US Week in Review - Week ending 11 April 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 Ernst & Young.
Ernst & Young publications
The Jumpstart Our Business Startups Act (the Act) was enacted on 5 April 2012 to give private companies greater access to capital and make it easier for certain companies to go public. A year later, we look at the effects on the IPO market and analyze how emerging growth companies are using the relief available to them under the Act. We also provide an update of what still must be done to implement key provisions of the Act.
Our March 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, regulatory developments and other items through 31 March 2013 to consider as you prepare your tax provision. We've also listed our Tax Alerts and other publications that provide more detail on the topics we discuss.
Standard Setter updates
Financial Accounting Standards Board (FASB)
10 April 2013 FASB meeting
The FASB agreed to issue the exposure draft on Leases in May.
Separately, the FASB decided to propose an indefinite deferral of the requirement that nonpublic employee benefit plans disclose quantitative information about the significant unobservable inputs they use to measure the fair value of investments in equity securities of the plan sponsor, when the sponsor is a private company. The FASB expects to issue an exposure draft by 1 May 2013, with comments due by 31 May 2013. The FASB intends for the proposal to be effective immediately because the disclosure otherwise would be required for these plans in financial statements for annual periods beginning after 15 December 2011.
For details, see the FASB's Action Alert.
Upcoming meetings and webcasts
No meetings are scheduled for the week of 15 April 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 expects approval of the 2013 US GAAP XBRL Taxonomy later this month
The SEC staff said it will update EDGAR on 29 April 2013 to support the 2013 US GAAP XBRL Taxonomy, assuming the Commission approves the new taxonomy by then. At the same time, the staff plans to make the 2011 taxonomy unavailable for use. Therefore, registrants that are still using the 2011 taxonomy should make the transition to a newer version for periodic reports filed after this date. For example, a calendar-year registrant that files a 2013 Form 10-Q on or after 29 April 2013 will need to use the 2012 or 2013 taxonomy. Registrants may continue to use the 2012 taxonomy after the SEC approves the 2013 version, but the SEC staff strongly encourages companies to adopt the latest version.
SEC Advisory Committee on Small and Emerging Companies to meet 1 May
The SEC Advisory Committee on Small and Emerging Companies will meet on 1 May 2013 to consider matters related to rules and regulations affecting small and emerging companies under the federal securities laws. The meeting will be webcast on the Commission's website.
Mary Jo White sworn in as new SEC chair
Mary Jo White, a former US attorney in Manhattan and former partner in the law firm of Debevoise & Plimpton LLP, was sworn in as chairman of the SEC after the Senate confirmed her nomination. Ms. White succeeds Elisse Walter, who has served as chairman since Mary Schapiro stepped down in December 2012.
Ms. White said during her confirmation hearing that her top priority would be completing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Jumpstart Our Business Startups Act quickly and efficiently, using rigorous economic analysis. She also cited as top priorities (1) further strengthening the SEC's enforcement program and (2) ensuring that the SEC has the cutting-edge technology and expertise to anticipate potential issues and keep pace with today's markets.
Division of Corporation Finance updates Financial Reporting Manual
The SEC staff updated its Financial Reporting Manual (FRM) to incorporate existing guidance on financial reporting by foreign private issuers (FPIs) and issuers with foreign acquirees and investees.
The updates clarify that FPIs should follow the financial statement form and content requirements of IFRS as issued by the International Accounting Standards Board (IASB) instead of Articles 4, 5, 6, 7, 9 and 10 of Regulation S-X. However, FPIs still must comply with all other requirements of Regulation S-X, including Article 3 which covers financial statements of other entities and Article 12 which covers schedule requirements.
The updates also clarify that financial statements of significant foreign investees and foreign acquisitions that do not meet the SEC's definition of a "foreign business" are required to reconcile financial statements prepared under home-country GAAP or IFRS as issued by the IASB to US GAAP; the staff may grant relief from reconciling financial statements prepared under IFRS in certain situations.
The FRM, which is updated quarterly, is designed to provide general guidance only to Division of Corporation Finance staff. Because the information is useful to registrants and their auditors, the SEC staff posts it on the SEC website.
International Accounting Standards Board (IASB)
Inaugural meeting of members of the Accounting Standards Advisory Forum and IASB
The members of the Accounting Standards Advisory Forum (ASAF), a technical advisory body to the IASB, met in London for their inaugural meeting on 8 and 9 April 2013. The IASB and members of the ASAF signed a joint Memorandum of Understanding (MoU) that sets out the purpose of the ASAF and its operating activities. The main technical subjects discussed were the IASB's Conceptual Framework and the Impairment projects. (See the IASB website for further details and a link to the meeting webcast.)
Government Accounting Standards Board (GASB)
The GASB Report - March 2013
The March 2013 GASB Report is available on AccountingLink.
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
IFAC 2012 Annual Report
The 2012 IFAC Annual Report is now available. The report provides an integrated overview of IFAC's activities, accomplishments, structures, and processes, while looking both to the past and to the future with the transition of leadership from CEO Ian Ball to his successor, Fayez Choudhury.
Webcast on new derivatives regulations on 26 April 2013
We will host a webcast called Corporate end users and Title VII of Dodd-Frank: What you need to know about the new derivatives regulations on Friday, 26 April 2013, from noon to 1:30 p.m. Eastern time.
The panelists will discuss how businesses in virtually every sector will be affected by changes to the regulation of over-the-counter derivatives mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Panelists include Brad Berry, partner at Baker Botts LLP; Marie Hollein, President and CEO of Financial Executives International; and Andrew Lese, Sam Peterson and Robert Royall from Ernst & Young.
This interactive discussion will focus on the impact on end users, including key definitions, deadlines, new responsibilities for boards of directors and the tasks that must be completed to comply. The webcast is open for registration at Dodd-Frank Title VII.
Upcoming Thought center webcasts and podcasts
Corporate end users and Title VII of Dodd-Frank
26 April 2013, 12:00 p.m. Eastern time
The IASB proposes a new expected credit loss model
30 April 2013, 11:00 a.m. Eastern time