COSO Plans to Update Enterprise Risk Management—Integrated Framework
On October 21, 2014, the Committee of Sponsoring Organizations (COSO) of the Treadway Commission announced that it would begin updating its Enterprise Risk Management—Integrated Framework. The Framework, originally published in 2004, is a widely accepted framework used by management to enhance an organization’s ability to manage uncertainty and to consider how much risk to accept as it strives to increase stakeholder value. The objective of the project is to improve the relevance and content of the framework given the increasing complexities in the current global business environment.
SEC Reviewing IFRS Reporting Alternatives
SEC Chief Accountant, James Schnurr, is working on a set of recommendations for the regulatory agency to let more U.S. public companies use International Financial Reporting Standards (IFRS), while not fully adopting the international standards for the U.S. reporting system. The option would allow companies to voluntarily provide supplemental IFRS financial information (anything from complete IFRS financial statements with notes to selected financial data). This alternative would be totally voluntary, and it would be supplemental. There is no concrete timetable for when the recommendation will be made, but it is expected in the first half of 2015.
SEC Releases SAB No. 115 to Update Guidance on Pushdown Accounting
On November 18, 2014, the SEC released a Staff Accounting Bulletin (SAB) to rescind portions of the interpretive guidance for pushdown accounting. Specifically, SAB No. 115 rescinds SAB Topic 5.J. entitled New Basis of Accounting Required in Certain Circumstances. The new SAB brings existing guidance into conformity with ASU No. 2014-17, which was ratified by the FASB on October 8, 2014.