US Week in Review - Week ending 9 January 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
Congress has once again allowed several tax provisions known as "tax extenders" to expire on 31 December 2013. They include the research and development tax credit, the active financing exception for financial services businesses, a host of renewable energy incentives and bonus depreciation. While these provisions may be reinstated as they have been in the past, tax legislation faces significant challenges in the current environment. It is important to remember that a reinstatement can be accounted for only in the period enactment. Our Technical Line publication tells you what you need to know.
The US Office of Management and Budget has streamlined and consolidated its grant guidance for recipients and made other changes to make federal programs more efficient and effective. The final guidance will allow new grantees to use a minimum flat indirect cost rate and provide opportunities for certain grantees to simplify the reporting needed to validate personnel costs. It also may lead to more robust subrecipient monitoring and increase the focus on internal controls over compliance with federal program rules. The guidance also modifies the major program determination process and raises the audit threshold and the minimum Type A/B program threshold to $750,000. Our Technical Line publication tells you what you need to know about the changes.
Our latest newsletter summarizes developments relating to SEC matters, including certain items we have not previously reported in Week in Review. This issue highlights the SEC's progress on rulemaking and other initiatives under the Jumpstart Our Business Startups Act, including its recent proposals on crowdfunding and "Regulation A+" and the SEC staff's recently issued study on Regulation S-K disclosure requirements. We also discuss key areas of focus, including disclosure overload, addressed by the SEC staff at the AICPA National Conference on Current SEC and PCAOB Developments.
Our December 2013 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes enacted and effective tax legislation and other items through 31 December 2013 to consider as you prepare your tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.
Standard Setter updates
Financial Accounting Standards Board (FASB)
8 January 2014 FASB meeting
The FASB discussed its project on Consolidation: principal versus agent analysis.
For additional details, see the FASB's Tentative Board Decisions.
Upcoming meetings and webcasts
15 January 2014 FASB meeting
The FASB is scheduled to discuss its project on Reporting discontinued operations.
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)
SEC staff issues more interpretations on new 'bad actor' rule
The Division of Corporation Finance issued additional interpretations on the SEC's new "bad actor" disqualification and disclosure requirements for exempt offerings under Rule 506 of Regulation D. The rule disqualifies issuers from using Rule 506 exemptions if they or others involved in the offering had a disqualifying event such as a conviction, injunction or stop or disciplinary order after the 23 September 2013 effective date. Covered persons include the issuer's directors, executive officers and 20% beneficial owners.
The compliance and disclosure interpretations provide guidance for identifying beneficial owners and disclosing disqualifying events that occurred before the effective date. The SEC staff issued other interpretations on the bad actor rule in December 2013.
Enforcement Co-Director George Canellos to leave SEC
George Canellos, co-director of the SEC's Division of Enforcement, will leave the SEC later this month, and Co-Director Andrew Ceresney will be the division's sole director. Mr. Canellos joined the SEC in 2009 as director of the New York regional office and served in the enforcement division as deputy director and acting director before being named co-director last year. In his current post, Mr. Canellos helped craft the new settlement policy of requiring admissions of wrongdoing in certain cases and helped launch the division's new Financial Reporting and Audit Task Force.
Government Accounting Standards Board (GASB)
The December 2013 issue of the GASB Report is available in AccountingLink.
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).
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
IAASB proposes strategy for 2015-19 and work program for 2015-16
The IAASB has issued its Proposed Strategy for 2015-2019 and Proposed Work Program for 2015-2016 for public comment. Comments are due 4 April 2014.
Upcoming Thought Center webcasts and podcasts
Let's talk: sustainability
A new point of view for business leaders
16 January 2014, 12:00 p.m. Eastern time
Hedge Accounting for non-financial entities
28 January 2014, 11:00 a.m. Eastern time