US Week in Review - Week ending 13 March 2014
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
The FASB tentatively decided to retain the separate models in current US GAAP for classifying and measuring debt securities and loans, rather than overhaul its guidance in this area, as it had proposed. The FASB also confirmed that companies would apply its proposed "current expected credit loss" model to financial assets that are debt instruments measured at amortized cost. Our To the Point publication tells you what you need to know about these and other decisions that the FASB has made in its financial instruments project.
Several new accounting pronouncements are effective for the first quarter of 2014 for calendar-year entities. We list them along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB responds to post-implementation review report on fair value
The FASB said it sees no need to undertake a comprehensive review of Statement No. 157, Fair Value Measurements, after the Financial Accounting Foundation concluded in its post-implementation review (PIR) report that the standard succeeded in achieving its objectives and generally provides investors with decision-useful information. Nonetheless, the FASB plans to conduct research and outreach in connection with in-process projects and initiatives, including the disclosure framework project and the simplification initiative research project, citing feedback received from some constituents who found certain aspects of Statement 157 to be challenging. See the FASB's letter for more information.
12 March 2014 FASB meeting
Accounting for financial instruments: classification and measurement and Accounting for financial instruments: impairment - see our To the Point above.
Repurchase agreements and similar transactions - The FASB decided to modify the disclosure requirements it proposed for transactions accounted for as secured borrowings and to extend the effective date for those disclosures to periods beginning on or after 15 March 2015, one quarter later than the effective date for the rest of the proposal for public business entities. The Board also directed the staff to continue drafting a final Accounting Standards Update for vote by written ballot.
The FASB also discussed its projects on:
- Consolidation: principal versus agent analysis
- Financial statements of not-for-profit entities
For details, see the FASB's Tentative Board Decisions.
13 March 2014 Emerging Issues Task Force meeting
For details of the Task Force discussion, see our upcoming March 2014 EITF Update.
Upcoming meetings and webcasts
18–19 March 2014 joint FASB-IASB Meeting
The Boards are scheduled to discuss their joint project on Leases, and the IASB will continue redeliberations of its 2013 exposure draft on insurance contracts.
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 approves PCAOB Auditing Standard No. 17 and attestation standards for broker-dealers
The Securities and Exchange Commission (SEC) has approved PCAOB Auditing Standard No. 17, Auditing Supplemental Information Accompanying Audited Financial Statements (AS 17), for audits of supplemental information accompanying the financial statements, including for audits of emerging growth companies.
The SEC also approved Attestation Standard No. 1, Examination Engagements Regarding Compliance Reports of Brokers and Dealers, and Attestation Standard No. 2, Review Engagements Regarding Exemption Reports of Brokers and Dealers, and related amendments. They are applicable only for broker dealer audits and follow recent SEC changes to 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.
Government Accounting Standards Board (GASB)
GASB issues toolkit on new pension accounting standard for state and local governments
The GASB issued a pension implementation toolkit to help preparers, auditors and users of state and local government financial statements understand and apply GASB Statement 68, Accounting and Financial Reporting for Pensions, as amended.
Upcoming Thought Center webcasts and podcasts
EY Q1 2014 financial reporting update
In co-operation with Financial Executives International (FEI)
27 March 2014, 1 p.m. Eastern time