FASB released its proposed 2015 GAAP Financial Reporting Taxonomy on Friday and asked for public review and comment. The taxonomy is a list of financial reporting labels that are machine-readable and coded in XBRL. Users of financial statements can use the tags to electronically search for and process data so
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Capital gain, not amount realized, determines application of 6-year collection statute
On Thursday, the Tax Court held that gross income for purposes of Sec. 6501(e) statute of limitation calculations includes only the gain from the sale of investments and not the amount realized from their sale (Barkett, 143 T.C. No. 6 (8/28/14)). The court distinguished its holding from the Supreme Court’s
COSO transition getting a close look from auditors
The early stages of implementation are over for many companies using the updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In 2013, the framework—which had been in use since 1992—was updated to reflect changes in the business environment. U.S. public companies have been
Clarified, revised SSARS approved for reviews, compilations, and engagements to prepare financial statements
The AICPA Accounting and Review Services Committee (ARSC) voted during its meeting this month to approve clarified and revised standards for reviews, compilations, and engagements to prepare financial statements. The clarified and revised standards for compilations and engagements to prepare financial statements create a bright line between accounting (preparation) services
Five elements of effective judgment process for auditors
The public relies on auditors to make critical professional judgments in an objective, professionally skeptical manner. Participants in capital markets who are making investment decisions place trust and confidence in the judgments made by auditors during audits of public company financial statements. A new Professional Judgment Resource released Wednesday by
FASB defines management’s going-concern responsibilities
FASB issued a new financial reporting standard Wednesday defining management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The standard provides new guidance, as current GAAP does not describe management’s responsibility to evaluate whether
Final rules clarify when issuer’s obligation under a debt instrument is part of a straddle
The IRS on Tuesday provided guidance on when an issuer’s obligation under a debt instrument may be a position in actively traded personal property, in which case it can be part of a straddle. Tuesday’s final regulations (T.D. 9691) adopt without substantive change temporary and proposed regulations on the treatment
Former Deloitte exec Schnurr named SEC chief accountant
Recently retired Deloitte LLP executive James Schnurr will replace Paul Beswick and become the SEC’s third chief accountant in three years, the SEC announced Tuesday. Schnurr will begin serving in his new position in October, the SEC said in a news release. He was vice chairman and senior professional practice
New IRS appeals process starts Sept. 2
Starting Sept. 2, the IRS Office of Appeals is changing the way it handles appeals to examination decisions. Under the new Appeals Judicial Approach and Culture (AJAC) project, appeals officers are “no longer going to be examiners or investigators,” Appeals Team Manager Philip A. Oyoto told preparers at the IRS
CPAs have opportunities in financial planning and forecasting
Many accountants may have opportunities to expand their service offerings to small business clients by providing financial planning and forecasting, according to a new survey. Just one in three accountants offers financial planning or forecast services as part of clients’ business planning process, according to a survey of 150 accountants
FASB proposes simpler accounting for fees paid to cloud service providers
FASB on Tuesday issued a proposal designed to simplify the accounting for fees that public and private companies pay as customers in cloud-computing arrangements with third-party service providers. Rules exist under current GAAP addressing the accounting for cloud service providers. But there is no explicit accounting guidance under GAAP about
PCAOB requests comments on auditing accounting estimates and fair value measurements
The PCAOB is seeking input as it weighs possible standard-setting activities related to auditing accounting estimates and fair value measurements. In a staff consultation paper released Tuesday, the PCAOB Office of the Chief Auditor seeks comments on the potential need for changes to PCAOB standards—and a possible approach to a
FASB share-based payments standard challenges private companies
Although a review found that FASB’s share-based payments standard achieves its purpose, private company stakeholders told a post-implementation review team that the standard is sometimes difficult for them to understand and costly to apply. After analyzing the results of the Financial Accounting Foundation review of Statement 123(R), Share-Based Payment, released
SEC will scrutinize municipal advisers’ rules compliance
A new SEC examination initiative will scrutinize municipal advisers’ compliance with new rules and regulations that are under implementation. The SEC announced Tuesday that its Office of Compliance Inspections and Examinations (OCIE) will examine a significant percentage of municipal advisers for compliance. “The municipal adviser examination initiative will focus on
AICPA membership eclipses 400,000
The AICPA’s continuing growth trend has pushed membership past a significant milestone, as the world’s largest membership organization representing the accounting profession announced Tuesday that it recently surpassed 400,000 members. “I’m particularly proud of the growth we’ve seen in the past seven years, a challenging period for many professional organizations
PCAOB calls for improvement in audits of brokers and dealers
The PCAOB issued a report Monday calling on audit firms to improve the quality of their audits of brokers and dealers to comply with rules and standards. As a result of findings from the PCAOB’s interim inspection program, the board urged firms that audit brokers and dealers to reexamine their
Regs. govern dispositions of depreciable property
The IRS issued final regulations providing rules for how to determine gain or loss when property subject to depreciation is disposed of, how to determine the asset disposed of, and how to account for partial dispositions of depreciated property (T.D. 9689). The regulations apply to property that is subject to
Final rules clarify retailers’ treatment of vendor discounts in inventory valuation
Final regulations issued Thursday restate and clarify retailers’ computation of ending inventory value, including the application of common vendor discounts (T.D. 9688). The amendments to Regs. Sec. 1.471-8 are intended to render that section’s provisions in plainer language and provide rules for how sales-based vendor allowances and vendor markdown allowances
IASB official: Global accounting standards are “achievable,” “inevitable”
The goal of global accounting standards will be achieved at some point, an International Accounting Standards Board (IASB) official said Wednesday in South Africa. Ian Mackintosh, vice-chairman of the IASB, called global accounting standards “desirable, achievable, and … inevitable” in a speech in Johannesburg. Although more than 100 countries have
Qualitative considerations for allocating materiality to components in a group audit
Editor’s note: This is the second article in a series of articles about application of the group audits standard. For the first article in the series, see “The Scoop on Group Audits: You May Have Them, Even Though You Think You Don’t.” There is a lot to consider when evaluating
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