Industry News & Updates

Stay current on the latest in the industry

Industry News & Updates

Stay current on the latest in the industry

Important IFRS Update on Income Statement Presentation (with GAAP Comparison)

May 20, 2024 | Complex Accounting and Risk Management

The International Accounting Standards Board (IASB) has introduced a new standard, IFRS 18, Presentation and Disclosure in Financial Statements, which is set to redefine financial performance reporting by improving the usefulness of information presented and disclosed in financial statements to enable better investment decisions. IFRS 18 introduces new requirements to improve companies’ reporting of financial performance and provide investors a better basis for analyzing and comparing companies’ statements through improved comparability in the income statement, enhanced transparency of management-defined performance measures, and more useful grouping of information in the financial statements.

The Changes to Rule 702 From a Damages Expert’s Perspective

Feb 27, 2024 | Disputes and Investigations

Since its enactment in 1975, Rule 702 of the Federal Rules of Evidence has sought to redirect standards for the admission of expert testimony from a focus on “general acceptance in the profession” to one that places a greater emphasis on whether it is “scientifically valid and properly…applied to the facts at issue.” Amendments enacted in 2000 and 2011 have sought to clarify how judges are to assess the reliability of proffered testimony, either through the addition of factors to be considered (e.g., the Daubert standard, which also charged judges to serve as gatekeepers to exclude unreliable expert testimony) or by making the rule more easily understood and consistently applied.

Post-Implementation Review of Topic 606 Roundtable Observations

Feb 6, 2024 | Complex Accounting and Risk Management

The FASB post implementation review (“PIR”) of ASC 606 is a process that evaluates the effectiveness of the revenue recognition standard that was issued in 2014 and became effective for most entities between 2018 and 2020. The PIR aims to assess whether the standard meets its objectives of providing useful information about the nature, amount, timing, and uncertainty of revenue from contracts with customers, and whether it improves comparability across entities and industries. The PIR also considers the costs and benefits of applying the standard, and whether there are any unintended consequences or areas of difficulty in implementation.

Government Contract Financial Due Diligence/Quality of Earnings Considerations

Jan 29, 2024 | Government Contract Regulatory Compliance

Focused due diligence and a carefully negotiated agreement can help mitigate risks for government contractors engaged in a merger or acquisition. The U.S. government contracting market has continued to see significant M&A activity from both private equity and strategic buyers. This is due to the perceived stability, steady growth, and free cash flows being generated within the industry. In times of global insecurity, be it economic or geopolitical, government contractors often benefit from increased federal spending.

Internal Audit and Government Contract Compliance: Working Together to Gain Efficiencies and Increase Effectiveness

Dec 7, 2023 | Government Contract Regulatory Compliance, Complex Accounting and Risk Management

Over the years in working with varying clients and meeting Government Contract Compliance (“Compliance”) and Internal Audit (“IA”) leadership, we continue to find that in many cases these functions/organizations rarely communicate and seem to be fairly siloed with minimal coordination in achieving their missions. This can happen for any number of reasons; including for example, the additional time required for Compliance to coordinate and support IA assessments, the potential view that IA’s role and experience focus on financial statement reporting controls and wouldn’t be particularly helpful to Compliance, or fear of increased scrutiny resulting in unnecessary and unwanted attention from executive management. Although it is understandable that certain Compliance leaders are hesitant to work with IA, there is good reason for Compliance to consider increasing their coordination with them.