US Week in Review - Week ending 10 October 2013
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 EY.
What’s new from EY
Technical Line: How investment companies would apply the new guidance on liquidation basis accounting
The FASB's guidance requiring entities to begin preparing financial statements on a liquidation basis when liquidation is imminent applies to all investment companies, except those regulated under the Investment Company Act of 1940 or those following a liquidation plan established at inception. Once an investment company determines that applying the liquidation basis is appropriate, financial statement presentation and disclosures would change and the recognition and measurement of accounts may change. Our Technical Line publication describes what investment companies need to know about when and how to apply the liquidation basis of accounting.
Our latest newsletter summarizes developments relating to SEC matters, including certain items we have not previously reported in Week in Review. This issue highlights the SEC's final rules on general solicitation and advertising in certain exempt offerings, disqualification of felons and other bad actors and broker-dealer reporting requirements. This issue also discusses the SEC's proposal on "pay ratio" disclosures, its progress on rulemaking mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Jumpstart Our Business Startups Act and recent enforcement activity, including initiatives related to accounting fraud.
Our September 2013 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation, global tax treaties and other items through 30 September 2013 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.
We have updated our Financial reporting developments publication on derivatives and hedging. Chapters 1, 4 and 8 of our FRD have been updated to incorporate ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, and ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. Additionally, we have reorganized some of the content to help you better navigate through the guidance.
Standard Setter updates
Financial Accounting Standards Board (FASB)
9 October 2013 FASB meeting
The FASB discussed its project on the Disclosure framework: Board's decision process. For additional details, see the FASB's Summary of Board Decisions.
Upcoming meetings and webcasts
No meetings are scheduled for the week of 14 October 2013. For additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Securities and Exchange Commission (SEC)
SEC staff continues to process registration statements, at least for now
The SEC Divisions of Corporation Finance and Investment Management announced they will provide as much advance notice as possible if a change in their operating status becomes imminent as a result of a prolonged government shutdown. In that event, the Divisions will consider granting requests to accelerate the effective date of pending registration statements before they suspend processing and approving filings. Companies are encouraged to discuss their facts and circumstances with the SEC staff overseeing the review of their filing.
The SEC remains open despite the government shutdown. It is relying on funds that have been carried over from last year. In the event of a shutdown, many of the agency's functions (e.g., processing and approving filings, answering interpretive questions) would be discontinued, and only certain essential operations would continue. The SEC has not said how long it expects to be able to continue normal operations.
SEC solicits suggestions for Forum on Small Business Capital Formation
The SEC is seeking input for agenda topics for its annual Government-Business Forum on Small Business Capital Formation, to be held on 21 November 2013 at the SEC's headquarters in Washington, DC. The forum, which is open to the public, will include panel discussions about small business capital formation matters, including implementation of the Jumpstart Our Business Startups Act, and breakout sessions to develop policy recommendations.
The morning panel discussions will be webcast on the SEC's website. People who register can participate in the afternoon breakout sessions in person or by phone.
International Accounting Standards Board (IASB)
September 2013 edition of IFRS for SMEs Update
The IFRS for SMEs Update is a staff update on the latest news surrounding IFRS for Small and Medium-sized Entities (SMEs). The September issue is now available.
Proposed amendments to IFRS for SMEs guidance
The International Accounting Standards Board (IASB) has issued proposed amendments to the IFRS for SMEs. Most of the proposed amendments clarify existing requirements or add supporting guidance, rather than propose changes to the underlying requirements in the IFRS for SMEs. The proposals are open for comment until 3 March 2014.
Public Company Accounting Oversight Board (PCAOB)
New standards for broker-dealer audits and auditing supplemental information
The PCAOB today adopted attestation standards for auditors of brokers and dealers and an auditing standard for supplemental information. The standards follow recent SEC changes to broker-dealer reporting Rule 17a-5 requiring that audits of broker-dealers' financial statements and supplemental information, examinations of their compliance reports and reviews of their exemption reports be conducted by firms registered with the PCAOB, in accordance with PCAOB standards. If approved by the SEC, the standards will be effective for audits of broker-dealers for fiscal year-ends on or after 1 June 2014. The PCAOB is still working on incorporating requirements for broker-dealer audits into existing standards.
Government Accounting Standards Board (GASB)
GASB provides video webcasts
The GASB will provide video webcasts of its public meetings, beginning 30 October 2013, on the GASB website.
Replay for EY Q3 financial reporting update webcast now available
An on-demand version of the EY Q3 financial reporting update webcast is now available from the Thought Center. The 90-minute webcast featured EY panelists discussing recent exposure drafts, Private Company Council and SEC updates and other current financial reporting matters.
To access the archive, go to Q3 2013 financial reporting update.
Upcoming Thought Center webcasts and podcasts
News from the street: capital markets outlook for 2014 and beyond
Live from the EY Strategic Growth Forum
13 November 2013, 4:30 p.m. Eastern time