Financial Reporting


The SEC issues an interpretive release, Commission Guidance Regarding Management’s Discussion and Analysis of Financial Condition and Results of Operations ( www.sec.gov/rules/interp/33-8350.htm ). Commonly called MD&A, such information is included in public companies’ disclosure documents. The guidance emphasizes the MD&A should not be merely a recitation of financial statements in narrative form or otherwise uninformative technical responses, neither of which provides the important management perspective an MD&A should offer. Instead, the release encourages top-level management to participate in drafting the MD&A and provides guidance regarding the overall presentation and focus of MD&A; emphasis on analysis of financial information; known material trends and uncertainties; key performance indicators, including those that are nonfinancial in nature; liquidity and capital resources and critical accounting estimates. The release neither creates new—nor modifies existing—legal requirements.

AICPA Chairman S. Scott Voynich appoints a task force, led by past chairman James G. Castellano, to study financial reporting by privately held businesses. To provide members in business and industry with information they can use to meet their evolving reporting responsibilities, the group will speak with, for example, investors, credit rating agencies and other stakeholders in the financial reporting process. Voynich said the task force’s strategy will be to identify any informational deficiencies in private companies’ traditional GAAP-based financial statements and propose appropriate solutions on behalf of the profession.

NEWS

IRS sets start date for tax season

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

PODCAST

Why CPAs can’t wait on automation tools

What do accounting firms waiting on others to develop AI, automation, and data analytics tools have in common with a baseball fan sitting in a stadium filling with water at an exponential rate? The answer could determine your firm’s fate.