One of the most challenging international convergence projects attempted by FASB and the International Accounting Standards Board (IASB) cleared an important hurdle Thursday with the proposal of a revised financial reporting standard for leases. FASB and the IASB released nearly identical, revised exposure drafts that call for a dual-recognition approach
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IRS gives details of operations on furlough dates
To help taxpayers plan for the upcoming furlough dates on which the IRS will be closed (see “IRS Decides to Shut Down Completely on Furlough Dates”), the IRS issued a news release detailing how the shutdown days, the first of which is May 24, will affect operations (IR-2013-51). The other
President names new acting IRS commissioner
President Barack Obama on Thursday named Daniel Werfel acting commissioner of the IRS. Werfel is currently the controller and acting deputy director of the Office of Management and Budget, a job that has included overseeing federal spending cuts mandated by the sequester. Werfel’s appointment as acting commissioner will take effect
IASB chair: Lease changes unpopular, but necessary
International Accounting Standards Board (IASB) Chairman Hans Hoogervorst on Thursday acknowledged the converged lease accounting proposal is bound to be unpopular with many companies. Indeed, less than four hours after FASB and the IASB formally announced the revised proposal, the U.S. trade organization ELFA (the Equipment Leasing and Finance Association)
Acting IRS commissioner out in tea party scandal
Speaking from the East Room of the White House on Wednesday evening, President Barack Obama announced the departure of Acting IRS Commissioner Steven Miller as a result of the ongoing scandal surrounding the IRS’s controversial methods for determining which organizations applying for Sec. 501(c)(4) status warranted further review. “We’re going
SOX compliance costs rise for many companies, report finds
New developments associated with the Sarbanes-Oxley Act of 2002 (SOX) have companies changing their compliance processes more than a decade after the law was enacted, according to a new survey report. Organizations reporting rises in SOX compliance costs and external audit fees in 2012 vastly outnumbered those reporting decreases, according
8 steps to update internal control
Here is how organizations can implement the newly updated, principles-based internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which was released May 14 (visit ic.coso.org). The original 1992 framework has been sharpened and refreshed to reflect the current business environment. Create a team and
Key factors cited as discussion of audit quality indicators nears
An effective definition of audit quality should encompass two key factors, the Center for Audit Quality (CAQ) told the PCAOB in a comment letter dated May 13. The CAQ, which is affiliated with the AICPA, has been working over the past several months to develop perspectives that could help define
AACSB approves revised accounting school accreditation standards
The Association to Advance Collegiate Schools of Business (AACSB) will implement a revised set of accounting accreditation standards on July 1—the first major changes to the standards in nearly a decade. The new standards, which cover everything from strategic management to learning and teaching, were approved at the AACSB’s annual business
Justice Department opens criminal probe of IRS treatment of tea party groups
At a press conference in Washington on Tuesday, Attorney General Eric Holder announced that the Justice Department has opened a criminal probe of the IRS and its reported scrutiny of tax-exemption requests by groups with the words “tea party” or “patriot” in their names. “The FBI is coordinating with the
Newly released COSO framework a fresh look at internal control
An important development in the internal control landscape was completed Tuesday with the release of an update to the integrated framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). COSO’s popular original internal control framework, released in 1992, was accepted by the SEC as a framework for
Final regulations for Sec. 336(e) elections are issued
On Monday, the IRS issued final regulations on the rules that apply when an election under Sec. 336(e) is made to treat the sale, exchange, or distribution of at least 80% of the voting power and value of a corporation’s stock (target) as a sale of all its underlying assets,
Schedule M-3 filing requirement reduced for entities below $50 million in assets
On Friday, the IRS announced changes in the filing requirements for Schedule M-3, Net Income (Loss) Reconciliation, for certain corporations and partnerships. For tax years ending on or after Dec. 31, 2014, certain corporations and partnerships will be permitted to file Schedule M-1, Reconciliation of Income (Loss) and Analysis of
AICPA provides guidance on auditing conflict minerals reports
Recently implemented federal rules on disclosure of conflict minerals have mandated new audit requirements for some U.S. issuers. The AICPA Conflict Minerals Resources webpage provides background and other useful information about the use of conflict minerals, which are gold, tantalum, tin, and tungsten. In addition, new Questions and Answers have
Survey: Financial stress taking a toll on Americans
Problems created by financial stress aren’t limited to people’s pocketbooks. A new survey found that money-related stress is also taking a toll on Americans’ waistlines, friendships, and sleep habits. The telephone survey, conducted March 14–17, asked 1,011 U.S. adults to name all the ways financial stress is affecting their lives.
Resources help auditors resolve issues with regulator-prescribed forms
Independent auditors sometimes find themselves in conflict with regulator-prescribed forms. In an emerging issue for auditors, some of them have found that the reports they are required to submit to state regulators do not contain the specific elements and wording of generally accepted auditing standards (GAAS) that state accountancy laws
ASB exposes clarified auditing standard on internal audit
The Auditing Standards Board (ASB) has exposed a new, clarified standard that applies to use of the work of internal auditors. With the issuance of the Proposed Statement on Auditing Standards (SAS), Using the Work of Internal Auditors, the ASB has completed the clarity project redrafting of its last unclarified
U.S., U.K., and Australia announce cooperative venture against tax evasion
The IRS announced Thursday that it, the Australian Tax Office, and HM Revenue and Customs (the U.K. tax authority) have obtained information about a large number of trusts and companies holding assets on behalf of residents throughout the world and plan to share that information with other countries’ tax authorities
Survey issued to guide FASB’s future priorities
FASB’s primary advisory group issued a survey Wednesday to solicit stakeholder views about the board’s future agenda. The Financial Accounting Standards Advisory Council (FASAC) advises FASB on priorities for the future and possible new agenda items. Responses to the survey are requested by May 30. FASAC periodically surveys stakeholders to
IRS will not seek taxpayer emails without a warrant
The IRS on Wednesday announced a new policy regarding how it will request emails from internet service providers (ISPs) (IRS Policy Statement 4-120). Under the new policy, the IRS will obtain a search warrant “in all cases when seeking … the content of email communications stored by the ISP.” In
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