Jan 08
The final touches are being put on the new single, principles-based standard that will update and converge revenue recognition under the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board. The change will impact entities that use US generally accepted accounting principles (“GAAP”) or International Financial Reporting Standards (“IFRS”). The new principles-based approach indicates …
Permanent link to this article: https://betweenthenumbers.net/2014/01/new-standard-for-revenue-recognition-is-coming/
Dec 18
Bit Coins are increasingly in the news. Denise Lugo of Bloomberg BNA describes “Bit Coins” as: a type of virtual currency, which loosely put, is created when a complex mathematical algorithm is solved using high power computers. It seems like overnight bit coins have become legitimate.” Ms. Lugo also summarized the FASB’s recent position at a …
Permanent link to this article: https://betweenthenumbers.net/2013/12/no-gaap-yet-for-bit-coins/
Dec 13
On December 10, 2013 the International Federation of Accountants released its guide for conducting review engagements. The guidelines are particularly relevant for smaller firms conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised). The guide includes such helpful information as: illustrative examples relevant extracts from the standard practical points for practitioners’ …
Permanent link to this article: https://betweenthenumbers.net/2013/12/new-guide-to-review-engagements/
Dec 10
A recent study reported in the American Accounting Association’s The Accounting Review suggests that in many cases the relationship between the the top executive and the respective audit committee members may be too comfortable to achieve truly independent oversight. The study found that approximately 40 percent of the 2000 companies analyzed have committee members who are socially …
Permanent link to this article: https://betweenthenumbers.net/2013/12/audit-committee-members-and-ceos-too-close-for-comfort/
Dec 02
Last week, the Financial Accounting Standards Board (FASB) approved two exceptions in Generally Accepted Accounting Principles (GAAP) for private companies. Proponents of simplified accounting rules have suggested that private companies be exempted from certain of the more complicated and costly rules. In making these two exceptions, the FASB approved the concept that private companies can …
Permanent link to this article: https://betweenthenumbers.net/2013/12/goodwill-accounting-simplified-for-private-businesses/
Oct 16
A patent and license portfolio can provide a consistent and reliable revenue stream. However, many companies have technology, trademarks, and merchandising opportunities that are not fully exploited. Even if fully licensed, there is often considerable upside available via vigilant enforcement of audit provisions to ensure all amounts due are paid. Unlike almost any other business …
Permanent link to this article: https://betweenthenumbers.net/2013/10/too-many-fail-to-audit-their-licensing-agreements-leaving-royalties-on-the-table/
Sep 12
FASB has agreed to work on decreasing financial reporting complexity for development stage companies. FASB defines such companies as those which devote substantially all efforts to establishing a new business and: Have not begun planned principal operations; or Have begun planned principal operations without producing significant revenue. Under existing Generally Accepted Accounting Principles (“GAAP”), development-stage entities must …
Permanent link to this article: https://betweenthenumbers.net/2013/09/fasb-to-alter-reporting-for-development-stage-companies/
Sep 03
In 2012, the Public Company Accounting Oversight Board (“PCAOB”) conducted inspections of registered public accounting firms pursuant to the Sarbanes-Oxley Act of 2002 According to the PCAOB: “The inspection process is designed, and inspections are performed, to provide a basis for assessing the degree of compliance by a firm with applicable requirements related to auditing issuers. The …
Permanent link to this article: https://betweenthenumbers.net/2013/09/pcaob-finds-fault-with-kpmg-and-pwc-audits/
Jul 25
The U.S. Court of Appeals for the Fifth Circuit’s decision in Asadi v. G.E. Energy provides a new take on whistleblower protections under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Court found that, by definition, a whistleblower must have reported the claimed violation(s) to the U.S. Securities and Exchange Commission (“SEC”) in …
Permanent link to this article: https://betweenthenumbers.net/2013/07/fifth-circuit-takes-different-stance-on-dodd-frank-whistleblower-status/
Jul 09
In 2011, the Public Company Accounting Oversight Board (“PCAOB”) issued a Concept Release on Auditor Independence and Audit Firm Rotation, seeking public comment on: “ways that auditor independence, objectivity and professional skepticism could be enhanced. One possible approach on which the Board is seeking comment is mandatory audit firm rotation.” Apparently, the House of Representatives had a …
Permanent link to this article: https://betweenthenumbers.net/2013/07/house-prohibits-mandatory-audit-firm-rotation/
