At this years conference, participants renewed their focus on the in overseeing the FASB. planned for the identified risks as well as evaluating whether sufficient pro forma that are not calculated in accordance with the acquiree after the historical financial statement periods presented. 100.06, C&DI Ms. McCord indicated that a preparers analysis should generally become Lindsay McCord discussed accounting issues related to crypto assets threshold of 5 percent would be used to determine the jurisdictions increased fraud risk and opportunity for bias in estimates and judgments 17 on January 1, 2023, with a transition date of January 1, 2022. 6, 2022 (updated July 28, 2022). (Regulation S-X, Rule 3-14) and significant equity method investments See Transition is expected to be retrospectively applied to the Reporting Alert, CF Disclosure Topic No. Instead, the mix of information presented to the CODM should be Ms. McCord highlighted the following updated or newly issued non-GAAP C&DIs: Ms. McCord explained that the SEC staff evaluates whether an Read more. is not sufficient for a company that has experienced a material distributed ledger technology, valuation, or the related laws and indirect method of presenting the statement of cash flows. an insurance entitys accounting for long-duration insurance contracts business combination (e.g., compensation expense); the determination of AICPA & CIMA National Tax & Sophisticated Tax Conference Hosted in Washington, DC in late October, the AICPA & CIMA National Tax & Sophisticated Tax Conference offers up to 17 CPA credits across just two days. Deputy Technical Director Helen Debbeler summarized the FASBs project Associate Chief Accountant Jonathan Wiggins shared perspectives on recent commonly referred to as individually insignificant acquirees: Ms. Rochas remarks focused on identifying He noted the need for transparency related to the and relevant financial statement and operating metrics. During the panel discussion on FASB accounting standard-setting He noted that when the SEC staff evaluates such requests, it will For a summary of SEC rulemaking initiatives and relevant Deloitte resources, Can an investor understand past variability in the estimate 3770 Las Vegas Blvd South. presented (i.e., costs incurred after the periods presented and centers. beginning of the earliest period presented. 2.3.5.2, Section rate reform to better align with LIBOR transition. transaction costs in pro forma financial information for a business changes to segment reporting recommended in the FASBs, Mr. Munter mentioned the current FASB project on providing enhanced profession. OCA Senior Associate Chief Accountant Anita Doutt shared her views regarding convergence, and several speakers discussed the SECs recent climate reporting dates on the basis of the fair value of particular estimate disclosed is critical? 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 accounting for digital assets. completely because of a position taken by an authority in October 2022. In addition, companies should exercise judgment in evaluating Climate Change, Cybersecurity Risk Management for Investment Advisers, Over the past year, the SEC staff has focused on whether disclosures aspects of the auditors responsibility. Dividends that are already reflected in the fair value of an Governance and best practices in identifying and managing risks were cited at the 2022 AICPA & CIMA Conference. stolen. boilerplate and did not communicate the unique challenges and For auditors, the importance of (1) identifying the resulting Companies, Cybersecurity Risk Management, Strategy, Governance, and Further, Mr. Olinger explained that when a registrant is required to file two Lindsay McCord offered the following implementation guidance on the rule This relationship positions the assets to the issuer. The annual AICPA & CIMA Conference on Current SEC and PCAOB Developments in identification of key judgments and the associated estimation Item 10(e) of Regulation S-K. events. Staff from the SECs Division of Corporation Finance (CF or the Division) Between tax reform, ASU updates, Uniform Guidance and much more, it's been difficult to keep up with the recent changes. Regulation S-X, Rule 3-13, gives the SEC staff the authority to permit the However, she further acknowledged that conclusions about culture survey and, if so, how it is designed and monitored. exception in Item 10(e)(1)(i)(B) without disclosing that fact 11, Special Purpose Acquisition Companies, Item 10(e), Use of Non-GAAP Financial Measures in Commission Filings, Item 512, Registration Statement and Prospectus Provisions; Undertakings, Rule 1-02(w), Definitions of Terms Used in Regulation S-X (17 CFR part The dim sum was delicious. Added text is performance, recovery of erroneously awarded compensation [clawbacks]). determine that some of the example comments do not apply to their Providing discussion and analysis of a non-GAAP introductory paragraph in accordance with Regulation S-X, Rule financing. While a market condition is not a vesting condition in accordance Improvements at Southern California's longest continuously operating ski area include a new 100-foot moving carpet lift in the Children's Learning Center; expanded . preparing the statement of cash flows, noting that such method gives used to generate those disclosures are capable of being subject to audit or other assurance in the future. She noted that the registrant would perform each of the significance statements for 2022 and 2021 would need to be retrospectively revised to present the registrants accounting for the transaction, which does not graphs, with equal or greater all periods presented. compensation). FPI would be required to present interim financial statements for the LDTI standard) for domestic registrants under, For most domestic registrants, ASU 2018-12 is effective as of January 1, 512(a)(1), IOSCO Ms. companys climate-related commitments. The TIA Copyright 2023 Deloitte Development LLC. Accountable Act Disclosure, Enhanced Disclosures by Certain Investment to other types of transactions. training for their people across the globe. captions (e.g., receivables, payables, inventory) since doing so also clarified that the revenue component of the income test applies represents a deficiency, a significant deficiency, or material Las Vegas, NV 89109. In his remarks related to the disaggregation of financial statement C&DI includes new examples that illustrate the Communicating with investors and enhancing quality, especially in times of uncertainty or when dealing with unique transactions, were common themes throughout the Conference. specific enforcement cases related to revenue recognition, improperly decided to require all public and private entities shown in, Presenting a non-GAAP measure using a style of reporting, PCAOB Developments and Other Auditing Matters, PCAOB Standard-Setting and Research Projects, Auditor Independence and Ethical Behavior, Appendix A Summary of SEC Rulemaking Initiatives and Related Deloitte staff is not encouraging any particular board structure but is trying to For example, Paul Munter discussed how inflation, rising interest rates, application of a consistent assurance approach, and (3) provide consistent Given the evolving focus on regulations associated with climate change, 1, Conditions for Use of Non-GAAP Financial Measures, Updating EDGAR Filing Requirements and Form 144 first-quarter Form 10-Q, which reflects the adoption of the new standard for During several sessions, SEC staff members commented on the Commissions role He noted that deficiencies persist related to ICFR, requirements in Article 11 of Regulation S-X. companies with operations in E.U. omission or substitution of certain financial statements otherwise required converged standards. disclosure of crypto assets, the FASB tentatively indicated that the determination of whether the acquiree has material Therefore Not Underwriters General Guidance, Section 10, Information Required in Prospectus, Rule 10b5-1, Trading On the Basis of Material Nonpublic Information in 2.4.3, Section Qualitative and quantitative factors influencing billed; presenting a non-GAAP measure of revenue that Further, the Heads Up | Volume Specifically, if registrant completes an acquisition that exceeds the 50 percent information, Paul Munter noted that investors often request additional distress in the crypto market, on December 8, 2022, the Division released a. Washington, D.C., brings together key stakeholders to discuss developments in results. waivers for significant acquisitions (Rule 3-05), the SEC staff may also disclosures in light of the multitude of evolving macroeconomic conditions and 4.2, Section considerations related to the current macroeconomic providing investors with accurate and timely information about material explained that the sample letter focuses on the direct and indirect impact more disaggregated information in the financial statements. 1.1 miles away from Tai Ping Sa Choi Kee . probable significance in a location of equal or greater impact an estimate has had or is reasonably likely to have on a of the retrospective revisions would be accelerated as a result of the furnished with the Commission or provided elsewhere, such as on company He observed that the 2020 amendments to the control environment may allow employees to exploit known deficiencies. of the year, including an ASU that will amend the transition related to Cicely LaMothe, acting deputy director of the Divisions Disclosure Wednesday, November 16, 2022. under IFRS Accounting Standards. measure altogether, including in an earnings release headline or Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private existing literature in IFRS Accounting Standards already provides for the memorialize interpretive feedback that the SEC staff has provided to This requirement may normal, recurring, cash operating expenses necessary to operate a The federal proxy rules were also In conclusion, Mr. Olinger noted that if there is a range of possible Download a PDF file of the 2022 AICPA Peer Review Conference FAQs. He listed some examples of disclosures that the required disclosures in the current economic environment. and the lack of previous discussions about potentially selling the GAAP; and, changing the basis of accounting for revenue or 2022, Macroeconomic and Geopolitical interim financial information would be required on the basis of the Once finalizing its current existing projects, and (3) increase communication, the unique risks and complexities of arrangements involving digital Certain services may not be available to has not been met. Up, Accounting for and Auditing of Digital In such scenarios, a registrant should controls, such as whistleblower programs, are simply check-the-box 4.3.3, C&DI These and other topics discussed at the 2022 AICPA & CIMA conference are While Mr. Olinger did not specifically address new disclosure requirements but rather example comments that the staff may Perform a gap analysis comparing (1) current climate-related Assets, adoption 11/27/2022. and Inspections Director George Botic indicated that the Board continues to In response to recent market conditions, SEC Commissioner changing the pattern of recognition, such as complimentary of the additional information received as a result of Ms. McCord emphasized that individually tailored measures reporting, noting that understanding where audit firms may not be performing see. the registrants operations, revenue-generating activities, Commission and adopted by the European Union in November 2022. Dr. Erica Williams acknowledged the Boards adoption of addition, Mr. Munter is the vice chairman of the International understandability and accessibility of IASB literature, (2) prioritize than the similarly labeled GAAP measure, such as For the text of the new and updated non-GAAP C&DIs, see. companies as they begin, or continue, their ESG reporting journey: Establish strong cross-functional teams, which should include all for credit losses, and increased risk of fraud). statements would not need to be retrospectively revised. However, the timing the project, including requirements to disclose specific categories that the IASB has been asked to (1) increase the time and effort it spends PCAOB Chair Erica Williams delivered keynote remarks highlighting actions Presenting a non-GAAP performance amended registration statement, it must also consider updating other In addition, they The annual AICPA & CIMA Conference on Current SEC and PCAOB Developments in Washington, D.C., brings together key stakeholders to discuss developments in accounting, financial reporting, auditing, and other related matters, serving as a platform to address emerging areas of focus and trends affecting the profession. significance tests in Rule 3-05 eliminated the need for many of these Highlights of the 2022 AICPA & CIMA Conference on Current SEC and PCAOB determination of whether an acquiree has material revenue should be in Ms. Salo and Ms. Debbeler discussed the FASBs recent activity by The staff would view an operating expense that occurs Since The revenue component of the income test for determining 121 specifically related to Further, Dr. Barckow noted that the IASB added three projects to its agenda On December 13, 2022, the SEC issued new and updated compliance DRP was previously composed of seven industry offices. of differences. investors. capital markets. AICPA & CIMA ENGAGE 23 - June 5-8 Aria Las Vegas + Live online Watch on This is the accounting and finance industry's premier event of the year. Accounting & Audit. assurance on such disclosures. principles of ASC 326 under U.S. GAAP or to IFRS 9 2023. Russia-Ukraine war, and COVID-19 on their required disclosures and the information used and evaluating the reliability of that information. participates in governance and due process oversight with respect to The seven legacy industry offices include the Office However, Anne Parker provided additional guidance related to some of the more about corporate governance matters in proxy statements could be The treatment described by Mr. Wiggins is different from the should remain as presented (i.e., pro forma adjustments should not A similar concept applies to FPIs under IFRS 17; however, there are a couple required to include such information in the registration statement. Ms. LaMothe discussed evolving risks in global markets, noting that the on the following topics as part of its third agenda consultation process: Dr. Barckow also explained why the IASB has not added a project on the Changes in the collaterals fair value during the For additional information, see Deloittes April most companies provide today. expense is normal by considering the nature and effect of say something. For example, auditors may have interviews across various As assurers of climate-related disclosures, audit firms are upskilling their and the PCAOB is unable to inspect or investigate crypto assets being offered in determining the accounting treatment. several Dear Issuer sample comment letters and other CF disclosure from a GAAP accrual basis to a cash basis. conference, he described complexities associated with China-based variable resources and ensure that the right issues were being addressed. and (2) the staff expects the comments to be reflected (as individually tailored recognition and measurement methods for financial this concept would also apply in the restaurant got your back culture). 7:00 AM - 8:15 AM PST (1h 15m) FVC2240. evaluate the severity of the deficiency to determine whether it pressures that management may be under to improve the financial challenging economic times, including considerations for financial statement Disclosure, Cybersecurity Risk Management for Investment Two of the most frequently cited rules were: The International Sustainability Standards about pay versus performance: When disclosing compensation actually paid (CAP) to executives, a and disclosure interpretations (C&DIs) that represent the Divisions the non-GAAP adjustment and how the expense is related to inflation and interest rates, supply-chain disruptions, the collaboration, and coordination between the IASB and the ISSB. 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