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    AICPA

    11 January 2019

    Proposed interpretation state and local government client affiliates (formerly Entities included in state and local government financial statements)
    On 7 July 2017, the Professional Ethics Executive Committee (PEEC) exposed for comment revisions to the interpretation “State and Local Government Entities” (ET sec. 1.224.020). These revisions are referred to in this explanation as the initial exposure draft. Based upon feedback received and further discussion of the issues, PEEC made a number of changes to the initial exposure draft. As such, PEEC is issuing this new exposure draft (second exposure draft) and seeks feedback on only the changes from the initial exposure draft. PEEC believes the revisions represent substantive changes to what was proposed in the initial exposure draft. Comments are due by 11 March 2019.

    20 December 2018

    Description criteria for a description of an entity’s production, manufacturing, or distribution system in a SOC for supply chain report
    Because entity management is ultimately responsible for designing, implementing, and operating the entity’s system and the controls within that system, it is also responsible for preparing, and presenting in the SOC for Supply Chain report, the description of the entity’s system. Entity management uses description criteria when preparing the description, and the practitioner uses it when evaluating whether the description is in accordance with the description criteria. This document presents the description criteria for use when preparing the description of the entity’s system; it does not present the trust services control criteria against which the effectiveness of system controls is measured and evaluated. Comments are due by 28 February 2019.

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    CAQ

    8 January 2019

    Audit quality disclosure framework
    To provide a window into how they promote and monitor audit quality, many accounting firms publish transparency reports, audit quality reports, and other communications. The objective of this publication is to provide a disclosure framework to assist firms in their ongoing efforts to determine, assess, and communicate information that may be useful to stakeholders in understanding how audit quality is supported and monitored at the firm level.

    18 September 2018

    2018 Main Street Investor Survey
    Since 2007, the CAQ has commissioned an annual survey of US retail investors. Each year, our Main Street Investor Survey measures confidence in US capital markets, global capital markets, audited financial information, and investing in publicly traded companies. Through a variety of market conditions over the years, the survey has shown the solid levels of trust that Americans place in the US capital markets system. This edition of the survey is no exception.

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    EITF

    2 October 2018

    EITF Update - September 2018
    The EITF reached consensuses-for-exposure on recognition under Topic 805 for an assumed liability in a revenue contract and improvements to accounting for episodic television series. The Task Force also discussed but didn’t reach a consensus-for-exposure on the measurement of an assumed liability in a revenue contract in a business combination. Instead, the Task Force asked the staff to draft a discussion paper that would seek feedback from stakeholders on this topic. The Task Force will discuss the topic again at a later date.

    8 June 2018

    EITF Update - June 2018
    The EITF reached a final consensus on customer’s accounting for implementation, setup, and other upfront costs (implementation costs) incurred in a cloud computing arrangement that is considered a service contract. The Task Force reached a consensus-for-exposure on recognition under Topic 805 for an assumed liability in a revenue contract. The Task Force also discussed improvements to accounting for episodic television series.

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    FASB

    15 January 2019

    Comment Letter - FASB’s proposal on codification improvements to help lessors apply the new leases standard
    In our comment letter, we support the FASB’s proposal to (1) allow lessors that are not manufacturers or dealers to continue to use their cost, less any volume or trade discounts, as the fair value for the underlying asset and (2) clarify that lessors in the scope of ASC 942, Financial Services — Depository and Lending, should classify principal payments received from sales-type and direct financing leases in investing activities in the statement of cash flows. However, we recommend that the Board make certain edits to the transition guidance. We also recommend that the Board take this opportunity to clarify two other aspects of the new leases guidance.

    20 December 2018

    Intangible – Goodwill and other (Topic 350), Business combinations (Topic 805), and Not-for-profit entities (Topic 958): Extending the private company accounting alternatives on goodwill and certain identifiable intangible assets to not-for-profit entities
    The FASB issued a proposed ASU that would reduce the cost and complexity of accounting for goodwill and measuring certain identifiable intangible assets for not-for-profit organizations. Comments are due by 18 February 2019.

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    GASB

    17 December 2018

    Fiduciary activities
    The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on the requirements of Statement No. 84, Fiduciary Activities. Comments are due by 28 February 2019.

    14 November 2018

    Implementation guidance update - 2019
    The objective of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements. Comments are due by 31 January 2019.

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    PCAOB

    13 September 2018

    PCAOB enters into cooperative agreement with Austrian audit regulator
    The PCAOB announced that it has entered into a cooperative agreement with the Audit Oversight Body of Austria. This agreement provides a framework for joint inspections in the oversight of audit firms subject to the regulatory jurisdictions of both organizations. It also allows for the exchange of confidential information.

    10 September 2018

    Comment Letter - PCAOB Draft Strategic Plan for 2018-2022
    In our comment letter on the PCAOB’s Draft Strategic Plan for 2018-2022, we commend the PCAOB for seeking public input and generally support the five goals the PCAOB laid out. We also offer suggestions to enhance inspection reporting, strengthen the PCAOB’s goal relating to technological innovations and expand the stakeholders with which the PCAOB engages to include foreign regulators and international standard setters. The PCAOB is expected to publish its final Strategic Plan by the end of the year.

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    SEC

    10 January 2019

    SEC in Focus - January 2019
    Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include a discussion of the key topics from the annual AICPA Conference on Current SEC and PCAOB Developments, an overview of a request for comment by the SEC on quarterly reporting requirements and a recap of other recent rulemaking activities. We also discuss the Commission’s focus on digital assets, current practice matters and enforcement activities.

    3 December 2018

    Comment Letter - SEC’s proposal on disclosure requirements for certain registered debt offerings
    Provides EY views on the SEC's efforts to simplify and streamline the financial disclosure requirements under S-X Rules 3-10 and 3-16.

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