PwC's summary of recent activities of the PCAOB, SEC, and FASB, and related international developments that are of interest to audit committees and companies.
This publication highlights recent developments in financial reporting, including the release of the converged revenue recognition standard, and updates on the financial instruments, insurance, and leasing projects. PCAOB topics include the auditor reporting model, the issuance of a new auditing standard for related parties, and recent remarks on audit quality indicators. Recent developments at the SEC include the extension of any decision for the Chinese Big Four firms, the recently passed conflict minerals reporting deadline, discussions of an updated extraction rule, the disclosure effectiveness project, and Chair White’s remarks about IFRS adoption in the US. Internationally, EU Audit Reform (mandatory audit firm rotation and restrictions on non-audit services) has come into effect and the IAASB has reproposed their auditing standard on procedures auditors perform over other information included in annual reports.
Developments since our March 2014 edition include:
Update on the status of FASB/IASB priority convergence projects (Revenue, Leases, Financial Instruments, Insurance Contracts)
Update on FASB-Only projects (discontinued operations) and on the Private Company Council standard setting initiatives (VIEs)
PCAOB expected to issue concept release on audit quality indicators in the 3rd quarter
Auditor reporting model public meeting
New PCAOB Auditing Standard No. 18, Related Parties
Audit work papers of US accounting firm affiliates in China
Dodd-Frank Update (Conflict minerals and Extraction rules)
Paul Beswick, chief accountant of the SEC, will be leaving the agency
Updates on disclosure effectiveness project and IFRS
Update on EU Audit Reform focusing on mandatory firm rotation
IAASB proposed auditing standard for other information in annual reports