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Business combinations

19 November 2014

To the Point - FASB makes pushdown accounting optional
The FASB issued final guidance that allows all acquired entities to choose to apply pushdown accounting (i.e., reflect the acquirer’s basis of accounting for the acquired entity’s assets and liabilities) when an acquirer obtains control of them. The SEC staff responded by rescinding its guidance on pushdown accounting, meaning SEC registrants and non-registrants will now follow the new US GAAP guidance.

16 September 2014

Financial Reporting Developments - Business combinations
We have updated our Financial reporting developments publication on business combinations to clarify and enhance our interpretative guidance. Refer to Appendix G of the publication for a detailed list of these updates. (This publication has not been updated for the issuance of ASU 2014-17, Business Combinations (Topic 805), Pushdown Accounting, a consensus of the FASB Emerging Issues Task Force. Please refer to our To The Point publication on the final ASU.)

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Compensation matters

30 October 2014

To the Point - Benefit plan sponsors may need to consider new mortality tables in making year-end assumptions
The Society of Actuaries finalized new mortality tables and a new mortality improvement scale that could increase a sponsor’s benefit obligations and contributions. Although sponsors are not required to use the tables or the improvement scale, they may need to consider the new mortality information when developing year-end mortality assumptions. Our To the Point publication tells you what you need to know about the final mortality tables.

9 October 2014

To the Point - FASB launches project to simplify share-based payment accounting
The FASB added a project to its agenda on the accounting for share-based payments for both public and private entities. At the same meeting, the FASB made tentative decisions on the accounting for an employee’s use of shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures, income taxes when awards vest or are settled and the presentation of excess tax benefits on the statement of cash flows. Our To the Point publication tells you what you need to know about these developments.

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Consolidation

14 November 2014

Technical Line - New consolidation guidance is coming soon
The Financial Accounting Standards Board is close to finishing redeliberations on a standard that would eliminate the deferral of FAS 167 that has allowed certain investment funds to follow the previous consolidation guidance in FIN 46(R) and make other changes to today’s guidance. While the changes are aimed at the asset management industry, they could affect all industries, particularly those involved with limited partnerships or similar entities. The FASB expects to issue the standard no earlier than February 2015, but entities may be able to early adopt it for their 2014 financial statements. Entities considering early adoption will need to evaluate the internal control implications.

18 September 2014

Financial Reporting Developments - Equity method investments
We have updated our Financial Reporting Developments publication on equity method investments to reflect the issuance of Accounting Standards Update (ASU) No. 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, as well as ASU No. 2014-02, Accounting for Goodwill, a consensus of the Private Company Council. See Appendix F for more detail on other updates to this publication.

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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

4 November 2014

To the Point - A ‘whole-istic’ approach to defining host contracts in hybrid instruments issued as shares
The FASB issued final guidance requiring all entities to use what is called the “whole instrument approach” when determining the nature of a host contract in a hybrid instrument issued in the form of a share. This approach requires entities to consider all of a hybrid instrument’s stated and implied substantive terms and features, including any embedded derivative features being evaluated for bifurcation. The guidance eliminates the use of the so-called “chameleon approach,” under which all embedded features except the feature being analyzed are considered.

4 September 2014

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

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Income taxes

8 October 2014

Quarterly tax developments - September 2014
Our September 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 30 September 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.

18 September 2014

Financial Reporting Developments - Accounting for income taxes
We have updated our Financial reporting developments publication on income taxes to enhance our interpretative guidance. See Appendix D for details on these updates.

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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 October 2014

Technical Line - IRU arrangements: A purchaser’s guide to identifying and classifying leases
Accounting for indefeasible rights of use (IRU) can be complicated because entities must first determine whether the IRU is a lease, and if so, how it should be classified. Our Technical Line publication is intended to help purchasers or lessees in IRU agreements determine how to account for such agreements appropriately.

22 October 2014

Technical Line - A closer look at the new revenue recognition standard - retail and consumer products
The new revenue recognition standard issued by the FASB and the IASB creates a comprehensive source of revenue guidance for all entities in all industries. Our Technical Line considers certain implications for the retail and consumer products industry and expands on our Technical Line, The new revenue recognition standard - retail and consumer products. It also supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

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Leases

29 October 2014

Technical Line - IRU arrangements: A purchaser’s guide to identifying and classifying leases
Accounting for indefeasible rights of use (IRU) can be complicated because entities must first determine whether the IRU is a lease, and if so, how it should be classified. Our Technical Line publication is intended to help purchasers or lessees in IRU agreements determine how to account for such agreements appropriately.

24 October 2014

To the Point - Boards reaffirm the definition of a lease but continue to work on its application
The FASB and the IASB reaffirmed their proposed definition of a lease and made some changes to how that definition would be applied. The Boards will consider an additional clarification at a future meeting. Our To the Point publication tells you what you need to know about the latest decisions in the Boards’ redeliberations on their leases project.

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Private companies

9 October 2014

To the Point - FASB launches project to simplify share-based payment accounting
The FASB added a project to its agenda on the accounting for share-based payments for both public and private entities. At the same meeting, the FASB made tentative decisions on the accounting for an employee’s use of shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures, income taxes when awards vest or are settled and the presentation of excess tax benefits on the statement of cash flows. Our To the Point publication tells you what you need to know about these developments.

18 September 2014

To the Point - PCC wraps up intangible assets and discusses share-based payments
The PCC voted to finalize an alternative that would allow private companies to simplify their accounting for intangible assets acquired in a business combination and sent it to the FASB for endorsement. The PCC decided to provide input for a project the FASB plans to launch on both private and public company accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.

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Revenue recognition

3 November 2014

To the Point - Joint Transition Resource Group tackles new revenue topics
At the second meeting of the Joint Transition Resource Group for Revenue Recognition (TRG), FASB Vice Chairman James Kroeker said the FASB has added a project to explore whether to propose delaying the new revenue standard’s effective date. This project will be subject to FASB’s normal due process including outreach, deliberations, exposure and re-deliberations before a conclusion is reached on whether to delay the effective date. A decision on whether to propose a delay is expected in the second quarter of 2015. Regardless of any possible delay, companies should actively continue implementation efforts, which are likely to be significant for many companies. TRG members also discussed five implementation issues at the meeting and expressed diverse points of view about two of them: licenses of intellectual property and the determination of whether a good or service is distinct within the context of a contract.

22 October 2014

Technical Line - A closer look at the new revenue recognition standard - retail and consumer products
The new revenue recognition standard issued by the FASB and the IASB creates a comprehensive source of revenue guidance for all entities in all industries. Our Technical Line considers certain implications for the retail and consumer products industry and expands on our Technical Line, The new revenue recognition standard - retail and consumer products. It also supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

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SEC/Other regulators

13 November 2014

Disclosure effectiveness: What investors, company executives and other stakeholders are saying
With the SEC staff looking at ways to improve disclosures, we invited investors, company executives and other stakeholders to share their views on topics such as the objectives of SEC reporting, priorities and challenges for changes to current disclosure requirements and voluntary improvements that companies can make now. Our publication summarizes their views.

3 November 2014

Comment Letter - PCAOB staff consultation paper: auditing accounting estimates and fair value measurements
In our comment letter, we said we support the PCAOB’s efforts to evaluate whether existing standards on auditing accounting estimates and fair value measurements can and should be improved. However, we raise concerns and offer alternatives to several of the proposals outlined in the PCAOB staff’s Consultation Paper, including the adoption of a single standard, management’s use of a specialist, evaluating the reasonableness of an accounting estimate or fair value measurement and the use of third-party pricing services.

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Periodic updates

9 October 2014

SEC in Focus - October 2014
Our SEC in Focus provides an update on activities and events relating to SEC matters that occurred during the third quarter of 2014.

8 October 2014

Quarterly tax developments - September 2014
Our September 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 30 September 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.

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More topics

26 November 2014

Comment Letter - Technical corrections and improvements
In our comment letter on the Proposed Accounting Standards Update, Technical Corrections and Improvements, we agree that for the most part, the proposed changes would clarify the Codification, correct unintended application of guidance or make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. However, we express concern about certain of the proposed amendments.

13 November 2014

Disclosure effectiveness: What investors, company executives and other stakeholders are saying
With the SEC staff looking at ways to improve disclosures, we invited investors, company executives and other stakeholders to share their views on topics such as the objectives of SEC reporting, priorities and challenges for changes to current disclosure requirements and voluntary improvements that companies can make now. Our publication summarizes their views.

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