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To the Point

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.

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.

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.

8 December 2014

To the Point - FASB proposes disclosures about investments in other investment companies
The FASB proposed aligning certain presentation and disclosure requirements for investment companies regulated by the Investment Company Act of 1940 with those that are not regulated by the Act. The proposal would require feeder funds that are not regulated by the Act to provide the master fund’s financial statements along with its financial statements, similar to Securities and Exchange Commission guidance for feeder funds regulated under the Act. It also would require funds that are regulated by the Act to disclose certain information about investments held by investee funds that exceed 5% of the reporting investment company’s net assets; today, only funds not regulated by the Act are required to make these disclosures. Comments are due by 17 February 2015.

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.

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.

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.

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.

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.

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.

22 October 2014

To the Point - Spotlight on transactions with related parties, significant unusual transactions and executives
The SEC approved a new PCAOB standard on auditing transactions involving related parties and amendments to existing standards on auditing significant unusual transactions and relationships and transactions with a company’s executives. Our To the Point publication tells you what you need to know about the standards.

16 October 2014

To the Point - FASB finishes deliberations on not-for-profit proposal
The FASB has wrapped up deliberations on a proposal that would change financial reporting by all not-for-profit entities, including business-oriented health care entities. Our To The Point discusses the Board’s proposed changes to how not-for-profit entities classify net assets, measure financial performance and cash flows, classify expenses, and provide information about liquidity.

16 October 2014

To the Point - FASB issues simplification proposals on debt issuance costs and retirement benefits
The FASB issued proposals to simplify the presentation of debt issuance costs and the measurement date for defined benefit pension and other postretirement benefit plan sponsors as part of the Board’s simplification initiative. Our To the Point publication tells you what you need to know about the exposure drafts.

13 October 2014

To the Point - Final IRS regulations affect how annual pharma fee is recognized
The IRS has issued final regulations for calculating the annual branded prescription drug fee imposed by the Affordable Care Act and requires covered entities to estimate and accrue the annual fee as sales occur. Our To the Point publication tells you what you need to know.

13 October 2014

To the Point - Michigan enacts legislation that could affect income apportionment
In response to a Michigan Supreme Court decision, Michigan has enacted legislation that may alter the way a taxpayer determines Michigan taxable income. Our To the Point publication tells you what you need to know about the new legislation.

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.

4 September 2014

To the Point - FASB requires management to assess an entity’s ability to continue as a going concern
The FASB issued final guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern and to provide disclosures when certain criteria are met. Our To the Point publication tells you what you need to know.

3 September 2014

To the Point - FASB addresses sale and leasebacks, US GAAP topics in leases project
The FASB made decisions to clarify the proposed guidance on accounting for sale and leaseback transactions. The Board affirmed its 2013 proposal to eliminate today’s accounting model for leveraged leases but decided that leveraged leases that exist at transition would be grandfathered. The FASB also affirmed its 2013 proposals about a discount rate policy election for lessees that are not public business entities and the accounting for related party leases. Our To the Point publication tells you what you need to know about these decisions.

28 August 2014

To the Point - FASB decides to change accounting and disclosures for long-duration insurance contracts
The FASB decided to require insurers to make annual updates to all assumptions they use to measure the liability for future policy benefits for long-duration contracts and to reflect the effects of any changes in net income. Our To the Point publication tells you what you need to know about these decisions.

14 August 2014

To the Point - FASB to issue final guidance on short-duration insurance disclosures
The FASB decided to issue a final standard that would require insurers to make additional disclosures about their short-duration insurance contracts in their annual and interim financial statements. Our To the Point publication tells you what you need to know.

14 August 2014

To the Point - New projects added to FASB and EITF agendas
The Financial Accounting Standards Board added several projects to its agenda and to that of the Emerging Issues Task Force at its latest agenda prioritization meeting. Several of these projects are part of the Board’s simplification initiative. Projects were added to the FASB’s agenda to address accounting for income taxes and to simplify the presentation of debt issuance cost, the measurement date for defined benefit plans and the balance sheet classification of debt. Projects were added to the EITF’s agenda to address the fair value hierarchy levels for certain investments measured at net asset value and the effects on historical earnings per unit of master limited partnership dropdown transactions. See our To the Point for details.

7 August 2014

To the Point - FASB provides a measurement alternative for consolidated CFEs
The FASB issued guidance today that allows a reporting entity to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity (CFE) using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. The guidance is aimed at eliminating the measurement difference that sometimes arises when a CFE’s financial assets and financial liabilities are independently measured at fair value. The guidance will likely change practice even for entities that don’t elect the alternative.

25 July 2014

To the Point - SEC adopts rules to minimize money market funds’ exposure to rapid redemptions
The rules require institutional prime money market funds to operate with floating net asset values after a two-year transition period. The rules also require boards of directors of non-government money market funds to impose fees on redemptions if a fund’s weekly liquid assets fall below 10% of its total assets. The boards of these funds will have the option of imposing fees or suspending redemptions for up to 10 days if a fund’s weekly liquid assets fall below 30%.

24 July 2014

To the Point - Boards address sale and leaseback transactions, lessor disclosures
The FASB and the IASB continued redeliberating ways to clarify and simplify their 2013 joint proposal on leases, reaching converged decisions on most lessor disclosures and some aspects of the accounting for sale and leaseback transactions. The Boards reached different decisions on seller-lessee gain recognition and the accounting for Type A leasebacks in sale and leaseback transactions. The FASB also deferred decisions on some topics so its staff could do more research. Our To the Point publication tells you what you need to know about these developments.

23 July 2014

To the Point - Joint Transition Resource Group for Revenue Recognition debates implementation issues
At its first meeting, the Joint Transition Resource Group for Revenue Recognition discussed four implementation issues. Two involved gross versus net revenue presentation, one involved royalties on licensed intellectual property and the other involved impairment of capitalized contract costs. The Boards have said they will provide a status update on these issues on or before the group’s next meeting on 31 October 2014. Our To the Point publication tells you what you need to know about the discussion.

17 July 2014

To the Point - PCC discusses how to simplify the accounting for intangible assets and other potential projects
The PCC discussed its proposal to simplify the accounting for intangible assets acquired in a business combination but did not reach any decisions. The PCC also asked the FASB staff to research possible PCC projects on partnership accounting and the accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.

17 July 2014

To the Point - Proposals would eliminate extraordinary items and simplify accounting for inventory
The FASB issued proposals to simplify income statement presentation by eliminating extraordinary items and to simplify the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost or net realizable value test. Our To the Point publication tells what you need to know about these proposals, which are the first in a FASB initiative to simplify US GAAP in the near term.

10 July 2014

To the Point - Audit committee considerations for the new revenue standard
Our To the Point publication discusses questions audit committee members may want to ask as they oversee a company’s implementation of the comprehensive joint revenue recognition standard the FASB and the IASB issued recently.

19 June 2014

To the Point - Awards with targets that affect vesting and that could be achieved after the requisite service period
The FASB issued guidance that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. Our To the Point publication tells you what you need to know about the new guidance.

19 June 2014

To the Point - Boards continue their march toward new leases standard
The FASB and the IASB continued redeliberating ways to clarify and simplify their 2013 joint proposal on leases. They reached converged decisions on how an intermediate lessor would present a sublease in the balance sheet and income statement, but they reached different decisions about how a sublease would be classified by the intermediate lessor. The FASB and IASB also reached decisions on statement of cash flows presentation and lessees’ balance sheet presentation. Our To the Point publication tells what you need to know about these developments.

5 June 2014

To the Point - FASB decides to require additional disclosures for short-duration insurance contracts
The FASB decided to require insurers to disclose more information about their short-duration insurance contracts in their annual and interim financial statements. Our To the Point publication tells you what you need to know about the proposed disclosures.

29 May 2014

To the Point - Is it a lease? Boards defer decision on definition, make progress on other topics in leases project
The FASB and the IASB continued to seek ways to clarify and simplify their 2013 joint proposal on leases but deferred a decision on the fundamental issue of how to define a lease. Instead, they directed their staffs to provide them with more language and examples that demonstrate how the proposed definition would be applied. The Boards reached converged decisions on how to separate lease and non-lease components, how to allocate contract consideration and the accounting for initial direct costs. Our To the Point publication tells what you need to know about these developments.

28 May 2014

To the Point - Boards issue sweeping joint revenue standard
The FASB and the IASB released new converged standards for recognizing revenue. Our To the Point publication tells you what you need to know about the final standards.

15 May 2014

To the Point - New mortality tables proposed: longer lives could mean higher benefit plan obligations
The Society of Actuaries has proposed new mortality tables for benefit plan sponsors to use when measuring their benefit plan costs and obligations. If and when the proposal is finalized, sponsors would need to consider the changing trends in life expectancies when determining their best estimate of the mortality rate for measuring defined benefit plan costs and obligations. Our To the Point publication tells you what you need to know about the new mortality tables.

5 May 2014

To the Point - SEC moves ahead with modified conflict minerals reporting
The SEC’s Director of the Division of Corporation Finance said in a statement this week that registrants still need to file a Specialized Disclosure Report (Form SD), along with any required conflict minerals report (CMR), by the 2 June 2014 deadline to comply with portions of the conflict minerals rule that were upheld by the US Court of Appeals for the District of Columbia Circuit. Registrants will not be required to describe their products as "DRC conflict undeterminable" or “not found to be 'DRC conflict free'" in their CMR because the court said these requirements violate the First Amendment. Our To the Point publication describes the requirements that the SEC staff said are still in effect.

1 May 2014

To the Point - FASB proposes an optional pushdown accounting model
The FASB proposed allowing an acquiree to apply pushdown accounting in its standalone financial statements when an acquirer obtains control of the acquiree. The proposal is a consensus of the Emerging Issues Task Force. Our To the Point publication describes key aspects of the proposal.

1 May 2014

To the Point - PCC discusses intangible assets and adds a project on defining public and private entities
The Private Company Council (PCC) continued discussing how to simplify the accounting for intangible assets acquired in a business combination and added a project to its agenda to consider whether to change or consolidate the various definitions of public and nonpublic entities that exist in US GAAP. Our To the Point publication tells you what you need to know about the PCC meeting this week.

24 April 2014

To the Point - Boards make more progress on leases project
The FASB and the IASB continued discussing ways to clarify and simplify their 2013 proposal to put most leases on lessees’ balance sheets. After disagreeing on key topics last month, the Boards reached joint decisions on lease modifications, combining certain contracts, in-substance fixed lease payments and the discount rate that would be used to measure lease assets and liabilities. They also agreed on how to include index- and rate-based variable lease payments in the initial measurement of lease assets and liabilities but reached different decisions about subsequent measurement. Our To the Point publication tells what you need to know about these decisions.

17 April 2014

To the Point - FASB lays out topics it will consider for insurance industry accounting
After backing away from its proposal to overhaul the accounting for insurance contracts and deciding to focus on making targeted improvements, the FASB laid out the topics it will consider in redeliberations. The Board decided to divide the project into two components: short-term contracts (i.e., property-casualty and short-term health contracts) and long-duration contracts (i.e., life insurance and long-duration health contracts). Both components will be worked on concurrently.

11 April 2014

To the Point - FASB issues standard on reporting discontinued operations
The FASB issued final guidance that raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. Our To the Point publication tells you what you need to know about the standard.

28 March 2014

To the Point - Washington focuses on cybersecurity
The Securities and Exchange Commission held a roundtable this week at which the Commissioners and staff discussed with public and private sector representatives the cybersecurity challenges faced by market participants. The Commissioners also asked for public comment. This publication summarizes key topics discussed at the roundtable and summarizes congressional action on cybersecurity.

20 March 2014

To the Point - Boards back away from some key aspects of leases proposal
In joint redeliberations, the IASB supported a single on-balance sheet model for lessee accounting while the FASB supported a dual on-balance sheet model. Despite this fundamental difference, the Boards reiterated their commitment to seek a converged solution. The Boards also indicated that they do not intend to significantly change lessor accounting. Instead, they supported retaining a dual classification model. The Boards also reached tentative decisions on lease term, a short-term lease exception and other ways to simplify their 2013 proposal. Our To the Point publication tells what you need to know about these decisions.

13 March 2014

To the Point - FASB sets path on changes to accounting for financial instruments
The FASB tentatively decided to retain the separate models in current US GAAP for classifying and measuring debt securities and loans, rather than overhaul its guidance in this area, as it had proposed. The FASB also confirmed that companies would apply its proposed "current expected credit loss" model to financial assets that are debt instruments measured at amortized cost. Our To the Point publication tells you what you need to know about these and other decisions that FASB has made in its financial instruments project.

6 March 2014

To the Point - A framework to help the FASB establish effective disclosures
The FASB proposed adding a chapter to its conceptual framework that is intended to improve the Board’s process for establishing disclosure requirements. Our To the Point publication tells you what you need to know about the proposal.

20 February 2014

To the Point - FASB scales back scope of insurance contracts project
The FASB scaled back the scope of its insurance contracts project and said it will focus on targeted improvements to the current guidance for long-duration contracts and disclosures for short-duration contracts. Contracts written by noninsurance entities will not be subject to the guidance for insurance. Our To the Point publication tells you what you need to know about the Board's decisions.

30 January 2014

To the Point - PCC finalizes consolidation alternative and drops a proposal
The Private Company Council modified its proposal to exempt private companies from evaluating certain common control leasing arrangements for consolidation under the variable interest entity guidance and sent it to the FASB for final endorsement. The PCC will continue to consider simplifications for the accounting for intangible assets acquired in a business combination and decided to drop a proposal that would have allowed private companies to use a "combined instrument approach" to qualify for hedge accounting for certain interest rate swaps.

28 January 2014

To the Point - Board issues final guidance for service concession arrangements
The FASB issued final guidance stating that entities should not account for certain service concession arrangements entered into with public-sector entities as leases under ASC 840, Leases, and should not recognize the related infrastructure as property, plant and equipment. Instead, entities should refer to other US GAAP, such as ASC 605, Revenue Recognition, to account for these arrangements. While the final guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication summarizes what you need to know about the new final guidance.

16 January 2014

To the Point - A new method of accounting for investments in qualified affordable housing projects
The FASB issued final guidance that allows investors to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under this method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. While the guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication tells you what you need to know about the new guidance.

16 January 2014

To the Point - An easier way for certain private companies to account for goodwill
The FASB issued final guidance that allows companies that don’t meet the new definition of a public business entity to amortize goodwill acquired in a business combination and to use a simpler one-step impairment test. While the guidance is effective for fiscal years beginning after 15 December 2014, early adoption is permitted, and companies can apply it to their 2013 financial statements if they have not yet made those statements available for issuance.

2 January 2014

To the Point - SEC staff recommends a comprehensive review of SEC disclosure requirements
The staff of the SEC issued its Report on Review of Disclosure Requirements in Regulation S-K (Study) recommending that the SEC undertake a comprehensive review of its disclosure requirements as they apply to all public companies. The Study was mandated by the Jumpstart Our Business Startups Act (JOBS Act), which required the SEC to analyze and consider areas within its disclosure regime that could be simplified and modernized for emerging growth companies (EGCs). Our publication summarizes the SEC staff’s findings and recommendations to be considered by the Commission for future revisions.

19 December 2013

To the Point - SEC proposes 'Regulation A+' to expand exempt offerings
The SEC proposed amendments to allow exempt offerings under Regulation A of up to $50 million within a 12-month period. The proposal, required by the Jumpstart Our Business Startups Act, would establish two tiers of offerings with different requirements, based on their size. Our To the Point publication summarizes what you need to know about the proposal.

5 December 2013

To the Point - It’s time to start preparing for the new revenue standard
With the new revenue standard expected early in 2014, companies should begin preparing now. The new standard will likely affect their financial statements, business processes and personnel, and internal control over financial reporting, and implementing it could be a significant undertaking. Our To the Point discusses what you can do now to prepare for a successful implementation.

21 November 2013

To the Point - Boards to redeliberate key aspects of lease accounting - again
The FASB and the IASB discussed the feedback they received on their joint lease accounting proposal and decided to redeliberate the following topics: lease definition and scope, lessee accounting model, lessor accounting model, lease classification, lease measurement provisions and disclosure requirements. Our To the Point publication tells you what you need to know about the Boards' redeliberation plans.

20 November 2013

To the Point - Discontinued operations to reflect strategic shifts
To address constituents’ concerns about its April 2013 proposal, the FASB decided to incorporate in the definition of a discontinued operation a requirement that a disposition reported as discontinued represent a strategic shift in an entity’s operations and to provide more implementation guidance on how the definition would work. Our To the Point tells you what you need to know about this and other decisions reached.

14 November 2013

To the Point - PCC votes to finalize consolidation alternative, discusses other topics
The Private Company Council modified its proposal to exempt private companies from evaluating certain common control leasing arrangements for consolidation under the variable interest entity guidance and sent it to the FASB for final endorsement. Our To the Point publication tells you what you need to know about the proposal and other topics discussed at the PCC meeting this week.

8 November 2013

To the Point - Defining host contracts in hybrid instruments issued as shares
The FASB recently proposed a single approach for determining whether a host contract in a hybrid instrument issued in the form of a share is more akin to debt or equity. The proposal would clarify that the nature of a host contract in a hybrid instrument issued in the form a share should be determined based on the consideration of all of its stated and implied substantive terms and features, including any embedded derivatives. It also would clarify that no single term or feature would in and of itself determine the nature of the host contract. Our To the Point tells you what you need to know about the proposal.

7 November 2013

To the Point - Leading practices for a smooth IPO registration
The number of initial public offerings (IPOs) in the US has increased during 2013, which is likely to be the strongest year for IPOs since 2007. Understanding suggestions from the SEC staff and leading practices in the registration process will help a company meet its deadlines and have the flexibility to respond to market conditions. Our To the Point publication updates our 24 May 2012 edition based on recent observations from our extensive experience with companies that have successfully completed IPOs.

31 October 2013

To the Point - Boards conclude redeliberations on revenue recognition proposal
In response to concerns raised by constituents during drafting of their joint revenue recognition standard, the FASB and the IASB this week decided to set thresholds for collectibility and the constraint on variable consideration and to clarify the accounting for revenue from licenses of intellectual property. The Boards will now work to finalize the standard. Our To the Point publication summarizes these decisions.

24 October 2013

To the Point - SEC proposes rules to permit crowdfunding
The SEC voted unanimously to propose rules allowing private companies to raise up to $1 million a year in equity capital from potentially large pools of investors through a process called “crowdfunding,” as required by the Jumpstart Our Business Startups Act. The proposal would require companies to provide various disclosures in conjunction with the offerings and would create a regulatory framework for intermediaries to facilitate the transactions. Our To the Point publication summarizes what you need to know about the proposal.

3 October 2013

To the Point - Private Company Council votes to finalize proposals on interest rate swaps and goodwill
The PCC modified its proposals to allow private companies to simplify their accounting for certain interest rate swaps and to amortize goodwill acquired in a business combination and sent them to the FASB for final endorsement. If endorsed by the FASB, the proposals would be the first accounting alternatives approved for private companies under US GAAP, in an effort to reduce cost and complexity for private companies. Our To the Point publication tells you what you need to know about the proposals.

26 September 2013

To the Point - Sweeping changes to auditor’s report may be on the horizon
The PCAOB has proposed significant changes to the auditor’s report, including requiring auditors to discuss any matters they consider “critical” to the audit. We support making the auditor’s report more useful but believe that several aspects of the proposal require careful consideration. This To the Point discusses what you need to know about the proposal.

19 September 2013

To the Point - Boards’ deliberations on remaining topics delay final revenue standard
In response to concerns raised by constituents, the Boards this week continued to discuss how the joint revenue recognition standard will address collectibility, the constraint on variable consideration and the accounting for revenue from licenses of intellectual property. They decided that further discussions are necessary. As a result, we do not expect the standard to be issued until late this year at the earliest. Our To the Point publication summarizes the discussion at this week’s meetings.

19 September 2013

To the Point - SEC proposes rule requiring most companies to disclose 'pay ratio'
As mandated by the Dodd-Frank Act, the Securities and Exchange Commission (SEC) proposed a rule that would require most registrants to calculate and disclose the ratio of their principal executive officer’s total annual compensation to the median annual compensation of all other employees (the pay ratio). The SEC’s proposal would give companies significant flexibility in how to calculate the pay ratio. Our To the Point publication summarizes what you need to know about the proposed rule.

18 September 2013

To the Point - FASB chairman sets new priorities
The FASB is setting new priorities under Russell Golden, who took over as chairman on 1 July, and James Kroeker, who joined the FASB as vice chairman on 1 September. Completing the major convergence projects with the IASB is the current focus. Mr. Golden also is looking beyond those projects and plans to focus on topics such as disclosure effectiveness, debt and equity, issues in pension and hedge accounting, as well as operational issues. This To the Point discusses what you need to know about the FASB’s priorities.

8 August 2013

To the Point - FASB proposes new definition of a public company for future standard setting
The FASB proposed guidance to define a public business entity and to identify the types of entities that would be excluded from the scope of the Private Company Decision-Making Framework. See the proposal (pdf, 344kb)  and our To the Point publication for further information.

8 August 2013

To the Point - SEC finalizes sweeping changes to broker-dealer reporting rule
The SEC issued final amendments to the broker-dealer reporting rule, SEC Rule 17a-5. All broker-dealers will be impacted by the rule amendments for both periodic and annual reporting . Our To the Point publication summarizes key elements of the final rule.

25 July 2013

To the Point - Boards near completion of the revenue recognition standard
The FASB and the IASB this week clarified how aspects of variable consideration and collectibility will be addressed in the standard. The Boards also addressed how entities should determine whether a contract meets the criteria to be within the scope of the guidance and the accounting for contracts that are not in the scope of the guidance. Our To the Point publication summarizes these decisions.

18 July 2013

To the Point - Presentation of unrecognized tax benefits
The FASB today issued final guidance on the presentation of certain unrecognized tax benefits in the financial statements. Our To the Point publication tells you what you need to know about the new guidance.

18 July 2013

To the Point - Private company framework approved, PCC proposes consolidation alternative
The Private Company Council (PCC) and the FASB voted to finalize the private company decision-making framework and the PCC approved exposure of an alternative for private companies related to the consolidation of common control leasing arrangements. Our To the Point summarizes these items and other matters discussed at the recent PCC meeting.

17 July 2013

To the Point - Companies can use a new benchmark interest rate for hedge accounting
The FASB issued final guidance allowing companies to designate the Federal Funds Effective Swap Rate (which is the Overnight Index Swap rate or OIS in the US) as a benchmark interest rate for hedge accounting purposes, effective immediately. Our To The Point publication tells you what you need to know about the new guidance.

11 July 2013

To the Point - SEC allows general solicitation and disqualifies ‘bad actors’
As required by the Jumpstart Our Business Startups Act, the SEC approved rules that will allow general solicitation and advertising in certain exempt securities offerings under Rule 506 of Regulation D and for offerings under Rule 144A of the Securities Act. The SEC also finalized a rule required by the Dodd-Frank Wall Street Reform and Consumer Protection Act to disqualify felons and other bad actors from participating in any exempt offerings under Rule 506. In addition, the SEC proposed amendments to enhance its ability to evaluate developments in offerings under Rule 506. Our To the Point publication summarizes what you need to know about the final rules and the proposal.

10 July 2013

To the Point - Fair value disclosure relief for nonpublic employee benefit plans
The FASB has indefinitely deferred the requirement for certain employee benefit plans to disclosure quantitative information about the unobservable inputs used to value equity investments in their nonpublic plan sponsor and the sponsor's nonpublic affiliates. The deferral is effective immediately for financial statements that have not yet been issued. Our To the Point publication tells you what you need to know about the new guidance.

3 July 2013

To the Point - FASB seeks comment on three Private Company Council proposals
The FASB issued proposals that would allow private companies to apply alternatives under US GAAP when accounting for intangible assets in a business combination, goodwill and certain hedges involving interest rate swaps. The alternatives were the first developed by the Private Company Council. Our To the Point publication tells you what you need to know about the proposals.

28 June 2013

To the Point - Management would have to assess going concern uncertainties
The FASB has proposed requiring management to assess uncertainties that could affect a company’s ability to continue as a going concern in the 24 months after the financial statement date and to provide disclosures when certain thresholds are met. Our To the Point publication tells you what you need to know about the proposal.

27 June 2013

To the Point - Accounting for insurance contracts could change significantly
The exposure draft provides a principles-based model for accounting for insurance contracts. The proposal would apply to any entity that issues a contract that meets the definition of an insurance contract and would result in the measurement of many contract liabilities based on current assumptions, adjusted to reflect the time value of money. Our To the Point publication tells you what you need to know about the proposal.

10 June 2013

To the Point - Investment company guidance is final
The FASB issued final guidance requiring an entity to have certain fundamental characteristics and to consider other typical characteristics to qualify as an investment company. The new guidance does not address disclosures about an investment in another investment company or issues related to the applicability of investment company accounting for real estate entities and the measurement of real estate investments. Our To the Point publication tells you what you need to know about the guidance.

29 May 2013

To the Point - Revenue recognition for credit card rewards and in-substance real estate
The FASB and the IASB tentatively agreed that the new revenue recognition standard will not specifically address credit card reward programs. The FASB also clarified that the new standard should be applied to transfers of in-substance nonfinancial assets to noncustomers. Our To the Point publication summarizes these decisions.

16 May 2013

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.

9 May 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.

2 May 2013

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.

23 April 2013

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.

18 April 2013

To the Point - A revised framework for considering relief to private companies
The Private Company Council (PCC) and the FASB have issued an Invitation to Comment on a revised decision-making framework that they would use to consider whether and when to provide alternatives for private companies under US GAAP. Our To the Point publication summarizes the framework and highlights changes from the initial staff recommendations the FASB sought comment on in July 2012.

4 April 2013

To the Point - FASB issues proposal to change reporting of discontinued operations
The FASB proposed raising the threshold for reporting a discontinued operation (e.g., a separate major line of business or major geographical area) and permitting an increased level of ongoing involvement (e.g., allows for continuing cash flows and significant continuing involvement). The proposal would require additional disclosures about discontinued operations and new disclosures about certain individually material disposal transactions that would not meet the definition of a discontinued operation. Comments are due by 30 August 2013.

27 March 2013

To the Point - New guidance for not-for-profit entities
The American Institute of Certified Public Accountants (AICPA) has issued a comprehensive revision of its Audit and Accounting Guide, Not-for-Profit Entities,for the first time in 15 years. Questions raised as the Guide was being updated have resulted in new guidance from the Emerging Issues Task Force (EITF) on two not-for-profit topics. Our To the Point publication summarizes the guidance from the AICPA and the EITF.

19 March 2013

To The Point - New group audit standard may require action by governments and their auditors
AICPA AU-C 600, "Special Considerations- Audits of Group Financial Statements (Including the Work of Component Auditors) is effective for fiscal years ending on or after December 15, 2012. Our To The Point publication summarizes how this standard may enhance the focus on identifying subsequent events.

21 February 2013

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.

14 February 2013

To the Point - FASB proposes new classification and measurement model
The FASB proposed a sweeping new classification and measurement model for financial instruments that would better converge some areas of US GAAP with IFRS 9. The proposal would apply to all entities across industries, with certain exceptions. Comments are due by 15 May 2013. Our To the Point tells you what you need to know about the proposal.

14 February 2013

To the Point - Private Company Council acts quickly to set its initial agenda
At the second meeting of the PCC, the PCC and the FASB changed the staff's proposed private company decision-making framework and voted to expose the framework for public comment. The PCC also put three areas for potential exceptions or modifications to US GAAP for private companies on its agenda. Our To the Point summarizes those issues and other matters discussed at the meeting.

31 January 2013

To the Point - Boards address various industry-specific issues in revenue proposal
The FASB and the IASB continue to make progress on their joint proposal on revenue recognition. At their meeting this week, the Boards addressed the application of the proposed guidance to certain transfers of assets, the scope of the proposed standard, including for financial services contracts and collaborative arrangements, accounting for contracts with customers that contain repurchase agreements and the effect of the proposed standard on asset managers. Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

31 January 2013

To the Point - FASB limits the scope of new offsetting disclosure requirements
Summarizes the FASB's final rule limiting the scope of disclosures about offsetting assets and liabilities.

17 January 2013

To the Point - FASB proposes more changes to accounting for repurchase agreements
The FASB has proposed accounting for all cash settled repurchase-to-maturity transactions (i.e., repurchase agreements that terminate on a financial instrument’s maturity date) as secured borrowings. The proposal also would eliminate existing guidance for evaluating the accounting for repurchase financings (i.e., a repurchase agreement that relates to a previously transferred financial asset between the same counterparties). Our To the Point tells you what you need to know about the proposal.

10 January 2013

To the Point - The PCAOB’s views on internal control audit deficiencies
The PCAOB has issued a report on its 2010 inspections that provides its views about the number and significance of deficiencies in audits of internal control over financial reporting (ICFR) for the eight domestic registered firms that it inspects annually. Our To the Point discusses how we are responding to the issues identified by the PCAOB, and our continued focus on improving audit quality in this area.

9 January 2013

To the Point - New definition and disclosures coming for discontinued operations
The FASB tentatively decided to propose a new definition of a discontinued operation that would raise the threshold to qualify (e.g., a separate major line of business or major geographical area) and permit an increased level of ongoing involvement (e.g., allows for continuing cash flows and significant continuing involvement). The FASB also tentatively decided to require disclosures about discontinued operations and about certain individually material disposal transactions that do not meet the definition of a discontinued operation. The Board directed its staff to draft a proposal as soon as possible. Our To the Point tells you what you need to know.

20 December 2012

To the Point - Boards check a few more items off their list in revenue redeliberations
The FASB and the IASB continue to make progress on their joint proposal on revenue recognition. At a meeting this week, the Boards addressed accounting for contract acquisition costs, constraining the cumulative amount of revenue recognized for licensed intellectual property and allocating the transaction price (including the effect of the allocation on some bundled arrangements). Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

20 December 2012

To the Point - FASB proposes new credit impairment model
The FASB proposed today a single, principles-based model to account for credit losses on financial assets. All companies would be affected by the proposal, which would change the accounting for credit losses on loans, debt securities and trade and other receivables. Our To the Point tells you what you need to know about the proposal.

11 December 2012

To the Point - Private Company Council holds inaugural meeting
In its initial meeting in December, the Private Company Council asked the FASB staff to research four issues that the Council may consider in its review of whether and when to make accommodations for private companies. Our To the Point publication summarizes those issues and other matters discussed at the meeting.

29 November 2012

To the Point - Boards explore a new direction on license arrangements
The FASB and IASB tentatively decided that licenses of intellectual property would be treated as either “rights” transferred to a customer at a point in time or promises to provide “access” over time, depending on the nature of the license. We encourage companies to consider the indicators the Boards’ staffs have developed to determine the nature of a license and to share their views about whether the approach is operational if they have concerns.

29 November 2012

To the Point - Some health care entities may have to move bad debt expense - again
The FASB and IASB tentatively decided that the effects of customer credit risk would be presented prominently as a separate line item in operating expense, rather than adjacent to revenue as previously proposed. Our To the Point publication summarizes how this decision in the joint revenue recognition project would affect health care entities.

27 November 2012

To the Point - FASB proposes limiting scope of new offsetting disclosure requirements
The FASB proposed limiting the scope of the new balance sheet offsetting disclosure requirements to certain derivatives, repurchase agreements and securities lending arrangements. In doing so, the FASB responded to concerns that the requirements, as written, would apply to many commercial contracts and that the cost of preparing the disclosures would be significant compared to the limited benefits. Comments are due by 21 December 2012. Our To the Point publication summarizes what you need to know about the proposal.

21 November 2012

To the Point - Licenses constrain progress on revenue redeliberations
The FASB and the IASB continue to redeliberate their joint proposal on revenue recognition. At a meeting this week, they made progress on how to address collectibility and the proposed constraint on variable consideration. However, they acknowledged that more work is needed on how to recognize revenue from licenses of intellectual property and directed their staffs to conduct additional outreach on whether an approach they are exploring is operational. Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

15 November 2012

To the Point - Management would have to assess going concern
The FASB tentatively decided to require management to assess a company’s ability to continue as a going concern and the need for disclosure when certain levels of uncertainty exist. This would be a change because today’s requirement to assess a company’s ability to continue as a going concern rests primarily with auditors. The FASB expects to issue a proposal in the first quarter of 2013.

7 November 2012

To the Point - Proposed non-GAAP framework could make reporting easier for SMEs
The AICPA is requesting comments on a proposed financial reporting framework for small- and medium-sized privately held entities that are not required to use US GAAP. The proposed framework is intended to be less complicated and less costly to apply than US GAAP. Our To the Point publication provides a brief overview of the framework.

4 October 2012

To the Point - The SEC's opportunity to consider disclosure overload
To address growing concern about the volume of required disclosures, we recommended to the SEC that it expand its review of registration requirements for emerging growth companies, as required by the JOBS Act, to include disclosures required for all public companies. Our To the Point publication summarizes our comment letter to the SEC in which we recommend qualitative criteria the SEC could use to alter or eliminate Regulation S-K disclosure requirements for all public companies. We also suggest an overhaul of the method in which information required by Regulation S-K is filed by public companies and distributed to investors.

20 September 2012

To the Point - Private companies in the spotlight
Standard setters, regulators and lawmakers are focusing on how to reduce financial reporting burdens and promote capital formation for private companies. Our To the Point highlights accounting, auditing and regulatory initiatives and other projects focused on private company financial reporting.

6 September 2012

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.

6 September 2012

To the Point - SEC proposes allowing solicitation and advertising in certain exempt offerings
The SEC proposed rules that would allow general solicitation and advertising for certain exempt securities offerings as required by the Jumpstart Our Business Startups Act. The proposed relief would apply to exempt offerings conducted under new Rule 506(c) of Regulation D, as well as resales of restricted securities under Rule 144A of the Securities Act. Our To the Point publication summarizes what you need to know about the proposed rules.

24 August 2012

To the Point - Final conflict minerals rule addresses many stakeholder concerns
The SEC approved a final rule requiring issuers to disclose their use of conflict minerals in their products and whether those minerals originated from the Democratic Republic of the Congo and neighboring countries. The rule was mandated by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act in response to humanitarian concerns that trade in conflict minerals is financing armed groups in the region. Our To the Point publication summarizes the final rule.

24 August 2012

To the Point - Oil, gas and minerals issuers must disclose payments to governments
The SEC issued a final rule and amendments requiring issuers in resource extractive industries to disclose payments to the US and foreign governments.The rule was mandated by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule requires all issuers engaged in the commercial development of oil, natural gas or minerals to disclose the amount of payments by type, by project and by government annually.

23 August 2012

To the Point - FASB proposes more AOCI reclassification disclosures
The FASB issued an exposure draft that proposes new tabular disclosures about items reclassified out of accumulated other comprehensive income (AOCI). The proposal would also increase disclosures about changes in the balances of AOCI components and require new interim reporting disclosures. Our To the Point publication summarizes what you need to know about the proposal.

23 August 2012

To the Point - Sustainability reporting gets a boost from stock exchanges
The NASDAQ Stock Market became one of the latest stock exchanges to urge listed companies to measure and report on environmental and social issues. Our To the Point publication tells you what you need to know about the trend.

9 August 2012

To the Point - No IPEs, but fair value could still be an option
The FASB tentatively decided not to develop entity-based accounting guidance for investment property entities (IPEs). The Board plans to consider the results of related standard-setting projects before deciding whether to pursue another approach, such as developing asset-based guidance for investment property, or to abandon the investment property project entirely. Our To the Point publication describes the Board’s latest decisions.

9 August 2012

To the Point - Private companies - a framework for consideration
The FASB issued an Invitation to Comment on its staff's initial recommendations for a private company decision-making framework that would help the FASB and the new Private Company Council decide whether and when to change US GAAP financial reporting requirements for private companies. Our To the Point publication summarizes the approach described in the discussion paper.

27 July 2012

To the Point - Qualitative impairment test added for indefinite-lived intangibles
The FASB issued final guidance giving companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Our To the Point summarizes what you need to know about the Accounting Standards Update.

17 July 2012

To the Point - SEC staff releases Final Report on IFRS
The SEC staff issued its Final Report on its IFRS Work Plan summarizing its findings about a possible move to a set of global accounting standards. The report does not include a recommendation to the Commission about whether or how to incorporate IFRS into the US financial reporting system. The report notes that the Commission has not yet made a policy decision. We don't expect a decision before 2013. Our To The Point publication summarizes the report.

12 July 2012

To the Point - FASB drops loss contingencies disclosure project
The FASB discontinued its project to expand requirements for loss contingencies disclosure but could revisit the issue as part of its disclosure framework project. In the mean time, we expect the SEC staff to continue to focus on compliance with existing requirements. Our To the Point publication describes the Board’s decision and summarizes the SEC staff’s recent comments on companies’ disclosures.

25 June 2012

To the Point - SEC requires listing standards for compensation committees
Our To the Point summarizes a final rule directing national securities exchanges to adopt minimum listing standards related to compensation committees and their use of advisers (i.e., compensation consultants, independent legal counsel and other advisers). The SEC also amended proxy rules to require new disclosures about whether the use of compensation consultants raised any conflicts of interest.

21 June 2012

To the Point - Now is the time to address disclosure overload
The volume of disclosures required in annual reports has grown sharply over the past two decades, largely fulfilling the prediction made in a 1994 study. Our To the Point publication updates the study of the average number of pages devoted to footnotes and Management’s Discussion and Analysis in annual reports of a select group of companies and highlights the plans of the FASB and SEC staff to increase the effectiveness of disclosures.

14 June 2012

To the Point - Circling back to straight-line leases but with a twist
The FASB and the IASB decided that lessees and lessors would classify leases based primarily on the nature of the asset being leased. For lessees, some leases would have an accelerated lease expense recognition pattern and others would have a straight-line lease expense recognition pattern. Lessees would recognize all leases (other than short-term leases) on the balance sheet. Our To the Point publication describes the Boards’ latest decisions.

14 June 2012

To the Point - Spotlight on private company standard setting
Improving the standard-setting process for private companies has become an area of focus on several fronts for the Financial Accounting Foundation and the Financial Accounting Standards Board. The creation of a Private Company Council and projects to develop a private company decision-making framework and to better define a nonpublic entity, reaffirm a strong commitment to private company stakeholders. Our To the Point highlights these initiatives.

24 May 2012

To the Point - Boards to reconsider key issues in revenue recognition project
Our To the Point publication summarizes significant comment letter themes and discussions at recent roundtables hosted by the Boards and the Boards’ proposed redeliberation plan. The Boards have targeted early 2013 for issuance of a final standard.

24 May 2012

To the Point - Media and entertainment entities raise key issues in revenue recognition project
The Boards discussed comment letters they received on their joint revenue recognition proposal as well as the redeliberation plan proposed by their staffs. Our To the Point publication focuses on comment letter themes from the media and entertainment industry. The Boards have targeted early 2013 for issuance of a final standard.

24 May 2012

To the Point - Technology entities raise key issues in revenue recognition project
The Boards discussed comment letters they received on their joint revenue recognition proposal as well as the redeliberation plan proposed by their staffs. Our To the Point publications focuses on comment letter themes from the technology industry. The Boards have targeted early 2013 for issuance of a final standard.

23 May 2012

To the Point - Classification and measurement - the GAAP continues to narrow
The FASB and the IASB continue to make significant progress to more closely align their respective classification and measurement models. Our To the Point publication highlights their latest tentative decisions.

19 April 2012

To the Point - Classification and measurement - narrowing the GAAP
The FASB and the IASB have made significant progress to more closely align their respective models. Our To the Point publication highlights the latest tentative decisions.

19 April 2012

To the Point - Impairment of financial assets - a step closer to completion
The FASB and the IASB continue to work out the details of their approach to estimating the impairment of financial assets. Our To the Point publication summarizes what you need to know about the latest tentative decisions.

27 March 2012

To the Point - PCAOB public meeting on auditor independence and audit firm rotation
More than 40 panelists participated in the PCAOB public meeting to discuss ways to enhance auditor independence, objectivity and professional skepticism, including mandatory audit firm rotation. Many of the panelists opposed mandatory audit firm rotation and suggested alternatives. The Board also reopened the comment period on its August 2011 concept release until 22 April 2012. Our To the Point publication provides highlights of the two-day meeting.

23 March 2012

To the Point - JOBS Act to promote capital formation
The US House of Representatives, which already overwhelmingly approved a version of the JOBS Act bill, is expected to approve the Senate's version of the bill. If President Barack Obama signs it into law, as expected, the JOBS Act would represent a major change in how private companies can access capital through either the private or public markets. Our To the Point publication summarizes the Act and what it would mean.

22 March 2012

To the Point - PCAOB proposals on related parties and significant unusual transactions
The PCAOB has proposed an auditing standard on auditing transactions with related parties and amendments to its standards regarding auditing significant unusual transactions. Our To the Point tells you what you need to know about the proposal.

15 March 2012

To the Point - More work needed on revenue recognition
In our comments to the Boards on their latest revenue recognition proposal, we say the Boards have made significant progress addressing the concerns raised by constituents about their initial proposal. However, we believe the Boards need to reconsider some aspects of the proposal and consider providing additional implementation guidance to promote consistent application.

1 March 2012

To the Point - Boards weighing effects of putting leases on the balance sheet
The FASB and the IASB remain committed to putting leases on the balance sheet, but continue to struggle with how to recognize related lease revenue and expense. This is likely to delay a new exposure draft. Our To the Point publication summarizes what you need to know about the status of the leases project.

25 January 2012

To the Point - FASB tries to simplify impairment test for indefinite-lived intangibles
Based on concerns raised by financial statement preparers about recurring costs and complexity of calculating the fair value of indefinite-lived assets for impairment testing, the FASB today issued a proposed ASU to simplify the impairment test. The proposal would give companies the option to perform a qualitative assessment (similar to the one introduced by ASU 2011-08 for goodwill) to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Comments are due by 24 April 2012.

19 January 2012

To the Point - PCAOB seeks comment on expanded audit committee communications
The Public Company Accounting Oversight Board (PCAOB) is seeking comment on a proposal that would require auditors to modify and expand their communications with audit committees beyond what the PCAOB and the Securities and Exchange Commission currently require.

5 January 2012

To the Point - Surprises lurk in the proposed revenue recognition model
In conjunction with its November 2011 re-exposure of the joint revenue recognition proposal, the FASB recently issued a draft of the proposed consequential amendments to the Accounting Standards Codification (the Codification). The proposed amendments include not only the proposed changes to Topic 605, Revenue Recognition, but also the changes to the guidance that resides outside of Topic 605.

29 December 2011

To the Point - Reclassifications are deferred - for now
The FASB has issued Accounting Standards Update 2011-12 (ASU 2011-12), Deferral of the Effective date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. ASU 2011-12 defers the requirement that companies present reclassification adjustments for each component of AOCI in both net income and OCI on the face of the financial statements.

22 December 2011

To the Point - Impairment - a major step toward convergence
The FASB and the IASB have agreed on several tentative decisions regarding their "three-bucket" expected loss approach to the impairment of financial assets. These include the transfer principle from Bucket 1 into Bucket 2 or Bucket 3, the Bucket 1 impairment allowance, the differentiating factor between Bucket 2 and Bucket 3, the grouping of financial assets for impairment evaluation and the application of the new impairment approach to retail loans, commercial loans and debt securities. Our To the Point publication discusses these decisions.

22 December 2011

To the Point - Offsetting of financial instruments - new disclosures
The FASB and the IASB issued converged disclosure requirements for balance sheet offsetting that are intended to enable users of financial statements to reconcile differences between balance sheets prepared under US GAAP and IFRS. The offsetting models aren't changing. Our To the Point publication summarizes what you need to know about the guidance.

8 December 2011

To the Point - Support grows for keeping US GAAP but basing future standards on IFRS
The incorporation of IFRS into the US financial reporting system was once again a focus of discussion at the AICPA National Conference on Current SEC and PCAOB developments in Washington D.C. this week. Representatives from the SEC, FASB and IASB all indicated that the SEC could incorporate IFRS into the US financial system but retain US GAAP. Our To the Point publication tells you what you need to know about these developments.

21 November 2011

To the Point - SEC Staff issues two papers on IFRS
As part of its Work Plan to consider whether, and if so, when and how IFRS should be incorporated into the US financial reporting system, the SEC staff released two papers: A Comparison of US GAAP and IFRS and An Analysis of IFRS in Practice. Our To the Point publications provides a summary of these documents.

18 November 2011

To the Point - AICPA proposes significant changes to IPR&D practice aid
The AICPA has proposed updates to its in-process research and development (IPR&D) practice aid to reflect significant changes to US GAAP that have affected the accounting for the acquisition of assets to be used in research and development activities. While not authoritative, the aid provides best practices for preparers, auditors, valuation specialists and others to consider when accounting and valuing acquired IPR&D assets. Our To the Point publication highlights some of the important changes to the practice aid.

14 November 2011

To the Point - A new proposal for revenue recognition
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) (collectively, the Boards) issued a revised joint proposal to create a single, global revenue recognition model. While the overall framework is the same as in the 2010 exposure draft (ED), key parts of the proposal have changed. Some changes move the proposal closer to US GAAP than the 2010 ED. Others would significantly change current practice for some companies. Our To the Point publication highlights changes from the 2010 ED and current practice.

9 November 2011

To the Point - OCI requirements may be changing - again
The FASB issued an exposure draft that proposes deferring the requirement in ASU 2011-05 that companies present reclassification adjustments for each component of accumulated other comprehensive income (AOCI) in both net income and other comprehensive income on the face of the financial statements. If finalized, the proposal would have the same effective dates as ASU 2011-05. Our To the Point publication summarizes what you need to know about the proposal.

21 October 2011

To the Point - Real estate investment properties could be moving to fair value
The FASB issued an exposure draft that would require a real estate entity that meets the definition of an investment property entity to measure its investment properties at fair value, with changes in fair value recognized in net income. This proposal would significantly affect the way many entities that invest in real estate account for their investments. Our To the Point publication summarizes what you need to know about the proposal.

21 October 2011

To the Point - Redefining investment companies and how they account for investments
The FASB issued an exposure draft that redefines an investment company and how it accounts for investments. The proposed definition may appear similar to current US GAAP, but there are some important differences. Some of the proposed changes to the definition and accounting could result in significant changes in practice for certain entities. Our To the Point publication summarizes what you need to know about the proposal.

20 October 2011

To the Point - Operating lease accounting survives for some real estate lessors
The Boards made some significant modifications to the proposed accounting for lessors agreed to in July 2011. Our To the Point explains what you need to know about the revised approach and the Boards’ decision to allow certain lessors of real estate investment properties to continue to use operating lease accounting.

20 October 2011

To the Point - SEC staff issues guidance on cybersecurity disclosures
In response to an increase in the frequency and severity of cyber attacks and breaches, the SEC staff provided a framework for registrants to consider in evaluating whether to disclose information about risks and incidents involving cybersecurity. Our To the Point discusses the SEC guidance on cybersecurity disclosures.

22 September 2011

To the Point - Companies that participate in multiemployer plans will have to disclose more
The FASB issued an ASU that requires companies participating in multiemployer pension plans to disclose more information about their involvement in those plans. The new disclosures will be required this year for calendar year-end public companies and will be deferred for one year for nonpublic entities. Our To the Point publication summarizes what you need to know about the new requirements.

15 September 2011

To the Point - Optional screen for goodwill impairment
The FASB issued an ASU on testing goodwill for impairmentwhich gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. The ASU is effective for fiscal years beginning after 15 December 2011 and early adoption is permitted. Our To the Point summarizes what you need to know about the ASU.

1 September 2011

To the Point - Accounting for the annual pharma fee and fee adjustments
The IRS has provided updated guidance on how it will calculate the annual fee imposed on pharmaceutical manufacturers as part of health care reform legislation in 2010. Beginning with the fee paid in 2012, the fee will include an adjustment representing a true-up of the prior year’s fee.

17 August 2011

To the Point - PCAOB seeks comment on mandatory audit firm rotation
The PCAOB is seeking comment on a concept release that outlines its thoughts on possible ways to enhance auditor independence, objectivity and professional skepticism, including mandatory audit firm rotation. Our publication summarizes the concept release and tells you what you need to know about the issue.

21 July 2011

To the Point - Boards to re-expose leases - a new approach for lessors selected
The Boards decided to re expose their joint leases proposal for a second time because they have made significant changes to the model they proposed last year. One of the changes decided this week was that lessors should apply a receivable and residual approach to all leases, with a few exceptions. Our To the Point publication summarizes these latest developments.

21 July 2011

To the Point - New credit impairment approach takes shape
The FASB and the IASB continued their discussion of the three-bucket approach for impairment of financial assets that they expect to formally propose in September. Our To the Point publication discusses the Boards' recent tentative decisions refining the approach.

14 July 2011

To the Point - Government pension rules face possible overhaul
The GASB proposals would require governments to report more prominently in their statements of financial position net pension liabilities that, in many cases, would be larger than what they currently report. Our To the Point publication summarizes what you need to know about the GASB proposals.

12 July 2011

To the Point - SEC hears mixed feedback at roundtable on IFRS
The SEC staff is gathering feedback to help the commissioners decide whether, and if so, when and how to incorporate IFRS into the financial reporting system for US issuers. That decision is expected later this year. Our To the Point publication summarizes what you need to know about the roundtable held by the SEC in July 2011.

30 June 2011

To the Point - PCAOB explores changes to the auditor's report
The PCAOB is seeking comment on a concept release that explores possible changes to the form and content of the auditor's report on financial statements. Our To the Point summarizes what you need to know about the four alternatives the PCAOB described and provides our views about each of them.

30 June 2011

To the Point - SEC turns spotlight on broker-dealer financial reporting and custody
The SEC has proposed a rule that would require broker-dealers with custody of assets to assert compliance with Financial Responsibility Rules and have an independent registered public accounting firm examine its compliance and issue a report based on that examination. Our To the Point publication summarizes what you need to know about the proposal.

23 June 2011

To the Point - A new approach to credit impairment is in the works
The FASB and the IASB are jointly developing a new credit impairment approach under which loans would be split into three buckets based on their underlying credit risk characteristics. Our To the Point summarizes the new approach.

23 June 2011

To the Point - SEC staff outlines common XBRL submission errors
The SEC staff, in its latest update on interactive data submissions, outlined errors it identified in XBRL files submitted in the first two months of 2011. Our To the Point outlines these errors. The largest accelerated filers should pay particular attention because their limited liability protection expires later this year.

16 June 2011

To the Point - Other comprehensive income is moving
The FASB issued new guidance to make the presentation of items within other comprehensive income (OCI) more prominent. Companies will be required to present items of net income, items of OCI and total comprehensive income in one continuous statement or two separate consecutive statements. They will no longer be allowed to present items of OCI in the statement of stockholders’ equity. Out To the Point summarizes what you need to know about the rule.

16 June 2011

To the Point - US perspective on IFRS amendments to employee benefit accounting
The IASB today finalized amendments to International Accounting Standard (IAS) 19, Employee Benefits. While this was not a joint project with the FASB, the IASB’s amendments to IAS 19 may serve as a starting point for future changes to accounting for pension and other postretirement benefits under US GAAP. Our To the Point summarizes the rule from a US perspective.

15 June 2011

To the Point - Boards to re-expose revenue proposal
The FASB and the IASB decided to formally expose their joint revenue recognition proposal for a second time because they have made significant changes to the model they proposed last year. Our To the Point explains what you need to know about this decision and other recent changes the Boards have made to their proposal.

1 June 2011

To the Point - SEC Staff Paper explores a way to incorporate IFRS in the US
Our To the Point summarizes the an approach for incorporating IFRS into the US financial reporting system that was first described by an SEC official as “condorsement.” A roundtable is scheduled for 7 July 2011.

26 May 2011

To the Point - SEC allows whistleblowers to bypass corporate compliance programs
Our To the Point summarizes the SEC final rules that encourage whistleblowers to report possible securities law violations to corporate compliance programs but do not require internal reporting to receive an SEC award.

19 May 2011

To the Point - A U-turn on straight-line lease expense
The Boards have decided to go back to their exposure draft approach of requiring lessees to recognize interest expense using the interest method and separately amortize the right-of-use asset (generally on a straight-line basis). This approach accelerates lease expense for today’s operating leases. Our To the Point describes the new developments.

13 May 2011

To the Point - Key differences between IASB's new consolidation guidance and US GAAP
The IASB issued new consolidation accounting guidance establishing a single consolidation model for all entities. While consolidation accounting was once a joint project, the FASB will not issue consolidation guidance similar to the IASB’s guidance at this time. Our To the Point discusses key differences between the models.

12 May 2011

To the Point - Fair value measurement guidance converges
The FASB and IASB issued converged guidance on fair value measurements and disclosures. From a US GAAP perspective, the amendments are largely clarifying in nature, but some could have a significant effect on companies. A number of new disclosures are also required. Our To the Point summarizes the new guidance.

12 May 2011

To the Point - The path to investment property guidance
The FASB is expected to issue a proposal that would require entities to measure investment property at fair value. The proposal would apply only to certain entities that meet defined criteria of an investment property entity. Our To the Point summarizes what you need to know about this project.

29 April 2011

To the Point - Repo accounting amendments finalized
The FASB amended its guidance on accounting for repurchase agreements by eliminating the requirement that the transferor demonstrate it has adequate collateral to fund substantially all the cost of purchasing replacement assets. As a result, more arrangements could be accounted for as secured borrowings rather than sales. Our To the Point summarizes the new rule.

25 April 2011

To the Point - Screen considered for goodwill impairment testing
Based on concerns raised about recurring costs and complexity regarding the calculation of fair value, the Board issued a proposed ASU to simplify how a company is required to test goodwill for impairment. Our To the Point summarizes the proposal.

21 April 2011

To the Point - Key insights for companies with new XBRL requirements
Most accelerated and non-accelerated filers (Tier 3 companies) will be submitting their initial XBRL exhibits to the SEC and most large accelerated filers (Tier 2) will be submitting detail tagged XBRL exhibits for the first time. Our To the Point summarizes the experiences of the first wave of companies that began submitting XBRL exhibits to the SEC in 2009 and recently submitted detail tagged XBRL exhibits with their 2010 10-Ks.

21 April 2011

To the Point - Proposed risk retention requirements for sponsors of asset-backed securities
Our To the Point summarizes the proposed SEC risk retention requirements for sponsors of asset-backed securities.

14 April 2011

To the Point - Straightening out lease expense and other issues
The FASB and the IASB have continued to refine their proposed accounting for leases. Our To the Point summarizes what you need to know about these developments as of the end of April 2011.

7 April 2011

To the Point - Proposed listing standards for compensation committees
The SEC has proposed a rule directing national securities exchanges to adopt minimum listing standards related to compensation committees and their use of advisers Our To the Point summarizes the proposal, which is required by the Dodd-Frank Act.

5 April 2011

To the Point - Creditors may identify more loan modifications as troubled
Our To the Point summarizes the FASB's guidance that will assist creditors in determining whether a loan modification is a troubled debt restructuring, The additional guidance could result in more loan modifications being classified as troubled debt restructurings.

31 March 2011

To the Point - A clearer picture of leases on the balance sheet
Our To the Point discusses significant changes to the joint leasing proposal as a result of FASB and IASB redeliberations.

31 March 2011

To the Point - Credit impairment accounting continues to take shape
While awaiting feedback on the Supplementary Document (SD), the Boards continued to discuss other impairment issues. The Boards made tentative decisions regarding estimating credit losses and accounting for purchased financial assets. Our To the Point provides a brief update and analysis.

24 March 2011

To the Point - Implementing the MLR - revenue recognition implications for insurers
As the end of the first quarter approaches, health insurance issuers should consider the new minimum medical loss ratio requirements, including whether they should accrue any amounts for premium rebates to plan enrollees. Our To the Point provides information on accounting for MLR-related premium rebates.

1 March 2011

To the Point - Insurance project picks up steam - Boards make key decision on discount rate
The IASB and the FASB have proposed fundamentally changing accounting for insurance contracts. Their goal is to develop a simpler, converged measurement model for insurance contracts. Our To the Point addresses certain matters discussed during redeliberation of the IASB’s Exposure Draft.

17 February 2011

To the Point - Lease term simplified - other lease accounting changes on the horizon
Our To the Point summarizes certain changes proposed by the FASB and IASB during the redeliberation of the joint leases proposal.

10 February 2011

To the Point - Hedge accounting: FASB seeks reaction to IASB’s proposed model
The FASB is seeking comment on the IASB’s December 2010 hedge accounting proposal. The proposed IASB model would significantly change hedge accounting, going well beyond the changes the FASB proposed last year. This To the Point describes the IASB's proposal.

1 February 2011

To the Point - A new proposal for recognizing credit losses
The FASB and IASB have jointly proposed a model for determining when credit losses should be recognized on certain loans and other financial assets. Financial assets would be separated into a "good book" and "bad book," based on the company's internal credit risk management policies. Our To the Point summarizes the joint proposal.

31 January 2011

Hot Topic - Big changes proposed to balance sheet offsetting
The FASB and the IASB have proposed significantly restricting the ability of companies to offset assets and liabilities on their balance sheets. Our Hot Topic provides an overview of this proposal.

28 January 2011

Hot Topic - SEC adopts "say-on-pay" shareholder votes on executive compensation
Our Hot Topic summarizes the SEC's rule that requires proxy statements to provide shareholders non-binding votes on executive compensation.

19 January 2011

Hot Topic - Credit quality disclosures: insurers need to use their judgment
As a result of the FASB rule, companies are required to provide extensive new disclosures about the credit quality of their financing receivables, including credit risk exposures and the allowance for credit losses, Our Hot Topic includes items to be considered by insurance companies.

5 January 2011

Hot Topic - Loss contingency disclosure
Our Hot Topic provides a more in-depth view of the SEC staff’s actions and expected actions related to loss contingency disclosure.

22 December 2010

Hot Topic - FASB and IASB joint projects update
Our Hot Topic summarizes the Boards' plans related to their joint projects at 2010 year-end.

22 December 2010

Hot Topic - SEC proposes disclosure of payments to governments by issuers with oil and gas and mining operations
The Dodd-Frank Act requires the SEC to develop a rule that would require certain issuers to disclose in their annual reports payments they make to foreign governments or the US government related to the commercial development of oil, natural gas or minerals. Our Hot Topic provides an overview of the more significant aspects of the proposed rule.

22 December 2010

Hot Topic - SEC rule proposal: Conflict minerals disclosures
Our Hot Topic summarizes the SEC rule proposal that would require new disclosures by reporting issuers concerning conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country.

17 December 2010

Hot Topic - Accounting for income taxes: a year-end update
New laws and regulations have significantly altered the tax landscape this year- health care reform, incentives to hire unemployed workers, new tax credits and the IRS schedule to report uncertain tax positions. Our Hot Topic summarizes developments that may have income tax accounting implications.

17 December 2010

Hot Topic - Accounting for income taxes: implications of recently enacted tax legislation
In December 2010, President Obama signed in to law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act). Our Hot Topic provides an overview of the related income tax accounting implications.

10 December 2010

Hot Topic - IFRS issues featured at AICPA Conference
Our Hot Topic provides highlights of the discussion of convergence issues discussed at the 2010 AICPA Conference.

8 December 2010

Hot Topic - Accounting for income taxes: implications of proposed tax cut legislation
On 6 December 2010, President Obama announced a framework to cut tax rates for individuals and to provide tax relief for businesses. Our Hot Topic provides an overview of the announced provisions.

19 November 2010

Hot Topic - Revenue recognition - FASB and IASB discuss redeliberation plan
Our Hot Topic provides a summary of the FASB and IASB staff update on the status of the joint revenue recognition project.

12 November 2010

Hot Topic - Health care reform: year-end accounting considerations for postretirement health care plans
Our Hot Topic highlights some of the accounting considerations for sponsors of postretirement health care plans, including the effects of the new health care legislation.

5 November 2010

Hot Topic - Highlights of Valuation Resource Group meeting
Our Hot Topic provides a summary of the issues discussed by the VRG at the 1 November 2010 meeting.

3 November 2010

Hot Topic - FASB proposes changes to accounting for repurchase agreements
Our Hot Topic provides an overview of the FASB's proposal to modify the accounting for repurchase agreements and other arrangements that both entitle and obligate the transferor (seller) to repurchase or redeem assets before their maturity.

3 November 2010

Hot Topic - SEC issues first Progress Report on IFRS Work Plan
Our Hot Topic summarizes the SEC staff's first Progress Report on its Work Plan related to the possible move to a set of global accounting standards.

27 October 2010

Hot Topic - FASB’s proposed loss contingency disclosures not effective for 2010
The FASB decided that the proposed loss contingency disclosures will not be required for public entities in 2010. Our publication discusses the actions taken by the FASB.

27 October 2010

Hot Topic - SEC proposal: "Say-on- pay" shareholder votes on executive compensation
Our Hot Topic provides an overview of the more significant aspects of the SECs say-on-pay proposal.

20 October 2010

Hot Topic - FASB and IASB request input on when new standards should become effective
The FASB and IASB are requesting comments about the time and effort required to adapt to the new joint standards they have proposed and when they should become effective. We strongly encourage entities to provide their views about how and when new standards should be implemented.

13 October 2010

Hot Topic - FASB proposes to clarify troubled debt restructuring guidance
Our Hot Topic summarizes the FASB proposed ASU that would clarify the accounting guidance on identifying troubled debt restructurings for creditors.

6 October 2010

Hot Topic - Accounting for income taxes: a quarterly update
The third quarter of calendar year 2010 introduced certain legislative and regulatory developments with potential income tax accounting implications. Our Hot Topic includes a summary of certain third quarter 2010 developments and trends that may have potential income tax accounting implications.

1 October 2010

Hot Topic - FASB redefines costs to be deferred as acquisition costs
Our Hot Topic discusses the new guidance in EITF Issue 09-G in which the FASB redefines costs to be deferred as acquisition costs It also compares the accounting for acquisition costs to what is being proposed by the IASB and FASB as part of the insurance contracts project.

22 September 2010

Hot Topic - SEC issues MD&A guidance: Liquidity and capital resources
In September 2010, the SEC published interpretive guidance intended to improve liquidity and capital resources disclosure in MD&A. Our Hot Topic provides an overview of the more significant aspects of the SEC guidance.

22 September 2010

Hot Topic - SEC proposal: Short-term borrowings disclosures in MD&A
In September 2010, the SEC unanimously voted to issue a proposal expanding short-term borrowings disclosure in MD&A. Our Hot Topic provides an overview of the more significant aspects of the proposal.

1 September 2010

Hot Topic - SEC final rule: Facilitating shareholder director nominations
Our Hot Topic provides an overview of the more significant aspects of the final rule changing the proxy requirements to facilitate director nominations by shareholders (“proxy access”).

31 August 2010

Hot Topic - FASB Issues proposed ASU on disclosure about an employer’s participation in a multiemployer plan
Our Hot Topic summarizes the FASB proposed ASU that would enhance the disclosure requirements for participants in multiemployer pension plans.

18 August 2010

Hot Topic - FASB extends comment period for loss contingency disclosure proposal
On 18 August 2010, the FASB decided to extend the comment period related to its most recent exposure draft on loss contingency disclosures until 20 September 2010. Our Hot Topic updates our previous summary on the re-proposal.

18 August 2010

Hot Topic - Proposed accounting changes for leases
Our Hot Topic summarizes the substantial changes to the accounting for leases proposed in the FASB and IASB joint leases project.

11 August 2010

Hot Topic - Change in the HIRE Act statute of limitations
Our Hot Topic amends the 21 May 2010 publication for the change in the HIRE Act statute of limitations.

11 August 2010

Hot Topic - Tax accounting for international tax legislation
Our Hot Topic summarizes the tax considerations related to the Education and Jobs and Medicaid Assistance Act ("the Act"). The Act contains a series of income tax provisions that will change how foreign tax credits are determined and used in a number of situations. US entities with foreign subsidiaries that loan or repatriate income to a US parent are most likely to be affected by the change in tax law.

30 July 2010

Hot Topic - Annual re-assessment of compliance with SEC XBRL phase-in
Our Hot Topic summarizes recent developments in the SEC interactive data mandate. Specifically, the SEC staff has clarified how the annual measurement of a registrant’s worldwide public float can change its membership in an XBRL phase-in group.

30 July 2010

Hot Topic - FASB’s loss contingency disclosure proposal includes indirect taxes
The scope of the re-proposal on contingencies includes loss contingencies related to indirect taxes (i.e., taxes that are not within the scope of ASC 740, Income Taxes, as the tax is not based on income). Our Hot Topic summarizes the implications.

23 July 2010

Hot Topic - Changes to be proposed for investment property
The FASB has tentatively decided to issue a proposed ASU that would require investment property to be measured at fair value. Our Hot Topic highlights the FASB's decisions to date on the investment property project.

23 July 2010

Hot Topic - Extractive industries: implications of the financial reform bill
The new financial reform bill requires the SEC to develop a final rule that would require a resource extraction issuer to disclose payments made to foreign governments and the US Federal Government in their annual reports. Our Hot Topic summarizes the requirement affecting extractive companies.

23 July 2010

Hot Topic - FASB requires new disclosures about financing receivables and the allowance for credit losses
Our Hot Topic summarizes the recently issued ASU that requires entities to provide extensive new disclosures in their financial statements about their financing receivables, including credit risk exposures and the allowance for credit losses.

21 July 2010

Hot Topic - FASB re-exposes loss contingency disclosure proposal
The FASB has released its second exposure draft on loss contingency disclosures. If adopted as proposed, the proposal would expand the population of loss contingencies that are required to be disclosed to include remote contingencies that could have a severe impact. Our Hot Topic summarizes the key points in the proposal.

21 July 2010

Hot Topic - SEC Concept Release: US proxy system
Our Hot Topic summarizes an SEC Concept Release on whether the US proxy system is operating with the accuracy, reliability, transparency and integrity shareholders and issuers should expect.

7 July 2010

Hot Topic - FASB staff draft of new presentation model for financial statements
If ultimately exposed and adopted as proposed, the FASB and IASB staff draft standard will fundamentally redefine the way that entities present their financial position, performance and cash flows and likely will require significant changes to entities’ information systems. Our Hot Topic provides an overview of the draft presentation model.

30 June 2010

Hot Topic - FASB proposes amendments to converge fair value guidance
Our Hot Topic provides an overview of the FASB's proposed ASU that would amend the fair value measurement and disclosure guidance in Accounting Standards Codification Topic No. 820 to converge US GAAP and IFRS requirements for measuring amounts at fair value as well as disclosures about these measurements.

25 June 2010

Hot Topic - Boards issue joint progress report
The FASB and the IASB jointly issued a progress report on their major projects in advance of an expected discussion of convergence by the G20 on June 26, 2010.. Consistent with an earlier announcement by the Boards, the report includes a revised work plan that reflects a modified strategy. Our publication summarizes the progress report.

25 June 2010

Hot Topic - FASB proposes single revenue recognition model
The FASB and the IASB released their joint proposal to create a single, converged revenue recognition model. The proposed model outlines the principles entities should apply in recognizing revenue from contracts to provide goods and services to their customers. Our publication summarizes the proposal and points out the common components of revenue transactions that will be changed by the proposed guidance, including product warranties and contingent consideration.

23 June 2010

Hot Topic - Accounting for income taxes: a quarterly update
The second quarter of calendar year 2010 saw a number of legislative and regulatory developments including several with income tax accounting implications. Our Hot Topic includes a summary of certain developments and trends many of which have potential income tax accounting implications.

27 May 2010

Hot Topic - Amendments to equity-classified preferred share instruments
Our Hot Topic provides an overview of the existing extinguishment accounting model for equity-classified preferred shares, discusses factors to consider when evaluating whether an amendment to equity-classified preferred shares should be considered an extinguishment or modification and provides thoughts on accounting models that may be appropriate for modifications of equity-classified preferred shares.

27 May 2010

Hot Topic - FASB proposes more fair value for financial instruments and new performance statement
Our Hot Topic provides a high-level summary of the highly anticipated FASB proposal on the accounting for financial instruments, including the guidance on classification and measurement, impairment and hedging of financial instruments.

14 May 2010

Hot Topic - FASB/IASB joint projects update and related presentations
The Boards have completed their discussions of significant matters on several joint projects and are in the process of drafting proposals for exposure on those topics. On other projects, however, there are still a significant number of major issues to be deliberated before the Boards will be ready to issue proposed standards. This edition of our FASB/IASB joint projects update discusses individual projects based on decisions made by the Boards through 30 April 2010

14 May 2010

Hot Topic - Health care reform: limitations on compensation deductions
The new health care legislation includes a provision to limit the deduction for compensation paid to all officers, employees, directors and other workers who provide services for a covered health insurance provider to $500,000 regardless to whether such compensation is paid during or subsequent to the taxable year. Our publication provides a brief overview of the limitation and financial reporting considerations for share-based compensation.

16 April 2010

Hot Topic - SEC proposal: Asset-backed securities
Our Hot Topic summarizes the SEC's proposed amendments to Regulation AB regarding the offering, disclosure and reporting processes for publicly issued asset-backed securities (ABS).

14 April 2010

Hot Topic - Accounting for income taxes: changes in Medicare Part D and the Reconciliation Act
As discussed in our Hot Topic, 0n 14 April 2010, the staff of the SEC’s Office of the Chief Accountant announced that they would not object to a registrant accounting for the effects of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 together. For calendar year and quarter end entities, this announcement should not change the accounting for the Acts. However, entities that have a period end between the enactment dates of the Acts likely are affected by the SEC staff’s announcement.

14 April 2010

Hot Topic - Accounting for postretirement health care plans: The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010
In March 2010, President Obama signed into law historic health care legislation. The new legislation will likely affect the cost of providing health care benefits for retirees. Our Hot Topic discusses the accounting for postretirement health care plans under the Act.

9 April 2010

Hot Topic - Accounting for government assistance received
A number of governmental agencies, both domestic and foreign, have established programs to promote or guide the development of business activities by providing grants or credits. Our Hot Topic provides a brief summary of the accounting for tax based incentives and government grants.

9 April 2010

Hot Topic - Health care reform: Accounting for the excise tax on medical device manufacturers
The new health care legislation, among other provisions, imposes an excise tax on the sales by manufacturers of certain medical devices. The Act requires that the excise tax applies to sales after 31 December 2012. Our Hot Topic addresses questions related to the new tax.

9 April 2010

Hot Topic - PCAOB proposes auditing standard on communication with audit committees
Our Hot Topic summarizes a PCAOB proposal on communications with audit committees.

9 April 2010

Hot Topic - Recent legislative actions
Governments both in the US and abroad have been very active on a broad range of legislative initiatives. Our Hot Topic addresses the accounting for the income tax related to health care reform, clean energy, incentives to hire unemployed workers, extending expired tax legislation and changes in the United Kingdom’s statute of limitations.

9 April 2010

Hot Topic - Revenue recognition on the sale of virtual goods
Virtual goods are non-physical objects within the game represented by pictures, animations or three-dimensional objects. Many online game operators facilitate the sale of virtual goods by incorporating a virtual currency within the online game. Our Hot Topic focuses on the different revenue recognition methods applicable to the sale of virtual goods for cash (or purchased virtual currency) in a free-to-play game environment.

31 March 2010

Hot Topic - Boards complete deliberations on financial instruments with characteristics of equity
On 11 March 2010, the FASB and the IASB finalized a collection of tentative conclusions that will serve as the basis for an exposure draft of an accounting standard addressing financial instruments with characteristics of equity instruments. Our Hot Topic publication summarizes the boards' tentative conclusions.

31 March 2010

Hot Topic - Health care reform: Accounting for the annual fee on branded prescription pharmaceutical sales
Among other provisions, the new health care legislation imposes an annual fee on certain entities selling branded prescription drugs beginning in 2011. Our Hot Topic addresses the more frequently asked questions relating to the fee, specifically the year in which the fee should be recognized and the pattern of recognition of the cost.

10 March 2010

Hot Topic - FASB issues new guidance on embedded credit derivatives
The ASU clarifies the guidance within the derivative literature that exempts certain credit-related features from analysis as potential embedded derivatives requiring separate accounting. The ASU provides that only an embedded credit derivative feature related to the transfer of credit risk that is solely in the form of subordination of one financial instrument to another is not subject to further analysis as a potential embedded derivative. Our Hot Topic provides additional detail.

5 March 2010

Hot Topic - SEC final rule: Money market fund reform
Our Hot Topic discusses the SEC rule that amends money market fund requirements under the Investment Company Act of 1940.

26 February 2010

Hot Topic - FASB Issues ASU 2010-10 to defer Statement 167 for certain investment funds
The ASU addresses concerns with the application of Statement 167’s consolidation guidance by reporting enterprises in the asset management industry. ASU 2010-10 defers the effective date of the consolidation guidance of Statement 167 for certain investment funds. Our Hot Topic provides additional detail about the final ASU.

26 February 2010

Hot Topic - FASB issues ASU to amend ASC 855, Subsequent Events
As a result of the ASU, SEC registrants will not disclose the date through which management evaluated subsequent events in the financial statements — either in originally issued financial statements or reissued financial statements. Our Hot Topic provides additional detail about the final ASU.

24 February 2010

Hot Topic - SEC reaffirms its commitment to IFRS
Our Hot Topic summarizes the February 2010 SEC statement reaffirming its longstanding commitment to the goal of a single set of high-quality global accounting standards.

3 February 2010

Hot Topic - SEC issues guidance on climate change disclosures
Our Hot Topic summarizes SEC interpretive guidance regarding how its current disclosure requirements apply to climate change matters.

29 January 2010

Hot Topic - FASB approves deferral of Statement 167 for certain investment funds
Our Hot Topic provides a brief description of the more significant issues addressed at the 27 January 2010 meeting. At this meeting, FASB members discussed several constituent issues regarding the proposed ASU to amend the effective date of FASB Statement 167 for certain entities.

29 January 2010

Hot Topic - French business tax reform
On 31, December 2009, a change in French tax law was enacted. Our Hot Topic provides a summary of the tax law change and the application of income tax accounting.

29 January 2010

Hot Topic - SEC final rule: Investment adviser custody of client assets
Our Hot Topic summarizes the SEC rule intended to provide additional safeguards if an investment adviser registered with the SEC has custody of client funds and securities.

29 January 2010

Hot Topic - Update on status of FASB/IASB joint projects
The FASB and the IASB have been working closely together since 2002, when the two standard-setters entered into the Norwalk Agreement that formalized their commitment to convergence. The Boards have “redoubled” their efforts and have a number of significant joint projects on their agenda, all of which are planned to be completed by 2011. Our Hot Topic provides a summary of the status of and timetable for each project.

22 January 2010

Hot Topic - FASB issues new guidance on fair value measurements and disclosures
Our Hot Topic summarizes the FASB's new fair value rules that will require entities to disclose additional information regarding assets and liabilities that are transferred between levels of the fair value hierarchy.

13 January 2010

Hot Topic - SEC staff issues revised guidance on non-GAAP financial measures
Our Hot Topic summarizes recently issued SEC staff Compliance and Disclosure Interpretations on non-GAAP financial measures.

8 January 2010

Hot Topic - FASB issues ASU 2010-03 to amend oil and gas reserve accounting and disclosure guidance
Our Hot Topic provides a summary of the FASB action to conform its requirements to the SEC Rule, "Modernization of Oil and Gas Reporting Requirements." As a result of these changes, the disclosures to be presented in the supplemental oil and gas information in the notes to the financial statements will be significantly different than what has been presented in the past.

8 January 2010

Hot Topic - FASB issues ASU on accounting for decreases in ownership of a subsidiary
Our Hot Topic provides a summary of the FASB proposal that addresses implementation issues associated with the provisions of Statement 160 relating to the accounting for decreases in the ownership a subsidiary.

30 December 2009

Hot Topic - Application of FASB Statement No. 157 to investments in hedge funds
Our Hot Topic discusses considerations in applying Statement 157 to investments made in unregistered alternative investments, commonly referred to as hedge funds.

30 December 2009

Hot Topic - FASB issues proposed ASU to amend ASC 855, Subsequent Events
Our Hot Topic summarizes the FASB's proposal that would amend subsequent event guidance to address practice issues for SEC registrants with respect to processes around issuing financial statements and SEC registration requirements (e.g., incorporation by reference of previously issued financial statements).

18 December 2009

Hot Topic - SEC final rule: Proxy disclosure enhancements
Our Hot Topic summarizes the SEC's final rule to require enhanced disclosures regarding risk, compensation and corporate governance matters in proxy materials The rule will apply to most proxy statements for 2010 annual meetings.

11 December 2009

Hot Topic - SEC officials provide update on the proposed IFRS Roadmap
Our Hot Topic summarizes the key issues related to the Roadmap addressed by Commissioner Walter and James Kroeker at the 2009 AICPA National Conference on Current SEC & PCAOB Developments.

4 December 2009

Hot Topic - FASB issues proposed ASU to defer Statement 167 for certain investment funds and amend other provisions
Our Hot Topic summarizes the FASB's recently issued proposal that addresses concerns with the application of Statement 167 in the asset management industry by proposing to defer the effective date of Statement 167 for certain investment funds. As currently written, Statement 167 may result in asset managers consolidating many hedge funds, private equity funds and other investment funds that they manage.

20 November 2009

Hot Topic - FASB Codification considerations and quick reference
Our Hot Topic addresses issues related to the FASB Codification and contains an Appendix that provides a quick reference to the Codification, displaying all Topics and selected Subtopics, as well as a list of commonly referenced pre-Codification FASB standards and the Codification Topics that now contain that content.

13 November 2009

Hot Topic - Accounting for financial instruments: A changing landscape
Our Hot Topic provides a summary of FASB actions taken to date in their Accounting for Financial Instruments project and provides an overview of the current status of issues being considered and tentative decisions reached. It also provides an overview of the chapters of IFRS 9 recently issued.

11 November 2009

Hot Topic - Definition of a business
Our Hot Topic provides an overview of the guidance on the definition of a business in ASC 805 as well as examples of the application of this guidance to certain transactions in the life sciences, real estate and extractive industries.

11 November 2009

Hot Topic - FASB proposes to defer Statement 167 for asset management funds
The FASB voted to expose for comment an amendment that would defer the application of Statement 167 for a limited number of entities (principally mutual funds, private equity funds and hedge funds) until the completion of the joint FASB/IASB project on consolidation accounting. The FASB intends for the deferral to apply only in instances in which certain conditions are met, as discussed in more detail in our Hot Topic.

11 November 2009

Hot Topic - SEC proposal: Credit ratings disclosure
Our Hot Topic summarizes a SEC proposal that would require additional disclosure in registration statements when credit ratings are used by issuers, underwriters or other offering participants.

6 November 2009

Hot Topic - Income tax accounting implications of recent legislation
In November 2009, President Obama signed into law legislation that contains a number of tax law changes, including a provision that extends the carryback period for certain net operating losses. Our Hot Topic provides an overview of the income tax accounting implications of this legislation.

3 November 2009

Hot Topic - SEC staff updates oil and gas reporting guidance
Our Hot Topic discusses revisions made by SAB 113 that go beyond mere changes to conform to the SEC's rule on modernization of oil and gas reporting and the C&DIs issued to address accounting and reporting implications as a result of the final rule.

30 October 2009

Hot Topic - IFRS for SMEs: Implications for US private entities
Our Hot Topic contains a summary of the IFRS for SMEs, its scope, key areas in which options in full IFRS have been removed, and key areas in which the accounting for SMEs has been amended from that required by full IFRS. It also provides a number of issues that eligible entities including US private entities will want to consider when making a decision to adopt IFRS for SMEs.

14 October 2009

Hot Topic - Proposed ASU: Scope exception for embedded credit derivatives
Our Hot Topic clarifies the FASB re-proposal that clarifies that the embedded credit derivative feature between the tranche holders created by subordination is not subject to potential bifurcation from the host contract. The revised accounting guidance will be a major accounting change for many synthetic CDO investors (e.g., insurance groups) who have historically applied the scope exception to their investments in synthetic collateralized debt obligations.

7 October 2009

Hot Topic - Proposed ASU: acquired R&D assets and contingent consideration in an asset acquisition
Our Hot Topic discusses a FASB proposal that would address the accounting for acquired research and development assets and contingent consideration in an asset acquisition.

2 October 2009

Hot Topic - FASB issues ASU on measuring fair value of alternative investments
Our Hot Topic summarizes the FASB's new rule providing additional guidance on measuring the fair value of certain alternative investments. As a practical expedient, the rule allows an entity within its scope to estimate the fair value of investments within the scope using the net asset value (NAV) per share of the investment as of the reporting entities’ measurement dates.

25 September 2009

Hot Topic - Changes in revenue recognition for tangible products that include software
Our Hot Topic summarizes EITF Issue 09-3. This updated guidance is expected to significantly affect how entities account for revenue arrangements that contain both hardware and software elements.

25 September 2009

Hot Topic - Revisions to revenue recognition: multiple-element arrangements guidance finalized
Our Hot Topic summarizes EITF Issue 08-1. EITF 08-1 updates the existing multiple-element arrangements guidance and is expected to significantly affect these entities with these arrangements.

16 September 2009

Hot Topic - FASB issues proposed ASU to amend oil and gas accounting guidance
Our Hot Topic summarizes the FASB's proposal to align the reserve calculation and disclosure requirements of ASC 932 with the requirements in the SEC Rule, Modernization of Oil and Gas Reporting Requirements.

9 September 2009

Hot Topic - FASB issues ASU 2009-06 on accounting for uncertainty in income taxes
Our Hot Topic summarizes the FASB's guidance related to the accounting for uncertainty in income taxes and eliminates certain disclosure requirements for nonpublic entities

2 September 2009

Hot Topic - FASB issues proposal on consolidation scope
Our Hot Topic summarizes the FASB's proposal on implementation issues associated with the provisions of Statement 160 related the accounting for decreases in the ownership of a subsidiary.

2 September 2009

Hot Topic - FASB issues proposal on disclosures about fair value measurements
Our Hot Topic summarizes the FASB proposal that would require additional disclosures regarding recurring and non-recurring fair value measurements

28 August 2009

Hot Topic - FASB issues ASU 2009-05 on measuring liabilities at fair value
Our Hot Topic summarizes the FASB's guidance on several key issues regarding the estimate of fair value for liabilities. The guidance addresses restrictions on the transfer of a liability, and clarifies how the price of a traded debt security (i.e., an asset value) should be considered in estimating the fair value of the issuer’s liability.

31 July 2009

Hot Topic - Amendments to IFRS 1: Oil and gas implications
In July 2009, the IASB provided relief from the full retrospective application of IFRS for the measurement of oil and gas assets and leases. The amendments to IFRS will benefit those first-time adopters of IFRS that have oil and gas assets that previously followed the full cost method of accounting for oil and gas producing activities. Our Hot Topic summarizes the new exemptions.

31 July 2009

Hot Topic - Financial Crisis Advisory Group reports to the FASB and IASB
Our Hot Topic summarizes the Financial Crisis Advisory Group report to members of the FASB and IASB on the standard-setting implications of the global financial crisis.

29 July 2009

Hot Topic - IASB Exposure Draft on rate-regulated activities
Our Hot Topic addresses the recently issued IASB Exposure Draft (ED), Rate-regulated Activities. The proposals, if adopted, allow for assets and liabilities that arise from rate-regulated activities within the scope of the ED to be recognized under IFRS. Such recognition of assets and liabilities related to rate-regulated operations is a significant change from current IFRS. Comments on the proposal are due 20 November 2009.

17 July 2009

Hot Topic - SEC proposal: Proxy disclosure about corporate governance and compensation
The SEC issued for public comment a proposal to amend existing rules regarding compensation and corporate governance matters included in proxy materials. Among other things, the proposal would amend the disclosures a company is required to make regarding (1) overall compensation policies (2) director qualifications and legal proceedings (3) company leadership structure (4) potential conflicts of interest of compensation consultants.

10 July 2009

Hot Topic - FASB ratifies EITF 09-1 on own-share lending arrangements
Our Hot Topic addresses the accounting for an entity’s own-share lending arrangement initiated in conjunction with a convertible debt or other financing offering and the effect a share-lending arrangement has on earnings per share.

26 June 2009

Hot Topic - FASB issues proposal on disclosures about the credit quality of financing receivables and the allowance for credit losses
Our Hot Topic summarizes the FASB proposal that would require additional disclosures to allow financial statement users to understand the nature of credit risk inherent in the creditor’s financing receivables portfolio, how that risk is analyzed and assessed in arriving at the allowance for credit losses, and the changes, in both the receivables and the allowance for credit losses.

17 June 2009

Hot Topic - Facilitating shareholder director nominations
In June 2009, the SEC published a proposal that would create a procedure by which shareholders can nominate director candidates. Our Hot Topic provides an overview of the more significant aspects of the proposal.

17 June 2009

Hot Topic - XBRL update
Our Hot Topic summarizes relevant developments since the SEC’s approval of the interactive data rules and provides observations from our review of recent interactive data filings by early adopting registrants.

12 June 2009

Hot Topic - FASB issues Statement 166 amending Statement 140
Our Hot Topic summarizes Statement 166 that was issued in response to the FASB’s concerns about how practice has developed under Statement No. 140 for transfers of financial assets. Statement 166 removes the concept of a QSPEs from Statement 140 and eliminates the exception for QSPEs from the consolidation guidance of FIN 46(R).

12 June 2009

Hot Topic - FASB issues Statement 167 amending FIN 46(R)
Our Hot Topic summarizes FASB Statement 167 to address the effects of eliminating the qualifying special-purpose entity (QSPE) concept from FASB Statement No. 140.

10 June 2009

Hot Topic - FASB Issues Proposed FSP on fair value of alternative investments
Our Hot Topic summarizes a proposed FSP under which a reporting entity would be permitted, as a practical expedient, to estimate the fair value of certain alternative investments using the net asset value (NAV) per share of the investment. The proposed FSP also requires additional disclosures to help financial statement users better understand the nature and risks of the reporting entity’s alternative investments.

3 June 2009

Hot Topic - FASB agrees to the effective date of the Codification
Our Hot Topic discusses the use of GAAP references in financial statements after the Codification becomes effective, as well as some reminders for Codification users.

29 May 2009

Hot Topic - FASB issues standard on subsequent events
Our Hot Topic summarizes Statement 165 on subsequent events. The FASB issued Statement 165 to provide authoritative accounting literature for a topic that was previously addressed only in the auditing literature. The guidance in Statement 165 is similar to the current guidance in the auditing literature with some exceptions that are not intended to result in significant changes in practice.

26 May 2009

Hot Topic - FASB issues Statement 164 on business combinations by not-for-profit entities
Our Hot Topic addresses Statement 164 that amends the accounting for business combinations between two or more not-for-profit entities and establishes principles and requirements for how a not-for-profit entity determines whether a combination is a merger or an acquisition.

20 May 2009

Hot Topic - FASB issues proposed FSP FIN 48-d
Our Hot Topic addresses the FASB's FSP No. 48-d, Application Guidance for Pass-through Entities and Tax-Exempt Not-for-Profit Entities, and Disclosure Modifications for Nonpublic Entities.

20 May 2009

Hot Topic - Responses to the SEC Roadmap
Our Hot Topic summarizes several of the more prevalent views raised in comment letters to the SEC on its proposed roadmap for US registrants to adopt IFRS.

8 May 2009

Hot Topic - FASB issues proposal on measurement of liabilities at fair value
Our Hot Topic summarizes a proposed FASB FSP that is aimed at addressing several key issues with respect to estimating the fair value of liabilities in accordance with Statement 157.

10 April 2009

Hot Topic - EITF consensus-for-exposure on the milestone method of revenue recognition
Our Hot Topic outlines the consensus-for-exposure for EITF 08-9, “Milestone Method of Revenue Recognition.” Under the consensus-for-exposure, a vendor may make an accounting policy election to recognize arrangement consideration that is entirely contingent upon the achievement of a substantive milestone in the period in which the milestone is achieved.

10 April 2009

Hot Topic - FASB issues FSP FAS 115-2 on other-than-temporary impairments
Our Hot Topic discusses the FASB's recently issued FSP FAS 115-2, FAS 124-2, and EITF 99-20-2, Recognition and Presentation of Other-Than-Temporary Impairments (FSP FAS 115-2). Under FSP FAS 115-2, management must assert: (a) it does not have the intent to sell the security; and (b) it is more likely than not it will not have to sell the security before recovery of its cost basis.

10 April 2009

Hot Topic - FASB issues FSPs 157-4 and 107-1 on fair value measurements and disclosures
This Hot Topic summarizes the recent FASB FSP No. FAS 157-4, that amends Statement 157 to provide additional guidance on estimating fair value when the volume and level of activity fo