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Comment Letter – ASB proposed revision to definition of materiality

Go to Source Author: In our comment letter, we support the ASB’s efforts to align the materiality concepts discussed in AICPA Professional Standards with the definition of materiality used by the US Supreme Court, the auditing standards of the PCAOB, the SEC and the FASB. However, we do not support some aspects of the proposal and believe some proposed amendments require...

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Comment Letter – SEC’s proposal on disclosures about acquisitions and disposals of businesses

Go to Source Author: In our comment letter on the SEC’s proposal on disclosures about acquisitions and disposals of businesses, we support the SEC’s efforts to simplify the existing requirements and create corresponding rules for investment companies. However, we make certain recommendations to help both investors and registrants benefit from any rule...

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Comment Letter – SEC’s proposal to modify the accelerated and large accelerated filer definitions

Go to Source Author: In our comment letter on the SEC’s proposal to modify the accelerated and large accelerated filer definitions, we express our overall support of Section 404(b) of the Sarbanes-Oxley Act of 2002, which requires most public companies to obtain an independent audit of internal control over financial reporting (ICFR). In addition, we encourage the SEC to consider feedback from investors and preparers about the costs and benefits of external audits of ICFR and whether certain smaller reporting companies should be exempt from this requirement, as proposed. We also discuss our concerns about certain potential implementation and transition...

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To the Point – FASB proposes simplifying an issuer’s accounting for debt and equity instruments

Go to Source Author: The FASB proposed simplifying an issuer’s accounting for financial instruments with characteristics of liabilities and equity by eliminating the requirements in ASC 470-20 to separately account for embedded conversion features in convertible instruments. Only embedded conversion features requiring bifurcation under ASC 815-15 would be accounted for separately. For contracts in an entity’s own equity, the proposal would require entities to disregard certain events that would trigger an adjustment to the contract’s settlement amount and any events that would trigger net cash settlement, if the likelihood of the event occurring is remote under ASC 815-40. It also would eliminate some of the conditions for equity classification under ASC 815-40-25. The proposal also would require entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and presume share settlement for instruments that may be settled in cash or shares, except for liability-classified share-based payment awards. Comments are due by 14 October...

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Comment Letter – ASB proposed revision to definition of materiality

Go to Source Author: In our comment letter, we support the ASB’s efforts to align the materiality concepts discussed in AICPA Professional Standards with the definition of materiality used by the US Supreme Court, the auditing standards of the PCAOB, the SEC and the FASB. However, we do not support some aspects of the proposal and believe some proposed amendments require...

Read More