US Week in Review - Week ending 3 October 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
To the Point: Private Company Council votes to finalize proposals on interest rate swaps and goodwill
The PCC modified its proposals to allow private companies to simplify their accounting for certain interest rate swaps and to amortize goodwill acquired in a business combination and sent them to the FASB for final endorsement. If endorsed by the FASB, the proposals would be the first accounting alternatives approved for private companies under US GAAP, in an effort to reduce cost and complexity for private companies. Our To the Point publication tells you what you need to know about the proposals.
Standard Setter updates
Financial Accounting Standards Board (FASB)
Roundtable meetings on insurance contracts proposal
The FASB said it will host several public roundtable meetings in December 2013 on its June 2013 insurance contracts proposal to give users, preparers and auditors an opportunity to discuss the proposal with the Board.
30 September - 1 October 2013 meeting with the Private Company Council
See our To the Point publication above.
2 October 2013 FASB meeting
Accounting for repurchase agreements: The FASB reversed its May 2013 decision and tentatively decided to require secured borrowing accounting for repurchase-to-maturity transactions, as it proposed in January 2013. The Board also decided to eliminate the existing guidance for "repurchase financings" and to narrow the type of instruments that may be considered substantially the same when evaluating mortgage dollar-roll transactions. In addition, the Board decided to require new disclosures for certain transactions that achieve sale accounting even though the transferor retains exposure to the transferred assets.
FASB ratification of EITF tentative conclusions: The Board also ratified two consensuses-for-exposure reached at the 13 September 2013 Emerging Issues Task Force (EITF) meeting.
For additional details, see the FASB's Summary of Board Decisions.
Upcoming meetings and webcasts
9 October 2013 FASB meeting
The FASB is scheduled to discuss its projects on Not-for-profit financial reporting: financial statements and the Disclosure framework: Board's decision process.
For additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Securities and Exchange Commission (SEC)
SEC remains open during US government shutdown, at least for now
Despite the lapse in appropriations to government agencies on 1 October 2013, the SEC remains fully operational because it is relying on funds that have been carried over.
The SEC released its Plan of Operations in the event that it no longer has funds available and has to shut down. If that happens, many of the agency's functions would be discontinued, and only certain essential operations would continue.
Key functions affecting registrants that would be discontinued include:
- Processing and approving filings and registrations by registrants and regulated entities (e.g., in-process registration statements would not be able to go effective, filing reviews would be suspended)
- Answering interpretive questions and providing exemptive relief (e.g., in-process accounting or reporting pre-clearance letters in any office or division would not be resolved)
The EDGAR filing system would continue to function during a shutdown and the SEC staff still would be available to answer questions from registrants about EDGAR submissions.
Investor Advisory Committee to meet next week
The SEC's Investor Advisory Committee will meet on 10 October 2013 to discuss recommendations on imposing a fiduciary duty when broker-dealers provide personalized investment advice to retail customers. The meeting will be webcast on the SEC’s website.
Upcoming Thought Center webcasts and podcasts
News from the street: capital markets outlook for 2014 and beyond
Live from the EY Strategic Growth Forum
13 November 2013, 4:30 p.m. Eastern time