US Week in Review - Week ending 5 June 2014
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 decided to require insurers to disclose more information about their short-duration insurance contracts in their annual and interim financial statements. Our To the Point publication tells you what you need to know about the proposed disclosures.
We have updated our Financial reporting developments (FRD) publication on issuer’s accounting for debt and equity financings to include, among other things, new interpretative guidance on debt issuance costs, trade accounts payable transactions and the subsequent measurement of certain redeemable equity instruments. Refer to Appendix F of the publication for a detailed listing of these updates.
We have updated our FRD publication on foreign currency mattersto clarify and enhance our interpretative guidance. Refer to Appendix C of the publication for a detailed list of these updates.
You can still register for the Q2 2014 financial reporting update webcast on 12 June from 1 p.m. to 2:30 p.m. Eastern time. EY panelists will discuss recent FASB activity, SEC developments and other financial reporting matters during this 90-minute webcast.
To register, go to Q2 2014 financial reporting update.
If you missed the original webcast on The new revenue recognition standard on 2 June, you may watch an on-demand replay, which will be available until 2 June 2015.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB and IASB form joint transition resource group for revenue recognition
The FASB and the IASB formed a joint transition resource group for revenue recognition (TRG) to inform the Boards about issues that could arise when entities implement the new standard. The TRG will not issue guidance. For more details, see the FASB's TRG webpage.
4 June 2014 FASB meeting
Insurance: disclosures about short-duration contracts - See our To the Point publication above.
Accounting for financial instruments - classification and measurement: The FASB decided that entities that are not public business entities (PBEs) would no longer be required to disclose the fair value of financial instruments measured at amortized cost. In addition, financial institutions that are PBEs would no longer be able to measure the fair value of loans receivable for disclosure purposes based on an entry price notion. The Board decided that PBEs would be required to present the fair value of financial instruments measured at amortized cost either parenthetically on the face of the balance sheet or in the notes. The FASB also decided to retain existing US GAAP for balance sheet presentation of financial instruments. However, disclosures would be disaggregated by measurement category and form of the instrument (i.e., loan or security).
For more details, see the FASB’s Tentative Board Decisions.
Upcoming meetings and webcasts
11 June 2014 FASB meeting
The Board is scheduled to discuss its projects on Disclosure framework, Accounting for financial instruments: classification and measurement and Accounting for financial instruments: impairment.
12 June 2014 Emerging Issues Task Force meeting
The Task Force is scheduled to discuss:
- Accounting for the effect of a Federal Housing Administration guarantee (Issue 13-F)
- Measuring the financial assets and financial liabilities of a consolidated collateralized financing entity (Issue 12-G)
- Determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity (Issue 13-G)
For more details, see the FASB’s calendar.
23 June 2014 FASB webcast
The Board will host a webcast to discuss its standard-setting activities related to private companies and not-for-profit entities, starting at 1 p.m. Eastern time. For more details, see the FASB’s news release.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Securities and Exchange Commission (SEC)
SEC seeks rehearing of court's conflict minerals ruling as first Form SDs are filed
The SEC has asked the US Court of Appeals for the District of Columbia to rehear the decision of its three-judge panel that aspects of the SEC’s conflict minerals rule violated the First Amendment. The SEC requested that the rehearing occur after the full Court issues a decision in a similar case, American Meat Institute v. United States Department of Agriculture.
The SEC made the request just a few days before the 2 June 2014 deadline for registrants to file their first conflict minerals disclosures on Form SD. About 1,300 registrants have filed a Form SD, 78% of which included a conflict minerals report. Only three conflict minerals reports were accompanied by an independent private sector audit report.
International Accounting Standards Board (IASB)
May IFRS for SMEs
The IASB's IFRS for SMEs Update is a staff summary of news relating to the International Financial Reporting Standard for Small and Medium-sized Entities.
American Institute of CPAs (AICPA)
AICPA issues new whitepaper on GASB pension standard
The AICPA State and Local Government Expert Panel released a whitepaper on implementing GASB Statement No. 68, Accounting and Financial Reporting for Pensions, from the perspective of employers in agent multiple-employer plans and auditors. To comply with the standard, employers will have to coordinate closely with their plans and auditors.
Upcoming Thought Center webcasts and podcasts
IFRS 15: the new revenue recognition standard
10 June 2014, 11 a.m. Eastern time
EY Q2 2014 financial reporting update
In co-operation with Financial Executives International (FEI)
12 June 2014, 1 p.m. Eastern time