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    Business combinations

    22 July 2015

    Financial Reporting Developments - Intangibles - Goodwill and other
    We have updated our FRD publication on goodwill and intangible assets to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a detailed list of these updates.

    2 July 2015

    Comment Letter - FASB proposal on measurement-period simplification
    In our comment letter, we supported the proposal to eliminate the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. We said the proposal would reduce costs and complexity while continuing to provide users of the financial statements with high-quality information.

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    Compensation matters

    14 August 2015

    Comment Letter - FASB proposal to simplify share-based payment accounting
    In our comment letter, we said we believe that the proposal would reduce costs and complexity by allowing all entities to elect to account for forfeitures of share-based payments as they occur and by providing two practical expedients for nonpublic entities. We support increasing the threshold for the exception to liability classification related to shares withheld for employees’ taxes and propose that the exception be extended to partnerships and other pass-through entities that do not have a withholding obligation. While we agree with the FASB’s proposal to eliminate the accounting for the pool of excess tax benefits, we believe that excess tax benefits and tax deficiencies should be recorded in additional paid-in capital, rather than in the income statement.

    31 July 2015

    To the Point - FASB simplifies financial reporting by employee benefit plans
    The FASB issued final guidance to simplify certain aspects of employee benefit plan accounting, while satisfying the needs of users of financial statements, including participants and the Department of Labor. The guidance, which was developed by the Emerging Issues Task Force, simplifies the measurement, presentation and related disclosures for fully benefit-responsive investment contracts and disclosures about plan investments. It also allows a plan with a fiscal year end that doesn’t coincide with the end of a calendar month to make an accounting policy election to measure its investments and investment-related accounts using the month end closest to its fiscal year end. The guidance is effective for fiscal years beginning after 15 December 2015. Earlier application is permitted.

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    Consolidation

    4 August 2015

    Financial Reporting Developments - Consolidated and other financial statements: Presentation and accounting for changes in ownership interests
    We have updated our Financial reporting developments publication on consolidated and other financial statements to further clarify and enhance our interpretative guidance. Refer to Appendix A of the publication for a summary of the updates.

    31 July 2015

    Comment Letter - FASB proposal to simplify equity method accounting
    In our comment letter, we supported the FASB’s objective in its simplification initiative. We agreed that the proposed amendments would simplify the initial recognition and measurement of equity method investments. However, we have concerns about the proposal to eliminate the identification of and accounting for basis differences and question whether it meets the FASB’s objective of simplifying US GAAP and, more broadly, whether the project would be better dealt with as part of a holistic review of the equity method. Consequently, we suggested, at a minimum, that the Board perform broader outreach prior to moving forward. However, we supported eliminating the requirement that an equity method investor account for an equity method investment retroactively when the investment initially qualifies for the equity method.

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    Fair value measurements

    16 July 2015

    Financial Reporting Developments - Fair value measurement
    We have updated our Financial reporting developments publication on fair value measurement primarily to reflect the issuance of ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). We also enhanced our interpretative guidance. Refer to Appendix F of the publication for a summary of the updates.

    31 October 2014

    To the Point - FASB proposes eliminating certain investments from the fair value hierarchy
    The FASB proposed eliminating the requirement that entities that measure investments using the net asset value (NAV) practical expedient categorize them in the fair value hierarchy table. Under the proposal, certain disclosures about these investments would still be required. Our To the Point publication tells you what you need to know about the proposal.

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    Financial instruments

    13 August 2015

    Financial Reporting Developments - Foreign currency matters
    We have updated our FRD publication on foreign currency matters to clarify and enhance our interpretative guidance. Refer to Appendix B of the publication for additional information regarding these updates.

    13 August 2015

    To the Point - FASB tries to simplify balance sheet classification of debt
    The FASB directed the staff to draft a proposal based on tentative decisions reached that would replace today’s rules-based guidance for determining whether to classify debt as current or noncurrent on the balance sheet with a principles-based approach. Under this approach, debt would be classified as noncurrent only when it is due more than 12 months (or beyond the operating cycle) after the balance sheet date or when the entity has a legal right to defer settlement for at least 12 months (or beyond the operating cycle) after the balance sheet date. While this approach would require entities to classify debt based on the legal rights existing at the balance sheet date, the FASB tentatively decided to provide an exception for waivers of debt covenant violations received after the balance sheet date but before the financial statements are issued.

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    Income taxes

    27 August 2015

    To the Point - FASB may change income tax disclosure requirements related to unrecognized tax benefits
    The FASB tentatively decided to expand one income tax disclosure requirement related to unrecognized tax benefits and to eliminate another. The FASB made these decisions in its review of income tax disclosures, which is part of its disclosure framework project.

    1 July 2015

    Quarterly tax developments - June 2015
    Our June 2015 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, legislative proposals and other items to consider as you prepare your income tax provision. We’ve also listed our tax and other publications that provide more detail on the topics we discuss.

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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

    29 July 2015

    Technical Line - Applying the new revenue recognition standard to sales of real estate
    The new revenue recognition standard eliminates the existing guidance in ASC 360-20, Real Estate Sales, for sales of real estate. Our Technical Line publication discusses the implications and compares how entities will account for several common real estate transactions under the new revenue standard with what they do under today’s real estate sales guidance.

    27 July 2015

    To the Point - FASB changes approach to updating assumptions for long-duration contracts
    The FASB tentatively decided to require insurers to revise the net premium ratio to reflect annual changes in cash flow assumptions used to measure the liability for future policy benefits for long-duration contracts and to reflect these changes over the entire life of the contract with a cumulative catch-up adjustment to net income in the period of the change. The FASB also tentatively decided that insurers should recognize the effect of annual changes to the discount rate assumptions in other comprehensive income.

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    Leases

    14 August 2015

    Financial Reporting Developments - Lease accounting
    We have updated our FRD publication on lease accounting to provide additional considerations for evaluating service concession arrangements in accordance with ASU 2014-05, Service Concession Arrangements, which was codified in ASC 853, Service Concession Arrangements. These arrangements are not within the scope of ASC 840, Leases. We have also updated our FRD to reflect ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software, which eliminates the requirement in ASC 350-40 that customers analogize to ASC 840 to determine the accounting for a software licensing arrangement. Refer to Appendix D of the publication for a detailed list of updates.

    28 July 2015

    Technical Line - Final standard on leases is taking shape
    We have updated our Technical Line, Final standard on leases is taking shape, to reflect the FASB’s decisions at its May 2015 meeting. Our publication discusses how the new standard would be applied and is designed to help entities evaluate the effects on their finances and operations. The FASB plans to issue a final standard in the fourth quarter of 2015. The standard would require lessees to recognize assets and liabilities for most leases and would change certain aspects of today’s lessor accounting.

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    Private companies

    23 July 2015

    To the Point - Private companies may get relief on adopting PCC alternatives after their effective dates
    The Private Company Council (PCC) added a project to its agenda to address whether private companies should be allowed a one-time election to adopt PCC alternatives after their effective dates without demonstrating preferability and whether the transition guidance for the PCC alternatives on goodwill and interest rate swaps should be extended indefinitely. The PCC asked the FASB staff to perform research on a few other topics and provided feedback on select FASB projects.

    11 May 2015

    Comment Letter - Three-year review of the private company council
    In our comment letter, we reconfirmed our support for providing relief to private companies under US GAAP. We also encouraged the PCC to work closely with the FASB on its projects to simplify accounting for all entities because decreasing complexity for all entities may reduce the need for private company alternatives.

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    Revenue recognition

    13 August 2015

    To the Point - FASB defers the new revenue standard by one year
    The FASB issued an Accounting Standards Update to defer by one year the effective date of its new revenue recognition standard and allow early adoption as of the original public entity effective date.

    6 August 2015

    To the Point - Update for audit committees on the new revenue standard
    Our publication provides audit committees with a summary of the implementation activities of the FASB and IASB as they work to address stakeholder questions on the new revenue standards.

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    SEC/Other regulators

    27 August 2015

    Technical Line - How to apply S-X Rule 3-14 to real estate acquisitions
    We have updated our Technical Line, How to apply S-X Rule 3-14 to real estate acquisitions, to include recent practice matters and SEC staff views. Our publication is designed to help registrants that are considering real estate acquisitions, or initial SEC registrations of real estate investment trusts, interpret and apply the rule.

    10 August 2015

    Comment Letter - Investment company reporting modernization
    In our comment letter, we supported the Commission’s efforts to improve the transparency and comparability of investment company financial statements for their intended users. However, we have concerns about whether some of the proposed amendments to Regulation S-X, such as those related to disclosures of illiquid securities, the tax basis of derivatives, the notional amounts and value for options and futures contracts, and securities lending activities, would enhance consistency and transparency of financial reporting and whether they achieve the objectives of the Commission’s focus on disclosure effectiveness.

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    Periodic updates

    16 July 2015

    Second quarter 2015 Standard Setter Update
    Our Second Quarter 2015 Standard Setter Update, Financial reporting and accounting developments, highlights significant developments in financial accounting and reporting between 1 April 2015 and 30 June 2015 and summarizes certain proposals presently under consideration by the FASB, EITF, PCC, SEC, PCAOB, ASB and GASB.

    9 July 2015

    SEC in Focus - July 2015
    Our latest newsletter summarizes developments relating to SEC matters, including certain items we have not previously reported in Week in Review. This issue highlights the SEC’s concept release on possible revisions to its audit committee disclosure rules. We discuss the SEC's progress on rulemaking and other initiatives, including a recent proposal that would require companies to have policies to claw back incentive-based compensation from executive officers in the event of a restatement and another proposal that would require companies to disclose the relationship between executive compensation and company performance. We also discuss trends in recent SEC staff comments on public company filings and other current practice matters.

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    More topics

    19 August 2015

    Comment Letter - FASB proposal on presentation of not-for-profit financial statements
    In our comment letter, we supported the FASB’s objective of improving financial statement presentation by not-for-profit entities (NFPs) provided any changes are simple and straightforward and scalable to all affected entities. We supported many of the proposed amendments that address issues that are unique to NFPs such as the proposed changes to the classification of net assets and certain amendments that would eliminate diversity in practice. However, we did not support the development of significantly different financial reporting models for NFPs and business enterprises, especially in areas where the objectives of financial reporting do not differ between these types of entities (e.g., reporting measures of operations, reporting of cash flows).

    28 July 2015

    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.

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