US Week in Review - Week ending 22 May 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
Registration is still open for the Q2 2014 financial reporting update webcast on 12 June from 1 p.m. to 2:30 p.m. Eastern time. EY panelists will discuss recent FASB activity, SEC developments and other financial reporting matters during this 90-minute webcast.
To register, go to Q2 2014 financial reporting update.
Standard Setter updates
Financial Accounting Standards Board (FASB)
22 May 2014 joint FASB/IASB videoconference meeting
The Boards discussed their project on Leases. For more details, see the FASB's Tentative Board Decisions.
28 May 2014 FASB meeting
The FASB is scheduled to discuss its projects on Financial statements of not-for-profit entities and Disclosure framework: entity's decision process. The Board will also consider whether to add one or more projects to its agenda. For more details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
International Accounting Standards Board (IASB)
IASB publishes amendments to IAS 16 and IAS 38
The IASB published amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets. The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset.
The IASB also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances.
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
IAASB proposes changes to ISAs on financial statement disclosures
The International Auditing and Assurance Standards Board (IAASB) has released proposed changes to the International Standards on Auditing (ISAs) that relate to disclosures in the audit of financial statements. The proposals include new guidance to clarify expectations of auditors when auditing financial statement disclosures – from when the auditor plans the audit and assesses the risks of material misstatement to when the auditor evaluates misstatements and forms an opinion on the financial statements. Comments are due 11 September 2014.
Government Accounting Standards Board (GASB)
GASB issues exposure draft on fair value measurement and application
The GASB issued an exposure draft that would clarify how fair value is defined and measured and which assets and liabilities should be measured at fair value. The proposal would also add a requirement that governments disclose in the notes to their financial statements the inputs they use to measure fair value and the judgments they make to determine those inputs. Comments are due by 15 August 2014. The proposed standard would be effective for periods beginning after 15 June 2015.
American Institute of CPAs (AICPA)
Alert on audits and attestation engagements of broker-dealers and futures commission merchants
The AICPA and the Center for Audit Quality issued a joint alert to address how certain regulatory changes apply to audits and attestation engagements of brokers-dealers and futures commission merchants, including those that are dually registered. These changes are effective for audits of such entities with years ending on or after 1 June 2014. The alert addresses SEC Rule 17a-5 amendments, related new PCAOB audit and attestation standards and independence standards, and the Commodity Futures Trading Commission’s enhanced customer protection standards, among other rules.
Upcoming Thought Center webcasts and podcasts
EY Q2 2014 financial reporting update
In co-operation with Financial Executives International (FEI)
12 June 2014, 1 p.m. Eastern time
CFO: need to know quarterly webcast series
25 June 2013, 12 p.m. Eastern time