US Week in Review - Week ending 5 January 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.
Certain materials referenced below are available exclusively in AccountingLink. The site is available free of charge, but requires a one-time registration.
Ernst & Young publications
In conjunction with its November 2011 re-exposure of the joint revenue recognition proposal, the FASB issued a draft of the proposed consequential amendments to the Accounting Standards Codification. The proposed amendments include not only the proposed changes to Topic 605, Revenue Recognition, but also the changes to the guidance that resides outside of Topic 605. Our To the Point publication highlights some proposed changes to current guidance that companies may not have expected.
About 94% of the roughly 600 letters the PCAOB received on its concept release on possible ways to enhance auditor independence oppose mandatory audit firm rotation. It was the second-largest number of responses the Board has received on a rule-making project since it was created by the Sarbanes-Oxley Act of 2002. The PCAOB plans to hold a roundtable to gather more feedback in March 2012. Our Technical Line publication summarizes the responses.
The FASB has required companies to provide several new quantitative and qualitative disclosures on troubled debt restructurings (TDRs). We reviewed the TDR disclosures for a sample of public banking registrants that recently adopted the new requirements and found more diversity in these disclosures than in other credit-quality disclosures. We summarize our observations in our Technical Line publication.
Our latest issue of SEC in Focus, a periodic newsletter summarizing developments at the Securities and Exchange Commission (SEC), provides an update on activities and events relating to SEC matters, including items not previously reported through the Week in Review.
The standard-setting activities of the FASB and the IASB on their joint projects continue to move forward. The Boards have issued final guidance or exposure drafts on several projects and continue to redeliberate others. Our Joint Project Watch publication is designed to give you a snapshot of key developments from a US GAAP perspective each month, along with our observations about the potential implications for companies.
Standard Setter updates
Financial Accounting Standards Board (FASB)
Upcoming meetings and webcasts
11 January 2012 FASB meeting
The Board is scheduled to discuss the scope of its project on disclosures about risks and uncertainties and the liquidation basis of accounting. The Board will also discuss issues related to the business strategy criterion in the classification and measurement model for financial instruments.
See the FASB calendar for upcoming education sessions. No decisions are made at these sessions.
Securities and Exchange Commission (SEC)
SEC Advisory Committee on Small and Emerging Companies to meet
The SEC Advisory Committee on Small and Emerging Companies (the Committee) will meet via telephone on 6 January 2012 to consider, among other things, how the Commission could relax restrictions on general solicitation and advertising in offerings exempt from SEC registration.
The Committee focuses on the priorities and interests of privately held small businesses and publicly traded companies (i.e., those with less than $250 million in capitalization). An audio webcast of the meeting will be available on the Commission's website.
International Accounting Standards Board (IASB)
New Trustees appointed to IFRS Foundation
The Trustees of the IFRS Foundation, responsible for the governance and oversight of the IASB, announced the appointment of two new Trustees. The appointments begin immediately and end on 31 December 2014. The terms are renewable once.
December edition of IFRS for SMEs Update
The December edition of IFRS for SMEs Update provides the latest news on IFRS for Small and Medium-sized Entities (SMEs), including information about:
- SME Implementation Group Q&As about (1) interpretation of "traded in a public market" and (2) entities that typically have public accountability
- Q&As about the IFRS for SMEs: status report
- "Train the trainers" workshops
Upcoming Thought center webcasts and podcasts
International transfer pricing update
11 January 2012, 2:00 a.m. Eastern time
Domestic tax quarterly webcast series: a focus on federal tax matters
11 January 2012, 1:00 p.m. Eastern time
Repairs regulations - Do the new rules provide permanent improvements?
17 January 2012, 1:00 p.m. Eastern time
2012 annual deal outlook
18 January 2012, 12:00 p.m. Eastern time