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    Business combinations

    7 January 2015

    To the Point - Private companies can recognize fewer intangible assets acquired in a business combination
    The FASB issued final guidance that allows private companies to simplify their accounting by recognizing separately fewer intangible assets in a business combination and certain other transactions. The alternative limits the customer-related intangibles a private company recognizes separately to those that are capable of being sold or licensed independently from the other assets of the business. It also precludes the recognition of noncompetition agreements.

    17 December 2014

    Financial Reporting Developments - Business combinations
    We have updated the pushdown accounting guidance in our Financial reporting developments publication on business combinations for Accounting Standards Update 2014-17, Pushdown Accounting - a consensus of the FASB Emerging Issues Task Force, and for SEC staff remarks at the 2014 AICPA Conference on Current SEC and PCAOB Developments relating to the presentation of expenses related to a business combination in which pushdown accounting was applied.

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    Compensation matters

    24 April 2015

    To the Point - FASB proposes simplifying financial reporting by employee benefit plans
    The FASB issued a proposal that would 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 proposal, which was developed by the Emerging Issues Task Force, would simplify the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also would allow plans with fiscal years that don’t end at the end of a calendar month to choose a simpler way of measuring their investments and investment-related accounts. Comments are due by 18 May 2015.

    16 April 2015

    To the Point - FASB allows employers to simplify measurement date for defined benefit plan assets and obligations
    The FASB issued final guidance that allows employers with fiscal year ends that do not coincide with a calendar month end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the calendar month closest to their fiscal year ends. Employers that make this election must apply the alternative measurement date to all defined benefit plans. The guidance also allows all employers to elect to remeasure defined plan assets and obligations in interim periods at the closest calendar month end to an event that triggers the remeasurement.

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    Consolidation

    23 April 2015

    Technical Line - Consolidation considerations for asset managers - FIN 46(R) to ASU 2015-02
    Our Technical Line publication takes a closer look at how entities will be affected by Accounting Standards Update (ASU) 2015-02, Amendments to the Consolidation Analysis, which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. This publication highlights what will change for reporting entities that currently evaluate entities for consolidation under FIN 46 (R).

    23 April 2015

    Technical Line - New consolidation guidance will require many entities to re-evaluate their conclusions
    Our Technical Line publication takes a closer look at how entities will be affected by Accounting Standards Update (ASU) 2015-02, Amendments to the Consolidation Analysis, which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. While the ASU is aimed at asset managers, it could affect all entities. This publication highlights what will change for reporting entities that currently evaluate entities for consolidation under FAS 167.

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    Fair value measurements

    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.

    20 May 2014

    Financial Reporting Developments - Fair value measurement
    We have updated our Financial reporting developments publication on fair value measurement to provide clarifications and enhancements to our interpretative guidance. The updates include new interpretive guidance regarding centrally cleared derivatives, clarified fair value considerations for the oil and gas industry, and a summary of SEC staff comments in the area of fair value measurements. Refer to Appendix F of the publication for a detailed listing of these updates.

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    Financial instruments

    1 May 2015

    To the Point - FASB eliminates requirement to categorize certain investments in the fair value hierarchy
    The FASB issued final guidance that eliminates today’s requirement to categorize investments measured using the net asset value practical expedient in the fair value hierarchy table. The new guidance is effective for public business entities for fiscal years beginning after 15 December 2015, and interim periods within those fiscal years. For entities other than public business entities, the guidance will be effective for fiscal years beginning after 15 December 2016 and interim periods within those years. Early adoption is permitted.

    1 May 2015

    To the Point - Recognizing breakage for certain prepaid stored-value cards
    The FASB proposed requiring an entity that issues certain prepaid stored-value cards redeemable for goods and services only at third-party merchants, cash or a combination of the two to recognize breakage, which is the dollar value that is not redeemed by cardholders. Further, entities would provide disclosures related to the recognition of breakage that would be similar to the requirements of the new revenue recognition standard. Comments are due 29 June 2015.

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    Income taxes

    15 April 2015

    To the Point - US GAAP income tax accounting considerations related to the new UK diverted profits tax
    The United Kingdom enacted legislation on 26 March 2015 that imposes a 25% tax on a company’s profits that are generated from economic activity in the UK but are determined to have avoided being taxed in the UK. The so-called diverted profits tax is effective 1 April 2015. Our publication discusses US GAAP income tax accounting considerations related to the new tax.

    31 March 2015

    Quarterly tax developments - March 2015
    Our March 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

    14 May 2015

    To the Point - FASB proposes amendments to its new revenue recognition standard that will affect M&E entities
    Media and entertainment (M&E) entities may be interested in the topics addressed in the FASB proposal to amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    20 April 2015

    To the Point - FASB clarifies a customer’s accounting for payments made in a cloud computing arrangement
    The FASB amended its guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangement includes a software license and to eliminate today’s requirement that customers analogize to the leases guidance to determine the asset acquired in a software licensing arrangement. The guidance was developed as part of the FASB’s simplification initiative.

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    Leases

    25 March 2015

    Technical Line - Final standard on leases is taking shape
    The FASB and the IASB have substantially completed redeliberations on new leases standards that would require lessees to recognize assets and liabilities for most leases. Many aspects of today's lessor accounting would remain the same. Our Technical Line publication discusses how the FASB's new standard would be applied so entities can identify and evaluate the effects on their finances and operations before the Board issues the final standard, which we expect to occur in the second half of 2015.

    26 February 2015

    To the Point - FASB completes redeliberations on leases and directs staff to begin drafting new standard
    The FASB has substantially completed redeliberations on its 2013 proposal to put most leases on lessees’ balance sheets and directed its staff to begin drafting the new standard. At this week’s meeting, the Board decided to require entities to apply the new leases standard using a modified retrospective approach at the adoption date and in comparative periods presented, with an option to use certain relief. The Board will set an effective date before issuing the new standard, which is expected in the second half of 2015.

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    Private companies

    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.

    7 May 2015

    To the Point - PCC discusses effective date relief for private company alternatives and other topics
    The Public Company Council (PCC) discussed whether private companies should be allowed a one-time election to adopt PCC accounting alternatives after their effective dates without having to demonstrate preferability under US GAAP. The PCC also discussed the staff’s pre-agenda research on private company alternatives to the accounting for employee share-based payments and provided input on several FASB projects. The PCC asked the FASB to consider having its staff research application guidance on certain aspects of the variable interest entity model for private companies under common control.

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    Revenue recognition

    14 May 2015

    To the Point - FASB proposes amendments to its new revenue recognition standard that will affect M&E entities
    Media and entertainment (M&E) entities may be interested in the topics addressed in the FASB proposal to amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    13 May 2015

    To the Point - FASB proposes first round of amendments to its new revenue recognition standard
    The Financial Accounting Standards Board (FASB) issued an exposure draft of a proposed Accounting Standards Update that would amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations. Comments are due by 30 June 2015.

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    SEC/Other regulators

    7 May 2015

    To the Point - SEC proposes ‘pay versus performance’ disclosures
    The SEC proposed rules that would require companies to disclose the relationship between their executive compensation and their total shareholder return (TSR). The so-called pay versus performance disclosures would be included in proxy or information statements in which executive compensation disclosures are required. Our publication discusses the proposed requirements and which registrants would be affected.

    15 April 2015

    Technical Line - Using the 2015 XBRL US GAAP Taxonomy
    Our Technical Line summarizes the changes in the 2015 XBRL US GAAP taxonomy and discusses leading practices for selecting the most appropriate XBRL tags. Because the new taxonomy was released earlier than usual this year, calendar-year registrants will be able to use the 2015 taxonomy for all reporting periods this year. While companies may continue to use the 2014 or 2013 taxonomies, we expect the staff to remove the 2013 taxonomy from the EDGAR system as early as June 2015.

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    Periodic updates

    21 April 2015

    BoardMatters Quarterly - Matters of Interest for Audit Committees - April 2015
    This issue compiles material recently published by the EY Center for Board Matters, including one of its most popular articles "Women on US boards: what are we seeing?" The issue also contains "2015 proxy season insights" and an update from our audit committee networks.

    15 April 2015

    NAIC Bulletin - Spring 2015 edition
    Our NAIC Bulletin contains the highlights of the Spring 2015 meeting of the National Association of Insurance Commissioners.

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    More topics

    29 April 2015

    To the Point – FASB proposes an overhaul of not-for-profit financial statements
    The FASB issued a proposal that would significantly change the financial statements of not-for-profit (NFP) entities, including business-oriented health care entities. The proposal would require two rather than three net asset classes and standardized measures of operating performance. It also would change how NFPs report cash flows, classify expenses and provide information about liquidity. Business-oriented health care NFPs would not be allowed to present a performance indicator as a US GAAP measure. These changes are intended to make the financial statements of NFPs easier for donors, creditors and other users to understand and compare.

    18 February 2015

    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.

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