Bramwell’s Lunch Beat: IAASB Seeks Changes to Reporting on Summary Financial Statementsby
IAASB proposes changes for reporting on summary financial statements
The International Auditing and Assurance Standards Board (IAASB) released an exposure draft on Monday proposing changes to International Standard on Auditing (ISA) 810, Engagements to Report on Summary Financial Statements. ISA 810 deals with the auditor's responsibilities relating to an engagement to report on summary financial statements derived from financial statements audited in accordance with ISAs by that same auditor. The IAASB is proposing limited conforming amendments to ISA 810 as a result of the issuance of its new and revised auditor reporting standards, which address auditor reporting on general-purpose financial statements. The exposure draft includes specific questions for respondents on key aspects of the proposals and highlights areas of focus for various stakeholders. Comments on the exposure draft are requested by Nov. 2.
Microsoft's offshore profit pile surges past $100 billion mark
Richard Rubin of Bloomberg wrote that Microsoft Corp.'s stockpile of offshore profits rose to $108 billion, with a 17 percent increase over the past year as the company continues reaping profits in low-tax foreign jurisdictions. The company crossed the $100 billion mark, making it just the second US corporation â after General Electric Co. â to do so, according to a securities filing July 31. Apple Inc. has more cash abroad than Microsoft, but it already has assumed for accounting purposes that it will pay tax on some of the stockpile and thus has less than $70 billion offshore that would affect earnings directly if repatriated. The US tax code is what's keeping Microsoft's cash abroad. The company would be required to pay the difference between its foreign taxes and the 35 percent US corporate tax rate if it brought the money home. To get its $108.3 billion back, Microsoft would have to pay the United States $34.5 billion in taxes.
Former IRS commissioner files FEC complaint over Fox forum rules
Hadas Gold of Politico wrote that former IRS commissioner and Republican presidential candidate Mark Everson has filed a formal complaint with the Federal Election Commission (FEC) for being excluded from the GOP primary forum being held by Fox News on Thursday. The forum, which will be held Thursday afternoon, will feature the candidates who don't make the cut for Fox's prime-time debate stage on Thursday evening. Everson, who was IRS commissioner under George W. Bush, alleges that when Fox News dropped the requirement that candidates must poll at least 1 percent in national polls, it violated FEC rules on debates that say debate hosts must use âpre-established objective criteria to determine which candidates may participate in a debate.â
Judge adds to pressure on SEC over how it names its judges
A federal judge's ruling on Monday ratcheted up the pressure on the US Securities and Exchange Commission (SEC) and its controversial use of its in-house judges, wrote Jean Eaglesham of the Wall Street Journal. A Manhattan federal judge questioned whether the SEC's system of having judges named by the staff rather than the agency's commissioners possibly violates the constitution. He gave the agency seven days to say if it will change the way it appoints judges. The decision is the second in the past two months to raise constitutional concerns about the SEC's five administrative-law judges. A federal judge in Atlanta said in June that the SEC in-house court is âlikely unconstitutionalâ and agreed to temporarily halt an insider-trading administrative case against Charles Hill. SEC officials, including Chair Mary Jo White, have said the agency's in-house court is fair, and it is faster and more efficient than federal court.
GOP senators press Labor to issue new rules for financial advisors
Four Republican senators are urging US Labor Department officials to re-propose regulations for financial advisors that they say would limit access to financial advice, wrote Kevin Cirilli of The Hill. The administration is pushing for disclosure requirements, known as âfiduciary standards,â for financial advisors so consumers know how their advisors are paid. Republicans and some moderate Democrats staunchly oppose the proposal, and the business community has offered several alternatives. âWe fully expect the Department to re-propose [the rule] prior to its becoming final,â Sens. Tim Scott (R-SC), Pat Roberts (R-KS), Mark Kirk (R-IL), and Bill Cassidy (R-LA) wrote in a letter to Labor Secretary Thomas Perez on July 30. The lawmakers wrote that even minor changes to the rule's language âcan mean the difference between whether significant numbers of our constituents lose access to investment and retirement advice.â They are calling on Perez to âconfirmâ by Aug. 14 that he will re-propose the rule.
Bill Gorman named COO of McGladrey
McGladrey LLP announced on Tuesday that Bill Gorman will succeed Mike Kirley as COO, effective Sept. 1. In this role, Gorman will be responsible for overseeing business planning and strategy execution, as well as the firm's five regions, accounting industry services business, and integrated marketing communications team. Gorman brings more than 30 years of experience in the accounting profession to this role. He most recently served as managing partner of the firm's Southeast Region, responsible for operations, client service, and people management from Baltimore to South Florida. Gorman has served as a member of McGladrey's national leadership team since 2011 and previously held assurance leadership roles in the firm's East Region and Mid-Atlantic Economic Unit. Kirley will continue to be a partner with McGladrey and maintain responsibility for the firm's international strategy. He will also continue in his role as chairman of the RSM International Board of Directors.