Month: April 2017

Financial Reporting Developments – Revenue from contracts with customers (ASC 606)

We have updated our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), primarily to address technical corrections and improvements the FASB made to the standard in Accounting Standards Update (ASU) 2016-20, the November 2016 FASB Transition Resource Group for Revenue Recognition discussions of implementation questions and changes ASU 2017-05 made to the new guidance on the measurement and recognition of gains and losses on the sale of certain nonfinancial assets such as property and equipment, including real estate. We also have expanded our discussions of certain topics. Appendix A of the FRD summarizes significant changes since the previous edition. Updates of many of our industry publications on the new standard will be available...

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To the Point – Auditors would perform more tests and provide more information in reports on ERISA plans

The Auditing Standards Board of the American Institute of Certified Public Accountants proposed a Statement on Auditing Standards for financial statement audits of employee benefit plans that are subject to the Employee Retirement Income Security Act (ERISA) in an effort to improve the quality of these audits and the relevance of the auditor’s report. This publication focuses on how plan sponsors would be affected by the proposal, which would be effective for audits of financial statements for periods ending on or after 15 December 2018. Comments are due by 21 August 2017. We encourage plan sponsors to review the proposal, discuss it with their auditors and ERISA counsel and consider providing...

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SEC in Focus – April 2017

Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. This issue highlights Jay Clayton’s testimony at his Senate Banking Committee confirmation hearing, the push to ease SEC rules required by the Dodd-Frank Act, recent trends in SEC staff comments, SEC Chief Accountant Wesley Bricker’s remarks on increasing the effectiveness of audit committees and final rules, rulemaking proposals, SEC staff guidance and other SEC...

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To the Point – SEC Chief Accountant provides guidance on how audit committees can be more effective

In a recent speech, SEC Chief Accountant Wesley Bricker discussed how audit committees can effectively discharge their oversight responsibilities. Among other things, he said it is important for audit committees to understand the financial reporting risks related to implementing new accounting standards, support controls over the disclosure of non-GAAP financial measures, understand changes in the business and operating environments, set a positive tone at the top to support effective internal control over financial reporting, and make sure the committee is not overloaded with responsibilities beyond its core...

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