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News
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Close-up on materiality
- April 23, 2019
- Posted by: Hood & Strong
- Category: AICPA
No CommentsThe Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) has been discussing options to amend its definition of the term “materiality.” In May, the ASB plans to vote on issuing an exposure draft of the updated guidance. Here’s what’s currently on the table. Existing auditing standards Under current U.S. Generally
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Say-on-pay rule: Study shows shareholder votes may not matter
- April 23, 2019
- Posted by: Hood & Strong
- Category: Uncategorized
How does your company’s executive compensation plan measure up? A recent study found that CEO compensation at large public companies has continued to increase despite the “say-on-pay” rule that went into effect in 2011. Here’s more information on this rule and key findings from the 2018 Equilar CEO Pay Trends report. Soliciting feedback Following the
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Exploring segment reporting alternatives
- April 23, 2019
- Posted by: Hood & Strong
- Category: FASB
In February, the Financial Accounting Standards Board (FASB) discussed its ongoing project to improve how companies provide information around business segments. It doesn’t appear that a proposal will be issued anytime soon. Instead, the FASB plans to reach out to more investors on what segment data they’d like to see disclosed. Segment reporting guidance The
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The Department of Labor proposes updated overtime rule
- March 26, 2019
- Posted by: Hood & Strong
- Category: DOL
The Trump administration has released its long-awaited proposed rule to update the overtime exemptions for so-called white-collar workers under the Fair Labor Standards Act. The rule increases the minimum weekly standard salary level for both regular workers and highly compensated employees (HCEs). It also increases the total annual compensation requirement for HCEs that’s required to
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How XBRL benefits companies, large and small
- March 22, 2019
- Posted by: Hood & Strong
- Category: AICPA
How XBRL benefits companies, large and small Investors and accounting professionals have warned the Securities and Exchange Commission (SEC) against exempting small companies from the requirement to add interactive data to their financial statements using eXtensible Business Reporting Language (XBRL). They believe that using XBRL in financial reporting helps investors analyze performance more efficiently and
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Best practices for audit committees
- March 22, 2019
- Posted by: Hood & Strong
- Category: Uncategorized
In January 2019, the board of the International Organization of Securities Commissions (IOSCO) published a report intended to promote audit quality. It outlines best practices for audit committees. Although external auditors have primary responsibility for audit quality, the audit committee plays an important oversight role in the financial reporting process. Role of the audit committee
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Is your finance team using AI?
- March 22, 2019
- Posted by: Hood & Strong
- Category: AICPA
Only 11% of executives are making use of artificial intelligence (AI) and over one-third of companies spend more time collecting data than analyzing it. These are just some of the findings from a recent Association of International Certified Professional Accountants survey. Here are the details. Survey says In January 2019, the association released the report
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IRS provides QBI deduction guidance in the nick of time
- February 19, 2019
- Posted by: Hood & Strong
- Category: IRS
When President Trump signed into law the Tax Cuts and Jobs Act (TCJA) in December 2017, much was made of the dramatic cut in corporate tax rates. But the TCJA also includes a generous deduction for smaller businesses that operate as pass-through entities, with income that is “passed through” to owners and taxed as individual
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Identifying CAMs: The new-and-improved auditor’s report
- February 19, 2019
- Posted by: Hood & Strong
- Category: Uncategorized
Public company auditors have been conducting test runs to help them add critical audit matters (CAMs) to the auditor’s report. To comply with this new Public Company Accounting Oversight Board (PCAOB) requirement, the Center for Audit Quality (CAQ) has found that auditors must apply significant judgment and communicate effectively with management and audit committees. What
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AICPA to align its auditing standards with public company standards
- February 19, 2019
- Posted by: Hood & Strong
- Category: AICPA
The AICPA’s Auditing Standards Board (ASB) is taking steps to enhance the consistency of financial reporting between public and private companies. A new omnibus auditing standard will cover standards on related parties, communications with audit committees, and consideration of fraud in a financial statement audit. Syncing the standards Auditors of public companies are required to