US Week in Review - Week ending 13 September 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.
Ernst & Young publications
In our comment letter on Section 108 of the JOBS Act - Regulation S-K Review, which requires the SEC to evaluate how the registration requirements can be simplified for emerging growth companies, we recommend that the SEC broaden the scope of its review and eliminate redundant or outdated disclosures for all issuers. We also suggest that informational disclosures that are not specific to a reporting period should appear in a company profile and that only new information should be included in periodic reports.
The PCAOB issued a new standard that will change auditor communications with audit committees. The PCAOB also issued a release for audit committees about the inspection process. Our Technical Line publication tells you what you need to know about the standard and the release.
The Emerging Issues Task Force (EITF) reached final consensuses on the following issues:
- Presentation by a not-for-profit of proceeds from the sale of donated securities or other financial assets
- Accounting for an adjustment to an indemnification asset recognized as a result of a government-assisted acquisition of a financial institution
- Consideration of information after the balance sheet date in the impairment test of unamortized film costs
The EITF also reached consensuses-for-exposure on the following issues:
- Accounting for a cumulative translation adjustment in sales within a foreign entity and sales of an investment in a foreign entity
- Initial and subsequent accounting for the difference between the fair value of assets and liabilities of a collateralized financing entity
Our EITF Update publication explains what you need to know about these issues.
Standard Setter updates
Financial Accounting Standards Board (FASB)
New EITF members appointed
Three new members of the Emerging Issues Task Force (EITF) were announced by the FASB:
- Terri Z. Campbell, a managing director at Liberty Mutual Group Asset Management Inc.
- Jackson Day, the Americas director of accounting standards setting at Ernst & Young LLP
- Larry J. Salva, senior vice president, chief accounting officer and controller of Comcast Corporation
Ms. Campbell and Mr. Day began their terms this week. Mr. Salva's term begins 1 November 2012.
7 September 2012 FASB meeting
The Board discussed its project on accounting for financial instruments: impairment. For details, see the FASB Action Alert.
11 September 2012 EITF meeting
For details of the Task Force discussion, see our September 2012 EITF Update publication.
Upcoming meetings and webcasts
The Board is scheduled to meet on 19 September 2012. It is also scheduled to meet on 20 September 2012 in a joint videoconference meeting with the IASB.
For additional details of the planned discussions, see the FASB calendar.
24 September 2012 FASB webcast
The FASB will host a webcast on 24 September 2012 at 1:00 p.m. Eastern time, about the proposed XBRL 2013 US GAAP Financial Reporting Taxonomy.
For details and registration, see the FASB site.
See the FASB calendar for upcoming education sessions. No decisions are made at these sessions.
Government Accounting Standards Board (GASB)
GASB 61 implementation considerations
The AICPA State and Local Government and Health Care Expert Panel issued an article, Implementation Considerations of GASB 61, that addresses accounting, financial reporting and auditing implementation challenges associated with Statement 61, The Financial Reporting Entity: Omnibus, an amendment of GASB Statement numbers 14 and 34. Statement number 61 is effective for fiscal years ending on or after 15 June 2013.
International Accounting Standards Board (IASB)
IFRS for SMEs Update
The July/August 2012 IFRS for SMEs Update contains the latest news for small and medium-sized entities.
Upcoming Thought center webcasts and podcasts
Accounting for income taxes: a quarterly perspective
25 September 2012, 11:00 a.m. Eastern time
SEC comments and trends: an analysis of current reporting issues
2 October 2012, 1:00 p.m. Eastern time
Evolving role of today's CFO
Featured in FEI's CFO Community of Interest
Hosted by Ernst & Young LLP
16 October 2012, 2:00 p.m. Eastern time