AC Insights

provides audit committee members with a summary of financial reporting developments for public companies using IFRS or US GAAP, how those developments might affect their companies and things they may want to think about when reviewing financial reports.

During the fall of 2016, the IASB completed its work on a narrow scope amendment on transfers of investment property, and its latest cycle of annual improvements. The Interpretations Committee also finalized its interpretation related to foreign currency transactions. This edition outlines the key provisions of these changes. The IASB is also finalizing its new standard on insurance contracts and expects to issue a final standard in March 2017. Work continues on other projects, in particular, the disclosure initiative, primary financial statements, financial instruments with characteristics of equity, rate regulated activities, and the conceptual framework.

In CSA developments, the Alberta Securities Commission has adopted the disclosure requirements about the representation of women on boards and in senior management and expanded the crowdfunding provisions available in Alberta.

The American Institute of Certified Public Accountants (AICPA) hosted their annual conference on Current SEC and PCAOB developments. We have provided the key views of SEC staff and other participants on accounting developments, common issues in financial reporting, non-GAAP measures and internal control over financial reporting. During the fall of 2016, the SEC also made amendments to Regulation D to update some of its requirements for offerings not requiring a registration statement.

CPAB issued its report on its inspection findings of the Big Four public accounting firms. We have summarized those findings in this edition of

AC Insights

. In addition, CPAB published its Industry Insights for the oil and gas industry, which provides some questions for audit committees to ask auditors on areas of audit focus.

The Center for Audit Quality (CAQ) in the US has developed a tool to assist audit committees in assessing management’s implementation of the new revenue standard. We outline a summary of the tool and provide a link to the CAQ website.

During the fall of 2016, the FASB issued four Accounting Standards Updates consisting of a standard simplification, a narrow scope amendment, an EITF interpretation, and technical corrections to the new revenue standard. This edition outlines the key provisions of these changes. Work continued on two major projects: hedging and accounting for long-duration insurance contracts, as well as several narrow scope amendments, improvements, and simplifications. Certain of these narrow scope projects are expected to be completed by the end of the first quarter of 2017.

The US edition also discusses the CSA, SEC, auditing developments outlined in the Canadian edition above.