Small Business Advisory Committee Seeks U.S. GAAP Exemptions
Some members of FASB’s Small Business Advisory Committee (SBAC) have told the accounting board that, because of their resource constraints, they should receive the same accounting exemptions offered to private companies when new standards or amendments to U.S. GAAP are released. FASB has studied the issue, and is ready to discuss with the SBAC whether the exemptions should be used. The panel’s discussion is also expected to address letting small companies go through an easier process for making the transition to new standards than the one designated for larger companies. The board and the committee plan to discuss FASB’s Private Company Decision Making Framework, which provides guidelines on when FASB can limit the accounting requirements for private companies, as well as effective dates and transition methods for small public companies, according to a preliminary agenda.
IFRS, Japanese Foundations Announce ‘Commitment’ to Global Standards
On May 25, the IFRS Foundation, the FASF, and the Accounting Standards Board of Japan (ASBJ) announced a “shared commitment” to a single set of global accounting standards. In a joint statement, the groups also said that they would work together to encourage and support Japanese companies in their adoption of IFRS. However, Japanese companies will continue to have a choice of using IFRS, Japanese GAAP, U.S. GAAP, or a version of IFRS that is modified for Japanese companies. “This increase in voluntary use of IFRS standards reflects enhanced confidence by Japanese companies in the usefulness of IFRS,” according to the joint statement.
Two Forums Scheduled for Auditors of Broker-Dealers
The PCAOB said it plans to hold two forums for auditors of broker-dealers for 2017. The forums will include discussions on inspection findings, auditor independence, and professional skepticism. The agenda also includes an update on auditing standards and presentations by the staff at the SEC and the Financial Industry Regulatory Authority (FINRA). The first forum is scheduled for Las Vegas on October 20, and the second for Jersey City, N.J., on December 7. “The forums promote a productive dialogue between the PCAOB and auditors of broker-dealers,” PCAOB Chairman James Doty said in a statement. “We encourage firms that have previously been unable to attend these full-day events to join us this year or take advantage of the online opportunity.”