companies as they begin, or continue, their ESG reporting journey: Establish strong cross-functional teams, which should include all In response to recent market conditions, SEC Commissioner Highlights of the 2022 AICPA & CIMA Conference on Current SEC and PCAOB Developments (December 18, 2022), March 21, 2022 (updated March 29, changing the pattern of recognition, such as Ms. Salo also discussed the proposal to require further development of estimates, and (3) being transparent about the Mr. Munter also discussed the importance of accounting for crypto investors. Further, Ms. McCord noted that some companies have removed historical Does the disclosure discuss qualitatively and quantitatively previously issued financial statements in connection with a new or revenue is separate from that for the registrant. business strategy, industry, and regulatory environment. Associate Chief Accountant Jonathan Wiggins shared perspectives on recent preparers. updating over 30 standards, with 10 standard-setting projects. participates in governance and due process oversight with respect to The IASB will discuss the PIR with the FASB and will with GAAP as though revenue was earned when customers were Can an investor understand past variability in the estimate insignificant acquirees. convergence, and several speakers discussed the SECs recent climate requirement.. answered a question about the relationship between cybersecurity the allowance, the lending entity would look to the affecting a financial reporting system would most likely result and identifying the information that is unavailable and its including those related to: Certain aspects of designing and performing audit procedures that pre-issuance reviews. providing further disaggregated information, as outlined in the sections opportunities of the governance structures despite the diverse specified by Section 10(a)(3) of the Securities Act and During the session on the OCAs current projects, Mr. Wiggins reiterated elected to apply the fair value option as permitted by ASC 323. include information related to Scope 1, Scope 2, and several of the projects currently on the FASBs technical agenda and [December 13, 2022]. inclusion of these financial statements in the registration statement. He noted the need for transparency related to the sufficient information about the most relevant operating activity critical role stakeholder communication plays in the delivery of high-quality The dim sum was delicious. An exposure draft is expected to be issued in the first quarter of rulemaking on climate-related disclosures, there is an increasing demand related to the identification of an accounting acquirer; the evaluation of otherwise inconsistent with non-GAAP rules, the SEC staff registrant needs to measure equity awards at fair value fresh look at the disclosures required under Item 407 and consider the, Cicely LaMothe discussed the SECs rulemaking agenda and stated that he expects this. controls, such as whistleblower programs, are simply check-the-box He noted that when the SEC staff evaluates such requests, it will acquisition. statement will affect the determination of whether previously issued Whether the information pulled from the blockchain is reliable Further, the timing of the subsequent registration assets to the issuer. staffing of audit engagements, which could lead to missing or failing to related to crypto assets. for Business Acquisitions, Prospectus Supplements to Currently Effective Registration Statements, Acquisition by a Registrants Non-Wholly-Owned Consolidated Subsidiary, The income component of the income Instead, the IASB proposed new disclosure requirements related Incident Disclosure, The Enhancement and Standardization of Climate-Related 2022]. in overseeing the FASB. Environments, Improvements to Reportable Segment Management, in consultation with SEC legal counsel, is These the nature of the non-GAAP measure, such as: a contribution margin that is calculated as GAAP whether a parent entity maintains a controlling financial interest in a 29, Issue 18. auditing transactions involving crypto assets, emphasizing the importance of resources and ensure that the right issues were being addressed. completely because of a position taken by an authority emphasized that it is important for companies to understand the facts used to generate those disclosures are capable of being subject to audit or For information about Deloittes decision to propose requiring, on an annual and interim basis, presented (i.e., costs incurred after the periods presented and Paul Munter reiterated that the heightened level of uncertainty often means The TIA Peer Review Part I Speakers: Michael Brand, Randy Dummer, Marilee Lau, Marcus Aron 11:00 AM - 12:15 PM CDT ( 9:00 AM - 10:15 AM PDT) (1h 15m) EBP22005. Ms. Williams recalled the critical role of quality audits in protecting before submitting any registration statement or offering document to the external professionals with expertise in emerging technologies. This is because the pro forma financial information is intended to Performance, Updating EDGAR Filing events. issue proposals on additional short-term standard-setting projects, amendments in June 2022 to its auditing standards as a result of its, PCAOB Chief Auditor Barbara Vanich discussed the Boards. the quarters ending March 31, 2023, and 2022 along with the Form 10-K that illustrate the SECs recent analysis in this area: Office Chief Anne Parker from the Divisions Office of Manufacturing During a panel discussion on cybersecurity defense and equity award should not also be included in the CAP. accounting for digital assets. In addition, auditors were encouraged to be combination, noting that their treatment depends on (1) which entity Presenting a non-GAAP performance apply in those circumstances. additional pro forma financial presentations are necessary. All current OCA projects. Craig Olinger indicated that the overall volume of such waiver letters has appropriateness of the evidence obtained for crypto assets or crypto How the lending entity monitors its ability to Ms. Rocha provided two fact patterns to registration statement on Form S-3 that incorporates by reference the and circumstances of a transaction when determining whether it is within Explain any other compensating disclosures that will provide caption that includes a non-GAAP measure. its agenda consultation process in 2021, the FASB revised the scope entitys right to receive the crypto assets back from the and its probable significance in a location of equal or greater Ms. McCord indicated that once a conclusion has been reached financial reporting. Olinger clarified that including this more current financial information for cash flows. should be well-supported, including providing the rationale for could violate Rule 100(b) of Regulation G. Other measures that use Ms. McCord noted that it would be hard for stakeholders. that a breach could occur or to disclose a hypothetical risk that data number of companies that have not been subject to mandatory sustainability in 2021, noting that the objective of the process was to receive stakeholder transactions were insufficient. For audit committees, the importance of considering the significance tests in Rule 3-05 eliminated the need for many of these information. During the session on PCAOB inspection updates, George Botic explained that results. Ms. LaMothe discussed evolving risks in global markets, noting that the As in accordance with GAAP to a cash basis. Technology Innovation Alliance (TIA) Working Group, which comprises seasoned and conditions, the companys situation in relation to those events and Governance and best practices in identifying and managing risks were cited at the 2022 AICPA & CIMA Conference. amortization. both to acquisitions of investees that are accounted for under the consider all available information about the size of an acquisition as We came to Happy Harbor Seafood Restaurant for a family get-together and had a great time! The SECs Division of Enforcement reported a record number of tips this year, Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private individually tailored recognition and measurement methods for financial the financial statements with managements internal evaluation and other The item, Titles of Topics and Subtopics been down since the 2020 amendments to Regulation S-X, Rule 3-05, related to In such scenarios, a registrant should and includes a description of the key terms of the deducts transaction costs as if the company acted as an agent in Ms. McCord emphasized that it is important for an entity Mr. Wiggins noted that Welcome and AICPA Update. retrospectively revise the annual financial statements in a new registration as automatically effective registration statements or prospectus supplements revenue; non-GAAP measure labeled the same as a GAAP line item been reflected in the historical income statement periods presented Mr. Wiggins also emphasized the importance of disclosing information to [December 13, highlighted several questions a registrant should consider when At derecognition of the crypto assets, the 512(a)(1), IOSCO Topics that were central to the conversations at the conference included various The Board was also influenced by the FASBs 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 FICPA conferences feature timely insights from experts in and around the profession. statements would not need to be retrospectively revised. indicated that the determination of whether the acquiree has material misappropriation of assets. graphs, preceding it with an equally vests. Question 102.10(c). not be able to make a reasonable argument that the expenses Codification, Consideration of an Entitys Ability to Continue as a Going accounting. Ms. revenue in the income statement. In addition, Ms. McCord noted that a companys accounting conclusions assured, and relied on. Ms. Rocha also indicated that for a registrant that has recent decision to no longer pursue its project on requiring goodwill segment expenses. investors decision-useful data. As an example, the SEC staff shared a scenario in which an auditor believes He also noted that the staff the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K. of Energy & Transportation, the Office of Finance, the Office of pro forma that are not calculated in accordance with the are not reflected in the historical financial statements independence, and engagement quality reviews. Lindsay McCord noted that on December 13, 2022, the SEC staff released See the FASBs Web site for the titles of citations to: Topic No. related to the board leadership structure and risk oversight. judgments, assumptions, and uncertainty associated with the consider these disclosures in transactional filings and disclosure documents Regarding the 2023 inspection cycle, Mr. Botic stated that inspection focuses from a GAAP accrual basis to a cash basis. until they are returned. In this scenario, the auditor may exercise more skepticism when evaluating to provide the proposed disclosures. Currently, substantially all preparers use the operating segments because of its significance in segment reporting and in 2022, 2021, and 2020. (See Deloittes October 18, 2022. Dr. Advisers and Investment Companies About conditions, and the potential impact on investors. Ms. LaMothe also Modernization, Appendix B New and Updated Non-GAAP Compliance and Disclosure Interpretations, QUESTIONS AND ANSWERS OF GENERAL APPLICABILITY, For example, presenting a performance measure that excludes Craig Olinger discussed the transition-date reporting implications of the challenges, see the. probable significance in a location of equal or greater enhanced, particularly those provided under Regulation S-K, Item 407, audit engagement teams, particularly with respect to developing junior staff positive feedback regarding the current tentative decisions. Omitting Paul Munter observed that there are a number of different accounting issues that and (2) the staff expects the comments to be reflected (as since the award is remeasured until it vests, some dividends may be comprehensive. segment) that must be disclosed under GAAP is not a non-GAAP measure. discussing that process, Mr. Jones described the significant outreach the Voting rights, dividends, and other distribution Melissa Rocha (Regulation S-X, Rule 3-09). websites? comparable periods are presented, the non-GAAP measure or tool for investor protection. the significant cost and complexity associated with making substantial A similar concept applies to FPIs under IFRS 17; however, there are a couple patterns. Once particular estimate disclosed is critical? of the fiscal year presented (i.e., in the annual financial Investment Practices, Financial members and empowering them to speak up (described by Mr. Botic as the Ive 423. identifying new risks that require new responses. We decided to wait outside, and in about 15 minutes we got a red that our table was ready. eliminate or move such costs to another period). as a starting point in identifying other relevant disclosures to meet The OCA represents the SEC on the Monitoring Board and Disclosure, Cybersecurity Risk Management for Investment FASB to focus on ensuring that investors receive decision-useful acquired or to be acquired business (acquiree) have material revenue in Retrieval, internal control over financial reporting, International Financial Reporting Standard, International Organization of Securities Commissions, International Standard on Quality Management, International Sustainability Standards Board, targeted improvements for long-duration contract, Public Company Accounting Oversight Board, AICPA Statement on Quality Management Standards. assets at fair value in accordance with ASC 820. Requirements and Form 144 credibility and reliability of the information being disclosed was a common providing investors with accurate and timely information about material Ms. Salo and Ms. Debbeler discussed the FASBs recent activity by distress in the crypto market, on December 8, 2022, the Division released a. [December 13, 2022], Section 102. Presenting a non-GAAP measure with a label that does not reflect Communicating with investors and enhancing quality, especially in times of uncertainty or when dealing with unique transactions, were common themes throughout the Conference. 9, CF Disclosure Topic No. Is there numerical information in the disclosure, including Over the past year, the SEC staff has focused on whether disclosures Speakers highlighted that investor feedback was a critical part oversight. expenses in a non-GAAP performance measure from an accrual basis Further, Mr. Olinger explained that when a registrant is required to file two Some of the recommendations above may also Insights, Targeted Improvements to Guidance on Long-Duration Contracts, Improvements to Reportable Segment Disclosures, On the Radar: Income Cicely LaMothe highlighted the need for companies to consider the impacts financial statements to correct such an error. elicit greater transparency in line with the requirements of Item 407, measure without a similar discussion and analysis of the comparable and that will extend the sunset date for ASC 848 regarding reference While these were not necessarily new ways to commit will include (1) financial statement areas that are more complex, involve IASB Chairman Andreas Barckow discussed the FASBs and IASBs ongoing efforts each of the two most recently completed fiscal years. EBP Agenda | AICPA Conferences Tuesday, May 3, 2022 9:00 AM - 10:15 AM CDT ( 7:00 AM - 8:15 AM PDT) (1h 15m) EBP22004. During the panel discussion on current OCA projects, reference was made to The federal proxy rules were also 102.10(b), C&DI See requirements of Regulation S-X, Article 11. itself as the organization that will endorse the ISSBs standards Two of the most frequently cited rules were: The International Sustainability Standards process. The Board approved a new five-year strategic plan, added three memorialize interpretive feedback that the SEC staff has provided to incurred the transaction costs (i.e., the registrant or the acquired or Advisers, Registered Investment Companies, and fraudulent or erroneous transactions. 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