AccountingLink

What's new

Business combinations

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.

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.

More

Compensation matters

18 December 2014

To the Point - FASB to propose more ways to simplify accounting for employee share-based payments
The FASB tentatively decided to propose two practical expedients that private companies could use to simplify their accounting for share-based payments to employees. For both public and private companies, the Board also tentatively decided to align the classification guidance for put and call rights that are contingent on an event within an employee’s control.

9 December 2014

Comment letter – FASB proposal to simplify the measurement date of an employer’s defined benefit obligation and plan assets
In our comment letter, we supported the FASB's effort to address the cost and complexity for employers with fiscal year ends that do not fall on the end of a calendar month by providing a practical expedient to measure their defined benefit obligations and plan assets as of the end of the month closest to their fiscal year ends. We also recommended that the Board provide the same practical expedient for employee benefit plans.

More

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.

More

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.

More

Financial instruments

15 December 2014

Comment Letter - FASB proposal to simplify the presentation of debt issuance costs
In our comment letter, we supported the FASB's proposed requirement that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The proposal would eliminate the inconsistency between today’s presentation requirement for debt issuance costs and the Conceptual Framework. We also highlight matters related to third-party debt issuance costs where we believe the FASB can do more to address complexity.

4 December 2014

Financial Reporting Developments - Derivatives and hedging
We have updated our Financial reporting developments publication on derivatives and hedging for the amendments made to Accounting Standards Codification Topic 815 by Accounting Standards Update 2014-03, Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps - Simplified Hedge Accounting Approach. This update also provides clarifications and enhancements to our interpretative guidance. Refer to Appendix F of the publication for a detailed list of these updates.

More

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.

More

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.

More

Industry issues

18 December 2014

Financial Reporting Briefs - Fourth 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 fourth quarter of 2014.

18 December 2014

Financial Reporting Briefs - Fourth quarter 2014: Health care
This publication provides you with a snapshot of the major accounting and regulatory developments in the health care industry during the fourth quarter of 2014.

More

Leases

18 December 2014

To the Point - Boards complete redeliberations of the definition of a lease
The FASB and the IASB completed their redeliberations of the definition of a lease, leaving in place the converged decisions they previously reached on how it would be applied.

26 November 2014

Financial Reporting Developments - Lease accounting
We have updated our FRD publication on lease accounting to address new guidance issued by the FASB in ASU 2014-05, Service Concession Arrangements (primarily codified in ASC 853, Service Concession Arrangements). Arrangements within the scope of ASC 853 are not within the scope of ASC 840, Leases. Other updates include additional considerations for evaluating non-performance covenants when classifying and measuring a lease and illustrative guidance for determining the inputs to a sales-type lease. Refer to Appendix D of the publication for a detailed list of updates.

More

Private companies

18 December 2014

To the Point - FASB to propose more ways to simplify accounting for employee share-based payments
The FASB tentatively decided to propose two practical expedients that private companies could use to simplify their accounting for share-based payments to employees. For both public and private companies, the Board also tentatively decided to align the classification guidance for put and call rights that are contingent on an event within an employee’s control.

15 December 2014

To the Point - PCC discusses expanding the use of the term public business entity and other projects
The PCC discussed its project on the definition of a public business entity, whether to address partnership accounting and how the FASB could improve shared-based payment accounting for private companies. PCC members asked whether the FASB could expand its use of the term public business entity in US GAAP without changing current practice.

More

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.

More

SEC/Other regulators

15 December 2014

2014 AICPA National Conference on Current SEC and PCAOB Developments
Our compendium summarizes comments of representatives of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) at last week’s 2014 AICPA National Conference on Current SEC and PCAOB Developments in Washington, D.C. The highlights included (1) a possible IFRS alternative to make it easier for US registrants to voluntarily provide IFRS information as a supplement to their US GAAP financial statements, (2) comments from SEC, FASB and IASB representatives on implementing the new revenue standard, (3) discussion by the SEC staff about accounting and internal control over financial reporting matters, (4) an update on disclosure effectiveness initiatives by the SEC and FASB and voluntary efforts by companies to make improvements now and recent PCAOB standard-setting activity.

10 December 2014

Comment letter - AICPA's Proposed Statement on Auditing Standard, An Audit of Internal Control Over Financial Reporting That Is Integrated With An Audit of Financial Statements
In our comment letter, we agree with the Auditing Standards Board’s proposal to move the content of AT section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With An Audit Of Its Financial Statements, from the attestation standards into generally accepted auditing standards. Further, we support the development of an attestation standard to address examinations of internal control that aren’t integrated with audits of financial statements.

More

Periodic updates

18 December 2014

Financial Reporting Briefs - Fourth quarter 2014
This publication provides you with a snapshot of the major accounting and regulatory developments that have occurred during the fourth quarter of 2014. This edition brings you up to speed on the Boards' priority joint projects and several other financial reporting developments.

11 December 2014

Accounting pronouncements effective in 2014
Several new accounting pronouncements are effective for 2013 interim or annual periods for calendar-year entities. We have listed those pronouncements, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2013.

More

More topics

11 December 2014

Accounting pronouncements effective in 2014
Several new accounting pronouncements are effective for 2013 interim or annual periods for calendar-year entities. We have listed those pronouncements, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2013.

9 December 2014

To the Point - FASB holds forum on financial disclosures
The FASB held a forum with representatives of preparers and users of financial statements, as well as standard setters and regulators, to share views on financial disclosures. The FASB was seeking input on how to improve disclosures and how to proceed with its disclosure framework project.

More