Board's development of implementation guidance relating to the accounting and financial reporting standards for other postemployment benefits.
22 August 2016
Certain debt extinguishment issues
The GASB proposed guidance that state and local governments would apply when extinguishing debt prior to its maturity. Specifically, the Exposure Draft proposes guidance for transactions in which only existing resources are placed in a trust for the purpose of extinguishing debt. It proposes uniform accounting and financial reporting guidance for debt that is “defeased in substance,” regardless of the source of the resources that are placed in a trust. Comments are due by 28 October 2016.
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.
8 September 2016
Comment letter - SEC’s proposed amendment to the definition of smaller reporting company
In our comment letter, we offered a view on how the Commission should approach any potential changes to its accelerated filer definition. We also recommended conforming Rule 3 05 of Regulation S X with the proposed $100 million revenue limit for smaller reporting companies (i.e., require no more than two years of audited financial statements when an acquired business has annual revenue below $100 million).
31 August 2016
Exhibit hyperlinks and HTML format
The SEC proposed rule and form amendments that would require registrants to include a hyperlink to exhibits in their filings. The proposed amendments would require registrants that file registration statements and periodic and current reports that are subject to the exhibit requirements under Item 601 of Regulation S-K, or that file on Forms F-10 or 20-F, to include a hyperlink to each exhibit listed in the exhibit index of the filings. The amendments would also require that registrants submit all of these filings in HyperText Markup Language (HTML) format.