US Week in Review - Week ending 8 May 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
We have updated our To the Point publication on modified conflict minerals reporting to reflect the order the SEC issued staying the effective date of certain portions of its rule that were found by the US Court of Appeals for the District of Columbia Circuit to violate the First Amendment. The order is consistent with the SEC staff statement issued last week. The revised publication also clarifies certain disclosures required in the first conflict minerals reports.
Separately, industry group plaintiffs this week filed an emergency motion with the US Court of Appeals for the District of Columbia seeking a stay of the entire conflict minerals rule, stating that the SEC guidance to omit compelled language "no longer achieves the statute's goal." The motion requests a ruling by 26 May 2014, before the 2 June 2014 deadline for the first conflict minerals filings. The SEC already rejected the plaintiffs' petition seeking a stay of the entire rule.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FAF issues 2013 annual report
The Financial Accounting Foundation (FAF), which oversees the FASB and the Governmental Accounting Standards Board, issued its 2013 Annual Report.
6 May 2014 FASB meeting
The Board discussed its project on Consolidation: principal versus agent analysis. For more details, see the FASB's Tentative Board Decisions.
7 May 2014 FASB meeting
Going concern - The FASB tentatively decided that, when assessing whether there is substantial doubt about a company's ability to continue as a going concern, management should assess relevant conditions or events that are known or reasonably knowable at the financial statement issuance date (or the date they are available to be issued for nonpublic companies) and consider the effect of those conditions or events for one year from that date. In a change from its proposal, the FASB decided that the substantial doubt assessment and disclosure requirements would apply to nonpublic entities. The FASB also decided that a final standard would be effective for annual periods beginning after 15 December 2015 and interim periods thereafter, with early adoption permitted. The FASB chose the date, in part, to give the PCAOB and the ASB time to update their standards on the auditor's evaluation of an entity's ability to continue as a going concern.
For more details, see the FASB's Tentative Board Decisions.
Upcoming meetings and webcasts
14 May 2014 FASB meeting
The Board is scheduled to discuss its projects on Accounting for financial instruments: classification and measurement and Financial statements of not-for-profit entities.
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)
Head of SEC Division of Economic and Risk Analysis leaves agency
Craig Lewis, chief economist and director of the SEC's Division of Economic and Risk Analysis (DERA), has left the agency to return to Vanderbilt University. Dr. Lewis had headed DERA since May 2011, during which time he oversaw the development of analytical tools and models, such as the Accounting Quality Model, to assist in risk assessment and enforcement. He also helped develop guidance on best practices for economic analysis in support of SEC rulemaking.
International Accounting Standards Board (IASB)
April edition of IFRS for SMEs
The April edition of IFRS for SMEs has been issued. The publication is a staff summary of news relating to the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).
Register now for the Q2 2014 financial reporting update webcast on 12 June
The Q2 2014 financial reporting update webcast is scheduled for 12 June from 1 p.m. to 2:30 p.m. Eastern time. EY panelists will discuss recent FASB activity, SEC developments and other current financial reporting matters during this 90-minute webcast.
To register, go to Q2 2014 financial reporting update.
Upcoming Thought Center webcasts and podcasts
EY Q2 2014 financial reporting update
In co-operation with Financial Executives International (FEI)
12 June 2014, 1 p.m. Eastern time
CFO: need to know quarterly webcast series
25 June 2013, 12 p.m. Eastern time