Accounting and Auditing Highlights May 21-June1, 2017



Securities and Exchange Commission


May 22: The Securities and Exchange Commission stayed all administrative proceedings assigned to an administrative law judge in which a party has the option to seek review of a final order in the U.S. Court of Appeals for the Tenth Circuit.

The move follows the federal court’s recent refusal to reconsider its decision in Bandimere v. SEC that the agency's administrative in-house forum is unconstitutional. Now the circuits are split on whether the administrative law forum of the SEC is constitutional. The stay is effective until such time as the U.S. Supreme Court has decided the issue.


May 23: The SEC and the White House sought $1.602 billion for the agency in fiscal 2018. This would cut the SEC’s funding by only $3 million from 2017. The agency is operating under a $1.605 billion budget that expires Sept. 30. It received the same amount in 2016.


May 24: Former SEC chair Mary Jo White said that she doesn't expect to see any major regulatory changes under the Trump Administration, though she does believe there will be a “change in philosophy.”

White spoke at Bloomberg Law's Big Law Business Summit, where she said that she doesn't expect enforcement actions to decrease significantly. She also predicted the Financial Choice Act, which aims to replace the 2010 Dodd-Frank Act and roll back many of its provisions, likely won't make it further than the House, where it was introduced by House Financial Services Committee Chairman Jeb Hensarling (R-TX) on April 26, 2017.


May 30: The U.S. Supreme Court denied financier Lynn Tilton—CEO of Patriarch Partners petition in Tilton v. SEC, U.S., No. 16-906, cert. denied 5/30/17 to decide whether the SEC's in-house forum is constitutional. The federal appeals courts are divided on the question. Tilton asked the court to review a ruling by the U.S. Court of Appeals for the Second Circuit that the district courts don't have jurisdiction over the constitutional question. She also petitioned the court to consider the crucial issue: Is the way the Securities and Exchange Commission appoints its administrative law judges consistent with the Appointments Clause of the U.S. Constitution?



May 23: The Russian Finance Ministry issued an Order to permit implementation of Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts.

Amendments to IFRS 4 is a package of temporary measures to address concerns about issues arising from implementing IFRS 9, effective from Jan. 1, 2018, before the new insurance contracts standard takes effect.


May 24:The IFRS Foundation, which supervises the work of the International Accounting Standards Board, plans to overhaul its current web site and launch a new site in June.


May 25: The International Accounting Standards Boardis seeking bids on a contract, bringing together the existing academic literature on the effect of implementation of IFRS 13 Fair Value Measurement for a post- implementation review (PIR) of IFRS 13; the fair value measurement.

The PIR, currently underway, will examine “if the Standard is working as the Board intended and has not resulted in inconsistences in application, created unexpected costs when preparing, auditing, enforcing or using the information required by the Standard,” IASB said.


May 25: The Accounting Standards Board of Japan and its affiliate, the Financial Accounting Standards Foundation, affirmed their work to promote voluntary use of IFRS in Japan as part of a joint statement with the IASB and the IFRS Foundation.


May 30: The Ukrainian National Bank issued a new financial reporting regulation that would require the country's financial and banking businesses to submit their financial reports to regulatory authorities beginning July 1.

Decree No. 39 covers a number of financial transactions, including futures, options and swap contracts, hedging transactions and securities transactions. The new rule also approved new procedures to report swap contracts relating to foreign currencies and precious metals.




May 24 : The Center for Audit Quality issued The CPA's Role in Addressing Cybersecurity Risk, highlighting how audit firms are well– equipped by their training to advise senior management, boards of directors and other key capital markets stakeholders about cybersecurity risk.

CPAs are trained to exercise independent judgment, objectivity and skepticism, and experience making independent evaluations in the areas of financial statements and internal control over financial reporting.

CAQ advises that both management and the CPA follow the American Institute of CPAs (AICPA)’s new cybersecurity reporting framework.


May 24: The Public Company Accounting Oversight Board disciplined a former Deloitte Mexico officer over an audit of a 2010 big U.S.-based mining company—Southern Copper—for improperly altering 2010 audit work papers and failing to cooperate with an audit inspection. Juan Edgar Mata Castro, of Mexico City, was censured and barred for two years from working for a PCAOB-registered public accounting firm.


June 1: The PCAOB approved an expanded audit report will require auditors to disclose—to investors and others—what they had the most problems with in their review of a company's financial statements.  Auditors will also have to disclose the length of their tenure. Both of these were fiercely -debated issues for the last six years.

 June 1: The PCAOB also issued two companion proposals: to strengthen auditing requirements in the area of auditing accounting estimates, including fair value, and to update requirements about the auditor’s use of the work of company and their own engaged specialists. Comments are due Aug. 30


Composed and Compiled by Laura Tieger Salisbury, Accounting Policy and Practice reporter and editor

Rely on expert practitioners for practical guidance and real-world approaches to complex accounting issues with Bloomberg BNA’s Financial Accounting Resource CenterTake a free trial today..