US Week in Review - Week ending 9 May 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 Ernst & Young.
Ernst & Young publications
The Private Company Council approved exposure of proposals to allow alternatives that would provide relief for private companies when (1) recognizing intangible assets in business combinations and subsequently measuring goodwill and (2) accounting for certain interest rate swaps. Any alternatives proposed by the Council must be endorsed by the FASB before an exposure draft can be issued. Our To the Point publication summarizes the proposed alternatives.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASAC seeks feedback on future FASB projects
The Financial Accounting Standards Advisory Council (FASAC) posted a survey on the FASB website to solicit views from stakeholders on priorities for future FASB projects. Responses are due by 30 May 2013.
FASB proposes amendments to glossary terms
The FASB proposed technical corrections to the glossary to eliminate duplicative terms and those that don't appear anywhere else in the Codification and make other changes. Comments are due by 5 August 2013.
7 May 2013 meeting with the Private Company Council
See our To the Point publication above.
Upcoming meetings and webcasts
15 May 2013 FASB meeting
The FASB is scheduled to discuss its project on the financial statement presentation 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.
Public Company Accounting Oversight Board (PCAOB)
PCAOB reproposes auditing standard on related parties
The PCAOB issued for public comment an auditing standard and related amendments intended to increase the auditor's focus on a company's identification of, accounting for and disclosure of its relationships and transactions with related parties. The proposal is also intended to enhance the auditor's identification and evaluation of a company's significant unusual transactions.
The proposal would require the auditor to perform procedures, as part of its assessment of the risk of material misstatement in the financial statements, to obtain an understanding of a company's relationships and transactions with executive officers. The auditor would not be required to make a determination or recommendation about the reasonableness of compensation arrangements.
To address concerns raised about its initial proposal, the PCAOB said the proposal clarifies the relationship of the proposed requirements to its existing risk assessment standards and its requirement that the auditor evaluate whether a company has properly identified related parties, including relationships and transactions with them.
The PCAOB is also requesting views on economic considerations related to implementation, including whether the proposal should apply to audits of emerging growth companies. The proposal, which is subject to SEC approval, would be effective for audits of financial statements for fiscal years beginning on or after 15 December 2013. Comments are due by 8 July 2013.
Register now for the Q2 2013 financial reporting update webcast
The second financial reporting update webcast for 2013 is scheduled for 6 June from 1 p.m. to 2:30 p.m. Eastern time. This 90-minute webcast will feature Ernst & Young panelists discussing current matters, recently issued exposure drafts and a Private Company Council update (including alternatives to US GAAP that the council has proposed). Webcast participants will receive 1.5 CPE credits.
To register, go to Q2 2013 financial reporting update.
Report on six growing trends in corporate sustainability now available
Our second annual study with GreenBiz Group, on 2013 trends in corporate sustainability and reporting, is now available. This study provides insights into the sustainability trends that leading executives said matter most. This year, we found that when the C-suite and the board promote sustainability, the message resonates throughout an organization.
Some of the trends the study revealed were:
- The "tone from the top" is key to heightened awareness and preparedness for sustainability risks.
- Inquiries from investors and shareholders are on the rise.
For the second year in a row, we have partnered with GreenBiz to survey the GreenBiz Intelligence Panel consisting of executives and thought leaders in the area of corporate environmental strategy and performance. For this report, we analyzed responses from 282 respondents who work in 17 sectors for companies with annual revenue greater than US$1 billion.
Upcoming Thought center webcasts and podcasts
Competing for capital: IPO and M&A outlook
LIVE from the Ernst & Young Capital Strategies Conference
15 May 2013, 1:30 p.m. Eastern time
The Ernst & Young Q2 2013 financial reporting update
Co-sponsored by Financial Executives International
6 June 2013, 1:00 p.m. Eastern time
CFO's reveal hidden trends from earnings season
A quarterly webcast series, "CFO: need to know"12 June 2013, 12:00 p.m. Eastern time