US Week in Review - Week ending 18 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 Private Company Council (PCC) and the FASB have issued an Invitation to Comment on a revised decision-making framework that they would use to consider whether and when to provide alternatives for private companies under US GAAP. Our To the Point publication summarizes the framework and highlights changes from the initial staff recommendations the FASB sought comment on in July 2012.
Accounting Standards Update (ASU) 2013-02 amended interim and annual reporting requirements about accumulated other comprehensive income (AOCI) for public and nonpublic companies. In interim periods, public companies are required to report information about reclassifications out of AOCI and changes in AOCI balances. Nonpublic companies are required to report only changes in AOCI balances. Our Technical Line publication addresses implementation of the ASU for interim reporting. The ASU is effective for the first quarter of 2013 for calendar-year public companies.
Overnight Index Swap (OIS) rates are increasingly being used to value collateralized derivatives, instead of the London Interbank Offered Rate. As a result, the FASB has proposed allowing entities to designate the Federal Funds Effective Swap Rate (which is the OIS rate in the US) as a benchmark interest rate for hedge accounting purposes. Our Technical Line publication discusses the FASB proposal, the changes in the market that are driving it and the implications for companies that are considering using OIS discount curves to measure the fair value of their collateralized derivatives.
Our First Quarter 2013 Standard Setter Update - Financial reporting and accounting developments publication highlights significant developments in financial accounting and reporting between 1 January 2013 and 31 March 2013 and summarizes certain proposals presently under consideration by the FASB, EITF, SEC, PCAOB, ASB and GASB.
Standard Setter updates
Financial Accounting Standards Board (FASB)
The FASB issued a Proposed Accounting Standards Update (ASU), Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).
Comments are due by 17 June 2013. For more details, see our March 2013 EITF Update publication.
Upcoming meetings and webcasts
No meetings are scheduled for the week of 22 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.
Government Accounting Standards Board (GASB)
GASB updates white paper on government standard setting
The GASB updated its white paper, Why Governmental Accounting and Financial Reporting Is - and Should Be - Different, to reflect standards issued since the paper was published several years ago. The paper explains why governments are fundamentally different from for-profit businesses and why they need to apply different accounting standards.
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
Domestic tax federal hot topics
1 May 2013, 10:30 a.m. Eastern time