PCAOB contemplates more random inspections

The Public Company Accounting Oversight Board is contemplating a shift in its inspection methodology, a board member told a financial reporting conference in New York City. The shift, said PCAOB member Jeanette Franzel, would be to increase the number of audits chosen at random, thereby increasing the scope of audits inspected. That's in addition to the PCAOB's longstanding emphasis on a "risk-based" approach to inspections. Her remarks were provided at Baruch College's 15th annual Financial...

Non-GAAP revenue driving comments from SEC's Division of Corporation Finance

Posted By: Edith Orenstein on May 05, 2016 in Accounting & Auditing
In remarks at a conference on May 5, SEC Deputy Chief Accountant Wes Bricker warned that presenting revenue on a basis other than Generally Accepted Accounting Principles − i.e., non-GAAP revenue − is likely to trigger a comment lettter from the SEC's Division of Corporation Finance. Although the SEC has permitted companies to provide non-GAAP information if such information is deemed by the company to be useful to investors and not misleading, the SEC has been particularly...

DOL Speaker Headlines Employee Benefit Plan Event; New Certificate Offered

In response to a highly critical inspection report issued by the Department of Labor last year, the accounting profession has been actively offering programs to enhance auditor's performance of Employee Benefit Plan audits and compliance with related DOL and industry standards. Major programs in this effort include the MACPA's Employee Benefit Plan conference being held next week, and the AICPA's new Employee Benefit Plan Audit Certificates, demonstrating advanced training.   DOL's 2015...

MACPA warns of overtime rule’s unintended consequences

UPDATE: DOL offers 'token reduction' in new overtime pay threshold (from the Washington Business Journal) With the Department of Labor hoping to publish its well-intentioned but severely overreaching new overtime rules within the next few weeks, the Maryland Association of CPAs joined the American Institute of CPAs in Washington on April 27 in an 11th-hour bid to convince officials that the rule is a bad idea. MACPA Executive Director Tom Hood (center in the photo at left) and Allen DeLeon (far...

FASB approves final credit loss standard, defers effective date

Posted By: Edith Orenstein on April 27, 2016 in Uncategorized
At this morning's Financial Accounting Standards Board meeting, the board voted to approve issuing a final standard on Financial Instruments - Impairment, better known as the standard on credit losses. To allow sufficient time for implementation, FASB decided to defer the original (proposed) effective date of the standard by one year, and anticipates publishing the final standard in June, 2016. Also known as the "CECL" (Current Expected Credit Loss) standard, the upcoming standard represents a major...