US Week in Review - Week ending 11 July 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
As required by the Jumpstart Our Business Startups Act, the Securities and Exchange Commission (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.
The FASB has indefinitely deferred the requirement for certain employee benefit plans to disclose 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.
The AICPA recently issued a new Guide that updates a 2004 Practice Aid on valuing private company equity securities issued as compensation. Our Technical Line publication discusses the changes and reminders about key considerations related to valuing private company equity securities when a company is planning an initial public offering.
Standard Setter updates
Financial Accounting Standards Board (FASB)
10 July 2013 FASB meeting
The FASB discussed its project on the definition of a nonpublic entity.
For details, see the FASB's Summary of Board Decisions.
Upcoming meetings and webcasts
16 July 2013 meeting with the Private Company Council (PCC)
Members of the FASB and the PCC are scheduled to discuss:
- Private company decision-making framework
- Update on pre-agenda research work on accounting for development stage entities
- PCC issue on applying variable interest entity guidance to common control leasing arrangements
- Selected FASB projects
17 July 2013 FASB meeting
The FASB is scheduled to discuss whether to add certain issues to the EITF agenda based on recommendations of the EITF Agenda Committee.
For additional details, see the FASB's calendar.
30 July 2013 and 1 August 2013 FASB webcasts
- In Focus: The Insurance Contracts Project - Part I, Scope, at 1:00 p.m. Eastern time 30 July. For details and registration, see the FASB site.
- In Focus: The Insurance Contracts Project - Part II, The Models, at 1:00 p.m. Eastern time 1 August. For details and registration, see the FASB site.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Government Accounting Standards Board (GASB)
New GASB chairman
On 1 July 2013, David A. Vaudt became the chairman of the GASB, succeeding Robert H. Attmore, whose term ended on 30 June 2013.
Upcoming Thought Center webcasts and podcasts
CFOs reveal hidden trends from earnings season
A quarterly webcast series, "CFO: need to know"
30 September 2013, 12:00 p.m. Eastern time