Postcard from the AICPA Conference: Second in a Series

We heard from a number of speakers representing a wide range of perspectives.  The following messages were delivered with regards to actions that need to be taken to protect existing shareholders and prospective investors;

  • The need for more effective disclosures – there is a Disclosure Effectiveness Project that has been launched by the Division of Corporation Finance to review required disclosures.  It was mentioned that there has not been a comprehensive review of these items in more than 20 years.  Issuers were also encouraged to do their part to improve disclosures by avoiding boilerplate disclosures that offer little value to users, avoiding repetition throughout the MD&A and the footnote disclosures and instead consider cross-referencing, and by providing relevant information that offers insight to the investor about risks and operating trends affecting the industry or organization or that are expected to impact the industry or organization in the future.
  • The need to simplify accounting standards – In response to feedback from preparers, practitioners and investors, there are a number of accounting standards, (measurement of inventory, extraordinary items, balance sheet classification of debt,  income taxes and share based payments), being revisited by the FASB in an attempt to reduce the complexity of applying these standards with the goal of providing more timely information and reducing costs of compliance, particularly when there is a not a lot of value derived from the effort put forth to comply with the existing standards.   
  • Enforcement and monitoring activities – there is a focus on identification of insider trading, foreign corrupt practices, microcap fraud and pyramid schemes.  A task force has been created to focus on identification of cases involving improper accounting and financial reporting through the use of analytical tools and other means.  There will continue to be scrutiny of auditor work and auditor independence matters.

Overall the atmosphere seems to be one of collaboration aimed at instilling confidence in the investors.  The idea of convergence is still alive although the remarks from FASB chairman, Russell Golden, indicate that the primary focus of the FASB’s efforts is to address the needs of investors, issuers, and practitioners in our domestic capital markets, while attempting to minimize the differences among global standards.

© 2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Audit, IFRS BY Michael Maloney
IASB Proposes Annual Improvements for 2019
Audit BY Adam Goode
Is It Time to Overhaul the Income Statement?
Improve Your Internal Audit Activity - Quality Assessment Reviews
RPAs Have a Role in SOX Cost Reduction and Efficiency
SEC Issues Final Ruling to Modernize and Simplify Regulation S-K
SEC Issues Final Ruling to Modernize and Simplify Regulation S-K

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062