By Erik Bradbury, CPA, FEI Professional Accounting FellowFinancial Executives International’s Committee on Corporate Reporting (CCR)
FEI’s CCR held its annual liaison meeting with multiple sessions surrounding the US Securities and Exchange Commission and Public Company Accounting Oversight Board on December 8th and 9th in Washington D.C.
In attendance during the SEC session were Wesley R. Bricker, Chief Accountant, Office of the Chief Accountant; Marc Panucci, Deputy Chief Accountant, Office of the Chief Accountant; Mark Kronforst, Chief Accountant, Division of Corporation Finance and Karen Garnett, Associated Director, Disclosure Operations, Division of Corporation Finance. During the meetings attendees discussed topics such as:
ICFR and the ongoing dialog with the PCAOB and SEC
New accounting standards
CCR also met with PCAOB representatives including Jeanette Franzel, Board Member; Marty Baumann, Chief Auditor and Director of Professional Standards; Abe Dymond, Special Counsel; Keith Wilson, Deputy Chief Auditor and Santina Rocca, Deputy Director, Division of Registration and Inspections. Topics discussed included:
Recent PCAOB standard setting
ICFR related activities
CCR members also met with Financial Accounting Standards Board Member Daryl Buck to discuss recent FASB developments and recent CCR comment letter feedback on various standard setting projects.CCR Comment Letters Activity
CCR continues to stay active in providing comments to the standard setters and regulators on issues important to the corporate preparer community. Two topics that were discussed during the December CCR meeting that are important for preparers to monitor are:
FASB’s proposed project on Derivatives and Hedging and,
FASB’s future agenda project where it will decide what major accounting changes should come next.November 29, 2016 – FASB comment letter on derivatives and hedging (ASC 815)
While expressing broad support for the FASB’s efforts to improve hedge accounting, CCR asked for the FASB to take on a secondary phase (Phase 2) to hedging intended to further address corporate risk management strategies used by corporate risk managers to better align the GAAP standards with actual practice. In our letter we also provided specific examples and recommendations for the FASB to consider as it...