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US Week in Review - Week ending 1 December 2011

The US Week in Review highlights this week’s developments and emerging issues in the financial reporting world and gives you direct access to relevant technical accounting guidance and thought leadership produced by Ernst & Young.

Certain materials referenced below are available exclusively in AccountingLink. The site is available free of charge, but requires a one-time registration.

Ernst & Young publications


Updated FRD on transfers and servicing of financial assets

We have updated our Financial reporting developments publication, Transfers and servicing of financial assets. This updated edition includes recent standard-setting activities, such as the issuance of ASU 2011-03, Reconsideration of Effective Control for Repurchase Agreements, which is effective 1 January 2012, for calendar year-end entities. This updated edition also includes enhancements to our interpretive guidance.


Standard Setter updates


Financial Accounting Standards Board (FASB)

30 November 2011 FASB meeting

Insurance Contracts - The Board discussed the measurement of cash flows of insurance contracts that depend on the performance of the insurer or specific assets and liabilities of the insurer (i.e., the underlying items). To eliminate accounting mismatches, the Board decided that the liability for performance-linked participating features should be adjusted to reflect timing differences between the current liability (i.e., the obligation incurred to date) and the measurement of the underlying items in the statement of financial position. The Board also decided that any changes in the liability for the performance-linked participating feature would be reported in the same way as the changes in the underlying items within the statement of comprehensive income (i.e., either in net income or OCI).

EITF Consensuses - The Board ratified the final consensus reached on Issue 10-E, "Derecognition of In-Substance Real Estate." The FASB Chairman subsequently announced the addition of a research project to the Board's agenda to address the question of whether a nonfinancial asset that has been placed in a legal entity should be subject to recognition and derecognition rules applicable to the asset or the consolidation literature. She also clarified that the accounting described in the final consensus is not required for lenders.

The Board also ratified the consensus-for-exposure reached on Issue 11-A, "Parent's Accounting for the Cumulative Translation Adjustment (CTA) upon the Sale or Transfer of a Group of Assets that is a Nonprofit Activity or a Business within a Consolidated Foreign Entity." The consensus-for-exposure will be exposed for a period of 60 days.

For further detail on the consensuses, see our EITF Update - November 2011.

For additional detail of the Board's decisions, see the FASB's Action Alert.

Upcoming meetings and webcasts

7 December 2011 FASB meeting

See the FASB calendar for the agenda for this meeting.

IN FOCUS webcasts

The FASB and IASB webcast focused on the proposals in the recently issued Exposure Draft, Revenue from Contracts with Customers, is scheduled for 8 December 2011.

The FASB also announced its second webcast focused on financial reporting by nonpublic entities, scheduled for 20 December 2011.

Registration and details are available on the FASB site.

Education sessions

See the FASB calendar for upcoming education sessions. No decisions are made at these sessions.

International Accounting Standards Board (IASB)

November 2011 XBRL Update

The XBRL Update is a staff update on the latest news surrounding eXtensible Business Reporting Language. The November 2011 edition now is available.

November edition of IFRS for SMEs

The November edition of IFRS for SMEs Update provides the latest news on IFRS for Small and Medium-sized Entities (SMEs).

This edition includes information about:

  • SME Implementation Group Q&As on: (a) whether an entity may choose to apply the recognition and measurement provisions of IFRS 9 and (b) whether the recycling of cumulative exchange differences on disposal of a subsidiary is prohibited
  • Q&As about the IFRS for SMEs: status report
  • Recent and upcoming "train the trainers" workshops

Upcoming Thought center webcasts and podcasts


Global IFRS 2011: IFRS 2011: Implications for real estate (IFRS perspective)
6 December 2011, 11:00 a.m. Eastern time

Global IFRS 2011: IFRS 2011: Implications for real estate (IFRS perspective) REPLAY
6 December 2011, 7:00 p.m. Eastern time

Global IFRS 2011: IFRS 9 Financial Instruments - status and what lies ahead? (IFRS perspective)
13 December 2011, 4:00 a.m. Eastern time

Global IFRS 2011: IFRS 9 Financial Instruments - status and what lies ahead? (IFRS perspective) REPLAY
13 December 2011, 3:00 p.m. Eastern time

Ernst & Young Q4 2011 financial reporting update
15 December 2011, 1:00 p.m. Eastern time

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