US Week in Review - Week ending 12 April 2012
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.
Standard Setter updates
Financial Accounting Standards Board (FASB)
9 April 2012 FASB meeting
The FASB ratified the following consensuses-for-exposure reached at the 15 March 2012 EITF meeting:
- Issue 12-A, Not-for-Profit Entities: Classification of the Sale of Donated Securities in the Statement of Cash Flows
- Issue 12-C, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution
- Issue 12-E, Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs
11 April 2012 FASB meeting
Accounting for financial instruments: liquidity and interest rate risk disclosures - The FASB decided not to require additional qualitative disclosures related to an entity's ability to remain a going concern. The Board will propose only the previously agreed to quantitative and qualitative disclosures about an entity's liquidity and interest rate risks.
Under that proposal, all companies would be required to provide liquidity risk disclosures, but only financial institutions would provide disclosures about interest rate risk. A nonfinancial institution with a subsidiary or reportable segment that engages in financing transactions would be required to present financial institution disclosures for its finance subsidiary or segment.
The proposed update is expected to be issued in May with a 90-day comment period. If adopted, all entities would be required to provide the new disclosures prospectively, with ongoing comparative disclosures after the period of adoption.
16-19 April 2012 - Joint FASB-IASB meeting
The Boards plan to discuss the following projects:
- Insurance contracts
- Financial instruments: impairment
- Financial instruments: classification and measurement
- Investment entities
See the FASB calendar for upcoming education sessions. No decisions are made at these sessions.
15 March 2012 EITF meeting minutes
The final version of the minutes for the 15 March 2012 EITF meeting has been issued. The next EITF meeting is scheduled for 21 June 2012. The extra EITF meeting date reserved for 17 May 2012 will not be used.
Securities and Exchange Commission (SEC)
SEC seeks public comment prior to JOBS Act rulemaking
The SEC is seeking public comment in advance of proposing new rules or amendments as required by the Jumpstart our Business Startups Act (JOBS Act). The JOBS Act requires the SEC to establish rules related to crowdfunding, determining the number of shareholders of record for purposes of Exchange Act registration, and lifting prohibitions on general solicitation and advertising in exempt offerings to accredited investors. The JOBS Act also requires the SEC to conduct studies with respect to, among other things, the application of Regulation S-K to emerging growth companies, and the tick size for trading shares of emerging growth companies and other small and mid-cap companies. Comments will be publicly available on the SEC's website.
SEC staff answers questions on implementing the JOBS Act
The staff of the SEC's Division of Corporation Finance issued two sets of Frequently Asked Questions (FAQs) about implementing certain aspects of the JOBS Act.
The SEC staff issued FAQs addressing changes to the requirements for registration and deregistration as a result of modifications by the JOBS Act to the record holder thresholds in Section 12(g) of the Exchange Act. The SEC staff also issued FAQs about the confidential submission of registration statements. Under the JOBS Act, emerging growth companies are allowed to confidentially submit their draft initial public offering registration statements and subsequent amendments for review by the SEC staff before filing publicly through the SEC's EDGAR system.
The SEC staff also announced an interim protocol for emerging growth companies to submit confidential draft IPO registration statements, to be followed until the SEC implements a system to electronically transmit them.
Government Accounting Standards Board (GASB)
Upcoming meetings and webcasts
17 April 2012
The Board will hold a public hearing to receive feedback on its Preliminary Views, Economic Condition Reporting: Financial Projections.
18-20 GASB Board meeting
The Board will discuss the following issues:
- Pension accounting - Feedback received on the Exposure Draft, Accounting and Financial Reporting for Pensions, specifically issues associated with employer measurement and recognition for cost-sharing arrangements, plan reporting, employer and plan disclosures and required supplementary information for single-employer and agent-multiple-employer arrangements and transition and effective date of final standards.
- Financial guarantees - The discussion primarily will focus on recognition of financial guarantees in governmental funds and the proposed transition guidance and effective date of the proposed Statement. In addition, the Board will review a draft of the standards section of the proposed Statement.
- Fair value - The use of replacement cost as a fair value measurement and fair value disclosures.
- Findings associated with additional user outreach on the Preliminary Views, Recognition of Elements of Financial Statements and Measurement Approaches.
The Board also will discuss the proposed technical plan.
See the GASB calendar for additional information.
Archive released: Ernst & Young LLP's Q1 2012 financial reporting update
Originally broadcast on 22 March, this webcast highlighted the latest trends and practical matters including:
- Current accounting and regulatory developments
- Joint projects highlights
- Other future considerations
If you were unable to participate in the live broadcast, we invite you to listen to the archived replay.
Upcoming Thought center webcasts and podcasts
Global PE watch: Striving for growth - a return to entrepreneurship 2012
10 May 2012, 11:00 a.m. Eastern time