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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

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.

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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

22 January 2015

To the Point - New guidance on classifying and measuring financial instruments is coming soon
The FASB has concluded redeliberations on its 2013 proposal on classification and measurement of financial instruments and has tentatively decided to retain the existing guidance for financial assets and financial liabilities, except for investments in equity securities and financial liabilities that are measured under the fair value option. Investments in equity securities would be measured at fair value through net income, unless they qualify for the proposed practicability exception. Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income.

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.

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Income taxes

28 January 2015

To the Point - FASB proposes simplifying income tax accounting
The FASB issued two proposals to simplify income tax accounting. One proposal would require companies to immediately recognize income tax expense (or benefit) on intercompany transactions in their income statements rather than defer the income tax effects of certain intercompany transactions as they do today. The other proposal would require all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet.

23 December 2014

Quarterly tax developments - December 2014
Our December 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 as well as, legislative proposals and other items through 19 December 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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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

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.

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Leases

22 January 2015

To the Point - Boards decide to require different lessee disclosures
The FASB and the IASB (collectively, the Boards) continued redeliberating their 2013 proposal to put most leases on lessees’ balance sheets. The Boards reaffirmed the objective of lessee disclosures but reached different decisions on the information that lessees would be required to disclose in the notes to the financial statements.

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.

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Private companies

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.

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.

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Revenue recognition

28 January 2015

To the Point - Joint Transition Resource Group for Revenue Recognition tackles a long list of implementation issues
To help preparers implement the new revenue standard, the Joint Transition Resource Group for Revenue Recognition (TRG) addressed more issues than in previous meetings. TRG members reached general consensus on many of the topics discussed, but they did not reach consensus on questions regarding contract modifications during transition, noncash consideration, collectibility and variable consideration payable to a customer. Our publication includes a list of questions and answers on which TRG members reached general consensus.

26 January 2015

Technical Line - Nonpublic entity considerations for the new revenue standard
Private companies may face significant changes in how they recognize revenue when they adopt the new standard issued by the FASB and the IASB. Common transactions that may be affected include sales with rights of return, related party transactions and those involving prepayment or payment in arrears. Our Technical Line discusses key implications for private companies and supplements our Technical Line, A closer look at the new revenue recognition standard.

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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.

4 December 2014

2014 SEC annual reports – Form 10-K
We have updated our SEC Financial Reporting Series to reflect all final SEC rules and interpretive guidance issued through 31 October 2014. This publication is intended as a reference tool for preparing annual reports on Form 10-K.

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Periodic updates

15 January 2015

2014 Standard Setter Update - Financial reporting and accounting developments
Our 2014 Standard Setter Update, Financial reporting and accounting developments, highlights significant developments in financial accounting and reporting between 1 January 2014 and 31 December 2014 and summarizes certain proposals presently under consideration by the FASB, EITF, PCC, SEC, PCAOB, ASB and GASB.

8 January 2015

SEC in Focus - January 2015
Our SEC in Focus provides an update on activities and events relating to SEC matters that occurred during the fourth quarter of 2014.

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More topics

9 January 2015

To the Point - FASB eliminates reporting of extraordinary items
The FASB issued final guidance that simplifies income statement presentation by eliminating extraordinary items. This is the first standard under the FASB’s simplification initiative.

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.

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