A mapping exercise is one of the most important activities for any organization implementing the updated 2013 internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), experts say. The updated framework includes 17 newly described principles across the five components of internal control that were
Advertisement
TOPICS
Accounting & reporting
What accounting fraud risk factors will attract SEC’s attention?
Rising stock prices may be correlated with increased risk of financial reporting fraud, the SEC’s David Woodcock said this week, and that creates urgency for him and the new task force he chairs at the agency. Woodcock chairs the SEC Financial Reporting and Audit Task Force, which was unveiled in
Five tips for successful revenue recognition implementation
The top line on financial statements around the world is about to change. And companies need to move quickly to determine which personnel will be responsible for implementing the new revenue recognition standard, said Dusty Stallings, CPA, a member of PwC’s national professional services group. “Companies need to get their
FASB aiming to make preparers’ jobs easier
FASB is trying to make financial statement preparers’ jobs easier without diminishing the useful information they provide to investors, board Chairman Russell Golden said Tuesday. The board is in the final stages of developing an internal policy that would guide the board in considering complexity as it develops and amends
Beswick: Rule-making preventing SEC from deciding on IFRS
Rule-making duties related to federal legislation have prevented the SEC from devoting time to deciding on the future of IFRS in the United States, SEC Chief Accountant Paul Beswick said Monday. “I think from my perspective, everyone in the commission thinks about the decision on IFRS and what the next
IIRC releases International Integrated Reporting Framework
The International Integrated Reporting Council (IIRC) on Sunday made public an approved framework for integrated reporting. The group intends for the framework to guide companies on how to best communicate with their stakeholders. The release represents a key step forward for integrated reporting (IR). The aim of IR is to
AICPA groups seek consistency in insurance contract standards
Comment letters to accounting standard setters submitted jointly by an AICPA committee and expert panel urge convergence on at least some critical issues in financial reporting rules for insurance contracts. The AICPA Financial Reporting Executive Committee and Insurance Expert Panel advised FASB and the International Accounting Standards Board (IASB) that
FASB to seek feedback on accounting for income taxes
FASB plans to ask financial statement users, preparers, auditors, and others for feedback on how to best address concerns about its standard on accounting for income taxes. The board also plans to ask stakeholders whether addressing those concerns should be a priority in comparison to other projects that could be
IASB proposes amendments to IAS 27 to allow equity method
Narrow-scope amendments to IAS 27 proposed Monday by the International Accounting Standards Board (IASB) would allow entities to use the equity method to account for investments in subsidiaries, joint ventures, and associates in their separate (parent-only) financial statements. The proposed changes are designed to reduce compliance costs while providing information
GASB makes fix in pension standard transition
GASB on Monday altered the transition provisions of a new pension standard in order to eliminate a potential source of understatement. The board determined that the transition requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, contained a potential source of understatement of restated beginning net position
Private company GAAP exceptions get thumbs up from FASB
FASB endorsed two GAAP exceptions for private companies Monday, marking a milestone in the work to provide simpler, less costly rules for private companies while producing financial statements that reflect economic reality. The endorsement by FASB of exceptions crafted by the Private Company Council (PCC) means exceptions for private companies
IASB makes change to defined benefit contribution accounting
Small-scale changes to financial reporting rules for employee benefit plans were published Thursday by the International Accounting Standards Board (IASB). Contributions from employees or third parties to defined benefit plans are affected by the amendments to IAS No. 19, Employee Benefits. The changes were made to simplify the accounting for
Final IASB approval of rev rec standard imminent
Progress toward a converged financial reporting standard for revenue recognition continued Wednesday when the International Accounting Standards Board (IASB) indicated its intention to approve the standard. The board’s staff now will prepare a ballot draft for a final vote. FASB also voted earlier this month to proceed to a ballot
IASB releases new rules to better reflect hedge accounting
New rules released Tuesday by the International Accounting Standards Board (IASB) are designed to improve how hedge accounting activities are reflected in financial statements. The IASB changed the rules to address preparers’ concerns about the challenges of appropriately representing their risk management activities in financial statements. The most significant changes
Accounting for income taxes standard achieves purpose, panel finds
A review panel has concluded that a 1992 financial reporting standard addressing accounting for income taxes generally achieves its purpose but may not have reduced complexity. The Financial Accounting Foundation (FAF) post-implementation review team received input for its report from financial statement users, preparers, auditors, and academics on FASB Statement
Costs often derail qualitative goodwill impairment assessment
Many companies are not making use of an optional, qualitative goodwill impairment test FASB recently introduced to enable less burdensome financial reporting, a new survey report shows. Just 29% of public companies and 22% of private companies participating in financial advisory and investment banking firm Duff & Phelps’s 2013 U.S.
Private company VIE exception approved by PCC
A GAAP exception approved Tuesday by the Private Company Council (PCC) would exempt private companies from applying consolidation guidance for variable-interest entities (VIEs) under common-control leasing arrangements. Some changes were made from the original proposal, as the PCC struggled with concerns over the definition of “common control” and other issues.
GASB’s five things to watch in pension standards implementation
New financial reporting standards for pensions of U.S. state and local governments are among the most significant rules GASB has ever approved. The standards will place unfunded pension liabilities on the balance sheets of state and local governments that provide defined benefit pensions and call for immediate recognition of more
Prepare for new revenue guidance with six key actions
There may be some false comfort in the faraway implementation date of the proposed, converged financial reporting standard FASB and the International Accounting Standards Board (IASB) are in the final stages of developing. The standard, scheduled to be released in the first quarter of 2014, would take effect for reporting
New guide helps navigate goodwill impairment testing challenges
Goodwill impairment testing has been a challenging area for many financial statement preparers since the issuance in 2001 of FASB Accounting Standards Codification (ASC) Subtopic 350-20 (formerly FASB Statement No. 142). A FASB Accounting Standards Update issued in September 2011 was designed to make this topic easier for preparers. The
Features
FROM THIS MONTH'S ISSUE
How to replace running totals in Excel
Accountants routinely copy down formulas in Excel to track cumulative balances, such as cash flow and retained earnings, but there is a better way. This JofA Technology Q&A article shows the way with step-by-step instructions and a video walkthrough.
