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    AICPA

    1 December 2017

    Comment Letter - AICPA’s proposed new attestation service
    In our comment letter, we support the AICPA’s proposal to create a new type of attestation service called a selected procedures engagement that would provide more opportunities for companies to enhance the value of reports they provide to customers, employees, suppliers and other stakeholders. However, we believe any final standard should include additional requirements and application guidance to protect report users.

    28 November 2017

    Auditor reporting
    The call for changes to the auditor reporting model in the United States and other jurisdictions around the world resulted from a desire by users of financial statements and the auditor’s report for more information about significant aspects of the audit. The proposal makes amendments to heighten auditor focus on disclosures throughout the performance of an audit of financial statements. It is focused on the form and content of the auditor’s report and does not change the existing requirements for performing an audit in accordance with GAAS. Comments are due by 15 May 2018.

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    CAQ

    30 January 2018

    Center for Audit Quality - 2017 Year in Review
    The CAQ has published its 2017 Year in Review. The publication documents key efforts and accomplishments of the CAQ and the public company auditing profession during calendar 2017. Among other topics, it highlights the CAQs work to help public company auditors improve their effectiveness, the support for independent research, the collaborative efforts around fighting financial reporting fraud and working with audit committees, as well as the CAQs engagement with regulators on a range of key issues.

    6 December 2017

    The auditor’s report: Considerations for audit committees
    The CAQ issued a new tool that flags key considerations and questions for audit committees as implementation of the PCAOB’s new auditor’s reporting model gets underway. This CAQ tool explains changes to the auditor’s report and lists key questions on topics including auditor tenure, Critical Audit Matters, and other new requirements.

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    EITF

    19 January 2018

    EITF Update - January 2018
    The EITF reached a consensus-for-exposure on customer’s accounting for implementation, setup, and other upfront costs (implementation costs) incurred in a cloud computing arrangement that is considered a service contract.

    22 August 2017

    July 2017 EITF meeting minutes
    At this meeting, the Emerging Issues Task Force (EITF) discussed Issue 17-A on a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is considered a service contract but did not make any decisions.

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    FASB

    5 February 2018

    Comment letter - FASB proposal to add a transition option and practical expedient for lessors to the new leases standard
    In our comment letter, we supported the FASB’s efforts to reduce the cost and complexity of applying the guidance in ASC 842, Leases. However, we believe the Board could provide additional relief by giving entities the option to use an alternative transition method that would allow them to apply the recognition and subsequent measurement guidance in ASC 842 to existing leases at the date of initial application. In addition, we expressed concern that the proposed criteria for use of the lessor practical expedient would inadvertently limit the population of leases to which the practical expedient could be applied.

    2 February 2018

    Comment letter - Reclassification of stranded tax effects
    In our comment letter, we said the FASB’s proposed guidance appropriately addresses the concerns raised by stakeholders regarding the effects of US tax reform on financial reporting. However, we questioned whether the proposed guidance would be beneficial or operational for all entities and recommended that the Board give companies the option to apply the guidance and/or exclude certain tax effects recorded in other comprehensive income from the scope of any final standard. We also supported the addition of a broader project on backwards tracing to the FASB’s standard-setting agenda.

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    GASB

    23 January 2018

    Revenue and expense recognition
    This Invitation to Comment proposes the development of a comprehensive revenue and expense recognition model for state and local governments. The GASB’s objectives in developing a comprehensive model are: to create a more robust framework to address a wide range of transactions, including some for which no guidance exists at present; to improve the comparability of how transactions are accounted for and reported by governments; and, to provide more useful information to users of financial reports for making decisions and assessing accountability. It discusses two models: an exchange/nonexchange model, and a performance obligation/no performance obligation model. The exchange/nonexchange model includes a classification process based on the existing definition for exchange transactions. The performance obligation/no performance obligation model includes a classification process based on a tentative definition of a performance obligation. Comments are due by 27 April 2018.

    20 November 2017

    Accounting for interest cost during the period of construction
    The objectives of this proposed Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred during the period of construction. This proposed Statement would require that interest cost incurred during the period of construction be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. Comments are due by 5 March 2018.

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    PCAOB

    5 December 2017

    Board Member Jeanette M. Franzel address at the AICPA Conference on Current SEC and PCAOB Developments
    Board Member Jeanette M. Franzel gave an update on PCAOB efforts to enhance audit quality.

    4 December 2017

    Chairman James R. Doty address at the AICPA Conference on Current SEC and PCAOB Developments
    Chairman James R. Doty spoke about the PCAOB’s initiatives to bolster investor trust in the audit.

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    SEC

    7 February 2018

    SEC Office of Compliance Inspections and Examinations announces 2018 examination priorities
    The SEC Office of Compliance Inspections and Examinations (OCIE) today announced its 2018 examination priorities. OCIE publishes its exam priorities annually to improve compliance, prevent fraud, monitor risk, and inform policy. Of particular interest this year will be matters involving critical market infrastructure, duties to retail investors, and developments in cryptocurrency, initial coin offerings, and secondary market trading.

    11 January 2018

    SEC in Focus - January 2018
    Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include SEC staff guidance on tax reform, remarks by SEC Chairman Jay Clayton and members of the SEC staff at the recent AICPA Conference on Current SEC and PCAOB Developments on the new accounting standards, critical audit matters and cybersecurity, and a discussion of Mr. Clayton’s concerns about initial coin offerings. We also discuss recent SEC rulemaking activities, SEC staff guidance updates and significant personnel changes.

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