IASB considers delay in revenue recognition standard

The IASB had previously set an implementation date of January 1, 2017 for its new revenue recognition standard.  The Journal of Accountancy is reporting that the IASB is seeking feedback on a delay of the effective date to January 1, 2018.  Early application would be permitted. 

From the Journal of Accountancy:

Upon issuing the standard jointly with FASB in May 2014, the IASB set an effective date of Jan. 1, 2017. But discussions of implementation difficulties with the boards’ joint transition resource group have led the boards to decide to propose targeted amendments to assist financial statement preparers in implementation.

The discussion led the boards to propose the delay; the IASB’s new effective date for IFRS 15, Revenue From Contracts With Customers, would be Jan. 1, 2018, if the delay is approved. Early application would be permitted.

The IASB is seeking comments on the proposed delay. Comments, which are due July 3, can be submitted at the IFRS website. Feedback is scheduled to be considered at the IASB’s meeting in July, when the board plans to decide whether to change the effective date.

In addition, the IASB plans to issue an exposure draft of targeted amendments to the revenue recognition standard, which will include clarifying some of its requirements and adding illustrative examples to assist implementation.

CFOs look for non-accounting skills in accountants

A new survey by Accountemps discusses the qualities CFOs look for in their accountants.  The survey polled 3,200 CFOs to get their perspective on the types of non-accounting skills that would make these accountants more valuable.

According to the survey, CFOs wanted:

• General business knowledge (33%)
• Expertise in information technology (25%)
• Communication skills (14%)
• Leadership abilities (13%)
• The remainder said they didn't know or did not provide an answer (I hope it was that they didn't answer and not that they didn't know!)

I find these responses to be interesting.  It makes sense that general business knowledge is desirable.  In fact, it often one of the top complaints of Operations managers that their company's accountants don't really understand their business.  

Expertise in IT can mean a lot of different things, but here they mean the ability to leverage technologies like SAP and Oracle to perform their work.  This makes sense as new employees can be more productive sooner and the workforce overall can leverage technology to improve their efficiency.

Interestingly, leadership and communication were down on the list.  I actually believe both of these are important in order for a finance organization to build competencies over time.

One thing not on the list jumped out at me.  That's having global work experience and a global perspective.  As the finance function becomes more globalized, it will be essential for finance and accounting staff to work effectively with different cultures and locations around the globe.

What other skills do you think accounting staff should posses?  You can post your answers in the comments section below.

FASB moves forward with controversial lease accounting standard

The Financial Accounting Standards Board (FASB) narrowly voted to release a draft statement on lease accounting for public comment.  The draft proposal would require all leases to be put on the balance sheet and would create two models for accounting based on the level of expected consumption during the life of the lease.

Dissenting members of FASB thought the proposed standard increased financial reporting complexity by placing lease information in multiple areas of the financial statements.

FASB Chairman Leslie Seidman noted that the FASB standard was coordinated with the IASB, which intends to release an exposure draft by June 30, 2013.

You can read the Journal of Accountancy article here.

SEC sues Dell accountants for improper accounting

The Austin Business Journal is reporting that the SEC has filed suit agaist two former Dell accountants. 

An excerpt from the article:

Federal regulators have fined two former Dell Inc. executives for their roles in an alleged four-year accounting fraud scheme.

Former Chief Accounting Officer Robert Davis has agreed to pay the U.S. Securities and Exchange Commission $175,000 and former Corporate Assistant Controller Randall Imhoff agreed to pay $25,000, SEC officials said.

The fines come one month after the commission fined Round Rock-based Dell (Nasdaq: DELL) $100 million and CEO Michael Dell $4 million for misstating its operating results from fiscal 2002 to fiscal 2005.

You can read the full article at: Dell execs fined for alleged fraud - Austin Business Journal