What's new

Technical Line - Accounting for deals with puts, calls or forward contracts can be complex
Although the overall volume of merger and acquisitions activity has decreased slightly in recent years, we are seeing an increase in the complexity of deal structures, particularly those using call or put options or forward contracts (collectively referred to as equity contracts) that allow the buyer and seller to share the economic risks of an acquired business for a period of time. This Technical Line - the second in a series - addresses the accounting for equity contracts issued in a business combination. In December 2012, we issued a companion publication (pdf, 470.4kb) , which addressed the accounting and valuation considerations for contingent consideration issued in a business combination.

Financial Reporting Developments - Business combinations
We have updated our Financial reporting developments publication, Business combinations to provide insights from the SEC, updates on recent standard-setting activities and further clarifications and enhancements to our interpretative guidance.

Technical Line - Most governments will soon record costs of their pension plans earlier
The GASB issued a new standard that will significantly change how government employers account for the cost of defined benefit pension plans. Our Technical Line publication tells you what you need to know about the standard.

Technical Line - Supreme Court ruling on health care law could affect financial reporting
The US Supreme Court is expected to rule by the end of June on the constitutionality of the health care law. The financial reporting consequences may be significant, depending on what the Court decides and a company’s operations. The timing of the ruling could make second-quarter financial reporting challenging. Our Technical Line summarizes these possible consequences.

Financial Reporting Developments - Consolidated and other financial statements: Noncontrolling interests, combined financial statements, and parent company financial statements
We have updated our Financial Reporting Developments publication on noncontrolling interests, which includes changing the title to, Consolidated and other financial statements: Noncontrolling interests, combined financial statements, and parent company financial statements. We reorganized certain content and removed the discussion of the transition guidance in FASB Statement No. 160, an amendment of ARB No. 51 (primarily codified in ASC 810). We also enhanced the interpretive guidance in Chapter 2 related to the presentation of noncontrolling interests when derivatives are issued with or as part of those interests and added certain other interpretive guidance.

To the Point - Redefining investment company accounting – again
The FASB has made significant changes to its investment company proposal in redeliberations. Our To the Point publication tells you what you need to know about how the proposal has changed.

To the Point - Disclosure relief proposed for certain nonpublic employee benefit plans
The FASB has proposed indefinitely deferring the requirement that a nonpublic employee benefit plan disclose quantitative information about the unobservable inputs used to measure the fair value of an equity investment in its nonpublic sponsor. Comments are due by 31 May 2013.

Comment letter - FASB proposal to clarify the scope of a fair value disclosure for nonpublic entities
We agreed with the FASB’s proposal to amend ASC 825 to clarify that nonpublic entities are not required to disclose the fair value hierarchy level for items that are not measured at fair value on the statement of financial position but for which fair value is disclosed. We also recommended that the FASB subsequently address the overlap in ASC 825 and ASC 820 regarding this disclosure requirement as well as situations where terms such as “nonpublic entity” have multiple definitions in the glossary of the Codification.

Comment letter - FASB proposal on classification and measurement of financial instruments
In our comment letter, we say that while the FASB proposal on classification and measurement of financial instruments would represent a big step toward convergence, we do not support finalizing it in its current form. We believe the proposal may inappropriately require too many financial instruments, including certain common debt instruments, to be measured at fair value with changes in fair value recognized in net income. We are also concerned that certain provisions of the proposal could be interpreted in different ways and lead to diversity in practice. However, we believe the FASB can make specific changes and clarifications that will improve the proposal’s operability.

NAIC Bulletin - Spring 2013 edition
Our NAIC Bulletin contains the highlights of the Spring 2013 meeting of the National Association of Insurance Commissioners.

Quarterly tax developments - March 2013
Our March 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, regulatory developments and other items through 31 March 2013 to consider as you prepare your tax provision. We list our tax alerts and other publications that provide more detail on the topics discussed.

Quarterly tax developments - December 2012
Our December 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, regulatory developments and other items through 31 December 2012 to consider as you prepare your tax provision. We list our tax alerts and other publications that provide more detail on the topics discussed.

Joint Project Watch - December 2012
The standard-setting activities of the FASB and the IASB on their joint projects continue to move forward. The Boards are redeliberating their second exposure draft (ED) on revenue recognition, and are preparing to issue a second ED on leases in early 2013. Separate documents on financial instruments topics have been issued or are expected early in 2013. Our Joint Project Watch publication is designed to give you a snapshot of key developments from a US GAAP perspective, along with our observations about the potential implications for companies.

US GAAP versus IFRS: The basics
While convergence was a high priority for the FASB and the IASB in 2012, differences continue to exist between US GAAP and IFRS. In this guide, we provide an overview by accounting area of where the standards are similar, where differences are commonly found in practice, and how and when certain differences are expected to disappear.

Financial Reporting Briefs - First quarter 2013: 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 2013.

Financial Reporting Briefs - First quarter 2013: 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 2013.

Technical Line - A closer look at the new lease accounting proposal
The FASB and the IASB have issued new exposure drafts that would require lessees to recognize assets and liabilities arising from their involvement in most leases. Entities would still classify leases, but they would use different criteria for a different purpose. Lease classification would determine how entities recognize lease-related revenue and expense, as well as what lessors record on the balance sheet. Comments are due by 13 September 2013. Our Technical Line publication tells you what you need to know about the proposed changes.

To the Point - Boards issue new proposal to put most leases on the balance sheet
The FASB and the IASB today issued an exposure draft that proposes requiring lessees to recognize assets and liabilities arising from their involvement in most leases. All entities would classify leases to determine how to recognize lease-related revenue and expense. Classification would also affect what lessors record on the balance sheet. Our To the Point publication tells you what you need to know about the proposal.

Technical Line - Final revenue standard is taking shape
The FASB and the IASB have substantially completed their redeliberations on a comprehensive new revenue recognition standard, which will be effective for annual periods beginning on or after 15 December 2016 for public entities with a one-year deferral for nonpublic entities. This publication summarizes the Boards’ decisions to date and discusses the remaining topics the Boards must address.

To the Point - Boards revisit disclosure, transition and effective date for revenue standard
The FASB and the IASB tentatively decided that entities could retrospectively adopt their new revenue standard or adopt it on a modified retrospective basis for annual reporting periods beginning on or after 1 January 2017. The Boards also addressed several disclosures they proposed in 2011. Our To the Point publication summarizes these decisions.

Technical Line - Using the 2013 XBRL US GAAP taxonomy
The 2013 version of the XBRL US GAAP taxonomy includes new tags to reflect accounting standards updates, changes to address common reporting practices and other updates. The SEC is expected to approve the 2013 taxonomy for use by 20 May 2013, when the staff plans to make the 2011 taxonomy unavailable for use. The SEC staff strongly encourages companies to adopt the latest version. Our Technical Line is designed to help companies make the transition.

The JOBS Act: One-year anniversary
The Jumpstart Our Business Startups Act (the Act) was enacted on 5 April 2012 to give private companies greater access to capital and make it easier for certain companies to go public. A year later, we look at the effects on the IPO market and analyze how emerging growth companies are using the relief available to them under the Act. We also provide an update of what still must be done to implement key provisions of the Act.

NAIC Bulletin - Spring 2013 edition
Our NAIC Bulletin contains the highlights of the Spring 2013 meeting of the National Association of Insurance Commissioners.

First quarter 2013 Standard Setter Update
Our First quarter 2013 Standard Setter Update - Financial reporting and accounting developments highlights significant developments in financial accounting and reporting through 31 March 2013.

To the Point - Private Company Council proposes alternatives under US GAAP
The Private Company Council approved exposure of proposals to allow alternatives that would provide relief for private companies when (1) recognizing intangible assets in business combinations and subsequently measuring goodwill and (2) accounting for certain interest rate swaps. Any alternatives proposed by the Council must be endorsed by the FASB before an exposure draft can be issued. Our To the Point publication summarizes the proposed alternatives.

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.