Financial Reporting and Regulatory Update: First Quarter 2017

The quarterly Financial Reporting and Regulatory Update, prepared by the Financial Executives Research Foundation (FERF) in collaboration with Crowe Horwath LLP, includes developments on key financial reporting topics.
During the first quarter, the Financial Accounting Standards Board (FASB) issued eight standards addressing revisions to the definition of a business, simplifications to the goodwill impairment test, improvements to the presentation of pension and postretirement benefit costs, and revisions to five other standards.
The FASB also issued proposals on nonemployee stock compensation accounts, debt classification in the balance sheet, and inventory disclosure requirements.
A new section this quarter, “From the White House,” summarizes various initiatives from the executive branch that might affect corporate financial reporting.
The focus for the Securities and Exchange Commission (SEC) during the quarter was on various disclosure simplification initiatives, implementation of new accounting standards, the role of audit committees, and announcing a new deputy chief accountant.
We also update the status of the auditor’s reporting model from the Public Company Accounting Oversight Board (PCAOB).
In a Q&A discussion, FERF spoke with Raj Chaudhary, a principal in the Crowe Risk Consulting group and leader of the firm’s cybersecurity solutions group, and Dave McKnight, a Crowe senior manager, about evolving cybersecurity risks and to understand how companies are engaging senior leadership, business units, and board members so they better understand their cyber threats.