US Week in Review - Week ending 26 September 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 EY.
What’s new from EY
Every year, we closely monitor the SEC staff's comments on public company filings to provide you with insights on the SEC staff's areas of focus. Our 2013 SEC Comments and Trends supplement highlights areas where we have seen the SEC staff increase its focus over the past year or where there have been significant developments. It is intended to be read along with our October 2012 SEC Comments and Trends publication, which is more comprehensive.
Our 2013 supplement discusses trends that affect all registrants as well as matters that relate to specific industries and foreign private issuers. Understanding these trends can help you as you head into the year-end reporting season.
The PCAOB has proposed significant changes to the auditor's report, including requiring auditors to discuss any matters they consider "critical" to the audit. We support making the auditor's report more useful but believe that several aspects of the proposal require careful consideration. This To the Point discusses what you need to know about the proposal.
In our letter, we said we support the FASB's effort to develop a going concern model that would require preparers of financial statements to assess going concern uncertainties and provide more timely footnote disclosures. However, we said certain issues need to be addressed before any final guidance on the subject is published.
In our letter, we support the development of a single definition of a public business entity for future standard setting but say the proposed definition is complex and would be challenging to apply. We also note that the proposed definition would include many entities that aren't treated as public companies today and might differ from existing SEC rules, regulations and interpretations.
We have updated our Financial reporting developments publication, Income taxes. This updated edition includes further enhancements to our interpretative guidance. See Appendix D for details on the updates.
Standard Setter updates
Financial Accounting Standards Board (FASB)
Upcoming meetings and webcasts
30 September and 1 October 2013 meeting with the Private Company Council (PCC)
Members of the FASB and the PCC are scheduled to discuss:
- Issue No. 13-03, Accounting for certain receive-variable, pay-fixed interest rate swaps
- Issue No. 13-01A, Accounting for identifiable intangible assets in a business combination
- Issue No. 13-01B, Accounting for goodwill subsequent to a business combination
- Definition of a nonpublic entity
- Development stage entities
2 October 2013 FASB meeting
The FASB is scheduled to discuss its project, Transfers and servicing: repurchase agreements and similar transactions.
The Board will also decide whether to ratify:
- EITF Issue No. 13-D, Accounting for share-based payments when the terms of an award allow a performance target to be achieved after the requisite service period
- EITF Issue No. 13-G, Determining whether the host contract in a hybrid financial instrument is more akin to debt or to equity
For additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
American Institute of CPAs (AICPA)
AICPA publishes 2013 COSO Toolkit
The AICPA's Private Companies Practice Section has published a 2013 COSO Toolkit for use by practitioners in understanding and implementing the updated Internal Control-Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission.
International Accounting Standards Board (IASB)
September 2013 IFRIC Update
The September 2013 IFRIC Update summarizes the IFRS Interpretations Committee meeting held in London on 10-11 September 2013. In addition to current agenda and related matters, the Interpretations Committee discussed:
- IAS 19 Employee Benefits, Employee benefit plans with a guaranteed return on contributions or notional contributions
- Deliberation of comments received on proposals for narrow-scope amendments
- Issues considered for its annual improvements project
SEC comments and trends webcast to air 2 October
The SEC comments and trends: current reporting issues webcast will air on 2 October from 1:00 p.m. to 2:00 p.m. Eastern time. Participants can gain valuable insights into the SEC's comment letter process, including common areas of focus and recent trends, as they head into the year-end reporting season.
The topics of discussion include:
- A "behind the scenes" look at the SEC staff's filing review process
- SEC comment letter hot topics, recent trends and emerging areas of focus
- Best practices and tips for working with the SEC staff
To register, go to SEC comments and trends.
Upcoming Thought Center webcasts and podcasts
CFOs reveal hidden trends from earnings season
30 September 2013, 12:00 p.m. Eastern time
SEC comments and trends: current reporting issues
2 October 2013, 1:00 p.m. Eastern time