PCAOB Updates by Manpreet Grover
Revenue Recognition – New Direction
FASB and the International Accounting Standards Board (IASB) are developing a new, converged standard on revenue recognition that will have at least some effect on virtually all businesses that use U.S. GAAP or IFRS for their financial reporting.
The objective of the new guidance is to establish the principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue from contracts with customers.
PCAOB updates its standard-setting agenda
The PCAOB has published its latest standard-setting agenda, which outlines its standard-setting projects and key milestones – The auditor’s reporting model; Audit transparency; Related parties; Framework for reorganization of PCAOB auditing standards; Auditors’ responsibilities with respect to other accounting firms, individual accountants, and specialists; Going concern; Quality control standards; Auditor independence, objectivity, and professional skepticism; Confirmation; Subsequent events.
On April 15, 2014, the U.S. Court of Appeals for the District of Columbia Circuit held that parts of the SEC’s rule on conflict minerals1 and of Section 1502 of the Dodd-Frank Act2 (the “statute”) violate the First Amendment of the U.S. Constitution to the extent that they require “regulated entities to report to the Commission and to state on their website that any of their products have ‘not been found to be “DRC conflict free.”