4 May 2017
Financial Reporting Developments - Segment reporting
We have updated our Financial reporting developments publication on segment reporting to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.
27 March 2017
Comment Letter - FASB proposed changes to disclosure requirement for inventory
In our comment letter, we supported the FASB’s disclosure framework project and its objective to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP that is most important to users of each entity’s financial statements. However, we asked the FASB to provide more details about the input received from users, particularly users of other than public business entities’ financial statements, and how any expanded disclosures would affect their behavior.
9 February 2017
To the Point - Narrow amendments to several topics could change practice for some entities
The FASB issued ASU 2016-19, Technical Corrections and Improvements, to clarify guidance, correct errors and make minor improvements to the Accounting Standards Codification. While most of the amendments are not expected to have a significant effect on practice, some of them may change how some entities apply aspects of the guidance on fair value measurement, joint and several liability, transfers and servicing, real estate sales and software licenses. Many of these amendments are effective for calendar-year entities in the first quarter of 2017.
12 January 2017
Technical Line - How to apply the FASB’s guidance on management’s going concern evaluation
The FASB’s guidance requiring management of all entities to perform a going concern evaluation will be effective this year end for calendar-year companies. Our Technical Line provides reminders and discusses how to apply the guidance.
12 January 2017
To the Point - FASB proposes changes to inventory disclosure requirements
The FASB proposed requiring all entities to make additional disclosures regarding changes in inventory outside the normal purchase, manufacture or sale of inventory and the composition of inventory. The proposal also would require all entities to make certain inventory disclosures currently required by the SEC. It would also require additional disclosures by entities that report segment information and those that apply the retail inventory method. Comments are due by 13 March 2017.
15 December 2016
Financial Reporting Developments - Statement of cash flows
We have updated our Financial reporting developments publication on the statement of cash flows to reflect the issuance of ASC 2016-15, Classification of Certain Cash Receipts and Cash Payments, and other recent amendments to ASC 230.
17 November 2016
To the Point - FASB addresses the presentation of restricted cash in the statement of cash flows
The FASB issued final guidance, based on an Emerging Issues Task Force consensus, that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer have to classify transfers between cash and restricted cash.
24 October 2016
Comment Letter - FASB’s invitation to comment, Agenda consultation
In our comment letter, we commend the FASB for its thorough and thoughtful approach to deciding which financial reporting issues to add to its future agenda. We agree that now that the Board has completed many of its major projects, it has an opportunity to consider its direction for the next few years. However, we do not believe that now is the time for the FASB to begin actively working on any new major projects, other than continuing to conduct research for future ones. We are concerned that, given the volume of major new standards entities will have to implement over the next few years, it would be difficult for preparers, users, auditors and regulators to continue monitoring new standard-setting initiatives while effectively managing changes resulting from the major new standards.
10 October 2016
Financial Reporting Developments - Discontinued operations (following the adoption of ASU 2014-08)
We have issued our Financial reporting developments publication on reporting discontinued operations following the adoption of Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The ASU changes the definition of a discontinued operation and requires new disclosures of discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for calendar year-end companies in 2015, and early adoption is permitted.
22 September 2016
To the Point - Proposals would provide criteria for evaluating how a company manages cybersecurity risk
The AICPA issued two proposals that together provide a framework for evaluating how a company manages cybersecurity risk. One proposal would provide separate sets of criteria to be used by management to describe its cybersecurity risk management program and for public accounting firms to use to report on management’s description. The second proposal would revise the AICPA trust services criteria public accounting firms to evaluate the controls for SOC2 engagements so they could be used evaluate controls over a cybersecurity risk management program. The final criteria and related auditor guidance are expected to be issued in early 2017.
8 September 2016
Financial Reporting Developments - Exit or disposal cost obligations
We have updated our Financial reporting developments publication on exit or disposal cost obligations to reflect the changes resulting from the new leases standard issued by the FASB. Refer to Appendix D of the publication for a summary of the updates.
6 September 2016
Comment Letter - ASB’s going concern proposal
In our comment letter, we support the issuance of the Proposed Statement on Auditing Standards, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, to promote consistency between the auditing standards and ASU 2014-15, Presentation of Financial Statements – Going Concern, which will require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. However, we disagree with the proposed requirement for the auditor to make inquiries of management about its knowledge of conditions or events beyond the period of management’s evaluation that raise substantial doubt about the entity’s ability to continue as a going concern.
1 September 2016
To the Point - FASB clarifies the classification of certain cash receipts and cash payments
The FASB issued final guidance, based on an Emerging Issues Task Force consensus, that clarifies the classification of certain cash receipts and cash payments. The amendments also clarify how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows.
26 August 2016
To the Point - FASB changes certain requirements for the financial statements of not-for-profit entities
The FASB issued final guidance that changes certain financial statement requirements for not-for-profit (NFP) entities. NFPs will no longer be required to distinguish between resources with temporary and permanent restrictions on the face of their financial statements, meaning they will present two classes of net assets instead of three. The guidance also will change how NFPs report certain expenses and provide information about their available resources and liquidity.
15 August 2016
Comment letter - PCAOB’s reproposal on the auditor reporting model
In our comment letter, we supported the PCAOB’s efforts to make the auditor’s report more informative and relevant for investors and other users of the financial statements. However, we offered some suggestions to clarify the definition of critical audit matters and the related disclosure requirements to reduce the instances where the auditor would provide original information about the company. We also raised some concerns related to increased auditor liability and recommended that the PCAOB eliminate the reproposed requirement to disclose auditor tenure in the auditor’s report.
13 July 2016
Financial Reporting Developments - Asset retirement obligations
We have updated our Financial reporting developments publication on asset retirement obligations to further clarify and enhance our interpretative guidance. Refer to Appendix E of the publication for a summary of the updates.
13 July 2016
Financial Reporting Developments - Earnings per share
We have updated our Financial reporting developments publication on earnings per share to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.
7 July 2016
Technical Line - Accounting and reporting considerations of Brexit
The recent vote by the British people to leave the European Union (EU) marks the start of a long and unprecedented process, and the terms of any exit are not yet known. How entities with significant operations or investments in the United Kingdom and the EU will be affected may not be clear for some time. Our Technical Line addresses some of the accounting and reporting considerations entities should keep in mind when preparing their upcoming interim (or annual) financial statements and reports.
29 June 2016
Comment Letter - FASB proposal on technical corrections and improvements
In our comment letter on the Proposed Accounting Standards Update, Technical Corrections and Improvements, we agree that for the most part, the proposed changes would clarify the Accounting Standards Codification, correct unintended application of guidance or make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities. However, we express concerns about certain of the proposed amendments
6 June 2016
Financial Reporting Developments - Bankruptcies, liquidations and quasi-reorganizations
We have updated our Financial reporting developments publication on bankruptcies, liquidations and quasi-reorganizations to clarify and enhance our interpretative guidance. Refer to Appendix A of the publication for a detailed list of these updates.
2 June 2016
Financial Reporting Developments - Accounting changes and error corrections
This publication is designed to assist professionals in understanding the financial reporting issues associated with accounting changes (including changes in accounting principle, changes in estimates and changes in reporting entity) and error corrections.
10 February 2016
Comment Letter - FASB proposal on disclosures of government assistance
In our comment letter, we supported the FASB’s objective of improving the reporting and disclosure of certain government assistance arrangements, but we did not agree that the approach taken by the Board would meet that objective. We believe that the FASB should first develop recognition and measurement guidance for government assistance arrangements and then consider disclosure requirements for arrangements within the scope of that guidance. If the Board believes that additional disclosures should be required for arrangements accounted for under other topics in the Accounting Standards Codification, we believe that the Board should amend the disclosure requirements in those topics to specifically address those matters.
23 December 2015
Comment Letter - Amendments to conceptual framework for financial reporting, chapter 3: qualitative characteristics of useful financial information
In our comment letters, we continue to support the objective of the FASB in its disclosure framework project to improve disclosure effectiveness in the notes to the financial statements. We supported the FASB’s proposal to align its definition of materiality in the Conceptual Framework with that of the SEC and the PCAOB. However, we have concerns that the proposed evaluation of materiality of omitted disclosures is not sufficiently clear to be applied consistently by preparers, auditors and regulators.
23 December 2015
Comment Letter - Assessing whether disclosures are material
In our comment letter, we continue to support the objective of the FASB in its disclosure framework project to improve disclosure effectiveness in the notes to the financial statements. We supported the FASB’s proposal to align its definition of materiality in the Conceptual Framework with that of the SEC and the PCAOB. However, we are concerned that focusing on materiality solely as a legal concept could lead to materiality decisions becoming legal determinations, when in fact they should be accounting determinations.
19 November 2015
To the Point - Entities would have to make certain disclosures about government assistance they receive
The FASB proposed requiring for-profit entities to make certain disclosures about government assistance resulting from legally enforceable agreements in which an entity receives value from a government. An entity would have to disclose information about its existing government assistance agreements, including the nature, terms and conditions of the assistance, and its accounting policies for the assistance. Comments on the exposure draft are due by 10 February 2016.
11 November 2015
To the Point - 2015 OMB Compliance Supplement may result in significant changes in audits of federal awards
Non-federal entities that receive federal government awards need to be prepared for changes in how their auditors will audit compliance with federal rules, particularly the requirements of the Uniform Guidance that now apply to certain awards. These entities will need to distinguish between expenditures subject to the Uniform Guidance and those subject to Office of Management and Budget circulars so auditors can test selected federal awards against the appropriate criteria.
11 November 2015
To the Point - GASB issues more authoritative Implementation Guide
The GASB approved the issuance of authoritative implementation guidance for the first time. It is effective for reporting periods beginning on or after 15 June 2015.
11 November 2015
To the Point - GASB requires disclosures for tax abatement agreements
The GASB recently issued Statement No. 77, Tax Abatement Disclosures, which is effective for reporting periods beginning on or after 15 December 2016.
1 October 2015
To the Point - FASB proposes guidance on applying materiality to disclosures
As part of its disclosure framework project, the FASB proposed guidance on applying materiality to promote the appropriate use of discretion by reporting entities when complying with its disclosure requirements. The FASB also proposed amending Concepts Statement No. 8 to revise the definition of materiality. Comments are due by 8 December 2015.
19 August 2015
Comment Letter - FASB proposal on presentation of not-for-profit financial statements
In our comment letter, we supported the FASB’s objective of improving financial statement presentation by not-for-profit entities (NFPs) provided any changes are simple and straightforward and scalable to all affected entities. We supported many of the proposed amendments that address issues that are unique to NFPs such as the proposed changes to the classification of net assets and certain amendments that would eliminate diversity in practice. However, we did not support the development of significantly different financial reporting models for NFPs and business enterprises, especially in areas where the objectives of financial reporting do not differ between these types of entities (e.g., reporting measures of operations, reporting of cash flows).
23 July 2015
To the Point - FASB simplifies the subsequent measurement of inventory
The FASB issued final guidance that simplifies the subsequent measurement of certain inventories by replacing today’s lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). Entities that use LIFO or RIM will continue to use existing impairment models.
9 January 2015
To the Point - FASB eliminates reporting of extraordinary items
The FASB issued final guidance that simplifies income statement presentation by eliminating extraordinary items. This is the first standard under the FASB’s simplification initiative.
11 December 2014
Accounting pronouncements effective in 2014
Several new accounting pronouncements are effective for 2013 interim or annual periods for calendar-year entities. We have listed those pronouncements, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2013.
9 December 2014
To the Point - FASB holds forum on financial disclosures
The FASB held a forum with representatives of preparers and users of financial statements, as well as standard setters and regulators, to share views on financial disclosures. The FASB was seeking input on how to improve disclosures and how to proceed with its disclosure framework project.
8 December 2014
To the Point - FASB proposes disclosures about investments in other investment companies
The FASB proposed aligning certain presentation and disclosure requirements for investment companies regulated by the Investment Company Act of 1940 with those that are not regulated by the Act. The proposal would require feeder funds that are not regulated by the Act to provide the master fund’s financial statements along with its financial statements, similar to Securities and Exchange Commission guidance for feeder funds regulated under the Act. It also would require funds that are regulated by the Act to disclose certain information about investments held by investee funds that exceed 5% of the reporting investment company’s net assets; today, only funds not regulated by the Act are required to make these disclosures. Comments are due by 17 February 2015.
5 December 2014
Technical Line - Companies may be subject to excise taxes under Affordable Care Act
Companies may be subject to excise taxes under the employer mandate provisions of the Affordable Care Act if they do not offer full-time employees and their dependents health care coverage or do not offer coverage that meets certain requirements. Companies may need to begin accruing for the taxes in 2015, and estimating those liabilities may require significant judgment.
26 November 2014
Comment Letter - Technical corrections and improvements
In our comment letter on the Proposed Accounting Standards Update, Technical Corrections and Improvements, we agree that for the most part, the proposed changes would clarify the Codification, correct unintended application of guidance or make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. However, we express concern about certain of the proposed amendments.
13 November 2014
Disclosure effectiveness: What investors, company executives and other stakeholders are saying
With the SEC staff looking at ways to improve disclosures, we invited investors, company executives and other stakeholders to share their views on topics such as the objectives of SEC reporting, priorities and challenges for changes to current disclosure requirements and voluntary improvements that companies can make now. Our publication summarizes their views.
21 October 2014
Disclosure effectiveness: What companies can do now
Making business and financial disclosures more effective has become a focus of regulators and standard setters around the world. Our publication, Disclosure effectiveness: What companies can do now , explores how companies can implement the SEC staff’s recommendations for reducing repetition, focusing on material information and eliminating outdated information. The publication includes illustrations, leading practices and practical steps to make companies’ year-end disclosures more meaningful.
16 October 2014
To the Point - FASB issues simplification proposals on debt issuance costs and retirement benefits
The FASB issued proposals to simplify the presentation of debt issuance costs and the measurement date for defined benefit pension and other postretirement benefit plan sponsors as part of the Board’s simplification initiative. Our To the Point publication tells you what you need to know about the exposure drafts.
13 October 2014
To the Point - Michigan enacts legislation that could affect income apportionment
In response to a Michigan Supreme Court decision, Michigan has enacted legislation that may alter the way a taxpayer determines Michigan taxable income. Our To the Point publication tells you what you need to know about the new legislation.
30 September 2014
Comment Letter - FASB proposal to eliminate the concept of extraordinary items
In our comment letter, we supported the FASB's efforts to reduce the cost and complexity of financial reporting by eliminating the concept of extraordinary items. We believe the proposal would not affect the quality of information provided to financial statement users.
30 September 2014
Comment Letter - FASB proposal to simplify the measurement of inventory
In our comment letter, we said we do not support the FASB’s proposal to measure inventory at the lower of cost or net realizable value (LCNRV). For entities that use the last-in, first-out (LIFO) accounting method in declining price environments, we believe the Proposed Standard could increase the cost and complexity of preparing the financial statements and, in certain circumstances, reduce the usefulness of the information provided to users. We also said the continuing acceptability of the retail inventory method should be made more clear in a final standard.
4 September 2014
To the Point - FASB requires management to assess an entity’s ability to continue as a going concern
The FASB issued final guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern and to provide disclosures when certain criteria are met. Our To the Point publication tells you what you need to know.
14 August 2014
To the Point - New projects added to FASB and EITF agendas
The Financial Accounting Standards Board added several projects to its agenda and to that of the Emerging Issues Task Force at its latest agenda prioritization meeting. Several of these projects are part of the Board’s simplification initiative. Projects were added to the FASB’s agenda to address accounting for income taxes and to simplify the presentation of debt issuance cost, the measurement date for defined benefit plans and the balance sheet classification of debt. Projects were added to the EITF’s agenda to address the fair value hierarchy levels for certain investments measured at net asset value and the effects on historical earnings per unit of master limited partnership dropdown transactions. See our To the Point for details.
17 July 2014
To the Point - Proposals would eliminate extraordinary items and simplify accounting for inventory
The FASB issued proposals to simplify income statement presentation by eliminating extraordinary items and to simplify the subsequent measurement of inventory by replacing today’s lower of cost or market test with a lower of cost or net realizable value test. Our To the Point publication tells what you need to know about these proposals, which are the first in a FASB initiative to simplify US GAAP in the near term.
14 July 2014
Comment Letter - Chapter 8: Notes to financial statements
In our comment letter, we supported the FASB’s objective of improving disclosure effectiveness in the notes to the financial statements by developing a framework the Board would apply when creating new disclosure requirements and evaluating existing ones. However, we are concerned that the proposed framework would actually perpetuate the significant expansion in disclosure that has occurred over the past few decades. We suggest changes to the framework, including the testing process, and recommend that the Board provide guidance on materiality and clearly distinguish between annual and interim requirements.
13 March 2014
Accounting pronouncements effective for the first quarter of 2014
Several new accounting pronouncements are effective for the first quarter of 2014 for calendar-year entities. We list them below, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.
6 March 2014
Technical Line - A closer look at the new definition of a public business entity
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 tells you what you need to know about the new definition.
6 March 2014
To the Point - A framework to help the FASB establish effective disclosures
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.
16 January 2014
To the Point - A new method of accounting for investments in qualified affordable housing projects
The FASB issued final guidance that allows investors to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under this method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. While the guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication tells you what you need to know about the new guidance.
9 January 2014
Technical Line - Federal grant policies for recipients are streamlined and changed
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.
12 December 2013
Accounting pronouncements effective in 2013
Several new accounting pronouncements are effective for 2013 interim or annual periods for calendar-year entities. We have listed those pronouncements, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2013.
10 October 2013
Technical Line - How investment companies would apply the new guidance on liquidation basis accounting
The FASB's guidance requiring entities to begin preparing financial statements on a liquidation basis when liquidation is imminent applies to all investment companies, except those regulated under the Investment Company Act of 1940 or those following a liquidation plan established at inception. Once an investment company determines that applying the liquidation basis is appropriate, financial statement presentation and disclosures would change and the recognition and measurement of accounts may change. Our Technical Line describes what investment companies need to know about when and how to apply the liquidation basis of accounting.
18 September 2013
To the Point - FASB chairman sets new priorities
The FASB is setting new priorities under Russell Golden, who took over as chairman on 1 July, and James Kroeker, who joined the FASB as vice chairman on 1 September. Completing the major convergence projects with the IASB is the current focus. Mr. Golden also is looking beyond those projects and plans to focus on topics such as disclosure effectiveness, debt and equity, issues in pension and hedge accounting, as well as operational issues. This To the Point discusses what you need to know about the FASB’s priorities.
17 September 2013
Accounting pronouncements effective for the third quarter of 2013
Several new accounting pronouncements are effective for the third quarter of 2013 for calendar-year entities. We have listed those pronouncements in our document, along with descriptions of related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.
8 August 2013
To the Point - FASB proposes new definition of a public company for future standard setting
The FASB proposed guidance to define a public business entity and to identify the types of entities that would be excluded from the scope of the Private Company Decision-Making Framework. See the proposal (pdf, 344kb) and our To the Point publication for further information.
23 April 2013
To the Point - FASB issues new liquidation basis accounting guidance
The FASB issued final guidance requiring entities to begin preparing financial statements on a liquidation basis when liquidation is imminent, as defined in the standard. The guidance doesn’t apply to investment companies regulated under the Investment Company Act of 1940 or limited-life entities that follow a liquidation plan established at their inception. The guidance is effective prospectively for reporting periods beginning after 15 December 2013. Early adoption is permitted.
22 April 2013
Technical Line - Changes proposed to federal grant policies
The US Office of Management and Budget has proposed streamlining its grant guidance and making other changes aimed at increasing the effectiveness and efficiency of federal programs. The proposal would allow new grantees to use a minimum flat indirect cost rate for a few years and provide opportunities for certain grantees to simplify the reporting needed to support salary charges. It also may lead to more robust subrecipient monitoring. Other proposed changes include streamlining the compliance requirements tested in the Circular A-133 audit, changes to the major program determination process and raising the audit threshold to $750,000. Our Technical Line publication tells you what you need to know about the proposed changes.
16 April 2013
Technical Line - How to report AOCI in interim periods
ASU 2013-02 amended interim and annual reporting requirements about accumulated other comprehensive income (AOCI) for public and nonpublic companies. In interim periods, public companies are required to report information about reclassifications out of AOCI and changes in AOCI balances. Nonpublic companies are required to report only changes in AOCI balances. This Technical Line addresses implementation of the ASU for interim reporting. The ASU is effective for the first quarter of 2013 for calendar-year public companies.
27 March 2013
To the Point - New guidance for not-for-profit entities
The American Institute of Certified Public Accountants (AICPA) has issued a comprehensive revision of its Audit and Accounting Guide, Not-for-Profit Entities,for the first time in 15 years. Questions raised as the Guide was being updated have resulted in new guidance from the Emerging Issues Task Force (EITF) on two not-for-profit topics. Our To the Point publication summarizes the guidance from the AICPA and the EITF.
27 February 2013
Technical Line - What the new AOCI disclosures will look like
The FASB has issued new guidance requiring companies to report, in one place, information about reclassifications out of accumulated other comprehensive income (AOCI). Public companies must make the disclosures in fiscal years and interim periods within those years beginning after 15 December 2012. For calendar-year public companies, that means the first quarter of 2013. Our Technical Line describes the requirements and provides examples of what the disclosures might look like.
13 December 2012
Accounting pronouncements effective in 2012
Several new accounting pronouncements are effective for 2012 interim or annual periods for calendar-year entities. We have listed those pronouncements in our publication, along with a description of the related Ernst & Young resources. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2012.
15 November 2012
To the Point - Management would have to assess going concern
The FASB tentatively decided to require management to assess a company’s ability to continue as a going concern and the need for disclosure when certain levels of uncertainty exist. This would be a change because today’s requirement to assess a company’s ability to continue as a going concern rests primarily with auditors. The FASB expects to issue a proposal in the first quarter of 2013.
23 August 2012
Technical Line - New principles and criteria for assessing the quality of XBRL files
The AICPA issued Principles and Criteria for XBRL-Formatted Information, which can help companies improve the quality of the financial information they format in computer-readable XBRL and submit to the SEC and other regulators. The document is especially useful now that the SEC staff has indicated it will begin issuing comment letters on XBRL exhibits shortly. Our Technical Line publication summarizes what you need to know about the AICPA document.
23 August 2012
To the Point - Sustainability reporting gets a boost from stock exchanges
The NASDAQ Stock Market became one of the latest stock exchanges to urge listed companies to measure and report on environmental and social issues. Our To the Point publication tells you what you need to know about the trend.
9 August 2012
To the Point - No IPEs, but fair value could still be an option
The FASB tentatively decided not to develop entity-based accounting guidance for investment property entities (IPEs). The Board plans to consider the results of related standard-setting projects before deciding whether to pursue another approach, such as developing asset-based guidance for investment property, or to abandon the investment property project entirely. Our To the Point publication describes the Board’s latest decisions.
7 August 2012
Technical Line - Lessons learned from our review of restatements
Our Technical Line discusses the accounting topics that gave rise to restatements and will be helpful for companies as they perform internal risk assessments and evaluate their control environment.
27 July 2012
To the Point - Qualitative impairment test added for indefinite-lived intangibles
The FASB issued final guidance giving companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Our To the Point summarizes what you need to know about the Accounting Standards Update.
21 June 2012
To the Point - Now is the time to address disclosure overload
The volume of disclosures required in annual reports has grown sharply over the past two decades, largely fulfilling the prediction made in a 1994 study. Our To the Point publication updates the study of the average number of pages devoted to footnotes and Management’s Discussion and Analysis in annual reports of a select group of companies and highlights the plans of the FASB and SEC staff to increase the effectiveness of disclosures.
24 May 2012
Proxy season 2012 - early voting results
This publication provides a view into early voting patterns and shareholder campaigns regarding director elections, say-on-pay proposals, and shareholder proposals, all of which guide expectations as the proxy season unfolds.
17 April 2012
Proxy season 2012: trends in proxy statement disclosure
An early look at the 2012 proxy season shows that companies are using the proxy statement as a strategic tool to strengthen board communications with shareholders, effectively enhancing transparency around their corporate governance practices and policies. This publication reviews the emerging trends in proxy statement disclosures among large US companies and the evolving corporate governance practices they reflect.
16 February 2012
Proxy season 2012: board priorities for shareholder engagement
This issue offers boards insights into investor priorities for 2012 so they can better prepare for shareholder engagement and communications. It offers an overview of the emerging corporate governance themes and highlights key shareholder initiatives that are expected to dominate the proxy season. Stay tuned for the remaining Proxy Perspectives during the proxy season.
9 February 2012
Audit committee - leading practices and trends
This publication outlines key considerations for audit committees as they focus on risk oversight, committee composition and self assessment. Also included are suggestions for executive sessions, interaction with other board committees, continuing education and new member orientation.
2 February 2012
2011 year-end issues audit committees should consider
Audit committees continue to face change, economic volatility and regulatory uncertainty as they head into the year-end reporting season. Our publication, 2011 year-end issues audit committees should consider, discusses the key challenges facing audit committees and lays out 20 questions audit committees should consider as they prepare for their upcoming discussions. Our publication also provides additional insights by references to other Ernst & Young publications.
12 January 2012
Technical Line - Accounting for incentive payments for using electronic health records
Many questions have arisen about the appropriate accounting treatment for incentive payments under the Medicare and Medicaid programs for certain eligible professionals and hospitals that meaningfully use certified electronic health record (EHR) technology. The SEC staff has informally expressed its view on the accounting treatment of these payments. Our Technical Line discusses the SEC staff’s view and the accounting implications of these incentive payments for issuers and non-issuers that operate hospitals.
30 September 2011
Comment Letter - Concept release on possible revisions to PCAOB standards related to reports on audited financial statements
Our comment letter to the PCAOB supports responsible change to the auditor reporting model and outlines a possible approach to revising the auditor’s reporting model.
21 September 2011
Dangerous world - practical steps for global companies to evaluate and address corruption risk
Corruption risk continues to be a significant concern for global companies. The trend of increased Department of Justice and SEC enforcement of the US Foreign Corrupt Practices Act continues in the US. We provide suggestions for how large and mid-size companies should go about evaluating their corruption risks and put a program in place to address these risks responsibly.
11 August 2011
Technical Line - Current economic conditions - financial reporting considerations
The downgrade by S&P of the long-term sovereign credit rating of the United States has contributed to the recent volatility in the capital markets. It also raises a number of financial reporting considerations, including whether US Treasury rates can continue to be used as the risk-free interest rate for financial reporting purposes. Our Technical Line publication discusses this and other matters.
1 June 2011
InSights - Regulatory compliance: adapting to a pressurized environment
This edition of InSights looks at how company compliance functions are adapting to more stringent regulatory environment. It is based on conversations with audit committee chairs, compliance executives and a broad range of other advisors.
1 April 2011
Proxy Perspectives: Proxy season preview board priorities in 2011
Our publication outlines what boards need to know now as we enter the 2011 shareholder meeting season.
1 April 2011
Proxy Perspectives: Shareholders target board oversight of company tax strategy
Our publication discusses shareholder concerns about board oversight of risks arising from a company’s tax strategy.
7 January 2011
2010 year-end issues audit committees should consider
Our publication discusses 2010 year-end issues top of mind for audit committee members.
5 January 2011
Hot Topic - Loss contingency disclosure
Our Hot Topic provides a more in-depth view of the SEC staff’s actions and expected actions related to loss contingency disclosure.
2 June 2010
EY summary of COSO study on fraudulent financial reporting
Our report summarizes the COSO report analyzing fraudulent financial reporting between 1998-2007.
27 January 2010
Comment Letter - Proposed ASU on subsequent events
This comment letter provides our views on the FASB's proposal on subsequent events.
15 January 2010
Technical Line - Venezuela as a highly inflationary economy
Our Technical Line addresses the accounting for a change from a non-highly inflationary economy for Venezuela to a highly inflationary economy.
23 December 2009
Venezuela to be Considered "Highly Inflationary" for 2010 Reporting Periods
Our publication provides guidance on the inflationary status of Venezuela.
13 November 2009
Hot Topic - Accounting for financial instruments: A changing landscape
Our Hot Topic provides a summary of FASB actions taken to date in their Accounting for Financial Instruments project and provides an overview of the current status of issues being considered and tentative decisions reached. It also provides an overview of the chapters of IFRS 9 recently issued.
31 July 2009
Hot Topic - Financial Crisis Advisory Group reports to the FASB and IASB
Our Hot Topic summarizes the Financial Crisis Advisory Group report to members of the FASB and IASB on the standard-setting implications of the global financial crisis.
15 May 2009
Comment Letter - FASB proposal related to various technical corrections
This comment letter provides our views on certain technical corrections proposed by the FASB.
5 December 2008
Comment Letter - FASB and IASB Exposure Drafts on earnings per share
This comment letter provides our views of both the FASB and IASB proposals on the calculation of earnings per share.
1 December 2008
Counterparty nonperformance risk
Our publication highlights important accounting and reporting considerations related to counterparty nonperformance risk.
21 November 2008
Technical Line - Two-class method of computing EPS: Applying FSP EITF 03-6-1/EITF 07-4
Our Technical Line addresses the guidance issued by the FASB and the EITF on applying the two-class method of computing EPS in certain instances.
3 October 2008
Comment Letter - IASB/FASB Joint Conceptual Framework Project - DP/ITC on Reducing Complexity in Reporting Financial Instruments
This comment letter provides our views on the joint IASB/FASB Discussion paper on reducing complexity in financial instruments.
26 September 2008
Hot Topic - Effect of surcharges on frequent flier programs on travel liabilities
Our Hot Topic addresses questions that have arisen as to how certain FFP surcharges should be considered in an airline’s calculation of the travel liabilities associated with its frequent flier program.
5 September 2008
Hot Topic - FASB releases proposed Statement to amend Statement 128, Earnings Per Share
Our Hot Topic summarizes the changes proposed in the FASB proposal on earnings per share. The FASB issued the proposal as part of a joint project with the IASB. The IASB also issued an Exposure Draft proposing amendments to IAS 33.
10 July 2008
Comment Letter - FASB Request for Additional Comments NFP: M&A
This comment letter provides our views on the FASB's proposal on mergers and acquisition of not-for-profit entities.
27 June 2008
Comment Letter - Recommendations of the Treasury Advisory Committee on the accounting and auditing profession
This comment letter provides our views on the Treasury Advisory Committee on the accounting and auditing profession.
2 May 2008
Comment Letter - FASB Proposed FSP FAS 117-a-NFP endowments
This comment letter provides our views on the FASB's proposed FSP on endowments held by not-for-profits.
13 March 2008
Comment Letter - Proposed FSP SOP 90-7-a, An Amendment of AICPA Statement of Position 90-7
This comment letter provides our views on the proposed amendment of AICPA Statement of Position 90-7. This Sop related to entities undergoing reorganization or bankruptcy.
1 March 2008
Helping you prepare for your annual meeting
Our publication is designed to help companies prepare for their annual shareholder meetings and provides questions we believe shareholders are likely to ask.
10 February 2008
Comment Letter - Proposed changes to structure of the FASB
This comment letter provides our views on the Financial Accounting Federation's proposal to change the structure of the FASB and GASB.