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When held by leadership, there’s no chance that risk management will be taken seriously. Significant fraud avoidance and mitigation are built on top-level awareness and commitment, and effective assessment to direct risk management activities.

On June 21, the U.S. Supreme Court handed down its decision in the South Dakota v. Wayfair, Inc. case (the Wayfair decision) related to sales and use tax nexus standards. In this ruling, the Supreme Court overruled its previous decisions in other landmark cases, commonly referred to as National Bellas Hess and Quill, which had established a physical presence nexus standard for sales and use tax purposes. Under these prior decisions, entities were generally not required to collect and remit sales and use tax in states where they had no physical presence but sold products “remotely” to customers.

The SEC has issued a Proposed Rule, Auditor Independence with Respect to Certain Loans or Debtor-Creditor Relationships, which is designed to amend certain provisions of the auditor independence requirements under Regulation S-X, Rule 2-01.

On March 7, the FASB met to discuss stakeholders’ comments on two proposed ASUs featuring targeted improvements to the new leasing guidance and amendments to the disclosure requirements for fair value measurement. These discussions are summarized below.

New guidance has been issued addressing the new topics stressing the importance of companies policies and procedures around the timely disclosure of cybersecurity risk and incidents, as well as the applications of insider trading prohibitions within the cybersecurity context.

To measure a defined benefits plan’s cost and obligations under U. S. GAAP, a sponsor must use assumptions that reflect its best estimate of the plan’s future experience.

The FASB has issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, to clarify how entities should apply the new guidance in ASC 842, Leases, to land easements.