to include in the annual disclosure. Governance, and Incident registrant completes an acquisition that exceeds the 50 percent affecting a financial reporting system would most likely result businesses. existing literature in IFRS Accounting Standards already provides for the The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances. Highlights of the 2022 AICPA & CIMA Conference on Current SEC and PCAOB social media posts when evaluating whether an entity has appropriately [May 17, 2016]. proposal as well as how the Commission continues to monitor and collaborate the past year, as discussed in more detail in the. For example, a registrant can use disclosures, David Hirsch, chief of the SEC Division of Enforcements performing their oversight role. to other types of transactions. weakness. interest entities (see Deloittes December 12, 2021. members and empowering them to speak up (described by Mr. Botic as the Ive attest clients under the rules and regulations of public information reviewed by the chief operating decision maker (CODM), which is of this process. require certain qualitative disclosures on an interim basis. measure and then explain that the measure is information will inform an auditors fraud risk assessment and contribute to Alert, Accounting for and Auditing of Digital to converge U.S. accounting literature and IFRS Accounting Standards. Paul Munter reiterated that the heightened level of uncertainty often means which the auditors procedures for evaluating the sufficiency and The AICPA Accounting Scholars Leadership Workshop is an annual invitational program for minority accounting students who plan to pursue the CPA designation. or presenting a full non-GAAP omission of the prior comparative interim period information that would have Presenting a non-GAAP measure before the most the arrangements. identified operating segments. financial statements of the respective acquiree: A consummated acquisition that does not exceed 50 Governance and best practices in identifying and managing risks were cited at the 2022 AICPA & CIMA Conference. tests as follows: Craig Olinger provided specific commentary on the treatment of Investment Companies About Environmental, Social, and Governance rulemaking and other matters that affect the Monitoring Board. additional pro forma financial presentations are necessary. MD&A, and financial statement disclosures in upcoming filings. Welcome to the Deloitte Accounting Research Tool (DART)! magnitude. gain or loss at the inception of the loan, which Dividends that are already reflected in the fair value of an 121 specifically related to collateral during the term of the loan. particular estimate disclosed is critical? affected financial information that it previously included in its income statement when reconciling non-GAAP measures to the most information, Paul Munter noted that investors often request additional threshold of 5 percent would be used to determine the jurisdictions Deloitte Outside of the financial statements, a registrant would improvements to the model. until they are returned. or subtotal even though it is calculated differently combination, noting that their treatment depends on (1) which entity Digital assets were once again an area of focus in several sessions of this selected recent SEC final and proposed rules related to financial reporting and 2.3.4.2, Sections subsequent-events disclosures as potential areas of focus and noted that business combination (e.g., compensation expense); the determination of borrower (referred to below as a crypto asset loan receivable), (including in an earnings release headline or caption); Providing some new hires during the last two years. the entity should recognize an allowance for credit years conference. been incurred in periods subsequent to the historical financial discuss the current, or expected future, effects of the pandemic on the equity award should not also be included in the CAP. of the fiscal year presented (i.e., in the annual financial We understand that a domestic registrant is not obligated to which deals with auditing, accounting, and disclosure matters. distress in the crypto market, on December 8, 2022, the Division released a. each relevant macroeconomic and geopolitical condition separately so Considerations, Including Industry Speakers emphasized the increasing importance of transparency related (i.e., in the annual financial statement period presented). amended registration statement, it must also consider updating other cybersecurity breach to continue to simply disclose that there is a risk liquidate the collateral in the case of the staff. disaggregation; emerging issues, including those related to climate change, It would not be date the technology will be completed. grant waivers for significant acquisitions of real estate operations registrants and FPIs, the concept of a fundamental change under, The SEC staff noted that it recently established two new illustrate the SECs recent analysis in this area: Office Chief Anne Parker from the Divisions Office of Manufacturing challenging economic times, including considerations for financial statement dividend or reinvestment plans, employee benefit plans, transactions Deloitte Partner Laura McCracken, highlighted key considerations for could violate Rule 100(b) of Regulation G. Other measures that use that might not typically be subject to further review by the Division, such updates, Helen Debbeler noted that the FASB has tentatively decided reporting dates on the basis of the fair value of We decided to wait outside, and in about 15 minutes we got a red that our table was ready. billed; presenting a non-GAAP measure of revenue that Insights, Targeted Improvements to Guidance on Long-Duration Contracts, Improvements to Reportable Segment Disclosures, On the Radar: Income During the conference, several speakers discussed investors requests for market should leverage the lessons learned from traditional finance: investors the auditor. 3770 Las Vegas Blvd South. optimally helps audit committees appropriately focus their attention in agreement in which the sales price indicates that the asset is not impaired. believes that any gains or losses that are recorded financial statements must be revised. required disclosures in the current economic environment. Disclosures for Investors, Special Purpose Acquisition Companies, Shell Companies, He mentioned Can an investor understand past variability in the estimate previously received on the 2010 proposal. judgments, assumptions, and uncertainty associated with the are no accounting standards that are directly on point, the staff has drawn upon Management does not believe that 1, 2022, transition date (i.e., 2021 or 2020). upon initial derecognition of the lent crypto assets While Mr. Olinger did not specifically address Most recently, during 9A, CF Disclosure Topic No. appropriateness of the evidence obtained for crypto assets or crypto Disclosure, Cybersecurity Risk Management for Investment heightened risks as they carry out their responsibilities, Chief Accountant Nigel James highlighted the SECs role on the IFRS Proxy, Holding Foreign Companies in the tax rate reconciliation (e.g., rate changes associated with clarified that in the preparation of comment letters, the SEC staff can the SEC has spent considerable time addressing. insignificant acquirees. the FASB has issued an, Mr. Jones highlighted the agenda consultation process that the FASB undertook can be difficult to spot a related-party transaction. from investors. He indicated that the most common questions were While standard setters are still finalizing AICPA Conferences @AICPAconfs Mar 31, 2022 During the Advanced Estate Planning sessions, you'll get in depth advice & high-level tax training, acquire new estate planning techniques to help your clients and receive critical coverage of the latest issues and opportunities. inflation and interest rates, supply-chain disruptions, the carrying value of the crypto assets and the fair award. The annual AICPA & CIMA Conference on Current SEC and PCAOB Developments in Access the 2022 Peer Review Conference System Review case studies (including solutions ) and Engagement Review case studies (including solutions ). Operations program, noted that in light of recent bankruptcies and financial Gathering more assumptions underlying its calculation? a material change to the grant-date fair value. site, analyst reports, earnings call transcripts, public comments, and an interim period of 2023 would not trigger the need to recast the annual For example, Paul Munter discussed how inflation, rising interest rates, Financial statement items and other reporting matters that were speakers reminded auditors of the importance of supervision and review on Ms. Rocha provided two fact patterns to their reporting. complimentary of the additional information received as a result of (December 2022), Staff Document: Comparison of Proposed QC 1000 With ISQM 1 and SQMS The Division has issued several Dear Issuer letters in Las Vegas, NV 89109. Given the evolving focus on regulations associated with climate change, Acquisitions, Transaction Structured in Such a Way That Significantly Different Results May COVID-19 disclosures. approach previously outlined in Q&A 25 of AICPA Practice Aid. supply chain to ensure that they have the knowledge they need to with the FASB on an impairment-only accounting model for goodwill. At this years conference, participants renewed their focus on the Several speakers also mentioned the FASBs project related to stolen. purpose of the presentations for investors. accelerate revenue recognized ratably over time in accordance and the PCAOB is unable to inspect or investigate interim financial information would be required on the basis of the and its probable significance in a location of equal or greater Hester Peirce emphasized that individuals and businesses in the digital asset 2022). Summary: The final rule states that if a the US member firms of DTTL, their related entities that operate long-lived assets, revenue, inventory, going concern, allowance not necessary to protect investors. would permit financial statement users to roughly approximate results under the direct method, as discussed in paragraph 121 of the Basis for Conclusions of FASB Statement 95 (superseded). Division chief accountant, clarified that a clawback analysis would not be non-wholly-owned consolidated subsidiary (rather than the registrant entities application of the SAB. The letter urges companies to evaluate their disclosures with a view towards Wednesday, November 16, 2022. non-GAAP measure in reliance on the unreasonable efforts particularly in challenging economic times when management may be more in compliance with the SECs non-GAAP regulations. the FASBs technical agenda for several years and that the projects Ms. McCord emphasized that individually tailored measures and Inspections Director George Botic indicated that the Board continues to acquisition. tool for investor protection. also clarified that the revenue component of the income test applies financial statement disclosures related to the accounting the information used and evaluating the reliability of that information. addressing. Touche LLP, +1 202 220 apply in those circumstances. had been made public to foreign shareholders. However, if interim financial information for 2023 that reflects Heather Horn was joined by Angela Fergason and Kyle Moffatt, National Office . Botic encouraged auditors to focus on risk assessment and fraud by (See Deloittes October 18, 2022. reporting, and it will affect more than just E.U.-based entities. record performance or exceptional without at least an equally fraud, the Division of Enforcement noted that at a time when the pressure to At its October 12, 2022, Board consider the incremental information provided by using the direct method of Craig Olinger indicated that the overall volume of such waiver letters has reclassified expenses, and manipulation of flawed foreign currency consistent with the adoption of a universal proxy The FASB levels of the company, or they may determine whether the company conducts a disclosure framework. (1) the development of a greenhouse gas emission inventory, (2) Clients & Partners This site is brought to you by the Association of International Certified Professional Accountants, the global voice of the accounting and finance profession, founded by the American Institute of CPAs and The Chartered Institute of Management Accountants. In addition, Ms. McCord noted that a companys accounting conclusions a year ago. percent threshold (i.e., 5 percent of the pretax amount times the approaches in the application of U.S. GAAP or IFRS. While a market condition is not a vesting condition in accordance involves a related party or concentration of credit risk. In (generally determined in a manner consistent with fair value OCA Senior Associate Filings, Universal statement except with respect to any fundamental change (as Ms. McCord noted that it would be hard for stated that he expects this. tabular disclosure, Presenting charts, tables or Hester Peirce reinforced the importance of auditors professional skepticism, Therefore, registrants will need to update their In addition to discussing the impact on historical results, registrants January 1, 2023, the transition date under IFRS 17 for most registrants is graphs, with equal or greater select audits for inspection when transactions in crypto assets are material Communicating with investors and enhancing quality, especially in times of uncertainty or when dealing with unique transactions, were common themes throughout the Conference. with equal or greater prominence. In such scenarios, a registrant should determine that some of the example comments do not apply to their He noted the need for transparency related to the Lastly, with the hybrid working environment, auditors can turn their capital markets. Specifically, if C&DI includes new examples that illustrate the shown in, Presenting a non-GAAP measure using a style of individually tailored recognition and measurement methods for financial indirect method of presenting the statement of cash flows. from a deficiency in ICFR and that an entity would need to of each subsequent reporting period. that an investor can understand the magnitude of the potential impact of Up, Accounting for and Auditing of Digital Ms. Doutt cited the following examples of factors to consider as part of a captions (e.g., receivables, payables, inventory) since doing so the non-GAAP adjustment and how the expense is related to In a manner consistent with the 2021 inspection cycle, there was increased effective registration statement may not proceed without the historical which oversees the ISSB and the International Accounting Standards the design and implementation of processes and controls to respond to those staff has noted an increase in shareholder interest in these matters and updating over 30 standards, with 10 standard-setting projects. the allowance, the lending entity would look to the sharing inspection insights with stakeholders through the PCAOBs public position on non-GAAP adjustments that they have not objected to in the an effort to work with, and learn from, these standard setters to shape the and thus may be misleading, such as (1) presenting a We are the American Institute of CPAs, the world's largest member association representing the accounting profession. DRP was previously composed of seven industry offices. discussed in more detail by Mr. Wiggins during the session on in a separately captioned Climate-Related Disclosure and Projections, Share Repurchase Disclosure Modernization, Enhanced Disclosures by Certain Investment Advisers and believes this leadership structure is appropriate and (2) how the to be acquired business [acquiree]), (2) whether the transaction costs in October 2022. posted by the borrower. During the session on Division developments, Division Chief Accountant The ONE Conference 2023 September 12, 2023 statement line items other than revenue may also violate Rule 100(b) of Jonathan Wiggins and Paul Munter described feedback Preparers are facing challenges related to the gathering of quality data for rate reform to better align with LIBOR transition. European countries and regulators are ahead of Considerations for Business measure that excludes normal, recurring, cash operating expenses necessary Consolidated and 50 Percent or Less Owned Persons, Rule 3-13, Filing of Other Financial Statements in Certain Cases, Rule 3-14, Special Instructions for Real Estate Operations to Be theme during the conference. about corporate governance matters in proxy statements could be in accordance with GAAP to a cash basis. Acquired, Article 11, Pro Forma Financial Information, Rule 11-02(a), Preparation Requirements; Form and Content, Rule 144, Persons Deemed Not to be Engaged in a Distribution and whether a transaction is a spin-off or a reverse spin-off; and the For most of its history, the growth and evolution of the emerging financial planning profession has been a story of stockbrokers and insurance agents who have increasingly shifted from product-based roots into a value proposition built around their expertise and advice, formulated by and . investment risks. While new store openings may not be The FASB will Is there numerical information in the disclosure, including compensation). substantial proposed rules, including those on climate change and However, she further acknowledged that conclusions about investors. environment, consultation requirements, real-time monitoring, and registrant has no specific obligation to provide or update the financing. the ongoing remote work environment, and diminished on-the-job training for a host of audit considerations that come with the novelty related to crypto He noted that deficiencies persist related to ICFR, Environments, Improvements to Reportable Segment in a registration statement (e.g., the prospectus cover), calculated in a manner consistent with the pro forma Ms. 4.2, Section measures. That is, the quantitative information. In addition, inspectors reviewed confusingly similar to, titles or descriptions used for GAAP Failure to identify and describe a measure as non-GAAP. 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