- The PCAOB updated its staff guidance to help accounting firms comply with the requirements for the expanded audit reports they will have to begin filing in 2018. The update gives additional information to guide accounting firms when determining the tenure, or length of time they have served a client, that should be reported.
- The SEC wants to pay close attention to how the adoption of some of the FASB’s major standards may affect their financial reporting controls in 2018 and beyond. The new revenue standard becomes effective in 2018, and the lease accounting amendments have a 2019 compliance date. Because of the changes to the accounting requirements, public companies and their auditors are expected to face a number of challenges with testing internal controls and ensuring that they are sound.
- Since the Tax Cuts and Jobs Act was passed, many state and local officials, as well as commentators, have suggested prepaying such taxes by year-end to obtain a federal deduction prior to the limitation becoming effective.
- The IASB is mulling changes to the test for determining if goodwill has dropped in value. The board has yet to determine what changes it will make, but at its most recent meeting it ruled out reverting to the old standard allowed companies to amortize goodwill.
- The FASB plans to release in February a proposal to add a fifth benchmark interest rate to the acceptable rates for hedge accounting. The proposed benchmark rate is being considered by the Federal Reserve as an alternative to the London Interbank Offered Rate (LIBOR), which was tarnished by the 2012 rate-rigging scandal.
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