Transitioning to International Financial Reporting Standards (IFRS) was costly for Canadian businesses, but research showed nearly half found the cost of preparing and auditing financial statements under IFRS in line with costs under Canadian GAAP. Forty-seven percent of respondents polled online by the research arm of Financial Executives International Canada
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PCC proposing VIE consolidation exception for private company leases
The Private Company Council (PCC) voted Tuesday to propose a GAAP alternative for private companies for applying consolidation guidance for leasing entities under common control. Private companies would be exempt from applying consolidation guidance for variable-interest entities (VIEs) under common control leasing arrangements under the proposal the PCC voted to
New duties on horizon for internal auditors
Even as assurance and compliance responsibilities are expanding for internal auditors, a significant shift in their strategic duties is on the horizon, according to a new survey. More than half (54%) of respondents expect that in the next two years, internal audit’s primary mandate will be providing stakeholders with business
AICPA, NASBA to collaborate on decision-making tool for small business accounting framework
The AICPA plans to develop a decision-making tool to assist entities with determining whether the new small business accounting framework suits their needs. The National Association of State Boards of Accountancy (NASBA) will have input in the development of the tool, according to a joint statement released by the AICPA
FATCA deadlines are postponed for six months
On Friday, the IRS said it was delaying for six months some of the deadlines for implementing the Foreign Account Tax Compliance Act (FATCA) originally set out in the final regulations issued in April in T.D. 9610 (Notice 2013-43). The regulations, which provide rules on information reporting by foreign financial
SEC lifts ban on advertising for certain private securities
Issuers of certain private securities, including hedge funds, will be able to advertise to the general public under a rule the SEC adopted Wednesday. But only “accredited investors” will be permitted to invest in these private securities offerings as a result of rules adopted by the SEC on Wednesday. Accredited
IRS provides details about postponed employer health care penalty and information reporting
On Tuesday, the IRS made official the postponement of the large-employer health care penalty and certain information reporting rules that had been informally announced July 2 on a Treasury Department blog. Notice 2013-45 postpones the information reporting rules under Secs. 6055 and 6056 and the Sec. 4980H shared responsibility penalty
Professional poker player goes bust in Tax Court
A professional poker player who was also a civil and geotechnical engineer and a laundromat owner lost in Tax Court on Monday (Hom, T.C. Memo. 2013-163). The court held that John Hom received unreported wages from his wholly owned C corporation, could not deduct unsubstantiated gambling losses or travel expenses,
New TPAs address audits of group financial statements, signing and dating reports
The AICPA has issued implementation guidance for specific elements of two auditing standards in new Technical Questions and Answers (TPAs). Paragraphs .42 to .43 of TIS section 8800, “Audits of Group Financial Statements and Work of Others,” provide nonauthoritative guidance regarding implementation of AU-C section 600, Special Considerations—Audits of Group
Bill prohibiting mandatory audit firm rotation passes U.S. House
The U.S. House of Representatives on Monday approved a bipartisan bill that would prohibit the PCAOB from requiring mandatory audit firm rotation for public companies. The bill, sponsored by Reps. Robert Hurt, R-Va., and Gregory Meeks, D-N.Y., was introduced on April 15. It would amend the Sarbanes-Oxley Act of 2002
GAO advises SEC to require disclosure of auditor attestation of ICFR
The U.S. Government Accountability Office (GAO) is recommending that the SEC consider requiring public companies to disclose whether they obtained an auditor attestation of their internal controls over financial reporting (ICFR). In a report to congressional committees, the GAO said attestation reports increase investor confidence. Requiring disclosure of whether a
Fraud in financial reporting, auditing among targets of new SEC initiatives
Fraudulent financial reporting and auditing are among the targets of three new Division of Enforcement initiatives the SEC announced Tuesday in its efforts to detect and investigate fraud and misconduct that harm investors. The new Financial Reporting and Audit Task Force will be dedicated to detecting fraudulent or improper financial
Ernst & Young becomes EY as new leader takes helm
Ernst & Young has a new brand name, EY, and a new leader, Mark Weinberger. Weinberger, 51, officially became EY’s global chairman and CEO on Monday, the firm said in a news release. He replaced Jim Turley, who retired after 12 years as the firm’s chair and CEO. Weinberger’s previous leadership
Treasury postpones employer health care penalty, information reporting for one year
Large employers that fail to provide minimum health coverage for employees will not be subject to the shared-responsibility penalty until 2015 after Treasury announced on Tuesday that it would delay certain provisions of 2010’s health care legislation. In a Treasury blog post titled, “Continuing to Implement the ACA in a Careful,
GASB proposal addresses transition concern in pension standards
GASB issued a proposal Tuesday that is designed to eliminate a potential source of understatement during a state or local government’s transition to the board’s new pension standard. Under the current transition provisions, a GASB news release states, there is potential for understatement of restated beginning net position and expense
Final rules on acceleration of COD income deferral are issued
The IRS on Tuesday issued final regulations on the rules to accelerate cancellation of debt (COD) income that taxpayers elected to defer over a five-year period when an applicable debt instrument was reacquired by the issuer or a related party in 2009 or 2010 (T.D. 9622 and T.D. 9623). An
FASB proposes GAAP changes for private companies on 3 issues
FASB on Monday formally proposed changes to GAAP for private companies that are designed to make financial reporting less burdensome for private companies on three issues. The proposals were crafted by the Private Company Council (PCC), which was created last year to propose alternatives for private companies within U.S. GAAP.
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