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ACCOUNTING AND SEC HEADLINES:
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Hedge Accounting – New Edition of GAAP Update Service Discusses FASB Proposal
We have published a new edition of the GAAP Update Service, Hedge Accounting - Proposed Changes to “Last-of-Layer” Method. This new edition discusses the FASB’s proposed Accounting Standards Update (ASU), Derivatives and Hedging (Topic 815) – Fair Value Hedging – Portfolio Layer Method.
The FASB’s proposed hedge accounting guidance would affect companies, such as financial institutions, that hold closed portfolios of prepayable financial assets such as mortgage loans. The proposed rule would allow companies to achieve hedge accounting for more of the interest rate risk associated with these assets than the current rules.
Lease Accounting – New Edition of Lease Accounting Template for ASC 842 Published
We have published a new edition of our “Lease Accounting Template for ASC 842.” This edition includes updates as follows:
- The Introduction tab clarifies that the Excel file uses the “income statement approach” in accounting for an operating lease. ASC 842 permits both this approach, as well as the more complicated “balance sheet approach.” Slight differences will arise each accounting period throughout the term of a lease when applying the income statement approach vs. the balance sheet approach.
- On the Operating Lease and Finance Lease tabs, we added an additional column to clarify what the ending lease liability balance will look like each reporting period if payments are made in advance.
Corporate Penalties – SEC Commissioner Crenshaw Discusses SEC Corporate Penalties
SEC Commissioner Caroline A. Crenshaw recently discussed information bundling and SEC corporate penalties. In her remarks, Crenshaw discussed her concern that corporate benefits are “notoriously difficult to quantify. If we limit penalties to only those benefits that are easy to count, we will invariably undercount, leaving the corporation in a potentially better economic position for having committed the violation. That is precisely the wrong outcome to advance our goals of punishing misconduct and delivering effective specific and general deterrents. Paying a penalty cannot be just a cost of doing business.”
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AUDITING AND INTERNAL CONTROL HEADLINES:
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Fraud – New Edition of GAAS Update Service Discusses AU-C Section 240
We have published a new edition of the GAAS Update Service, A Refresher on Fraud in a Financial Statement Audit - AU-C Section 240, "Consideration of Fraud in a Financial Statement Audit." AU-C Section 240 addresses the auditor’s responsibilities related to fraud in a financial statement audit. This new edition of the GAAS Update Service discusses specific provisions of AU-C Section 240.
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GOVERNMENT HEADLINES:
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GASB Standards – New Edition of Governmental GAAP Update Service Discusses GASB Omnibus 20XX Exposure Draft
We have published a new edition of the Governmental GAAP Update Service, GASB Releases Omnibus 20XX Exposure Draft. This new edition discusses the proposed changes to governmental GAAP contained in Omnibus 20XX.
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