US Week in Review - Week ending 28 March 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.
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Ernst & Young publications
The American Institute of Certified Public Accountants (AICPA) has issued a comprehensive revision of its Audit and Accounting Guide, Not-for-Profit Entities, for the first time in 15 years. Questions raised as the Guide was being updated have resulted in new guidance from the Emerging Issues Task Force (EITF) on two not-for-profit topics. Our To the Point publication summarizes the guidance from the AICPA and the EITF.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB extends comment letter deadline for credit losses proposal
The FASB extended the deadline for comments to 31 May 2013 on Proposed Accounting Standards Update, Financial Instruments - Credit Losses (Subtopic 825-15). The FASB staff also issued a Frequently Asked Questions document to help clarify certain aspects of the proposal. Views on the project's objectives, how to measure expected credit losses and other alternatives considered are included in the document.
28 March 2013 FASB meeting
The FASB discussed its project on Financial instruments: impairment (see discussion above).
The FASB also ratified the two consensuses and the consensus-for-exposure reached at the 14 March 2013 EITF meeting.
For additional details, see the FASB's Action Alert.
The FASB postponed its discussions planned for this week on agenda decisions on the fair value measurement disclosures of private company employer securities held by employee benefit plans and the application of asset- or entity-based guidance to nonfinancial assets in an entity.
Upcoming meetings and webcasts
No meetings are scheduled for the week of 1 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.
International Accounting Standards Board (IASB)
Amendments to IAS 19 on employee benefits
The IASB has published for public comment an exposure draft of proposed amendments to IAS 19, Employee Benefits. The IASB is responding to concerns that were raised about the complexity of applying certain requirements of IAS 19, such as those related to the accounting for contributions from employees and third parties to defined benefit plans. Comments on the proposal are due 25 July 2013.
March IFRIC Update
The March 2013 IFRIC Update summarizes the IFRS Interpretations Committee meeting held in London on 12-13 March 2013.
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
IAESB issues revised International Education Standards (IES) 5
The International Accounting Education Standards Board (IAESB) has revised IES 5, Initial Professional Development - Practical Experience. The new standard promotes greater flexibility in measuring practical experience; permits practical experience supervisors to direct, advise and assist in aspiring professional accountants' experience; and requires practical experience to be recorded in a verifiable and consistent form. IES 5 is effective from 1 July 2015.
Public Company Accounting Oversight Board (PCAOB)
PCAOB issues proposed framework for reorganization of its auditing standards
On 26 March 2013, the PCAOB proposed for comment a framework for reorganization of its auditing standards. The proposed reorganization is intended to present the standards in a logical order that generally follows the flow of the audit process and to help users navigate the standards more easily.
The proposal provides a potential framework for reorganizing the Board's existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system. Among the proposed changes, all PCAOB auditing standards would be grouped into the following categories: general auditing standards, audit procedures, auditor reporting, matters relating to filings under federal securities laws, and other matters associated with audits.
The proposed reorganization of PCAOB auditing standards would involve reordering and renumbering existing standards in their entirety, without redrafting the auditing standards or making substantive changes to the requirements of the standards. Also, in conjunction with the proposed reorganization of PCAOB auditing standards, the Board is proposing to rescind certain auditing standards that it believes are no longer necessary under the proposed reorganization. Comments on the proposal are due by 28 May 2013.
Upcoming Thought center webcasts and podcasts
The IASB proposes a new expected credit loss model
30 April 2013, 11:00 a.m. Eastern time
Risk accounting challenges in wholesale banking
22 May 2013, 9:00 a.m. Eastern time