US Week in Review - Week ending 27 November 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
The FASB endorsed the first two accounting alternatives it will provide for private companies under US GAAP. Private companies will likely be able to use them for year-end reporting for 2013. This Technical Line publication tells you what to consider in determining whether and when to elect these alternatives and others developed by the PCC.
To address constituents' concerns about its April 2013 proposal, the FASB decided to incorporate in the definition of a discontinued operation a requirement that a disposition reported as discontinued represent a strategic shift in an entity's operations and to provide more implementation guidance on how the definition would work. Our To the Point publication tells you what you need to know about this and other decisions reached.
Standard Setter updates
Financial Accounting Standards Board (FASB)
25 November 2013 FASB meeting
FASB endorsement of Private Company Council (PCC) proposals: The FASB endorsed the first two accounting alternatives it will provide for private companies under US GAAP, allowing them to amortize goodwill acquired in a business combination and simplify their accounting for certain interest rate swaps. The FASB also decided not to extend the hedge accounting relief to public business entities or not-for-profits. It is still considering whether to extend the alternative to amortize goodwill in a business combination to public business entities or not-for-profits.
See our Technical Line publication above.
For additional details, see the FASB's Summary of Board Decisions.
Upcoming meetings and webcasts
16 December 2013 FASB webcast
The FASB will host its webcast, IN FOCUS: FASB Update for Nonpublic Entities, at 1 p.m. Eastern time. For details and registration, see the FASB site.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Government Accounting Standards Board (GASB)
FAF issues new policy on GASB's scope of authority
The Financial Accounting Foundation (FAF) adopted a new policy outlining a pre-agenda consultation process that the GASB and the FAF's Standard-Setting Process Oversight Committee will follow to determine whether information the GASB might consider is financial accounting and reporting information within the scope of the GASB's standard-setting mission. The consultation will not focus on a specific standard-setting project.
The policy, described in "GASB Scope of Authority: Consultation Process Policy," reiterates that the FAF trustees will not be involved in the GASB's agenda-setting process or its independent standard-setting process.
GASB resolves transition issue in pension standards
The GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement 68, which eliminates a potential source of understatement of the restated beginning net position and expense in a government's first year of implementing GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
Statement 71 is effective at the same time as Statement 68, which must be applied in fiscal years beginning after 15 June 2014.
Registration open for the Q4 2013 financial reporting update webcast
The final 2013 quarterly financial reporting update webcast is scheduled for 19 December from 1 p.m. to 2:30 p.m. Eastern time. EY panelists will discuss highlights from the AICPA conference on SEC and PCAOB developments, reminders for year-end closing and other current financial reporting matters during this 90-minute webcast.
To register, go to Q4 financial reporting update.
Upcoming Thought Center webcasts and podcasts
EY Q4 2013 financial reporting update
In co-operation with Financial Executives International (FEI)
19 December 2013, 1:00 p.m. Eastern time