Accounting Research Manager
The accounting updates below are provided courtesy of Accounting Research Manager, a subscription service that provides a timely and comprehensive online database of analytical accounting, auditing and SEC information as well as authoritative literature. KnowledgeLeader members are eligible to receive a 15% discount if they would like to subscribe to Accounting Research Manager. Experience the full database by requesting your free trial.
==============================
ACCOUNTING AND SEC HEADLINES:
==============================
Business Combinations – IASB Consults on Proposals to Improve Reporting on Acquisitions
The IASB has released the Exposure Draft, Business Combinations—Disclosures, Goodwill and Impairment. The Exposure Draft is a package of proposals intended to enhance the information companies provide to investors about acquisitions. The comment deadline is July 15, 2024.
Acquisitions continue to play a significant role in the global economy, with deals that total US$3.2 trillion announced in 2023. The IASB believes that investors need to understand the management decisions behind important acquisitions.
The proposals in the Exposure Draft respond to stakeholder feedback that reporting on acquisitions poses difficulties for both investors and companies:
- Investors lack sufficient and timely information about acquisitions and post-acquisition performance.
- Companies seek to provide useful information to investors but see risks and costs in providing some information, particularly commercially sensitive information that could be used by competitors.
Stakeholders have also expressed concern about the effectiveness and complexity of the impairment test for operations which have been allocated goodwill.
The Exposure Draft includes proposed amendments to IFRS 3, Business Combinations, that, if adopted as proposed, would require companies to report the objectives and related performance targets of their most important acquisitions, including whether these are met in subsequent years. Companies would also be required to provide information about the expected synergies for all material acquisitions. However, companies would not be required to disclose information that could compromise their acquisition objectives.
The Exposure Draft also includes related proposed amendments to IAS 36, Impairment of Assets, that would make targeted improvements to the impairment test.
Disaggregated Expenses – New Edition of GAAP Update Service Published
We have published a new edition of the GAAP Update Service, Disaggregated Expenses: Proposal (Part I). This new edition discusses the FASB’s proposed Accounting Standards Update (ASU) on disaggregated expenses. The FASB proposal to require disaggregated expense information in annual and interim financial statements would significantly affect public companies.
=========================================
AUDITING AND INTERNAL CONTROL HEADLINES:
=========================================
Understanding the Entity – New Edition of GAAS Update Service Published
We have published a new edition of the GAAS Update Service, Practice Issues and Questions & Answers Relating to SAS-145 (AU-C Section 315), “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.” This new edition discusses Statement on Auditing Standards No. 145 (SAS-145), Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, which became effective for audits of financial statements for periods ending on or after December 15, 2023. SAS 145, which supersedes AU-C Section 315 of the same title, enhances the requirements and guidance on identifying and assessing the risks of material misstatement, especially in the areas of understanding the entity’s system of internal control and assessing control risk.
========================
GOVERNMENT HEADLINES:
========================
Omnibus 2022 – New Edition of Governmental GAAP Update Service Published
We have published a new edition of the GAAS Update Service, Yes, there are Still Two Pieces of
GASB-99 To Implement. This new edition discusses provisions of GASB No. 99, Omnibus 2022.
================================================
ACCOUNTING RESEARCH MANAGER CUSTOMER SERVICE:
================================================
To access the detailed information that accompanies these weekly summary announcements, you will need to request a free trial of Accounting Research Manager. Once you complete your request and accept the license agreement, you will receive an email with your password/ID to access the database. As a KnowledgeLeader member, you will receive a 15% discount on your subscription to Accounting Research Manager if you decide to purchase. To ensure you receive this discount, please input the promo code "KnowLead" in the Contact field when requesting your trial.
Discover more about Accounting Research Manager's various product offerings.
For inquiries, contact Accounting Research Manager:
Monday through Friday, between 8:00 a.m. to 5:00 p.m. U.S. Central Time:
US, Canada, Mexico: 1-800-872-2454
All International calls: 1-781-718-4841
Email: [email protected]