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22 October 2014

Financial Reporting Developments - Bankruptcies, liquidations and quasi-reorganizations
We have updated our FRD on bankruptcy, liquidation and quasi-reorganizations to include interpretative guidance on issues faced by entities during and upon emergence from Chapter 11 bankruptcy. Refer to Appendix B of the publication for a detailed listing of these updates.

21 October 2014

Disclosure effectiveness: What companies can do now
Making business and financial disclosures more effective has become a focus of regulators and standard setters around the world. Our publication, Disclosure effectiveness: What companies can do now , explores how companies can implement the SEC staff’s recommendations for reducing repetition, focusing on material information and eliminating outdated information. The publication includes illustrations, leading practices and practical steps to make companies’ year-end disclosures more meaningful.

16 October 2014

To the Point - FASB finishes deliberations on not-for-profit proposal
The FASB has wrapped up deliberations on a proposal that would change financial reporting by all not-for-profit entities, including business-oriented health care entities. Our To The Point discusses the Board’s proposed changes to how not-for-profit entities classify net assets, measure financial performance and cash flows, classify expenses, and provide information about liquidity.

16 October 2014

To the Point - FASB issues simplification proposals on debt issuance costs and retirement benefits
The FASB issued proposals to simplify the presentation of debt issuance costs and the measurement date for defined benefit pension and other postretirement benefit plan sponsors as part of the Board’s simplification initiative. Our To the Point publication tells you what you need to know about the exposure drafts.

13 October 2014

To the Point - Michigan enacts legislation that could affect income apportionment
In response to a Michigan Supreme Court decision, Michigan has enacted legislation that may alter the way a taxpayer determines Michigan taxable income. Our To the Point publication tells you what you need to know about the new legislation.

30 September 2014

Comment Letter - FASB proposal to eliminate the concept of extraordinary items
In our comment letter, we supported the FASB's efforts to reduce the cost and complexity of financial reporting by eliminating the concept of extraordinary items. We believe the proposal would not affect the quality of information provided to financial statement users.

30 September 2014

Comment Letter - FASB proposal to simplify the measurement of inventory
In our comment letter, we said we do not support the FASB’s proposal to measure inventory at the lower of cost or net realizable value (LCNRV). For entities that use the last-in, first-out (LIFO) accounting method in declining price environments, we believe the Proposed Standard could increase the cost and complexity of preparing the financial statements and, in certain circumstances, reduce the usefulness of the information provided to users. We also said the continuing acceptability of the retail inventory method should be made more clear in a final standard.

4 September 2014

To the Point - FASB requires management to assess an entity’s ability to continue as a going concern
The FASB issued final guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern and to provide disclosures when certain criteria are met. Our To the Point publication tells you what you need to know.

14 August 2014

To the Point - New projects added to FASB and EITF agendas
The Financial Accounting Standards Board added several projects to its agenda and to that of the Emerging Issues Task Force at its latest agenda prioritization meeting. Several of these projects are part of the Board’s simplification initiative. Projects were added to the FASB’s agenda to address accounting for income taxes and to simplify the presentation of debt issuance cost, the measurement date for defined benefit plans and the balance sheet classification of debt. Projects were added to the EITF’s agenda to address the fair value hierarchy levels for certain investments measured at net asset value and the effects on historical earnings per unit of master limited partnership dropdown transactions. See our To the Point for details.

21 July 2014

Financial Reporting Developments - Statement of cash flows
We have updated our Financial Reporting Developments publication on statement of cash flows to provide additional interpretive guidance.

17 July 2014

To the Point - Proposals would eliminate extraordinary items and simplify accounting for inventory
The FASB issued proposals to simplify income statement presentation by eliminating extraordinary items and to simplify the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost or net realizable value test. Our To the Point publication tells what you need to know about these proposals, which are the first in a FASB initiative to simplify US GAAP in the near term.

14 July 2014

Comment Letter - Chapter 8: Notes to financial statements
In our comment letter, we supported the FASB’s objective of improving disclosure effectiveness in the notes to the financial statements by developing a framework the Board would apply when creating new disclosure requirements and evaluating existing ones. However, we are concerned that the proposed framework would actually perpetuate the significant expansion in disclosure that has occurred over the past few decades. We suggest changes to the framework, including the testing process, and recommend that the Board provide guidance on materiality and clearly distinguish between annual and interim requirements.

1 July 2014

Financial Reporting Developments - Exit or disposal cost obligations
We have updated our Financial Reporting Developments publication on exit or disposal cost obligations to provide additional interpretive guidance.

19 June 2014

Financial Reporting Developments - Segment reporting
We have updated our FRD publication on segment reporting to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a detailed list of these updates.

12 June 2014

Financial Reporting Developments - Joint ventures
We have updated our FRD publication on joint ventures to clarify and enhance our interpretative guidance. Refer to Appendix E of the publication for a detailed list of these updates.

20 May 2014

Financial Reporting Developments - Accounting changes and error corrections
We are issuing our Financial Reporting Developments publication on accounting changes and error corrections. This publication is designed to assist professionals in understanding the financial reporting issues associated with accounting changes (including changes in accounting principle, changes in estimates and changes in reporting entity) and error corrections.

20 May 2014

Financial Reporting Developments - Earnings per share
We have updated our Financial Reporting Developments publication, Earnings per share, to clarify our guidance regarding, among other things, the average market price of a company’s common stock when applying the treasury stock method to pre-IPO periods, allocating undistributed losses under the two-class method in certain situations and considerations for evaluating a registrant’s stated policy of settling certain contracts in cash.

13 May 2014

Financial Reporting Developments - Discontinued operations
We have updated our Financial Reporting Developments publication on discontinued operations for further clarification and enhancements to our interpretative guidance.

1 May 2014

Technical Line - How discontinued operations are changing
The FASB’s new guidance changes the criteria for disposals to qualify as discontinued operations and requires new disclosures about disposals of both discontinued operations and certain other disposals that do not meet the new definition. Our Technical Line analyzes the changes in reporting discontinued operations and provides examples.

11 April 2014

To the Point - FASB issues standard on reporting discontinued operations
The FASB issued final guidance that raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. Our To the Point publication tells you what you need to know about the standard.

13 March 2014

Accounting pronouncements effective for the first quarter of 2014
Several new accounting pronouncements are effective for the first quarter of 2014 for calendar-year entities. We list them below, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.

6 March 2014

Technical Line - A closer look at the new definition of a public business entity
The FASB has issued a broad new definition of a public business entity that it is using to consider whether an entity can use accounting alternatives developed by the Private Company Council and other private company relief the FASB provides in new standards. Certain non-issuers and other entities that are considered nonpublic under other definitions that exist in US GAAP now qualify as public business entities. Our Technical Line tells you what you need to know about the new definition.

6 March 2014

To the Point - A framework to help the FASB establish effective disclosures
The FASB proposed adding a chapter to its conceptual framework that is intended to improve the Board’s process for establishing disclosure requirements. Our To the Point publication tells you what you need to know about the proposal.

16 January 2014

To the Point - A new method of accounting for investments in qualified affordable housing projects
The FASB issued final guidance that allows investors to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under this method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. While the guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication tells you what you need to know about the new guidance.

9 January 2014

Technical Line - Federal grant policies for recipients are streamlined and changed
The US Office of Management and Budget has streamlined and consolidated its grant guidance for recipients and made other changes to make federal programs more efficient and effective. The final guidance will allow new grantees to use a minimum flat indirect cost rate and provide opportunities for certain grantees to simplify the reporting needed to validate personnel costs. It also may lead to more robust subrecipient monitoring and increase the focus on internal controls over compliance with federal program rules. The guidance also modifies the major program determination process and raises the audit threshold and the minimum Type A/B program threshold to $750,000. Our Technical Line publication tells you what you need to know about the changes.

12 December 2013

Accounting pronouncements effective in 2013
Several new accounting pronouncements are effective for 2013 interim or annual periods for calendar-year entities. We have listed those pronouncements, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2013.

20 November 2013

To the Point - Discontinued operations to reflect strategic shifts
To address constituents’ concerns about its April 2013 proposal, the FASB decided to incorporate in the definition of a discontinued operation a requirement that a disposition reported as discontinued represent a strategic shift in an entity’s operations and to provide more implementation guidance on how the definition would work. Our To the Point tells you what you need to know about this and other decisions reached.

10 October 2013

Technical Line - How investment companies would apply the new guidance on liquidation basis accounting
The FASB's guidance requiring entities to begin preparing financial statements on a liquidation basis when liquidation is imminent applies to all investment companies, except those regulated under the Investment Company Act of 1940 or those following a liquidation plan established at inception. Once an investment company determines that applying the liquidation basis is appropriate, financial statement presentation and disclosures would change and the recognition and measurement of accounts may change. Our Technical Line describes what investment companies need to know about when and how to apply the liquidation basis of accounting.

24 September 2013

Comment Letter - FASB proposal on going concern uncertainties
In our comment letter, we said we support the FASB's effort to develop a going concern model that would require preparers of financial statements to assess going concern uncertainties and provide more timely footnote disclosures. However, we said certain issues need to be addressed before any final guidance on the subject is published.

20 September 2013

Comment letter - Definition of a public business entity
In our letter, we support the development of a single definition of a public business entity for future standard setting but say the proposed definition is complex and would be challenging to apply. We also note that the proposed definition would include many entities that aren't treated as public companies today and might differ from existing SEC rules, regulations and interpretations.

18 September 2013

To the Point - FASB chairman sets new priorities
The FASB is setting new priorities under Russell Golden, who took over as chairman on 1 July, and James Kroeker, who joined the FASB as vice chairman on 1 September. Completing the major convergence projects with the IASB is the current focus. Mr. Golden also is looking beyond those projects and plans to focus on topics such as disclosure effectiveness, debt and equity, issues in pension and hedge accounting, as well as operational issues. This To the Point discusses what you need to know about the FASB’s priorities.

17 September 2013

Accounting pronouncements effective for the third quarter of 2013
Several new accounting pronouncements are effective for the third quarter of 2013 for calendar-year entities. We have listed those pronouncements in our document, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.

8 August 2013

To the Point - FASB proposes new definition of a public company for future standard setting
The FASB proposed guidance to define a public business entity and to identify the types of entities that would be excluded from the scope of the Private Company Decision-Making Framework. See the proposal (pdf, 344kb)  and our To the Point publication for further information.

25 July 2013

Comment Letter - Technical corrections and improvements related to glossary terms
Our comment letter highlights proposed changes to ASC glossary terms that could have significant effects on existing practice, may have unintended consequences and/or may be unclear to stakeholders.

28 June 2013

To the Point - Management would have to assess going concern uncertainties
The FASB has proposed requiring management to assess uncertainties that could affect a company’s ability to continue as a going concern in the 24 months after the financial statement date and to provide disclosures when certain thresholds are met. Our To the Point publication tells you what you need to know about the proposal.

23 April 2013

To the Point - FASB issues new liquidation basis accounting guidance
The FASB issued final guidance requiring entities to begin preparing financial statements on a liquidation basis when liquidation is imminent, as defined in the standard. The guidance doesn’t apply to investment companies regulated under the Investment Company Act of 1940 or limited-life entities that follow a liquidation plan established at their inception. The guidance is effective prospectively for reporting periods beginning after 15 December 2013. Early adoption is permitted.

22 April 2013

Technical Line - Changes proposed to federal grant policies
The US Office of Management and Budget has proposed streamlining its grant guidance and making other changes aimed at increasing the effectiveness and efficiency of federal programs. The proposal would allow new grantees to use a minimum flat indirect cost rate for a few years and provide opportunities for certain grantees to simplify the reporting needed to support salary charges. It also may lead to more robust subrecipient monitoring. Other proposed changes include streamlining the compliance requirements tested in the Circular A-133 audit, changes to the major program determination process and raising the audit threshold to $750,000. Our Technical Line publication tells you what you need to know about the proposed changes.

16 April 2013

Technical Line - How to report AOCI in interim periods
ASU 2013-02 amended interim and annual reporting requirements about accumulated other comprehensive income (AOCI) for public and nonpublic companies. In interim periods, public companies are required to report information about reclassifications out of AOCI and changes in AOCI balances. Nonpublic companies are required to report only changes in AOCI balances. This Technical Line addresses implementation of the ASU for interim reporting. The ASU is effective for the first quarter of 2013 for calendar-year public companies.

4 April 2013

To the Point - FASB issues proposal to change reporting of discontinued operations
The FASB proposed raising the threshold for reporting a discontinued operation (e.g., a separate major line of business or major geographical area) and permitting an increased level of ongoing involvement (e.g., allows for continuing cash flows and significant continuing involvement). The proposal would require additional disclosures about discontinued operations and new disclosures about certain individually material disposal transactions that would not meet the definition of a discontinued operation. Comments are due by 30 August 2013.

27 March 2013

To the Point - New guidance for not-for-profit entities
The American Institute of Certified Public Accountants (AICPA) has issued a comprehensive revision of its Audit and Accounting Guide, Not-for-Profit Entities,for the first time in 15 years. Questions raised as the Guide was being updated have resulted in new guidance from the Emerging Issues Task Force (EITF) on two not-for-profit topics. Our To the Point publication summarizes the guidance from the AICPA and the EITF.

27 February 2013

Technical Line - What the new AOCI disclosures will look like
The FASB has issued new guidance requiring companies to report, in one place, information about reclassifications out of accumulated other comprehensive income (AOCI). Public companies must make the disclosures in fiscal years and interim periods within those years beginning after 15 December 2012. For calendar-year public companies, that means the first quarter of 2013. Our Technical Line describes the requirements and provides examples of what the disclosures might look like.

9 January 2013

To the Point - New definition and disclosures coming for discontinued operations
The FASB tentatively decided to propose a new definition of a discontinued operation that would raise the threshold to qualify (e.g., a separate major line of business or major geographical area) and permit an increased level of ongoing involvement (e.g., allows for continuing cash flows and significant continuing involvement). The FASB also tentatively decided to require disclosures about discontinued operations and about certain individually material disposal transactions that do not meet the definition of a discontinued operation. The Board directed its staff to draft a proposal as soon as possible. Our To the Point tells you what you need to know.

13 December 2012

Accounting pronouncements effective in 2012
Several new accounting pronouncements are effective for 2012 interim or annual periods for calendar-year entities. We have listed those pronouncements in our publication, along with a description of the related Ernst & Young resources. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2012.

30 November 2012

Comment letter - FASB discussion paper on disclosure framework
Our comment letter supports the FASB’s decision to address disclosure effectiveness and to develop a framework to promote consistent decisions about disclosure requirements. However, we believe disclosure overload exists and therefore urge the FASB to make reducing disclosure requirements a priority of the project and to limit new disclosure requirements until the project is completed.

21 November 2012

Technical Line - Implementing the medical device excise tax
An excise tax of 2.3% on the sale, lease, rental or use of certain medical devices was mandated by the 2010 health care reform legislation and goes into effect 1 January 2013. The tax applies to manufacturers, producers and importers of taxable medical devices. In some situations, a health care organization such as a hospital or other provider may also be liable for the tax. This Technical Line addresses who is affected by the tax and how it should be calculated. The Technical Line also addresses accounting considerations under US GAAP and IFRS.

15 November 2012

To the Point - Management would have to assess going concern
The FASB tentatively decided to require management to assess a company’s ability to continue as a going concern and the need for disclosure when certain levels of uncertainty exist. This would be a change because today’s requirement to assess a company’s ability to continue as a going concern rests primarily with auditors. The FASB expects to issue a proposal in the first quarter of 2013.

2 November 2012

Technical Line - Accounting for the effects of natural disasters - Hurricane Sandy
In the aftermath of Hurricane Sandy, we received inquiries regarding the related financial reporting effects. Our Technical Line provides a reminder of existing accounting guidance that should be considered when accounting for the effects of natural disasters.

15 October 2012

Comment Letter - FASB proposal to present items reclassified out of AOCI
Our comment letter supports the FASB’s proposal to require the presentation of items reclassified out of AOCI in the notes to the financial statements rather than on the face of the financial statements as previously proposed. We are also supportive of the Board’s decision to not require breakout and disclosure of amounts included in net income for items that are not reclassified into net income in their entirety (e.g., items that are capitalized on reclassification out of AOCI and recognized in income at a later date). However, we believe the usefulness of disclosures that are proposed is compromised by the lack of conceptual basis for OCI and related reclassifications.

4 October 2012

Quarterly tax developments - September 2012
Our September edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties, regulatory developments and other items through 30 September 2012 to consider as you prepare your tax provision. We've also listed our tax alerts and other publications that provide more detail on the topics we discuss.

1 October 2012

Comment Letter - The liquidation basis of accounting
We support the Board’s efforts to provide guidance on how and when to apply the liquidation basis of accounting. This Proposed Update would promote consistency in how and when entities apply the liquidation basis of accounting and would provide information that is more relevant to users of the financial statements.

23 August 2012

Technical Line - New principles and criteria for assessing the quality of XBRL files
The AICPA issued Principles and Criteria for XBRL-Formatted Information, which can help companies improve the quality of the financial information they format in computer-readable XBRL and submit to the SEC and other regulators. The document is especially useful now that the SEC staff has indicated it will begin issuing comment letters on XBRL exhibits shortly. Our Technical Line publication summarizes what you need to know about the AICPA document.

23 August 2012

To the Point - FASB proposes more AOCI reclassification disclosures
The FASB issued an exposure draft that proposes new tabular disclosures about items reclassified out of accumulated other comprehensive income (AOCI). The proposal would also increase disclosures about changes in the balances of AOCI components and require new interim reporting disclosures. Our To the Point publication summarizes what you need to know about the proposal.

23 August 2012

To the Point - Sustainability reporting gets a boost from stock exchanges
The NASDAQ Stock Market became one of the latest stock exchanges to urge listed companies to measure and report on environmental and social issues. Our To the Point publication tells you what you need to know about the trend.

9 August 2012

To the Point - No IPEs, but fair value could still be an option
The FASB tentatively decided not to develop entity-based accounting guidance for investment property entities (IPEs). The Board plans to consider the results of related standard-setting projects before deciding whether to pursue another approach, such as developing asset-based guidance for investment property, or to abandon the investment property project entirely. Our To the Point publication describes the Board’s latest decisions.

7 August 2012

Technical Line - Lessons learned from our review of restatements
Our Technical Line discusses the accounting topics that gave rise to restatements and will be helpful for companies as they perform internal risk assessments and evaluate their control environment.

27 July 2012

To the Point - Qualitative impairment test added for indefinite-lived intangibles
The FASB issued final guidance giving companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Our To the Point summarizes what you need to know about the Accounting Standards Update.

12 July 2012

To the Point - FASB drops loss contingencies disclosure project
The FASB discontinued its project to expand requirements for loss contingencies disclosure but could revisit the issue as part of its disclosure framework project. In the mean time, we expect the SEC staff to continue to focus on compliance with existing requirements. Our To the Point publication describes the Board’s decision and summarizes the SEC staff’s recent comments on companies’ disclosures.

3 July 2012

Quarterly tax developments - June 2012
Our June edition is designed to help you identify certain changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes certain enacted and effective tax legislation, global tax treaties, regulatory developments and other items through 30 June 2012 to consider as you prepare your tax provision. We've also listed our tax alerts and other publications that provide more detail on the topics we discuss.

3 July 2012

To the Point - Liquidation accounting would be required when liquidation is imminent
The FASB proposed requiring entities to prepare financial statements on a liquidation basis when management stops making significant decisions about furthering the operations of an entity or limits its decision to those necessary to carry out a liquidation plan. Our To the Point publication summarizes what you need to know about the proposal.

21 June 2012

To the Point - Now is the time to address disclosure overload
The volume of disclosures required in annual reports has grown sharply over the past two decades, largely fulfilling the prediction made in a 1994 study. Our To the Point publication updates the study of the average number of pages devoted to footnotes and Management’s Discussion and Analysis in annual reports of a select group of companies and highlights the plans of the FASB and SEC staff to increase the effectiveness of disclosures.

24 May 2012

Proxy season 2012 - early voting results
This publication provides a view into early voting patterns and shareholder campaigns regarding director elections, say-on-pay proposals, and shareholder proposals, all of which guide expectations as the proxy season unfolds.

17 April 2012

Proxy season 2012: trends in proxy statement disclosure
An early look at the 2012 proxy season shows that companies are using the proxy statement as a strategic tool to strengthen board communications with shareholders, effectively enhancing transparency around their corporate governance practices and policies. This publication reviews the emerging trends in proxy statement disclosures among large US companies and the evolving corporate governance practices they reflect.

4 April 2012

Quarterly tax developments - March 2012
Our new publication is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. Every quarter, we will summarize enacted and effective tax legislation, global tax treaties, regulatory developments and other items to consider as you prepare your tax provision. We'll also list our tax alerts and other publications that provide more detail on the topics we discuss.

8 March 2012

Technical Line - Changes in reporting comprehensive income
Many companies will have to change how they present comprehensive income under Accounting Standards Updates 2011-05 and 2011-12. The new guidance is effective for public companies for fiscal years, and interim periods within those years, beginning after 15 December 2011. This means the first quarter of 2012 for calendar year-end public companies. For nonpublic companies, the amendments are effective for fiscal years ending after 15 December 2012 and interim and annual periods thereafter. Retrospective application is required. Early adoption is permitted. Our Technical line publication describes the new requirements.

16 February 2012

Proxy season 2012: board priorities for shareholder engagement
This issue offers boards insights into investor priorities for 2012 so they can better prepare for shareholder engagement and communications. It offers an overview of the emerging corporate governance themes and highlights key shareholder initiatives that are expected to dominate the proxy season. Stay tuned for the remaining Proxy Perspectives during the proxy season.

9 February 2012

Audit committee - leading practices and trends
This publication outlines key considerations for audit committees as they focus on risk oversight, committee composition and self assessment. Also included are suggestions for executive sessions, interaction with other board committees, continuing education and new member orientation.

2 February 2012

2011 year-end issues audit committees should consider
Audit committees continue to face change, economic volatility and regulatory uncertainty as they head into the year-end reporting season. Our publication, 2011 year-end issues audit committees should consider, discusses the key challenges facing audit committees and lays out 20 questions audit committees should consider as they prepare for their upcoming discussions. Our publication also provides additional insights by references to other Ernst & Young publications.

25 January 2012

To the Point - FASB tries to simplify impairment test for indefinite-lived intangibles
Based on concerns raised by financial statement preparers about recurring costs and complexity of calculating the fair value of indefinite-lived assets for impairment testing, the FASB today issued a proposed ASU to simplify the impairment test. The proposal would give companies the option to perform a qualitative assessment (similar to the one introduced by ASU 2011-08 for goodwill) to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Comments are due by 24 April 2012.

12 January 2012

Technical Line - Accounting for incentive payments for using electronic health records
Many questions have arisen about the appropriate accounting treatment for incentive payments under the Medicare and Medicaid programs for certain eligible professionals and hospitals that meaningfully use certified electronic health record (EHR) technology. The SEC staff has informally expressed its view on the accounting treatment of these payments. Our Technical Line discusses the SEC staff’s view and the accounting implications of these incentive payments for issuers and non-issuers that operate hospitals.

29 December 2011

To the Point - Reclassifications are deferred - for now
The FASB has issued Accounting Standards Update 2011-12 (ASU 2011-12), Deferral of the Effective date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. ASU 2011-12 defers the requirement that companies present reclassification adjustments for each component of AOCI in both net income and OCI on the face of the financial statements.

13 December 2011

Comment Letter - Technical corrections
Our comment letter agrees that most of the proposed changes would not be expected to have a significant effect on current accounting practice. However, we believe that several of the proposed amendments would have significant implications for some entities and those proposals should either be revised or transition should be provided.

8 December 2011

Technical Line - New investment property guidance may be in store for real estate entities
The FASB proposed a new accounting standard for investment property entities that could change the financial reporting for many entities that invest in real estate. Entities that meet the criteria for investment property entities would be required to measure their real estate investment property at fair value, with changes in fair value recognized in net income. They would present investment properties and related debt on their consolidated balance sheets and rental revenue and related expenses on their consolidated income statements.

21 November 2011

Comment letter - Deferral of effective date for amendments to the presentation of reclassifications of Items out of AOCI in ASU 2011-05
Our comment letter supports the FASB’s proposal to defer the effective dates of the requirement in Accounting Standards Update 2011-05 to present on the face of the financial statements the effects of reclassification adjustments out of accumulated other comprehensive income on the components of net income and other comprehensive income. We believe the deferral should be permanent.

9 November 2011

To the Point - OCI requirements may be changing - again
The FASB issued an exposure draft that proposes deferring the requirement in ASU 2011-05 that companies present reclassification adjustments for each component of accumulated other comprehensive income (AOCI) in both net income and other comprehensive income on the face of the financial statements. If finalized, the proposal would have the same effective dates as ASU 2011-05. Our To the Point publication summarizes what you need to know about the proposal.

1 October 2011

Financial Reporting Developments - Impairment or disposal of long-lived assets
We have updated our Financial Reporting Developments publication on impairment or disposal of long-lived assets to provide additional interpretive guidance.

30 September 2011

Comment Letter - Concept release on possible revisions to PCAOB standards related to reports on audited financial statements
Our comment letter to the PCAOB supports responsible change to the auditor reporting model and outlines a possible approach to revising the auditor’s reporting model.

21 September 2011

Dangerous world - practical steps for global companies to evaluate and address corruption risk
Corruption risk continues to be a significant concern for global companies. The trend of increased Department of Justice and SEC enforcement of the US Foreign Corrupt Practices Act continues in the US. We provide suggestions for how large and mid-size companies should go about evaluating their corruption risks and put a program in place to address these risks responsibly.

11 August 2011

Technical Line - Current economic conditions - financial reporting considerations
The downgrade by S&P of the long-term sovereign credit rating of the United States has contributed to the recent volatility in the capital markets. It also raises a number of financial reporting considerations, including whether US Treasury rates can continue to be used as the risk-free interest rate for financial reporting purposes. Our Technical Line publication discusses this and other matters.

16 June 2011

To the Point - Other comprehensive income is moving
The FASB issued new guidance to make the presentation of items within other comprehensive income (OCI) more prominent. Companies will be required to present items of net income, items of OCI and total comprehensive income in one continuous statement or two separate consecutive statements. They will no longer be allowed to present items of OCI in the statement of stockholders’ equity. Out To the Point summarizes what you need to know about the rule.

1 June 2011

Financial Reporting Developments - Asset retirement obligations
We have updated our Financial Reporting Developments publication on asset retirement obligations to reflect our current understanding of this guidance.

1 June 2011

InSights - Regulatory compliance: adapting to a pressurized environment
This edition of InSights looks at how company compliance functions are adapting to more stringent regulatory environment. It is based on conversations with audit committee chairs, compliance executives and a broad range of other advisors.

1 April 2011

Proxy Perspectives: Proxy season preview board priorities in 2011
Our publication outlines what boards need to know now as we enter the 2011 shareholder meeting season.

1 April 2011

Proxy Perspectives: Shareholders target board oversight of company tax strategy
Our publication discusses shareholder concerns about board oversight of risks arising from a company’s tax strategy.

29 March 2011

Technical Line - Accounting for the effects of natural disasters - Japan
While the tragedy in Japan continues to evolve, companies are raising a number of questions about the related financial reporting effects. Our Technical Line provides a reminder of existing accounting guidance that should be considered when accounting for the effects of natural disasters.

7 January 2011

2010 year-end issues audit committees should consider
Our publication discusses 2010 year-end issues top of mind for audit committee members.

5 January 2011

Hot Topic - Loss contingency disclosure
Our Hot Topic provides a more in-depth view of the SEC staff’s actions and expected actions related to loss contingency disclosure.

27 October 2010

Hot Topic - FASB’s proposed loss contingency disclosures not effective for 2010
The FASB decided that the proposed loss contingency disclosures will not be required for public entities in 2010. Our publication discusses the actions taken by the FASB.

30 September 2010

Comment Letter - Statement of comprehensive income
Under the proposed model, an entity would be required to report total comprehensive income and its components in two parts, net income and other comprehensive income (OCI), in a continuous statement of comprehensive income. Our comment letter notes that we find it difficult to evaluate the proposed changes while there are no clear underlying principles for the recognition of OCI or the reclassification of such items to net income.

17 September 2010

Comment Letter - Disclosure of certain loss contingencies
While significantly improved over the first exposure draft in 2008, our comment letter expresses concerns regarding whether the loss contingency proposal is operational and would achieve the FASB's disclosure objectives.

18 August 2010

Hot Topic - FASB extends comment period for loss contingency disclosure proposal
On 18 August 2010, the FASB decided to extend the comment period related to its most recent exposure draft on loss contingency disclosures until 20 September 2010. Our Hot Topic updates our previous summary on the re-proposal.

11 August 2010

Hot Topic - Change in the HIRE Act statute of limitations
Our Hot Topic amends the 21 May 2010 publication for the change in the HIRE Act statute of limitations.

30 July 2010

Hot Topic - FASB’s loss contingency disclosure proposal includes indirect taxes
The scope of the re-proposal on contingencies includes loss contingencies related to indirect taxes (i.e., taxes that are not within the scope of ASC 740, Income Taxes, as the tax is not based on income). Our Hot Topic summarizes the implications.

21 July 2010

Hot Topic - FASB re-exposes loss contingency disclosure proposal
The FASB has released its second exposure draft on loss contingency disclosures. If adopted as proposed, the proposal would expand the population of loss contingencies that are required to be disclosed to include remote contingencies that could have a severe impact. Our Hot Topic summarizes the key points in the proposal.

21 July 2010

Technical Line - Venezuela’s foreign currency exchange market: recent developments
During second quarter 2010, the government of Venezuela acted to halt the free-floating "parallel" currency exchange mechanism that many companies utilized to convert Venezuelan currency to US dollars, replacing that mechanism with a new currency exchange system known as "SITME." The accounting considerations associated with that development are discussed in our Technical Line.

16 July 2010

Comment Letter - Conceptual framework for financial reporting: the reporting entity
Our comment letter supports the addition of a project on the reporting entity to the Boards’ agenda. However, we have concerns with the description of the reporting entity and the ability to apply the definition in practice.

7 July 2010

Hot Topic - FASB staff draft of new presentation model for financial statements
If ultimately exposed and adopted as proposed, the FASB and IASB staff draft standard will fundamentally redefine the way that entities present their financial position, performance and cash flows and likely will require significant changes to entities’ information systems. Our Hot Topic provides an overview of the draft presentation model.

2 June 2010

EY summary of COSO study on fraudulent financial reporting
Our report summarizes the COSO report analyzing fraudulent financial reporting between 1998-2007.

9 April 2010

Hot Topic - Accounting for government assistance received
A number of governmental agencies, both domestic and foreign, have established programs to promote or guide the development of business activities by providing grants or credits. Our Hot Topic provides a brief summary of the accounting for tax based incentives and government grants.

9 April 2010

Hot Topic - Recent legislative actions
Governments both in the US and abroad have been very active on a broad range of legislative initiatives. Our Hot Topic addresses the accounting for the income tax related to health care reform, clean energy, incentives to hire unemployed workers, extending expired tax legislation and changes in the United Kingdom’s statute of limitations.

1 April 2010

Health care reform: top five things employers need to know
Our publication provides an overview of the key elements affecting employers in the Patient Protection and Affordable Health Care Act.

1 March 2010

Health care reform has passed: what now?
Our publication outlines the key elements of the Patient Protection and Affordable Health Care Act.

26 February 2010

Hot Topic - FASB issues ASU to amend ASC 855, Subsequent Events
As a result of the ASU, SEC registrants will not disclose the date through which management evaluated subsequent events in the financial statements — either in originally issued financial statements or reissued financial statements. Our Hot Topic provides additional detail about the final ASU.

27 January 2010

Comment Letter - Proposed ASU on subsequent events
This comment letter provides our views on the FASB's proposal on subsequent events.

15 January 2010

Technical Line - Venezuela as a highly inflationary economy
Our Technical Line addresses the accounting for a change from a non-highly inflationary economy for Venezuela to a highly inflationary economy.

30 December 2009

Hot Topic - FASB issues proposed ASU to amend ASC 855, Subsequent Events
Our Hot Topic summarizes the FASB's proposal that would amend subsequent event guidance to address practice issues for SEC registrants with respect to processes around issuing financial statements and SEC registration requirements (e.g., incorporation by reference of previously issued financial statements).

23 December 2009

Venezuela to be Considered "Highly Inflationary" for 2010 Reporting Periods
Our publication provides guidance on the inflationary status of Venezuela.

13 November 2009

Hot Topic - Accounting for financial instruments: A changing landscape
Our Hot Topic provides a summary of FASB actions taken to date in their Accounting for Financial Instruments project and provides an overview of the current status of issues being considered and tentative decisions reached. It also provides an overview of the chapters of IFRS 9 recently issued.

31 July 2009

Hot Topic - Financial Crisis Advisory Group reports to the FASB and IASB
Our Hot Topic summarizes the Financial Crisis Advisory Group report to members of the FASB and IASB on the standard-setting implications of the global financial crisis.

16 June 2009

Current economic conditions: Accounting and reporting considerations
Our Current Economic Conditions publication is designed to help you understand and address certain accounting and financial reporting issues that may warrant increased focus because of today's market conditions.

3 June 2009

Hot Topic - FASB agrees to the effective date of the Codification
Our Hot Topic discusses the use of GAAP references in financial statements after the Codification becomes effective, as well as some reminders for Codification users.

29 May 2009

Hot Topic - FASB issues standard on subsequent events
Our Hot Topic summarizes Statement 165 on subsequent events. The FASB issued Statement 165 to provide authoritative accounting literature for a topic that was previously addressed only in the auditing literature. The guidance in Statement 165 is similar to the current guidance in the auditing literature with some exceptions that are not intended to result in significant changes in practice.

15 May 2009

Comment Letter - FASB proposal related to various technical corrections
This comment letter provides our views on certain technical corrections proposed by the FASB.

15 April 2009

Comment Letter - FASB and the IASB discussion paper on financial statement presentation
This comment letter provides our views on its discussion document related to financial statement presentation.

3 April 2009

Comment Letter - Questions raised by Financial Crisis Advisory Group
This comment letter provides our views to questions raised by the Financial Crisis Advisory Group (FCAG) regarding accounting and reporting matters related to the financial crisis.

1 April 2009

Topics of interest to shareholders
Our publication is designed to help companies prepare for their annual shareholder meetings and provides questions we believe shareholders are likely to ask.

11 March 2009

Hot Topic - FASB hosts loss contingency disclosure roundtables
Our Hot Topic summarizes the two roundtable sessions to discuss the FASB’s project that resulted in the 5 June 2008 Exposure Draft, Disclosure of Certain Loss Contingencies.

23 January 2009

Comment Letter - Proposed FSP FAS 144-d, amending the criteria for reporting a discontinued operation
This comment letter provides our views on the FASB's proposed FSP related to discontinued operations.

14 January 2009

Comment Letter - FASB Accounting Standards Codification
This comment letter presents our views on the proposed FASB codification.

22 December 2008

Hot Topic - Considerations for inventory LOCOM analyses
As a result of the recent economic downturn, companies are evaluating inventories for lower-of-cost-or-market (LOCOM) issues and finding that write-downs of inventory are required to reduce the cost-based carrying value of inventory to market. This Hot Topic discusses the related accounting issues.

17 December 2008

Hot Topic - FASB Codification to supersede current US GAAP - Understanding the Change
Our Hot Topic discusses the implications of FASB's recent announcement that on 1 July 2009, the FASB Accounting Standards Codification (Codification) is expected to officially become the single source of authoritative nongovernmental US GAAP.

8 December 2008

Comment Letter - FASB Exposure Draft on going concern
This comment letter provides our views on the FASB proposal on going concern.

8 December 2008

Comment Letter - FASB Exposure Draft on subsequent events
The comment letter provides our views on the FASB proposal on subsequent events.

5 December 2008

Comment Letter - FASB and IASB Exposure Drafts on earnings per share
This comment letter provides our views of both the FASB and IASB proposals on the calculation of earnings per share.

1 December 2008

Counterparty nonperformance risk
Our publication highlights important accounting and reporting considerations related to counterparty nonperformance risk.

21 November 2008

Technical Line - Two-class method of computing EPS: Applying FSP EITF 03-6-1/EITF 07-4
Our Technical Line addresses the guidance issued by the FASB and the EITF on applying the two-class method of computing EPS in certain instances.

17 October 2008

Hot Topic - FASB issues preliminary views on financial statement presentation
Our Hot Topic summarizes the joint FASB and IASB Discussion Paper (DP) on financial statement presentation. The Boards plan to create a standard that requires entities to organize financial statements in a manner that clearly communicates an integrated financial picture of the entity.

10 October 2008

Hot Topic - New FASB exposure drafts on subsequent events and going concern issued
Our Hot Topic summarizes the FASB Exposure Draft, Subsequent Events and Going Concern. The intent of the proposal is to provide authoritative accounting literature for two topics that currently are addressed in the auditing literature.

3 October 2008

Comment Letter - IASB/FASB Joint Conceptual Framework Project - DP/ITC on Reducing Complexity in Reporting Financial Instruments
This comment letter provides our views on the joint IASB/FASB Discussion paper on reducing complexity in financial instruments.

3 October 2008

Hot Topic - Highlights: Emergency Economic Stabilization Act Issued
Our Hot Topic summarizes the Emergency Economic Stabilization Act (the Act) that was signed into law on 3 October 2008.

2 October 2008

Comment Letter - IASB/FASB Joint Conceptual Framework Project - PV on the Reporting Entity
This comment letter provides our views on the joint FASB/IASB discussion document on the conceptual framework.

26 September 2008

Comment Letter - IASB/FASB Joint Conceptual Framework Project - Exposure Draft - Chapter 1 and Chapter 2
This comment letter provides our views on the Joint FASB/IASB Exposure Draft on Chapters 1 and 2 of the conceptual framework.

26 September 2008

Hot Topic - Effect of surcharges on frequent flier programs on travel liabilities
Our Hot Topic addresses questions that have arisen as to how certain FFP surcharges should be considered in an airline’s calculation of the travel liabilities associated with its frequent flier program.

26 September 2008

Hot Topic - FASB proposes new definition of a discontinued operation
Our Hot Topic summarizes the FASB's proposed FSP on discontinued operations

5 September 2008

Hot Topic - FASB releases proposed Statement to amend Statement 128, Earnings Per Share
Our Hot Topic summarizes the changes proposed in the FASB proposal on earnings per share. The FASB issued the proposal as part of a joint project with the IASB. The IASB also issued an Exposure Draft proposing amendments to IAS 33.

31 July 2008

Comment Letter - FASB proposed statement to significantly expand disclosures for loss contingencies
This comment letter provides our views on the FASB's proposal to significantly expand disclosures for loss contingencies.

10 July 2008

Comment Letter - FASB Request for Additional Comments NFP: M&A
This comment letter provides our views on the FASB's proposal on mergers and acquisition of not-for-profit entities.

27 June 2008

Comment Letter - Recommendations of the Treasury Advisory Committee on the accounting and auditing profession
This comment letter provides our views on the Treasury Advisory Committee on the accounting and auditing profession.

18 June 2008

Hot Topic - FASB releases proposed statement to significantly expand disclosures for loss contingencies
Our Hot Topic discusses the FASB's proposal that would significantly expand disclosures about loss contingencies under Statement 5.

13 June 2008

Comment Letter - Proposed FASB FSP ARB 43-a-physical inventories held for trading
This comment letter provides our views on the FASB's proposed FSP on physical inventories held for trading.

5 June 2008

Hot Topic - Best practices for resolving complex accounting issues
Our Hot Topic focuses on best practices for resolving complex accounting issues in accounting consultations.

3 June 2008

Hot Topic - Asset impairment considerations in the current economic environment
Our Hot Topic addresses asset impairment considerations in the current economic environment.

2 May 2008

Comment Letter - FASB Proposed FSP FAS 117-a-NFP endowments
This comment letter provides our views on the FASB's proposed FSP on endowments held by not-for-profits.

13 March 2008

Comment Letter - Proposed FSP SOP 90-7-a, An Amendment of AICPA Statement of Position 90-7
This comment letter provides our views on the proposed amendment of AICPA Statement of Position 90-7. This Sop related to entities undergoing reorganization or bankruptcy.

1 March 2008

Helping you prepare for your annual meeting
Our publication is designed to help companies prepare for their annual shareholder meetings and provides questions we believe shareholders are likely to ask.

10 February 2008

Comment Letter - Proposed changes to structure of the FASB
This comment letter provides our views on the Financial Accounting Federation's proposal to change the structure of the FASB and GASB.