- The IASB decided to scrap guidelines about assessing covenant breaches from its forthcoming guidance to help businesses and other organizations determine the information that is important enough to include in their financial statements. The board wants its Practice Statement, to be published by the end of the year, to help businesses use judgment when drawing up financial statements.
- Businesses have two major accounting changes on the horizon in the next two years — the revenue recognition standard that goes into effect for public companies in less than six months and the lease accounting overhaul that must be followed in 2019. The lease standard is less complicated than the revenue guidance, but lease amendments still require major work to implement, and companies have been slow in making the necessary changes to their financial reporting systems and the processes to support the change.
- The FASB published an update to U.S. GAAP to simplify the accounting for a class of financial instruments with embedded options that early-stage companies often issue to investors to protect them from a decline in the value of their investment. The amendment allows a financial instrument with a down-round feature to no longer automatically be classified as a liability solely based on the existence of the down-round provision.
- Included in this e-Book is valuable insight from the SEC Office of the Chief Accountant, as well as a comprehensive guide produced by Baker Tilly on how to effectively scrutinize internal controls over financial reporting beyond what most organizations are currently doing.
- Deferred compensation plan errors can be the result of one-time circumstances or can be systemic in nature. The issues discussed in this Insight are among the more common.
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