AICPA conference reports on pace of change

Current SEC and PCAOB Developments Conference explores evolving trends, strength of the U.S. financial reporting system

The AICPA’s 2019 Current SEC and PCAOB Developments Conference was held Dec. 9-11 in Washington, D.C. The conference presenters focused attention this year on the strength of the U.S. financial reporting system and evolving trends in the reporting environment.

The conference featured a conversation with SEC Chairman Jay Clayton and SEC Chief Accountant Sagar Teotia on how the SEC’s rulemaking activity has focused on modernizing the regulatory environment to respond to the change in composition of the U.S. capital markets. Their discussion also highlighted how a focus on audit quality should not only be domestic but also global since investors today are much more exposed to international financial reporting than before.

The conference also featured a panel with all five PCAOB board members who expressed their views on the state of audit quality, noting that audit quality matters are key to maintaining the integrity of the U.S. capital markets and the trust of investors.

The SEC recounted staff views on numerous current accounting topics, including revenue recognition and whether an entity acts as a principal or an agent and the identification of performance obligations, sale and leaseback transactions, credit losses and others. The staff also highlighted the current principles-based disclosure regime and its applicability to developing issues, such as digital assets, Brexit, LIBOR transition, cybersecurity, and sustainability reporting.

And in his final speech as FASB chairman to the annual AICPA conference, Russell Golden outlined the process by which the FASB set standards: 1) listening and responding to stakeholder needs, 2) performing quality research, 3) providing quality communication, and 4) welcoming accountability.

Our New Developments Summary, “Highlights of the 2019 AICPA Conference on Current SEC and PCAOB Developments,” provides in-depth coverage of the three-day event, which featured panelists from all corners of the profession, with numerous links to the speeches from the conference.

Download your New Developments Summary here.