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US Week in Review - Week ending 5 September 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


Technical Line: How to apply S-X Rule 3-14 and the latest SEC staff guidance to real estate acquisitions

The SEC staff in the Division of Corporation Finance recently revised its guidance on the S-X Rule 3-14 reporting requirements for acquisitions of real estate operations and probable acquisitions. Application of the rule has been subject to various interpretations by the SEC staff, preparers and their advisers over the years. Our Technical Line publication describes the staff's revisions and provides information to help registrants contemplating real estate acquisitions or initial SEC registrations of real estate investment trusts interpret and apply the rule.

Technical Line: A closer look at the new lease accounting proposal - telecommunications

The FASB and the IASB have issued exposure drafts that would require lessees to recognize assets and liabilities arising from their involvement in most leases. The proposal would significantly change the accounting for leases and could have far-reaching implications for telecom companies' finances and operations.

This Technical Line publication discusses the effect of the proposal on telecommunication companies and supplements our general Technical Lines, A closer look at the new lease accounting proposal and How the lease accounting proposal might affect your company. Comments are due by 13 September 2013.

Registration open for Q3 2013 financial reporting update webcast

There is still time to register for our Q3 2013 financial reporting update webcast, scheduled for 19 September from 1 p.m. to 2:30 p.m. Eastern time. This 90-minute webcast will feature EY panelists discussing recently issued exposure drafts, Private Company Council and SEC updates and other current financial reporting matters. To register, go to Q3 2013 financial reporting update.


Standard Setter updates


Financial Accounting Standards Board (FASB)

2014 US GAAP financial reporting taxonomy

The FASB issued for public comment the proposed 2014 US GAAP financial reporting taxonomy. Comments are due by 31 October 2013. The SEC must approve the new taxonomy before registrants can use it. For details, see the FASB site.

4 September 2013 FASB meeting

Not-for-profit financial reporting: financial statements - The FASB tentatively decided that net assets should be classified as either those with donor-imposed restrictions or those without donor-imposed restrictions. As a result, the existing classes of unrestricted, temporarily restricted and permanently restricted net assets would be eliminated. The Board also decided to require entities to disclose information about the composition of net assets, including differences in how and when net assets with donor-imposed restrictions can be used and any board designations imposed on net assets without donor-imposed restrictions or board authorizations to use these net assets. The FASB plans to issue an exposure draft in the first half of 2014.

For details of this week's FASB meeting, see the FASB's Summary of Board Decisions.

Upcoming meetings and webcasts

11 September 2013 FASB meeting

The FASB is scheduled to discuss its projects on:

  • EITF Issue No. 12-G, Accounting for the Difference between the Fair Value of the Assets and the Fair Value of Liabilities of a Consolidated Collateralized Financing Entity
  • Development stage entities
  • Consolidation: policy and procedures

13 September 2013 Emerging Issues Task Force meeting

The Task Force is scheduled to discuss:

  • Issue No. 13-B, Accounting for Investments in Tax Credits
  • Issue No. 13-D, Determining Whether a Performance Target That Is Allowed to Be Met after the Requisite Service Period Is a Performance Condition or a Condition That Affects the Grant-Date Fair Value of the Awards
  • Issue No. 13-G, Determining Whether the Host Contract in a Hybrid Financial Instrument Is More Akin to Debt or to Equity
  • Issue No. 12-F, Recognition of New Accounting Basis (Pushdown) in Certain Circumstances

For additional details, see the FASB's calendar.

Education sessions

See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.

Securities and Exchange Commission (SEC)

SEC to re-propose resource extraction payments rule

The SEC said it will not appeal a US District Court's decision to vacate the resource extraction payments rule that would have required resource extraction issuers to disclose payments made to US and foreign governments. The SEC will redraft the rule to address what the judge called errors in the SEC's interpretation of Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which mandated the rule. The SEC did not provide a timetable for a new proposal.

International Accounting Standards Board (IASB)

IFRS for SMEs Update

The IFRS for SMEs Update is a staff update on the latest news surrounding IFRS for Small and Medium-sized Entities (SMEs). The July-August issue addresses the IASB's discussions on the comprehensive review of the IFRS for SMEs.

Upcoming Thought Center webcasts and podcasts


EY Q3 2013 financial reporting update
In co-operation with Financial Executives International (FEI)
19 September 2013, 1:00 p.m. Eastern time

Amendments to SEC rules for broker-dealers
20 September 2013, 12:00 p.m. Eastern time

Are you ready for conflict minerals reporting?
26 September 2013, 7:00 a.m. Eastern time

CFOs reveal hidden trends from earnings season
30 September 2013, 12:00 p.m. Eastern time

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