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Business combinations

16 January 2014

To the Point - An easier way for certain private companies to account for goodwill
The FASB issued final guidance that allows companies that don’t meet the new definition of a public business entity to amortize goodwill acquired in a business combination and to use a simpler one-step impairment test. While the guidance is effective for fiscal years beginning after 15 December 2014, early adoption is permitted, and companies can apply it to their 2013 financial statements if they have not yet made those statements available for issuance.

13 January 2014

Comment Letter - FASB proposal to eliminate development stage entity guidance
In our comment letter, we said we supported the FASB's efforts to reduce financial reporting cost and complexity by eliminating ASC 915 and its additional reporting requirements for development stage entities. However, we expressed our concern about how the proposed amendments could affect the way in which companies apply ASC 810's variable interest entity guidance and ASC 805's definition of a business when evaluating certain entities or operations that are in a development stage.

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Compensation matters

24 October 2013

Financial Reporting Developments - Share-based payments
We have updated our Financial Reporting Developments publication on share-based payments to reflect the latest guidance on common practice issues. In addition, we have removed guidance relating to the income tax accounting considerations of share-based payments that was formerly included in this publication, since all income tax related topics have been consolidated in our publication on ASC 740, Income Taxes.

31 May 2013

Comment Letter - FASB proposal to defer the effective date of certain disclosures for nonpublic employee benefit plans
In our comment letter, we support the FASB’s proposal to indefinitely defer the requirement for a nonpublic employee benefit plan to disclose quantitative information about the significant unobservable inputs used in measuring the fair value of investments held in the plan sponsor’s nonpublic equity securities. We also suggest the Board clarify whether an employee benefit plan that meets the definition of a nonpublic employee benefit plan in the proposal would be considered a nonpublic entity under ASC 820-10-50-2F and therefore would not be required to make certain other disclosures.

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Consolidation

10 April 2014

Technical Line - Private companies in common control leasing arrangements may be eligible for relief from VIE model
Our Technical Line discusses new guidance from the FASB that provides an exemption for private companies from evaluating lessors in common control leasing arrangements for consolidation under the variable interest entities (VIE) guidance, if they meet certain criteria. Private companies that elect the alternative still need to apply other consolidation guidance and other US GAAP (e.g., lease accounting) to these arrangements and make certain disclosures.

14 November 2013

Financial Reporting Developments - Consolidated and other financial statements: Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements
We have updated our Financial Reporting Developments publication, Consolidated and other financial statements, by adding a new chapter with interpretive guidance on preparing condensed consolidating financial information under SEC Rule 3-10 of Regulation S-X. Among other things, we also shortened the discussion on accounting for certain equity contracts on the stock of a subsidiary that was formerly in this publication, and added cross references to our other publications that address this accounting in more detail.

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Fair value measurements

18 July 2013

Financial Reporting Developments - Fair value measurement
We have updated our Financial reporting developments publication on fair value measurement for recent standard-setting activities and to provide clarifications and enhancements to our interpretative guidance. Chapters 3, 6, 18 and 19 of our FRD have been updated to address amendments made to ASC 820 by ASU 2012-02, ASU 2012-04, ASU 2013-03, ASU 2013-08 and ASU 2013-09. In addition, Industry Appendix IA.2 dealing with fair value considerations for the private equity industry has been updated to discuss TIS Sections 6910.34 and 6910.35 of the AICPA Technical Practice Aids for Investment Companies. Additional interpretive guidance on the fair value disclosure requirements in ASC 820, including clarification of the requirements for cash equivalents, is also included.

10 July 2013

To the Point - Fair value disclosure relief for nonpublic employee benefit plans
The FASB has indefinitely deferred the requirement for certain employee benefit plans to disclosure quantitative information about the unobservable inputs used to value equity investments in their nonpublic plan sponsor and the sponsor's nonpublic affiliates. The deferral is effective immediately for financial statements that have not yet been issued. Our To the Point publication tells you what you need to know about the new guidance.

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Financial instruments

17 April 2014

To the Point - FASB lays out topics it will consider for insurance industry accounting
After backing away from its proposal to overhaul the accounting for insurance contracts and deciding to focus on making targeted improvements, the FASB laid out the topics it will consider in redeliberations. The Board decided to divide the project into two components: short-term contracts (i.e., property-casualty and short-term health contracts) and long-duration contracts (i.e., life insurance and long-duration health contracts). Both components will be worked on concurrently.

10 April 2014

NAIC Bulletin - Spring 2014 edition
Our NAIC Bulletin contains the highlights of the Spring 2014 meeting of the National Association of Insurance Commissioners.

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Income taxes

9 April 2014

Quarterly tax developments - March 2014
Our March 2014 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, and other items through 31 March 2014 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

23 January 2014

Tax Alert 2014-148: US GAAP income tax accounting considerations of the Mexican 2014 Tax Reform
The final components of Mexico’s 2014 tax reform (Final Reform) were published in the Official Gazette on 11 December 2013, after having been signed by President Peña Nieto on 6 December 2013. The final step in enacting a tax law in Mexico is for the president to publish the law in the Official Gazette. Therefore, the enactment date of the Final Reform is 11 December 2013. The changes included in the Final Reform are generally effective for tax years beginning on or after 1 January 2014.

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IFRS matters

19 December 2013

US GAAP/IFRS accounting differences identifier tool
We have updated our US GAAP/ IFRS accounting differences identifier tool, which was developed to help entities that are converting from US GAAP to IFRS or that are evaluating the effects of IFRS adoption. This release generally reflects guidance effective in 2013 and guidance finalized by the FASB and the IASB before 31 May 2013, including IFRS 10, Consolidated Financial Statements, and IFRS 11, Joint Arrangements. It also contains a discussion of current standard-setting activities at the FASB and the IASB.

6 November 2013

US GAAP versus IFRS: The basics
We have updated our US GAAP versus IFRS: The basics publication, which describes similarities and differences between US GAAP and IFRS. The updated edition generally reflects guidance effective in 2013 and guidance finalized by the FASB and the IASB before 31 May 2013, including IFRS 10, Consolidated Financial Statements, and IFRS 11, Joint Arrangements.

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Industry issues

27 March 2014

Financial Reporting Briefs - First quarter 2014: Financial services
This publication provides you with a snapshot of the major accounting and regulatory developments in the financial services industry during the first quarter of 2014.

27 March 2014

Financial Reporting Briefs - First quarter 2014: Life sciences
This publication provides you with a snapshot of the major accounting and regulatory developments in the life sciences industry during the first quarter of 2014.

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Leases

20 March 2014

To the Point - Boards back away from some key aspects of leases proposal
In joint redeliberations, the IASB supported a single on-balance sheet model for lessee accounting while the FASB supported a dual on-balance sheet model. Despite this fundamental difference, the Boards reiterated their commitment to seek a converged solution. The Boards also indicated that they do not intend to significantly change lessor accounting. Instead, they supported retaining a dual classification model. The Boards also reached tentative decisions on lease term, a short-term lease exception and other ways to simplify their 2013 proposal. Our To the Point publication tells what you need to know about these decisions.

21 November 2013

To the Point - Boards to redeliberate key aspects of lease accounting - again
The FASB and the IASB discussed the feedback they received on their joint lease accounting proposal and decided to redeliberate the following topics: lease definition and scope, lessee accounting model, lessor accounting model, lease classification, lease measurement provisions and disclosure requirements. Our To the Point publication tells you what you need to know about the Boards' redeliberation plans.

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Private companies

10 April 2014

Technical Line - Private companies in common control leasing arrangements may be eligible for relief from VIE model
Our Technical Line discusses new guidance from the FASB that provides an exemption for private companies from evaluating lessors in common control leasing arrangements for consolidation under the variable interest entities (VIE) guidance, if they meet certain criteria. Private companies that elect the alternative still need to apply other consolidation guidance and other US GAAP (e.g., lease accounting) to these arrangements and make certain disclosures.

30 January 2014

To the Point - PCC finalizes consolidation alternative and drops a proposal
The Private Company Council modified its proposal to exempt private companies from evaluating certain common control leasing arrangements for consolidation under the variable interest entity guidance and sent it to the FASB for final endorsement. The PCC will continue to consider simplifications for the accounting for intangible assets acquired in a business combination and decided to drop a proposal that would have allowed private companies to use a "combined instrument approach" to qualify for hedge accounting for certain interest rate swaps.

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Revenue recognition

28 January 2014

To the Point - Board issues final guidance for service concession arrangements
The FASB issued final guidance stating that entities should not account for certain service concession arrangements entered into with public-sector entities as leases under ASC 840, Leases, and should not recognize the related infrastructure as property, plant and equipment. Instead, entities should refer to other US GAAP, such as ASC 605, Revenue Recognition, to account for these arrangements. While the final guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication summarizes what you need to know about the new final guidance.

5 December 2013

To the Point - It’s time to start preparing for the new revenue standard
With the new revenue standard expected early in 2014, companies should begin preparing now. The new standard will likely affect their financial statements, business processes and personnel, and internal control over financial reporting, and implementing it could be a significant undertaking. Our To the Point discusses what you can do now to prepare for a successful implementation.

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SEC/Other regulators

10 April 2014

Technical Line - PCAOB considers how to enhance the auditor’s report
The PCAOB held a public meeting last week at which auditors, investors, preparers and academics provided additional input on its proposal to enhance the auditor’s reporting model. Panelists generally supported the objective of making the auditor’s report more meaningful to users by requiring more than today’s pass/fail opinion, but their views on how to get there varied. The opinions expressed were generally consistent with the 240 comment letters the PCAOB received on its proposals through early April. Our Technical Line summarizes the public meeting and the comment letters.

28 March 2014

To the Point - Washington focuses on cybersecurity
The Securities and Exchange Commission held a roundtable this week at which the Commissioners and staff discussed with public and private sector representatives the cybersecurity challenges faced by market participants. The Commissioners also asked for public comment. This publication summarizes key topics discussed at the roundtable and summarizes congressional action on cybersecurity.

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Periodic updates

10 April 2014

First quarter 2014 Standard Setter Update
Our First quarter 2014 Standard Setter Update - Financial reporting and accounting developments highlights significant developments in financial accounting and reporting through 31 March 2014.

10 April 2014

NAIC Bulletin - Spring 2014 edition
Our NAIC Bulletin contains the highlights of the Spring 2014 meeting of the National Association of Insurance Commissioners.

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More topics

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.

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