US Week in Review - Week ending 6 March 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 proposed adding a chapter to its conceptual framework that is intended to improve the Board’s process for establishing disclosure requirements. Our To the Point publication tells you what you need to know about the proposal.
The FASB has issued a broad new definition of a public business entity that it is using to consider whether an entity can use accounting alternatives developed by the Private Company Council and other private company relief the FASB provides in new standards. Certain non-issuers and other entities that are considered nonpublic under other definitions that exist in US GAAP now qualify as public business entities. Our Technical Line publication tells you what you need to know about the new definition.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB proposes a framework for considering disclosure requirements
See our To the Point publication above for details.
12 March 2014 FASB meeting
The FASB is scheduled to discuss its projects on:
- Accounting for financial instruments: classification and measurement
- Accounting for financial instruments: impairment
- Consolidation: principal versus agent analysis
- Transfers and servicing: repurchase agreements and similar transactions
- Financial statements of not-for-profit entities
13 March 2014 Emerging Issues Task Force meeting
The Task Force is scheduled to discuss:
- Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period (Issue 13-D)
- Measuring the financial assets and financial liabilities of a consolidated collateralized financing entity (Issue 12-G)
- Recognition of new accounting basis (pushdown) in certain circumstances (Issue 12-F)
- 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 additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
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 (IFRS for SMEs).
American Institute of CPAs (AICPA)
AICPA issues whitepapers on the new GASB pension standard
The AICPA State and Local Government Panel released two whitepapers that address implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The guidance requires government employers to recognize a liability as employees earn their pension benefits and, if they participate in multiple-employer defined benefit plans, their proportionate share of the collective pension amounts for all benefits provided.
One whitepaper discusses the information an employer will need to obtain from a cost-sharing plan to prepare its financial statements. The other addresses the role of census data in certain plan financial statement elements and the auditor’s responsibilities for such data.
Government Accounting Standards Board (GASB)
New GAAP hierarchy and implementation guide proposed for governments
The GASB proposed a standard that would reduce the number of categories in the GAAP hierarchy from four to two. The GAAP hierarchy lists the order of priority for pronouncements that state and local governments follow when preparing financial statements. The proposed categories are GASB statements of Governmental Accounting Standards and GASB technical bulletins and implementation guides, which would include AICPA guidance cleared by the GASB.
The GASB also proposed an implementation guide covering all guidance issued to date. The GASB proposed the guide, which lists changes to its implementation guidance in Appendix C, because it would be required to seek comment on it under its proposal to elevate implementation guidance in the GAAP hierarchy.
The proposals would be effective for periods beginning after 15 June 2015. Comments are due by 31 December 2014.
Upcoming Thought Center webcasts and podcasts
EY Q1 2014 financial reporting update
In co-operation with Financial Executives International (FEI)
27 March 2014, 1 p.m. Eastern time