In this section, we provide brief updates from the previous quarter on regulatory developments in auditing and accounting that may impact Japanese companies in the United States. Further discussion of the issues can be found in KPMG's Department of Professional Practice's Defining Issues.
KPMG reports that the FASB tentatively decided to defer the effective dates for several major accounting standards.
Defining Issues 19-17 (PDF)
KPMG reports that the PCAOB issued new guidance for communications with audit committees. The guidance applies when an auditor has identified a violation of the independence rules.
Defining Issues 19-16 (PDF)
The SEC amended its auditor independence rules with respect to loans and debtor-creditor relationships (the Loan Provision). The SEC’s amendments refocus the analysis on debtor-creditor relationships that pose a threat to auditor independence.
Defining Issues 19-15 (PDF)
EITF discussed accounting for revenue contract liabilities in business combinations, certain equity method investments and licensing contract modifications. It reached a consensus-for-exposure on accounting for certain equity method investments.
Defining Issues 19-14 (PDF)
KPMG reports on an SEC proposal that would revise the accelerated and large accelerated filer definitions to exclude issuers that are both eligible to be a smaller reporting company (SRC) and have less than $100 million in annual revenues. The amendments would exempt more companies from internal control audits.
Defining Issues 19-13 (PDF)
KPMG reports on the FASB's amendments to ASC 350, ASC 805 and ASC 958. NFPs are permitted to include certain intangible assets with goodwill, amortize goodwill over a period of up to 10 years and test goodwill for impairment at either the entity level or the reporting unit level when a triggering event occurs.
Defining Issues 19-12 (PDF)
KPMG reports on SEC proposed amendments intended to improve the information that investors receive about acquisitions and dispositions of businesses. The proposed rule would amend Rules 3-05, 3-14 and Articles 8 and 11 of Regulation S-X, and proposes a new Rule 6-11 for investment companies.
Defining Issues 19-11 (PDF)
KPMG's Defining Issues discusses a Fannie Mae and Freddie Mac initiative resulting in a single mortgage-backed security, known as the uniform mortgage-backed security or UMBS. Investors will be allowed to exchange certain existing Freddie Mac securities for newly issued securities.
Defining Issues 19-10 (PDF)
For more information, please contact:
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