An Accounting Standards Update (ASU) issued Thursday by FASB makes it clear that a 2011 standard on offsetting disclosures does not apply to ordinary trade receivables and receivables. ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities, excludes trade receivables and receivables
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Revenue recognition: Time for early-stage planning
Experts say it’s time for CFOs and other finance professionals to engage in early-stage planning for how they will handle the changes necessary to comply with the new revenue recognition rules. It might be tempting for financial statement preparers to push their analysis of the proposed converged revenue recognition standard
Individual health care mandate rules under Sec. 5000A proposed
The IRS released proposed rules for the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014 (the controversial “individual mandate”) (REG-148500-12). The individual mandate was upheld by the Supreme Court last summer as a permissible exercise
Changes to rules on failure to file gain recognition agreements proposed
The IRS has issued proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements (GRAs) when they transfer certain property to foreign corporations in nonrecognition transactions (REG-140649-11). The proposed rules would change the standards under which transferors are required to recognize gain
SME framework proposal comment period ends Wednesday
Wednesday is the deadline for comments on the AICPA’s proposed Financial Reporting Framework for Small- and Medium-Sized Entities (SMEs). The proposed framework was designed to provide streamlined financial reporting options that meet users’ needs without being unnecessarily complicated or costly for SMEs that are not required to file U.S. GAAP financial
IRS further delays acceptance of returns claiming Form 8863 education credits
On Monday, two days before the delayed Jan. 30 start of the 2013 filing season, the IRS announced a further delay in processing returns that contain Form 8863, Education Credits, which must be filed by people claiming the American opportunity and the lifetime learning tax credits (IR-2013-10). During testing, the
Proposed regs. would govern employment tax liability of third-party agents
On Friday, the IRS released proposed regulations under Sec. 3504 (acts to be performed by agents) that would govern the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy all employment tax obligations (REG-102966-10). Such agents include payroll
Preparers tell IASB: Disclosure requirements too extensive
Financial statement preparers’ concerns about disclosure overload came through loud and clear in a survey recently conducted by the International Accounting Standards Board (IASB). Most preparers participating in the survey said the primary problem with the way financial information is disclosed is that disclosure requirements are too extensive, and more
Study by UK researchers shows inconsistency in IFRS application
A new report by U.K. researchers found inconsistencies in compliance with certain impairment disclosure requirements across jurisdictions in Europe, which suggested that IFRS are not being evenly applied across jurisdictions. International Accounting Standards Board Chairman Hans Hoogervorst said more consistent application remains a worthwhile goal that requires the attention of
Updated forms, procedures issued for plan sponsors in IRS’s Voluntary Correction Program
On Thursday, the IRS announced that it was issuing updated procedures and forms for sponsors of retirement plans that intended to qualify under Secs. 401(a), 403(a), 403(b), 408(k), or 408(p), but that have not met these requirements for a period of time. The procedures govern the Employee Plans Compliance Resolution
Anti-Fraud Collaboration launches website
A new website, AntiFraudCollaboration.org, is providing resources to help audit committees, financial executives, internal auditors, and external auditors deter and detect financial reporting fraud. The site is a product of the Anti-Fraud Collaboration, a partnership between the Center for Audit Quality (CAQ), Financial Executives International, The Institute of Internal Auditors,
IRS files motion to suspend injunction in return preparer regulation case
The IRS on Wednesday filed a motion in federal court to suspend an injunction that forbids it from continuing with its registered tax return preparer program, pending appeal of the case (Motion to Suspend Injunction Pending Appeal, D.D.C. 1/23/13). The IRS also indicated that it intends to file a Notice of
Former prosecutor White nominated to head SEC
President Barack Obama announced Thursday his nomination of former U.S. Attorney Mary Jo White to be the chairman of the SEC. If her nomination is approved by the Senate, White will replace Elisse Walter, who took leadership of the agency on a short-term basis after Mary Schapiro stepped down as
IAASB, PCAOB, CAQ seek ways to measure audit quality
Without concrete, objective ways to measure audit quality, it is difficult to assess whether efforts to improve audits have been successful. The International Auditing and Assurance Standards Board (IAASB), one of many organizations attempting to tackle this challenge, has issued a consultation paper, A Framework for Audit Quality, that it
Finance executives worldwide on alert about U.S. debt issues
Global finance executives are keeping a close eye on Congress and its strategy for handling the nation’s debt ceiling and spending. A possible short-term solution could create long-term uncertainty for their businesses, a new survey of 1,300 CGMA designation holders shows. Nearly seven in 10 (69.7%) believe that the most
Sec. 6038D reporting of specified foreign financial assets postponed for one year
The IRS on Wednesday announced that it is postponing for at least one year the requirement that domestic entities report interests in specified foreign financial assets. In Notice 2013-10, the IRS says that when it issues final regulations, they will apply no earlier than to tax years beginning after Dec.
Federal court strikes down IRS tax return preparer registration program
The United States District Court for the District of Columbia on Friday struck down the IRS’s registered tax return preparer program and enjoined it from enforcing the regulations (Loving, No. 12-385 (D.D.C. 1/18/13)). Background The IRS in 2011 began regulating all tax return preparers who prepare and file tax returns
AICPA committee withdraws compilation, association ED
The AICPA Accounting and Review Services Committee (ARSC) has voted to withdraw its compilation and association exposure draft in response to comment letters from stakeholders. The compilation proposal would have revised the applicability of the compilation standard but would have retained the compilation service as an attest service. The association
FATCA final regulations cover all the bases
On Thursday, the IRS issued final regulations providing rules on information reporting by foreign financial institutions (FFIs) and withholding on certain payments to FFIs and other foreign entities (T.D. 9610). Under the Foreign Account Tax Compliance Act of 2009 (FATCA), enacted as part of the Hiring Incentives to Restore Employment
IRS provides penalty relief for farmers hit by delayed start of tax season
The IRS on Friday announced that it will provide estimated tax penalty relief for farmers and fishermen who are not able to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns. Earlier this month, the IRS announced that it
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