2020 AICPA SEC and PCAOB Conference Highlights

December 2020

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The annual AICPA Conference on Current SEC and PCAOB Developments was held virtually on December 7-9, 2020, where representatives of the Securities and Exchange Commission and the Public Company Accounting Oversight Board shared their views on various accounting, reporting, and auditing issues.
 

Overview

The reporting, accounting and auditing environment continues to evolve.  A changing regulatory landscape, the ongoing impact of new accounting standards, and audit quality remain at the forefront of the conversation.  In an environment already rife with significant changes, the uncertainty associated with the COVID-19 pandemic creates additional challenges for stakeholders in the financial reporting process.  The 2020 Conference focused on these matters and provided insight into the regulators’ perspective on these and other accounting and reporting matters.  Some of the highlights include:
 
  • SEC Reporting Matters – reminders for registrants to pay attention to the risks and corresponding disclosures arising from the COVID-19 pandemic, including any impact on non-GAAP financial measures.  Additionally, the SEC staff discussed various rulemaking updates.
  • Accounting Matters – consultation examples from the staff within the Office of the Chief Accountant on topics including revenue recognition, consolidation considerations for voting and variable interest entities, payments received from vendors and LIBOR transition matters.
  • Auditing Matters – the PCAOB staff emphasized the importance of audit firm systems of quality management, auditor independence and a focus on global matters.  The staff also provided post-implementation insights and reactions to the disclosure of Critical Audit Matters (CAMs) in audit reports and reviewed common inspection findings and future areas of focus. 
This publication summarizes these matters and other accounting and reporting issues addressed at the Conference.  Our publication, 2020 SEC Reporting Insights, offers a more thorough discussion of SEC rulemaking and related staff activities during 2020.

Contacts