US Week in Review - Week ending 29 March 2012
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
President Barack Obama is expected to sign into law the Jumpstart Our Business Startups Act (JOBS Act), which would give private companies greater access to capital and make it easier for certain companies to go public. This week, the US House of Representatives approved the bill in a 380-41 vote; the Senate last week in a 76-22 vote. Our To the Point publication issued on 23 March 2012 summarizes the Act.
More than 40 panelists participated in the PCAOB public meeting to discuss ways to enhance auditor independence, objectivity and professional skepticism, including mandatory audit firm rotation. Many of the panelists opposed mandatory audit firm rotation and suggested alternatives. The Board also reopened the comment period on its August 2011 concept release until 22 April 2012. Our To the Point publication provides highlights of the two-day meeting.
Standard Setter updates
Securities and Exchange Commission (SEC)
SEC approves the 2012 US GAAP XBRL Taxonomy
The SEC has updated EDGAR to support the 2012 US GAAP XBRL Taxonomy. Companies that use the 2009 and 2011 taxonomies are not required to start using the 2012 taxonomy, but the SEC staff strongly encourages companies to adopt the latest version of the US GAAP taxonomy. We expect the 2009 version to become unavailable for use by mid-year.
Registrants should start planning to transition to the 2012 taxonomy for their 2012 Exchange Act reports (See our Technical Line publication, Using the 2012 US GAAP taxonomy).Details about the taxonomies also can be found on the FASB and SEC websites.
International Accounting Standards Board (IASB)
March IASB update
This issue of IASB Update contains the staff summary of the IASB-only and joint meetings of the IASB and FASB held during the week of 20 March 2012.
The March 2012 IFRIC Update summarizes the IFRS Interpretations Committee meeting held in London on 13-14 March 2012.
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
Revised ISA 610 on using the work of internal auditors issued
The IAASB has issued International Standard on Auditing (ISA) 610 (Revised), Using the Work of Internal Auditors, which addresses the external auditor's responsibilities when using the work of an internal audit function in obtaining audit evidence. The revised standard provides a more robust framework for evaluating and using the work of an entity's internal audit function. Related changes have also been made to ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, to explain how the internal audit function and its findings can usefully inform the external auditor's risk assessments.
Upcoming Thought center webcasts and podcasts
Global PE watch: Striving for growth - a return to entrepreneurship 2012
10 May 2012, 11:00 a.m. Eastern time