AccountingLink

    To the Point

    1 December 2016

    To the Point - Tax rules on related party debt are narrower than what the Treasury Department and the IRS proposed
    The Treasury Department and the IRS issued regulations that will treat as stock for US federal income tax purposes certain related party interests that would otherwise be treated as indebtedness, and also establish extensive documentation requirements for those interests. The rules are limited to related party borrowings from a US entity to an affiliate that is not included in the US consolidated tax return. Entities need to identify and evaluate their related party loans that are in the scope of the rules to determine how they will be affected.

    21 November 2016

    To the Point - FASB proposes changes to the scope of modification accounting for share-based payments
    The FASB proposed excluding certain changes to the terms or conditions of a share-based payment award from the scope of the modification accounting guidance. Entities would not apply the modification accounting guidance if the value, vesting requirements and classification of a share-based payment award are the same immediately before and after a change to the terms or conditions of the award. Comments are due by 6 January 2017.

    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.

    8 November 2016

    To the Point - FASB TRG reaches general agreement on four more revenue recognition issues
    Members of the FASB Transition Resource Group for Revenue Recognition (FASB TRG) reached general agreement on implementation issues involving capitalization and amortization of incremental costs of obtaining a contract, payments to customers, over time revenue recognition and sales- or usage-based royalties that contain minimum guarantees. While this is the last scheduled FASB TRG meeting, FASB Vice Chairman James Kroeker said entities can continue to send the FASB questions about implementation, and more TRG meetings could be scheduled if enough broad questions are received.

    27 October 2016

    To the Point - FASB limits deferral of income tax effects of intercompany transfers to those involving inventory
    The FASB issued final guidance that will require companies to account for the income tax effects of intercompany transfers of assets other than inventory (e.g., intangible assets) when the transfer occurs. The guidance is effective for public business entities in annual periods beginning after 15 December 2017, and for all other entities in annual periods beginning after 15 December 2018. Early adoption is permitted as of the beginning of an annual period (i.e., early adoption is permitted only in the first interim period).

    27 October 2016

    To the Point - New VIE guidance on evaluating indirect interests held by related parties under common control
    The FASB changed how a single decision maker or service provider considers indirect interests held by related parties under common control when applying the consolidation guidance on determining whether it is the primary beneficiary of a variable interest entity (VIE) under the VIE Model. The new guidance is effective for public entities for annual periods beginning after 15 December 2016.

    27 October 2016

    To the Point - SEC adopts rules to enhance investment company reporting
    The SEC adopted a rule that requires certain registered investment companies to report information about their monthly portfolio holdings to the SEC in an XML format on new Form N-PORT within 30 days of the end of each month. The SEC also adopted a requirement that registered investment companies, except face-amount certificate companies, file census-type information annually with the SEC in an XML format on new Form N-CEN within 75 days of the end of their fiscal year (or calendar year for unit investment trusts). The SEC also amended Regulation S-X to standardize and enhance disclosures about derivatives and other items in investment company financial statements.

    20 October 2016

    To the Point - Rules on fund liquidity risk management and swing pricing
    The SEC adopted a rule that requires registered open-end funds, including mutual funds and exchange-traded funds but not money market funds, to establish a liquidity risk management program and expand their disclosures about their liquidity and redemption practices The SEC also gave open-end funds (except for money market funds and exchange-traded funds) the option to use swing pricing to adjust their net asset value for costs associated with satisfying requests for shareholder purchases or redemptions (e.g., trading costs) in certain circumstances.

    13 October 2016

    To the Point - New rules may affect how entities classify and account for investments in certain money market funds
    Entities will need to consider whether changes in the way money market funds operate under SEC rules will affect their ability to continue to classify investments in certain funds as cash equivalents. Effective tomorrow, institutional prime money market funds are required to have floating net asset values, and all money market funds are allowed to impose liquidity fees on redemptions or temporarily suspend redemptions in certain situations. This To the Point publication addresses the financial accounting and reporting considerations that investors in these funds will need to consider as a result of those changes.

    6 October 2016

    To the Point - Companies should consider possible changes to the tax treatment of certain related party debt instruments
    Companies (foreign or domestic) that issue debt to related parties (including intercompany debt) may be affected by regulations proposed to change the US federal income tax treatment of this type of debt. Companies should begin identifying arrangements that could be affected. Under the proposal, certain related party debt could be treated as equity for US federal income tax purposes. It is not clear whether the regulations will be issued in their proposed form or whether they will be changed significantly. The issues are complex, and the regulations could become final soon.

    29 September 2016

    To the Point - Proposal would change accounting and disclosures for long-duration contracts for insurers
    The FASB proposed changing how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and deferred acquisition costs. Comments are due by 15 December 2016.

    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.

    21 September 2016

    To the Point - FASB proposes more technical corrections and improvements to the new revenue standard
    The FASB proposed four more technical corrections and improvements on narrow aspects of the guidance it issued in ASU 2014-09. The proposal would (1) clarify that guarantee fees (other than product or service warranties) are not in the scope of the new revenue guidance, (2) more closely align an example in the standard with the new guidance on presentation of receivables, (3) eliminate a reference to a contract liability in an example on refund liabilities and (4) retain today’s guidance on the accrual of advertising costs. Comments are due by 4 October 2016.

    8 September 2016

    To the Point - FASB aims to more clearly portray entities’ hedging activities in the financial statements
    The FASB proposed targeted amendments to its hedge accounting guidance that are intended to more clearly portray entities’ hedging activities in the financial statements. The proposal is also intended to simplify the application of hedge accounting. Comments on the exposure draft are due by 22 November 2016.

    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.

    11 August 2016

    To The Point - Consolidation guidance for NFP general partners of for-profit limited partnerships would be retained
    The FASB issued a proposal that would retain the consolidation guidance in ASC 810-20 that requires a not-for-profit entity that is a general partner in a for-profit limited partnership or similar entity to presume that it controls the entity, unless that presumption could be overcome. The FASB also proposed clarifying that not-for-profit entities (other than business-oriented health care entities) with investments in certain for-profit entities may continue to elect to measure those investments at fair value. Comments are due by 3 October 2016.

    4 August 2016

    To the Point - Federal agencies propose revising Form 5500 filed by employee benefit plans
    The US Department of Labor, the Internal Revenue Service and the Pension Benefit Guaranty Corporation are seeking comments on their joint proposal to revise the Form 5500 filed by employee benefit plans. The proposal would apply to the Form 5500 for the 2019 plan year. Comments are due by 4 October 2016.

    14 July 2016

    To the Point - SEC proposes eliminating redundant and outdated disclosures
    The SEC issued a proposal that would eliminate disclosure requirements that are redundant or outdated in light of changes in SEC requirements, US GAAP or IFRS or changes in technology or the business environment. The SEC is also seeking comments on whether it should modify or eliminate certain disclosure requirements that overlap with US GAAP and refer others to the FASB for potential incorporation into US GAAP.

    7 July 2016

    To the Point - SEC adopts final rule on resource extraction disclosures
    The SEC adopted a final rule that requires resource extraction issuers (REIs) to disclose payments they made to foreign governments or the US federal government by type and total amount for each project related to the commercial development of oil, natural gas or minerals in an annual Form SD filed with the SEC within 150 days of their fiscal year end. The rule, which was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, also requires REIs to disclose the type and total amount of payments made to each government for all projects. The rule is effective for fiscal years ending on or after 30 September 2018.

    29 June 2016

    To the Point - VIE guidance on evaluating indirect interests held by related parties under common control may change
    The FASB proposed changing how a single decision maker or service provider considers indirect interests held by related parties under common control when applying the consolidation guidance on determining whether it is the primary beneficiary of a variable interest entity (VIE) under the VIE Model. Comments are due by 25 July 2016.

    20 June 2016

    To the Point - FASB decides to issue final income tax guidance on intercompany transactions
    The FASB decided that the exception to income tax accounting that requires companies to defer the income tax effects of certain intercompany transactions would apply only to intercompany inventory transactions. That is, the exception would no longer apply to intercompany sales and transfers of other assets (e.g., intangible assets). The Board then directed the staff to draft a final standard to make the change.

    16 June 2016

    To the Point - FASB issues sweeping changes to credit loss guidance
    The FASB issued a new credit loss standard today that changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Virtually all entities will be affected.

    9 June 2016

    To the Point - Clarifying the accounting for the derecognition of nonfinancial assets and in substance nonfinancial assets
    The FASB proposed clarifying the guidance on how to account for the derecognition of nonfinancial assets and in substance nonfinancial assets once an entity adopts the new revenue recognition guidance. The proposal also would define what constitutes an in substance nonfinancial asset. Comments are due by 5 August 2016.

    24 May 2016

    To the Point - Global tax changes may affect multinational companies
    Governments around the world are developing legislation and reconsidering their interpretations of existing tax law to address concerns that multinational companies are shifting profits to jurisdictions with lower tax rates. Many of these efforts are based on recommendations the Organisation for Economic Co-operation and Development issued in its Base Erosion and Profit Shifting project. Multinational companies need to make sure they have processes and controls in place to track developments in countries that are significant to their operations and address any accounting implications in the appropriate period.

    19 May 2016

    To the Point - FASB proposes technical corrections and improvements to the new revenue standard
    The FASB proposed nine technical corrections and improvements on narrow aspects of the guidance issued in Accounting Standards Update (ASU) 2014-09. The proposal would (1) add practical expedients and a disclosure requirement for remaining performance obligations, (2) clarify an example on contract modifications, (3) align the cost capitalization guidance for private and public funds and (4) update the guidance on accounting for onerous construction- and production-type contracts. The proposal would also clarify certain guidance on costs and the scope of the new standard. Comments are due by 2 July 2016.

    19 May 2016

    To the Point - SEC staff updates guidance on non-GAAP financial measures
    The SEC staff updated its interpretations of the rules on non-GAAP financial measures and added new guidance to address its concerns about some types of non-GAAP financial measures and the manner of presentation of all such measures in earnings releases and SEC filings. In the updates, the staff clarified when it will consider non-GAAP measures misleading or too prominent. The staff also provided guidance on per-share non-GAAP measures and the income tax effects of adjustments used to calculate non-GAAP measures.

    13 May 2016

    To the Point - PCAOB reproposes significant changes to the auditor’s report
    The PCAOB issued a reproposal that would require auditors to include significantly more information in their auditor’s reports to make them more relevant and informative for investors and other stakeholders. The reproposal would require auditors to include information about matters that were communicated or required to be communicated to the audit committee that related to material accounts or disclosures and involved especially challenging, subjective or complex auditor judgment. The reproposal would also change the format and standard language of the auditor’s report and require auditors to include information about auditor tenure and auditor independence. Comments are due by 15 August 2016.

    12 May 2016

    To the Point - Policy issues for audit committee comment in the SEC’s S-K Concept Release on disclosure effectiveness
    Audit committees may want to comment on the concept release the SEC issued recently on how to improve business and financial disclosures required by Regulation S-K. Audit committee members may be most interested in the questions that address financial reporting issues such as materiality, risk management and public policy matters that could shape future SEC rulemaking to update its corporate disclosure requirements.

    12 May 2016

    To the Point - Simplifying the accounting for goodwill impairment
    The FASB today proposed guidance that would eliminate the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, entities would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on today’s Step 1). Comments are due by 11 July 2016.

    10 May 2016

    To the Point - FASB issues narrow-scope amendments and practical expedients for its revenue standard
    The FASB issued final amendments to its new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments address implementation issues discussed by the Joint Transition Resource Group for Revenue Recognition created by the FASB and the IASB and are intended to reduce the cost and complexity of applying the new revenue standard.

    28 April 2016

    To the Point - FASB delays effective dates of its upcoming credit impairment standard
    The FASB decided to delay the effective dates of the new credit impairment standard by one year in response to feedback it received from constituents. The first revised effective date would be the first quarter of 2020 for calendar-year public business entities that are SEC filers. Early adoption in the first quarter of 2019 would be permitted for all calendar-year entities. After discussing the costs and benefits of the new standard, the FASB also voted to issue the final guidance. The FASB expects to issue the new standard by the end of the second quarter of 2016.

    28 April 2016

    To the Point - FASB makes targeted amendments to the accounting for employee share-based payments
    The FASB issued final guidance that will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled (i.e., APIC pools will be eliminated). The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing, and two practical expedients for nonpublic entities have been added. We have updated our publication to reflect the FASB staff’s recent response to a technical inquiry about one aspect of the new guidance. The staff said a change in the net-share settlement terms of a share-based payment plan or outstanding award to allow the withholding of shares up to the maximum statutory tax rate would not be accounted for as a modification.

    21 April 2016

    To the Point - PCAOB proposes strengthening requirements for audits involving other auditors
    The PCAOB issued a proposal that would amend several of its standards to strengthen the requirements for supervising other auditors who participate in an audit. The proposal would also create a new standard for dividing responsibility for the audit with another accounting firm. Comments are due by 29 July 2016.

    20 April 2016

    To the Point - FASB Transition Resource Group for Revenue Recognition discusses five more implementation issues
    Members of the FASB Transition Resource Group for Revenue Recognition (FASB TRG) discussed five more implementation issues stakeholders have raised about the new revenue standards and reached general agreement on several of them. The FASB will need to consider whether any further action is needed to address the issues on which the members of the FASB TRG did not reach general agreement. They involved considering “class of customer” when evaluating whether a material right exists and scoping of asset management fees from incentive-based capital allocation arrangements, such as carried interest arrangements. Our publication includes a list of questions and answers on which FASB TRG members reached general agreement.

    15 April 2016

    To the Point - FASB amends the licenses and performance obligations guidance in its new revenue standard
    The FASB issued final amendments to clarify the guidance on accounting for licenses of intellectual property (IP) and identifying performance obligations in its new revenue recognition standard. The amendments clarify how an entity should evaluate the nature of its promise in granting a license of IP and when a promised good or service is distinct within the context of a contract. The amendments also allow entities to disregard goods or services that are immaterial in the context of a contract.

    14 April 2016

    To the Point - CPAs will seek written assertions and representations under new AICPA attestation standards
    The AICPA’s Auditing Standards Board issued final clarified attestation standards that will require accountants to request written assertions and written representations for all examinations, reviews and agreed-upon procedures engagements. The clarified standards are effective for reports dated on or after 1 May 2017.

    14 April 2016

    To the Point - SEC explores possible changes to Regulation S-K requirements for business and financial disclosures
    The SEC issued a concept release seeking comment on possible ways to enhance the effectiveness of business and financial disclosures required by Regulation S-K. The concept release also seeks feedback on the disclosure framework the SEC uses to determine disclosure requirements and how it might improve the delivery of information to investors. Comments are due 90 days after publication in the Federal Register.

    7 April 2016

    To the Point - Transition Resource Group for credit losses discusses FASB’s proposed guidance
    At the first public meeting of the FASB’s Transition Resource Group (TRG) for credit losses, TRG members generally agreed that a staff draft of portions of the new guidance on estimating credit losses is sufficiently clear. Members of the TRG suggested that the FASB staff and the Board make only minor clarifications as they proceed with final drafting. The FASB plans to discuss the costs and benefits of issuing the standard and the effective date at a meeting later this month. The Board plans to issue the new standard by 30 June 2016.

    31 March 2016

    To the Point - FASB moves closer to issuing a proposal on income tax disclosures
    The FASB revisited the tentative decisions it reached at meetings last year on income tax disclosures related to foreign earnings and indefinite reinvestment assertions, unrecognized tax benefits and other income tax topics. Based on outreach the Board and its staff performed, the FASB tentatively decided to add certain disclosure requirements and reverse several of its earlier decisions. The FASB plans to issue a proposal seeking public comment on changes to the income tax disclosure guidance after its staff completes some additional outreach.

    31 March 2016

    To the Point - Japan tax reform law has income tax accounting implications
    Japan enacted a tax reform law on 29 March 2016 that will reduce Japan’s national corporate income tax and local enterprise tax rates and make other changes to the tax law. Entities that are subject to these taxes and report under US GAAP will need to recognize the effects of income tax rate changes on deferred tax balances in the period in which the legislation was enacted.

    18 March 2016

    To the Point - FASB issues amendments to the principal versus agent guidance in its new revenue standard
    The FASB issued final amendments to the principal versus agent guidance in its new revenue standard that clarify how an entity should identify the unit of accounting for the principal versus agent evaluation and apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent, revise existing examples and add new ones.

    16 March 2016

    To the Point - FASB eliminates retrospective application of equity method
    The FASB issued final guidance eliminating the requirement that an investor retrospectively apply the equity method when an investment that it previously accounted for using another method qualifies for the equity method. Early adoption is permitted.

    15 March 2016

    To the Point - FASB clarifies guidance on assessing contingent put and call options in debt instruments
    The FASB issued final guidance clarifying that an assessment of whether an embedded contingent put or call option is clearly and closely related to the debt host requires only an analysis of the four-step decision sequence in ASC 815-15-25-42. Because many entities are already using only the decision sequence, the guidance will not change practice for these entities.

    10 March 2016

    To the Point - FASB says hedge accounting relationships may continue after a novation
    The FASB issued final guidance clarifying that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship.

    10 March 2016

    To the Point - Final guidance eliminates effective dates in PCC alternatives
    The FASB issued final guidance that eliminates the effective dates in the four private company alternatives developed by the Private Company Council (PCC) and allows private companies to forgo a preferability assessment the first time they elect each of these alternatives. It also extends the transition provisions in the alternatives indefinitely.

    9 March 2016

    To the Point - FASB develops a model to recognize breakage for certain prepaid stored-value products
    The FASB issued final guidance requiring entities that sell prepaid stored-value products redeemable for goods, services or cash at third-party merchants to derecognize liabilities related to those products for breakage (i.e., the value that is ultimately not redeemed by the consumer). This new derecognition model will prevent liabilities related to breakage from being recognized in perpetuity and provide better information to users of financial statements.

    25 February 2016

    To the Point - FASB issues final guidance that will change the accounting for leases
    The FASB issued final guidance that requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance also eliminates today’s real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases.

    4 February 2016

    To the Point - Centers for Medicare & Medicaid Services issue rule that may affect entities’ drug rebate estimates
    The Centers for Medicare & Medicaid Services released the covered outpatient drugs final rule that clarifies the Medicaid reimbursement and drug rebate program provisions of the Patient Protection and Affordable Care Act. Life sciences entities need to evaluate the effect of the rule on their financial statements and disclosures, including their 2015 financial statements and disclosures (e.g., Medicaid rebate estimates for inventory in the distribution channel) if they haven’t yet issued their financial statements or made them available to be issued. The rule is effective 1 April 2016. The definition of a line extension drug remains open for comment.

    28 January 2016

    To the Point - Employers’ presentation and disclosures for defined benefit retirement plans may change
    The FASB issued two proposals that would change certain presentation and disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The first proposal would require an employer to report the service cost component of net periodic benefit cost separately from the other components in the income statement and would require that only the service cost component be eligible for capitalization in assets. The second proposal would require new disclosures and eliminate certain disclosures. Comments on both proposals are due by 25 April 2016.

    28 January 2016

    To the Point - New guidance on classifying and measuring financial instruments - health care not-for-profit entities
    The FASB issued final guidance that will change how entities, including business-oriented health care not-for-profit (NFP) entities, measure equity investments that do not result in consolidation and are not accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The new guidance also changes certain disclosure requirements and other aspects of current US GAAP. It does not change the guidance for classifying and measuring investments in debt securities. Health care NFPs can early adopt certain provisions in financial statements that have not yet been issued or made available to be issued.

    7 January 2016

    To the Point - FASB makes targeted amendments to guidance on classifying and measuring financial instruments
    The FASB issued final guidance that will change how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The new guidance also changes certain disclosure requirements and other aspects of current US GAAP. It does not change the guidance for classifying and measuring investments in debt securities and loans. All entities can early adopt the new guidance on changes in own credit, and non-public business entities can early adopt a provision that eliminates the fair value disclosures for financial instruments not recognized at fair value.

    22 December 2015

    To the Point - Some ‘tax extenders’ are made permanent, others are extended
    The tax law that President Barack Obama signed on 18 December 2015 retroactively reinstates certain expired tax provisions known as tax extenders. The law made certain tax provisions permanent, extended others for five years and extended others for two years. The income tax accounting effect, including the retroactive effect, of a tax law change is accounted for in the period of enactment, which in this case is the fourth quarter of 2015 for a calendar-year company.

    17 December 2015

    To the Point - SEC proposes rule to limit use of derivatives by regulated investment companies
    The SEC proposed a rule to enhance investor protection by setting restrictions on the use of derivatives and financial commitment transactions by mutual funds, exchange-traded funds, closed-end funds and business development companies. In proposing the rule, the SEC said it was responding to growth in the volume and complexity of derivatives and their increased use by certain funds.

    16 December 2015

    To the Point - PCAOB adopts final rules for audit transparency disclosures
    The PCAOB adopted final rules that, subject to SEC approval, would require audit firms to name the engagement partner and provide information about other accounting firms that participated in the audit in a new form that would be filed with the PCAOB. Disclosure of the name of the audit partner would be required for auditors’ reports issued on or after 31 January 2017, and disclosures of other accounting firms would be required for auditors’ reports issued on or after 30 June 2017.

    16 December 2015

    To the Point - SEC proposes a new rule about payments to governments for extractive activities
    The SEC proposed rules that would require resource extraction issuers to disclose payments they made to foreign governments or the US Federal Government related to the commercial development of oil, natural gas or minerals in an annual Form SD filed with the SEC.

    10 December 2015

    To the Point - New legislation makes changes to JOBS Act and other SEC requirements
    The Fixing America’s Surface Transportation Act, which was signed into law recently, changed provisions of the Jumpstart Our Business Startups Act (JOBS Act) and other SEC requirements in an effort to further facilitate capital formation by smaller companies. Some of the changes take effect immediately (i.e., they are self-implementing) while others require the SEC to change its rules. The legislation also requires the SEC to study the requirements in Regulation S-K for all issuers, report to Congress with recommendations and propose rules to modernize and simplify these requirements.

    8 December 2015

    To the Point - FASB proposes changes to fair value measurement disclosures
    The FASB proposed eliminating, modifying and adding certain fair value measurement disclosure requirements as part of its disclosure framework project. Comments are due by 29 February 2016.

    24 November 2015

    To the Point - FASB issues final guidance to simplify one aspect of income tax accounting
    The FASB issued final guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Because early adoption is permitted, companies can start applying this guidance in interim and annual financial statements that have not yet been issued.

    24 November 2015

    To the Point - FASB proposes changes to the definition of a business
    The proposal would (1) require that, if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of transferred assets and activities is not a business, (2) require that a business include at least one substantive process and (3) narrow the definition of outputs. The proposed definition of a business would reduce the number of transactions that are accounted for as business combinations. Comments are due by 22 January 2016.

    23 November 2015

    To the Point - FASB sets an effective date for the new leases standard and modifies the lease classification test
    The FASB decided that the new leases standard would be effective for public business entities for annual and interim periods beginning after 15 December 2018. For nonpublic business entities, the effective date would be annual periods beginning after 15 December 2019, and interim periods the following year. Early adoption would be permitted for all entities. The FASB also decided to modify the economic life classification criterion for certain leases. With these decisions, the FASB completed redeliberations and directed its staff to proceed with the final standard, which it plans to issue in early 2016. The FASB revised the decisions posted on its website to say that the new leases standard would be effective for certain not-for-profit entities and employee benefit plans for annual and interim periods beginning after 15 December 2018 (i.e., the public business entity effective date). The previously posted decisions didn’t address these entities. We have updated our To the Point publication on the effective date to reflect this clarification.

    20 November 2015

    To the Point - Our recommendations for changing Regulation S-X disclosures about entities other than the registrant
    Our To the Point publication summarizes our recommendations in comment letters to the SEC on how it can enhance the effectiveness of disclosures required by Regulation S-X.

    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.

    12 November 2015

    To the Point - Preparing for the new credit impairment standard
    Now that the FASB has set effective dates for the new credit impairment standard, entities should start planning for implementation.

    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.

    10 November 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition addresses more implementation issues
    Members of the Joint Transition Resource Group for Revenue Recognition (TRG) addressed four more implementation issues stakeholders have raised about the new revenue standards and reached general agreement on many questions. TRG members expressed diverse views on certain questions related to restrictions and renewals of licenses of intellectual property. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    5 November 2015

    To the Point - SEC adopts crowdfunding rules
    The SEC approved final rules that will allow certain US private companies to raise up to $1 million in a 12-month period from potentially large pools of investors over the internet. The rule limits the total value of crowdfunding securities an investor can purchase in a 12-month period to $2,000 to $100,000, depending on the investor’s annual income and net worth, and requires that securities be sold through SEC-registered intermediaries. With these rules, which will be effective 180 days after publication in the Federal Register, the SEC has completed all major rulemaking mandated by the Jumpstart Our Business Startups Act.

    29 October 2015

    To the Point - Participating life contracts would be accounted for like other long-duration contracts
    The FASB tentatively decided to require insurers to measure and update the liability for future policyholder benefits for participating life contracts the same way as traditional life and limited pay contracts. This would require insurers to include all cash flow assumptions that affect the contract in the calculation of the liability and to reflect annual changes in those assumptions over the entire life of the contract with a cumulative catch-up adjustment to net income in the period of the change. The FASB also tentatively decided that the rate used to calculate the present value of the liability would be based on a high-quality, fixed-income investment yield and the effect of annual changes to the discount rate assumptions should be recognized in other comprehensive income.

    28 October 2015

    To the Point - FASB may require additional income tax disclosures
    The FASB tentatively decided to require additional income tax disclosures of changes in tax laws, taxes paid, valuation allowances, tax rate reconciliations, deferred taxes and tax carryforwards. The FASB made these decisions as part of its broader disclosure framework project.

    15 October 2015

    To the Point - Updated mortality improvement scale should be considered in sponsors’ financial statements
    The Society of Actuaries issued an updated mortality improvement scale that could affect a sponsor’s benefit obligations and contributions. The updated mortality improvement scale reflects two additional years of Social Security mortality data that have been recently released and were not included in the MP-2014 scale. Sponsors that have not yet issued financial statements for any fiscal year need to evaluate whether the updated scale provides additional evidence about conditions that existed at the balance sheet date.

    8 October 2015

    To the Point - Amending new revenue guidance on licenses, performance obligations would affect life sciences entities
    This publication focuses on how life sciences entities would be affected by the FASB’s amendments to its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    8 October 2015

    To the Point - Amending new revenue guidance on licenses, performance obligations would affect M&E entities
    This publication focuses on how media and entertainment entities would be affected by the FASB’s amendments to its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    8 October 2015

    To the Point - FASB addresses issues raised during drafting of the new leases standard
    The FASB came back to the table to discuss several issues that arose as its staff was drafting its new leases standard. The Board reached decisions on a lessee’s accounting for a modification to the lease term, a lessor’s recognition of initial direct costs in a sales-type lease and a lessor’s presentation of its net investment in a sales-type or direct financing lease. The Board also considered but decided against adding separate guidance for nonpublic business entities. The Board indicated that it will set an effective date for the new standard in early November.

    8 October 2015

    To the Point - FASB proposes allowing adoption of PCC alternatives at any time without a preferability assessment
    The FASB proposed eliminating the effective dates of the four Private Company Council (PCC) alternatives in US GAAP and allowing private companies to forgo a preferability assessment the first time they adopt each of these alternatives. The proposal also would extend the transition guidance in the alternatives indefinitely. Comments are due by 16 November 2015.

    8 October 2015

    To the Point - FASB redeliberates its proposals to simplify income tax accounting
    The FASB redeliberated two proposals to simplify income tax accounting and directed its staff to perform additional work on the proposal to eliminate the current exception that requires companies to defer the income tax effects of certain intercompany transactions. The Board asked the staff to research the costs and benefits of retaining the current exception only for intercompany inventory transactions. The Board reaffirmed its decision in the second proposal to require companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts and directed its staff to draft a final standard.

    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.

    1 October 2015

    To the Point - SEC seeks feedback on Regulation S-X and required financial information about other entities
    The SEC issued a request for comment to consider ways to enhance the effectiveness of disclosure requirements in Regulation S-X applicable to entities other than the registrant, including acquired businesses, equity method investees, subsidiary issuers and guarantors. Comments are due by 60 days after publication in the Federal Register.

    30 September 2015

    To the Point - Potential alternative to develop discount rates used to measure defined benefit plan costs
    The SEC staff said recently that when a yield curve is used to determine discount rates, it would not object to a company changing from using a weighted average discount rate to the spot rate approach for measuring the interest and service cost components of net periodic benefit cost for defined-benefit pension plans and other defined-benefit post-retirement plans. The SEC staff also said the effects would be accounted for prospectively as either a change in estimate or a change in estimate that is inseparable from a change in accounting principle. Companies that do not use a yield curve approach for determining discount rates (e.g., use a bond matching approach) should discuss any changes in approach with their auditors and the SEC staff before making a change.

    29 September 2015

    To the Point - SEC proposes liquidity risk rules for mutual funds and ETFs
    The SEC proposed requiring that all open-end mutual funds (excluding money market funds) and exchange-traded funds implement a liquidity risk management program and giving mutual funds the option to use swing pricing to adjust their net asset value for costs associated with satisfying requests for shareholder purchases or redemptions in certain circumstances.

    28 September 2015

    To the Point - FASB simplifies measurement-period adjustments in business combinations
    The FASB issued final guidance eliminating the requirement that an acquirer in a business combination account for a measurement-period adjustment retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. Early adoption is permitted.

    27 August 2015

    To the Point - FASB may change income tax disclosure requirements related to unrecognized tax benefits
    The FASB tentatively decided to expand one income tax disclosure requirement related to unrecognized tax benefits and to eliminate another. The FASB made these decisions in its review of income tax disclosures, which is part of its disclosure framework project.

    13 August 2015

    To the Point - FASB defers the new revenue standard by one year
    The FASB issued an Accounting Standards Update to defer by one year the effective date of its new revenue recognition standard and allow early adoption as of the original public entity effective date.

    13 August 2015

    To the Point - FASB tries to simplify balance sheet classification of debt
    The FASB directed the staff to draft a proposal based on tentative decisions reached that would replace today’s rules-based guidance for determining whether to classify debt as current or noncurrent on the balance sheet with a principles-based approach. Under this approach, debt would be classified as noncurrent only when it is due more than 12 months (or beyond the operating cycle) after the balance sheet date or when the entity has a legal right to defer settlement for at least 12 months (or beyond the operating cycle) after the balance sheet date. While this approach would require entities to classify debt based on the legal rights existing at the balance sheet date, the FASB tentatively decided to provide an exception for waivers of debt covenant violations received after the balance sheet date but before the financial statements are issued.

    11 August 2015

    To the Point - Applying the normal purchases normal sales exception to power contracts in nodal energy markets
    The FASB issued final guidance specifying that entities are not precluded from applying the normal purchases and normal sales exception to derivative accounting to certain forward contracts that necessitate the transmission of electricity through or delivery to a location within a nodal energy market. The guidance, which is effective immediately, applies only to contracts for the physical delivery of electricity where transmission charges or credits are determined based on the spot prices at the locations between which the electricity is transmitted in or through a nodal market.

    6 August 2015

    To the Point - FASB proposes allowing hedge accounting relationships to continue after novations
    The FASB proposed clarifying that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The proposed guidance would amend ASC 815 to make it clear that a change in counterparties to a derivative instrument that has been designated in a hedging relationship would not be considered a termination of the derivative instrument under ASC 815 or a change in the critical terms of the hedge relationship. Comments are due by 5 October 2015.

    6 August 2015

    To the Point - SEC finalizes ‘pay ratio’ rule
    As mandated by the Dodd-Frank Act, the SEC approved the final rule that requires most registrants to calculate and disclose the ratio of their principal executive officer’s total annual compensation to the total annual compensation of their median employee (the pay ratio). The rule mostly follows the SEC’s proposal from September 2013 but provides companies additional flexibility in determining the pay ratio. Registrants will be required to make pay ratio disclosures for their first fiscal year beginning on or after 1 January 2017.

    6 August 2015

    To the Point - Simplifying the presentation of debt issuance costs
    We have updated our publication to reflect an SEC staff member’s announcement at the June 2015 meeting of the Emerging Issues Task Force that the staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The question arose after the FASB issued ASU 2015-03 on the presentation of debt issuance costs in April 2015. The ASU doesn’t address the presentation of the costs of obtaining a revolving line of credit.

    31 July 2015

    To the Point - FASB simplifies financial reporting by employee benefit plans
    The FASB issued final guidance to simplify certain aspects of employee benefit plan accounting, while satisfying the needs of users of financial statements, including participants and the Department of Labor. The guidance, which was developed by the Emerging Issues Task Force, simplifies the measurement, presentation and related disclosures for fully benefit-responsive investment contracts and disclosures about plan investments. It also allows a plan with a fiscal year end that doesn’t coincide with the end of a calendar month to make an accounting policy election to measure its investments and investment-related accounts using the month end closest to its fiscal year end. The guidance is effective for fiscal years beginning after 15 December 2015. Earlier application is permitted.

    27 July 2015

    To the Point - FASB changes approach to updating assumptions for long-duration contracts
    The FASB tentatively decided to require insurers to revise the net premium ratio to reflect annual changes in cash flow assumptions used to measure the liability for future policy benefits for long-duration contracts and to reflect these changes over the entire life of the contract with a cumulative catch-up adjustment to net income in the period of the change. The FASB also tentatively decided that insurers should recognize the effect of annual changes to the discount rate assumptions in other comprehensive income.

    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.

    23 July 2015

    To the Point - Private companies may get relief on adopting PCC alternatives after their effective dates
    The Private Company Council (PCC) added a project to its agenda to address whether private companies should be allowed a one-time election to adopt PCC alternatives after their effective dates without demonstrating preferability and whether the transition guidance for the PCC alternatives on goodwill and interest rate swaps should be extended indefinitely. The PCC asked the FASB staff to perform research on a few other topics and provided feedback on select FASB projects.

    14 July 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition discusses additional implementation issues
    Members of the Joint Transition Resource Group for Revenue Recognition (TRG) discussed a number of implementation issues stakeholders have raised about the new revenue standards and reached general agreement on many topics. TRG members had differing perspectives on certain issues related to the application of the constraint on estimates of variable consideration and whether certain contracts should be considered completed at transition. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    9 July 2015

    To the Point - FASB decides to defer the new revenue standard by one year
    The FASB decided to defer by one year the effective date of its new revenue recognition standard and allow early adoption as of the original public entity effective date. The FASB still needs to issue an Accounting Standards Update to make the change.

    9 July 2015

    To the Point - SEC proposes requiring ‘clawback’ policies and disclosures
    The SEC proposed a rule that would direct national securities exchanges to establish listing standards that would require companies to claw back incentive-based compensation received by current and former executive officers during the three years preceding an accounting restatement. The proposal would apply to all listed companies except for certain registered investment companies. Comments will be due 60 days after the proposal is published in the Federal Register.

    2 July 2015

    To the Point - PCAOB proposes new approach for audit transparency disclosures
    The PCAOB proposed requiring audit firms to file a new form with the PCAOB that would name the engagement partner (i.e., the partner with primary responsibility for the audit) and disclose information about certain other public accounting firms that participated in the audit. The PCAOB made the proposal in a supplemental request for comment as part of its transparency project. Comments are due by 31 August 2015.

    2 July 2015

    To the Point - PCAOB seeks comment on audit quality indicators
    The PCAOB issued a concept release seeking input on 28 possible audit quality indicators (AQI) and how they might be used by audit committees, audit firms, investors, regulators and others. The concept release also seeks comment on how AQI data should be obtained and distributed, whether auditors should be required to provide AQIs or whether providing the information should be voluntary, which audits and audit firms should be subject to AQI reporting and whether any requirements to provide AQIs should be phased in over time. Comments are due by 29 September 2015.

    2 July 2015

    To the Point - SEC seeks feedback on possible changes to audit committee disclosures
    The SEC issued a concept release on possible revisions to its audit committee disclosure rules that explores whether audit committees should provide more qualitative disclosures about how they execute their existing audit oversight responsibilities. The SEC has requested comments by 60 days of publication in the Federal Register.

    1 July 2015

    To the Point - FASB tries to make hedge accounting easier to apply and understand
    The FASB tentatively decided to make certain targeted improvements to the hedge accounting model in ASC 815 in an effort to make the accounting easier for companies to apply and for users of the financial statements to understand. The FASB plans to issue an exposure draft seeking comment on these proposals during the fourth quarter of 2015.

    9 June 2015

    To the Point - FASB proposal would change how companies account for employee share-based payments
    The FASB proposed changing how public and private companies account for share-based payments to employees as part of its broader simplification initiative. The proposal would change the guidance on accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation, forfeitures and income tax effects when awards vest or are settled (i.e., APIC pools would be eliminated). It also would provide classification guidance for awards with contingent repurchase features and give private companies the option to use two practical expedients. Comments are due by 14 August 2015.

    8 June 2015

    To the Point - FASB proposes simplifying equity method accounting
    The FASB proposed simplifying the equity method of accounting by eliminating the requirement that an investor identify, account for and make disclosures about the difference between its cost basis of an investment and its proportional interest in the equity of the investee (i.e., the basis difference). As a result, entities would no longer have to estimate the acquisition date fair value of an investee’s assets and liabilities to allocate basis differences. The FASB also proposed eliminating the requirement that an investor account for an equity method investment retrospectively when it increases its ownership to a level that initially qualifies for the equity method. Comments are due by 4 August 2015.

    28 May 2015

    To the Point - SEC proposes enhancing reporting by investment companies and investment advisers
    The SEC proposed changing its rules and forms to modernize and enhance reporting by investment companies and investment advisers. The proposals would help the SEC and other market participants assess risks in the asset management industry. There will be a 60-day comment period for both proposals.

    27 May 2015

    To the Point - FASB addresses collectibility assessment for lessors and other topics in leases project
    The FASB came back to the table on its leases project and decided to add a requirement that lessors assess the collectibility of lease payments for purposes of lease classification, recognition and measurement. The FASB also decided to change its previous decisions about how lessors would account for modifications to Type A leases and evaluate Type A lease assets for impairment. In addition, the FASB decided to carry forward today’s guidance on a lessee’s accounting for the purchase of a leased asset during the lease term. The Board will set an effective date before issuing the new standard, which is expected in the fourth quarter of 2015.

    27 May 2015

    To the Point - FASB proposes simplifying measurement-period adjustments in business combinations
    The FASB proposed eliminating today’s requirement that an acquirer in a business combination account for a measurement-period adjustment retrospectively. Instead, an acquirer would recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. Comments are due by 6 July 2015.

    14 May 2015

    To the Point - FASB proposes amendments to its new revenue recognition standard that will affect M&E entities
    Media and entertainment (M&E) entities may be interested in the topics addressed in the FASB proposal to amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    7 May 2015

    To the Point - PCC discusses effective date relief for private company alternatives and other topics
    The Private Company Council (PCC) discussed whether private companies should be allowed a one-time election to adopt PCC accounting alternatives after their effective dates without having to demonstrate preferability under US GAAP. The PCC also discussed the staff’s pre-agenda research on private company alternatives to the accounting for employee share-based payments and provided input on several FASB projects. The PCC asked the FASB to consider having its staff research application guidance on certain aspects of the variable interest entity model for private companies under common control.

    7 May 2015

    To the Point - SEC proposes ‘pay versus performance’ disclosures
    The SEC proposed rules that would require companies to disclose the relationship between their executive compensation and their total shareholder return (TSR). The so-called pay versus performance disclosures would be included in proxy or information statements in which executive compensation disclosures are required. Our publication discusses the proposed requirements and which registrants would be affected.

    1 May 2015

    To the Point - FASB eliminates requirement to categorize certain investments in the fair value hierarchy
    The FASB issued final guidance that eliminates today’s requirement to categorize investments measured using the net asset value practical expedient in the fair value hierarchy table. The new guidance is effective for public business entities for fiscal years beginning after 15 December 2015, and interim periods within those fiscal years. For entities other than public business entities, the guidance will be effective for fiscal years beginning after 15 December 2016 and interim periods within those years. Early adoption is permitted.

    1 May 2015

    To the Point - Recognizing breakage for certain prepaid stored-value cards
    The FASB proposed requiring an entity that issues certain prepaid stored-value cards redeemable for goods and services only at third-party merchants, cash or a combination of the two to recognize breakage, which is the dollar value that is not redeemed by cardholders. Further, entities would provide disclosures related to the recognition of breakage that would be similar to the requirements of the new revenue recognition standard. Comments are due 29 June 2015.

    24 April 2015

    To the Point - Applying the normal purchases and normal sales exception to power contracts in nodal energy markets
    The FASB issued a Proposed Accounting Standards Update that would specify that entities are not precluded from applying the normal purchases and normal sales exception to derivative accounting to certain forward contracts for the delivery of electricity in nodal energy markets, where one of the parties incurs transmission charges or credits based on the spot prices at the locations between which the electricity is transmitted. Comments are due by 18 May 2015.

    24 April 2015

    To the Point - FASB proposes simplifying financial reporting by employee benefit plans
    The FASB issued a proposal that would simplify certain aspects of employee benefit plan accounting, while satisfying the needs of users of financial statements, including participants and the Department of Labor. The proposal, which was developed by the Emerging Issues Task Force, would simplify the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also would allow plans with fiscal years that don’t end at the end of a calendar month to choose a simpler way of measuring their investments and investment-related accounts. Comments are due by 18 May 2015.

    20 April 2015

    To the Point - FASB clarifies a customer’s accounting for payments made in a cloud computing arrangement
    The FASB amended its guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangement includes a software license and to eliminate today’s requirement that customers analogize to the leases guidance to determine the asset acquired in a software licensing arrangement. The guidance was developed as part of the FASB’s simplification initiative.

    16 April 2015

    To the Point - FASB allows employers to simplify measurement date for defined benefit plan assets and obligations
    The FASB issued final guidance that allows employers with fiscal year ends that do not coincide with a calendar month end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the calendar month closest to their fiscal year ends. Employers that make this election must apply the alternative measurement date to all defined benefit plans. The guidance also allows all employers to elect to remeasure defined plan assets and obligations in interim periods at the closest calendar month end to an event that triggers the remeasurement.

    15 April 2015

    To the Point - US GAAP income tax accounting considerations related to the new UK diverted profits tax
    The United Kingdom enacted legislation on 26 March 2015 that imposes a 25% tax on a company’s profits that are generated from economic activity in the UK but are determined to have avoided being taxed in the UK. The so-called diverted profits tax is effective 1 April 2015. Our publication discusses US GAAP income tax accounting considerations related to the new tax.

    1 April 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition discusses more implementation issues
    Members of the Joint Transition Resource Group for Revenue Recognition (TRG) discussed a number of implementation issues stakeholders have raised about the new revenue standards and reached general agreement on many topics. TRG members did not agree (or agreed that the standards are not clear) on certain issues related to the accounting for consideration payable to a customer. They also raised additional questions on the applicability of the guidance related to a series of distinct goods or services. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    26 March 2015

    To the Point - Boards discuss revenue recognition issues that affect M&E entities as TRG prepares to take up new ones
    The FASB tentatively decided at a meeting last week to amend the noncash consideration guidance in its new revenue standard that may affect media and entertainment (M&E) entities. The FASB and the IASB also tentatively decided to amend the accounting for contract modifications at transition. The Boards' Joint Transition Resource Group for Revenue Recognition, meanwhile, plans to discuss other implementation issues of interest to M&E entities, including significant financing components and material rights, at a meeting on 30 March 2015.

    26 March 2015

    To the Point - SEC adopts 'Regulation A+' to expand exempt offerings
    The SEC adopted amendments to allow private companies to make exempt public offerings under Regulation A of up to $50 million of securities within a 12-month period. The rules, required by the Jumpstart Our Business Startups Act, establish two tiers of offerings with different requirements.

    12 March 2015

    To the Point - FASB makes final changes to proposal on short-duration insurance contract disclosures
    The FASB made final changes to its proposal on new disclosures about short-duration insurance contracts, tentatively deciding that some of them could be presented as supplementary information rather than in the notes to the financial statements. The Board modified its earlier decision to require insurers to disclose in the financial statements information about claim frequency and incurred but not reported liabilities and affirmed its decisions on other disclosures. It also decided on an effective date. The FASB is expected to issue a final standard in the second quarter of 2015.

    12 March 2015

    To the Point - FASB poised to make significant changes to credit impairment model
    The FASB decided to require modified retrospective transition to its new credit impairment standard. The new standard would significantly change how entities measure and recognize credit impairment for certain financial assets and would require many more disclosures. The Board also agreed on provisions to simplify transition for certain types of assets and instructed its staff to prepare a draft of the final standard.

    26 February 2015

    To the Point - FASB completes redeliberations on leases and directs staff to begin drafting new standard
    The FASB has substantially completed redeliberations on its 2013 proposal to put most leases on lessees’ balance sheets and directed its staff to begin drafting the new standard. At this week’s meeting, the Board decided to require entities to apply the new leases standard using a modified retrospective approach at the adoption date and in comparative periods presented, with an option to use certain relief. The Board will set an effective date before issuing the new standard, which is expected in the second half of 2015.

    26 February 2015

    To the Point - Proposed disclosures would link bifurcated embedded derivatives with their host contracts
    The FASB issued a Proposed Accounting Standards Update that would require an entity to disclose information that would link an embedded derivative that is bifurcated from a hybrid financial instrument to its host contract. The proposed disclosures would include the locations and carrying amounts of the bifurcated derivative and its host contract (as well as the measurement attribute of the host contract) in the statement of financial position, along with the locations and amounts reported in the statement of financial performance. Comments are due by 30 April 2015.

    19 February 2015

    To the Point - FASB and IASB decide more guidance is needed on M&E revenue implementation issues
    This publication focuses on how media and entertainment (M&E) entities would be affected by the Boards’ tentative decisions to amend their new revenue guidance on licenses of intellectual property and identifying performance obligations.

    19 February 2015

    To the Point - New consolidation guidance will affect entities in all industries
    The FASB issued final guidance that eliminates the deferral of FAS 167, which has allowed reporting entities with interests in certain investment funds to follow the previous consolidation guidance in FIN 46(R), and makes changes to both the variable interest model and the voting model. While the guidance is aimed at asset managers, it will affect all reporting entities involved with limited partnerships or similar entities. In some cases, consolidation conclusions will change. In other cases, reporting entities will need to provide additional disclosures about entities that currently aren’t considered VIEs but will be considered VIEs under the new guidance. Regardless of whether conclusions change or additional disclosure requirements are triggered, reporting entities will need to re-evaluate limited partnerships and similar entities for consolidation and revise their documentation.

    17 February 2015

    To the Point - FASB may add income tax disclosures related to foreign earnings
    The FASB tentatively decided to require additional income tax disclosures related to foreign earnings and indefinite reinvestment assertions. The FASB made these decisions in its review of income tax disclosures, which is part of its disclosure framework project.

    17 February 2015

    To the Point - PCC will consider making alternatives easier to adopt
    The PCC added a project to its agenda to consider allowing companies to elect the private company accounting alternatives the FASB has provided after their effective dates. The PCC decided that older US GAAP standards should not be amended to incorporate the term public business entity at this time, ending its discussions on this project. In addition, the PCC provided input on certain FASB projects and also discussed a TPA issued by the AICPA on uncertain tax positions disclosures that conflicts with ASU 2009-06.

    12 February 2015

    To the Point - SEC proposes proxy disclosure of policies on hedging by employees, officers and directors
    The SEC proposed a rule that would require most registrants to disclose whether they permit any employees, officers or directors to hedge their holdings of the company’s equity securities or those of certain related entities. The proposal, which is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, is intended to help shareholders understand how employees’ and directors’ interests align with their own.

    28 January 2015

    To the Point - FASB proposes simplifying income tax accounting
    The FASB issued two proposals to simplify income tax accounting. One proposal would require companies to immediately recognize income tax expense (or benefit) on intercompany transactions in their income statements rather than defer the income tax effects of certain intercompany transactions as they do today. The other proposal would require all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet.

    28 January 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition tackles a long list of implementation issues
    To help preparers implement the new revenue standard, the Joint Transition Resource Group for Revenue Recognition (TRG) addressed more issues than in previous meetings. TRG members reached general consensus on many of the topics discussed, but they did not reach consensus on questions regarding contract modifications during transition, noncash consideration, collectibility and variable consideration payable to a customer. Our publication includes a list of questions and answers on which TRG members reached general consensus.

    22 January 2015

    To the Point - Boards decide to require different lessee disclosures
    The FASB and the IASB (collectively, the Boards) continued redeliberating their 2013 proposal to put most leases on lessees’ balance sheets. The Boards reaffirmed the objective of lessee disclosures but reached different decisions on the information that lessees would be required to disclose in the notes to the financial statements.

    22 January 2015

    To the Point - New guidance on classifying and measuring financial instruments is coming soon
    The FASB has concluded redeliberations on its 2013 proposal on classification and measurement of financial instruments and has tentatively decided to retain the existing guidance for financial assets and financial liabilities, except for investments in equity securities and financial liabilities that are measured under the fair value option. Investments in equity securities would be measured at fair value through net income, unless they qualify for the proposed practicability exception. Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income.

    22 January 2015

    To the Point - Transition Resource Group on Revenue Recognition to discuss issues that affect media and entertainment entities
    The Joint Transition Resource Group for Revenue Recognition (TRG) will discuss 11 implementation issues at its meeting on 26 January 2015, including noncash consideration, which will affect media and entertainment (M&E) entities that currently apply industry-specific guidance on advertising barter arrangements. M&E entities also may be interested in the TRG’s discussion of significant financing components, material rights, consideration payable to a customer, and incremental costs to obtain a contract. At the meeting, the staffs of the Boards also will provide an update on their research on whether more guidance is needed on licenses of intellectual property.

    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.

    7 January 2015

    To the Point - Private companies can recognize fewer intangible assets acquired in a business combination
    The FASB issued final guidance that allows private companies to simplify their accounting by recognizing separately fewer intangible assets in a business combination and certain other transactions. The alternative limits the customer-related intangibles a private company recognizes separately to those that are capable of being sold or licensed independently from the other assets of the business. It also precludes the recognition of noncompetition agreements.

    22 December 2014

    To the Point - Tax extenders reinstated – but only for 2014
    The tax law that President Barack Obama signed on 19 December 2014 retroactively reinstates expired tax provisions known as tax extenders but only for 2014. 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. The income tax accounting effect, including any retroactive effect, of a tax law change is accounted for in the period of enactment.

    18 December 2014

    To the Point - Boards complete redeliberations of the definition of a lease
    The FASB and the IASB completed their redeliberations of the definition of a lease, leaving in place the converged decisions they previously reached on how it would be applied.

    18 December 2014

    To the Point - FASB to propose more ways to simplify accounting for employee share-based payments
    The FASB tentatively decided to propose two practical expedients that private companies could use to simplify their accounting for share-based payments to employees. For both public and private companies, the Board also tentatively decided to align the classification guidance for put and call rights that are contingent on an event within an employee’s control.

    15 December 2014

    To the Point - PCC discusses expanding the use of the term public business entity and other projects
    The PCC discussed its project on the definition of a public business entity, whether to address partnership accounting and how the FASB could improve shared-based payment accounting for private companies. PCC members asked whether the FASB could expand its use of the term public business entity in US GAAP without changing current practice.

    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.

    19 November 2014

    To the Point - FASB makes pushdown accounting optional
    The FASB issued final guidance that allows all acquired entities to choose to apply pushdown accounting (i.e., reflect the acquirer’s basis of accounting for the acquired entity’s assets and liabilities) when an acquirer obtains control of them. The SEC staff responded by rescinding its guidance on pushdown accounting, meaning SEC registrants and non-registrants will now follow the new US GAAP guidance.

    4 November 2014

    To the Point - A ‘whole-istic’ approach to defining host contracts in hybrid instruments issued as shares
    The FASB issued final guidance requiring all entities to use what is called the “whole instrument approach” when determining the nature of a host contract in a hybrid instrument issued in the form of a share. This approach requires entities to consider all of a hybrid instrument’s stated and implied substantive terms and features, including any embedded derivative features being evaluated for bifurcation. The guidance eliminates the use of the so-called “chameleon approach,” under which all embedded features except the feature being analyzed are considered.

    3 November 2014

    To the Point - Joint Transition Resource Group tackles new revenue topics
    At the second meeting of the Joint Transition Resource Group for Revenue Recognition (TRG), FASB Vice Chairman James Kroeker said the FASB has added a project to explore whether to propose delaying the new revenue standard’s effective date. This project will be subject to FASB’s normal due process including outreach, deliberations, exposure and re-deliberations before a conclusion is reached on whether to delay the effective date. A decision on whether to propose a delay is expected in the second quarter of 2015. Regardless of any possible delay, companies should actively continue implementation efforts, which are likely to be significant for many companies. TRG members also discussed five implementation issues at the meeting and expressed diverse points of view about two of them: licenses of intellectual property and the determination of whether a good or service is distinct within the context of a contract.

    31 October 2014

    To the Point - FASB proposes eliminating certain investments from the fair value hierarchy
    The FASB proposed eliminating the requirement that entities that measure investments using the net asset value (NAV) practical expedient categorize them in the fair value hierarchy table. Under the proposal, certain disclosures about these investments would still be required. Our To the Point publication tells you what you need to know about the proposal.

    30 October 2014

    To the Point - Benefit plan sponsors may need to consider new mortality tables in making year-end assumptions
    The Society of Actuaries finalized new mortality tables and a new mortality improvement scale that could increase a sponsor’s benefit obligations and contributions. Although sponsors are not required to use the tables or the improvement scale, they may need to consider the new mortality information when developing year-end mortality assumptions. Our To the Point publication tells you what you need to know about the final mortality tables.

    24 October 2014

    To the Point - Boards reaffirm the definition of a lease but continue to work on its application
    The FASB and the IASB reaffirmed their proposed definition of a lease and made some changes to how that definition would be applied. The Boards will consider an additional clarification at a future meeting. Our To the Point publication tells you what you need to know about the latest decisions in the Boards’ redeliberations on their leases project.

    22 October 2014

    To the Point - Spotlight on transactions with related parties, significant unusual transactions and executives
    The SEC approved a new PCAOB standard on auditing transactions involving related parties and amendments to existing standards on auditing significant unusual transactions and relationships and transactions with a company’s executives. Our To the Point publication tells you what you need to know about the standards.

    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 - Final IRS regulations affect how annual pharma fee is recognized
    The IRS has issued final regulations for calculating the annual branded prescription drug fee imposed by the Affordable Care Act and requires covered entities to estimate and accrue the annual fee as sales occur. Our To the Point publication tells you what you need to know.

    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.

    9 October 2014

    To the Point - FASB launches project to simplify share-based payment accounting
    The FASB added a project to its agenda on the accounting for share-based payments for both public and private entities. At the same meeting, the FASB made tentative decisions on the accounting for an employee’s use of shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures, income taxes when awards vest or are settled and the presentation of excess tax benefits on the statement of cash flows. Our To the Point publication tells you what you need to know about these developments.

    18 September 2014

    To the Point - PCC wraps up intangible assets and discusses share-based payments
    The PCC voted to finalize an alternative that would allow private companies to simplify their accounting for intangible assets acquired in a business combination and sent it to the FASB for endorsement. The PCC decided to provide input for a project the FASB plans to launch on both private and public company accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.

    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.

    3 September 2014

    To the Point - FASB addresses sale and leasebacks, US GAAP topics in leases project
    The FASB made decisions to clarify the proposed guidance on accounting for sale and leaseback transactions. The Board affirmed its 2013 proposal to eliminate today’s accounting model for leveraged leases but decided that leveraged leases that exist at transition would be grandfathered. The FASB also affirmed its 2013 proposals about a discount rate policy election for lessees that are not public business entities and the accounting for related party leases. Our To the Point publication tells you what you need to know about these decisions.

    28 August 2014

    To the Point - FASB decides to change accounting and disclosures for long-duration insurance contracts
    The FASB decided to require insurers to make annual updates to all assumptions they use to measure the liability for future policy benefits for long-duration contracts and to reflect the effects of any changes in net income. Our To the Point publication tells you what you need to know about these decisions.

    14 August 2014

    To the Point - FASB to issue final guidance on short-duration insurance disclosures
    The FASB decided to issue a final standard that would require insurers to make additional disclosures about their short-duration insurance contracts in their annual and interim financial statements. 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.

    7 August 2014

    To the Point - FASB provides a measurement alternative for consolidated CFEs
    The FASB issued guidance today that allows a reporting entity to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity (CFE) using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. The guidance is aimed at eliminating the measurement difference that sometimes arises when a CFE’s financial assets and financial liabilities are independently measured at fair value. The guidance will likely change practice even for entities that don’t elect the alternative.

    25 July 2014

    To the Point - SEC adopts rules to minimize money market funds’ exposure to rapid redemptions
    The rules require institutional prime money market funds to operate with floating net asset values after a two-year transition period. The rules also require boards of directors of non-government money market funds to impose fees on redemptions if a fund’s weekly liquid assets fall below 10% of its total assets. The boards of these funds will have the option of imposing fees or suspending redemptions for up to 10 days if a fund’s weekly liquid assets fall below 30%.

    24 July 2014

    To the Point - Boards address sale and leaseback transactions, lessor disclosures
    The FASB and the IASB continued redeliberating ways to clarify and simplify their 2013 joint proposal on leases, reaching converged decisions on most lessor disclosures and some aspects of the accounting for sale and leaseback transactions. The Boards reached different decisions on seller-lessee gain recognition and the accounting for Type A leasebacks in sale and leaseback transactions. The FASB also deferred decisions on some topics so its staff could do more research. Our To the Point publication tells you what you need to know about these developments.

    23 July 2014

    To the Point - Joint Transition Resource Group for Revenue Recognition debates implementation issues
    At its first meeting, the Joint Transition Resource Group for Revenue Recognition discussed four implementation issues. Two involved gross versus net revenue presentation, one involved royalties on licensed intellectual property and the other involved impairment of capitalized contract costs. The Boards have said they will provide a status update on these issues on or before the group’s next meeting on 31 October 2014. Our To the Point publication tells you what you need to know about the discussion.

    17 July 2014

    To the Point - PCC discusses how to simplify the accounting for intangible assets and other potential projects
    The PCC discussed its proposal to simplify the accounting for intangible assets acquired in a business combination but did not reach any decisions. The PCC also asked the FASB staff to research possible PCC projects on partnership accounting and the accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.

    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.

    19 June 2014

    To the Point - Awards with targets that affect vesting and that could be achieved after the requisite service period
    The FASB issued guidance that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. Our To the Point publication tells you what you need to know about the new guidance.

    19 June 2014

    To the Point - Boards continue their march toward new leases standard
    The FASB and the IASB continued redeliberating ways to clarify and simplify their 2013 joint proposal on leases. They reached converged decisions on how an intermediate lessor would present a sublease in the balance sheet and income statement, but they reached different decisions about how a sublease would be classified by the intermediate lessor. The FASB and IASB also reached decisions on statement of cash flows presentation and lessees’ balance sheet presentation. Our To the Point publication tells what you need to know about these developments.

    5 June 2014

    To the Point - FASB decides to require additional disclosures for short-duration insurance contracts
    The FASB decided to require insurers to disclose more information about their short-duration insurance contracts in their annual and interim financial statements. Our To the Point publication tells you what you need to know about the proposed disclosures.

    29 May 2014

    To the Point - Is it a lease? Boards defer decision on definition, make progress on other topics in leases project
    The FASB and the IASB continued to seek ways to clarify and simplify their 2013 joint proposal on leases but deferred a decision on the fundamental issue of how to define a lease. Instead, they directed their staffs to provide them with more language and examples that demonstrate how the proposed definition would be applied. The Boards reached converged decisions on how to separate lease and non-lease components, how to allocate contract consideration and the accounting for initial direct costs. Our To the Point publication tells what you need to know about these developments.

    15 May 2014

    To the Point - New mortality tables proposed: longer lives could mean higher benefit plan obligations
    The Society of Actuaries has proposed new mortality tables for benefit plan sponsors to use when measuring their benefit plan costs and obligations. If and when the proposal is finalized, sponsors would need to consider the changing trends in life expectancies when determining their best estimate of the mortality rate for measuring defined benefit plan costs and obligations. Our To the Point publication tells you what you need to know about the new mortality tables.

    5 May 2014

    To the Point - SEC moves ahead with modified conflict minerals reporting
    The SEC’s Director of the Division of Corporation Finance said in a statement this week that registrants still need to file a Specialized Disclosure Report (Form SD), along with any required conflict minerals report (CMR), by the 2 June 2014 deadline to comply with portions of the conflict minerals rule that were upheld by the US Court of Appeals for the District of Columbia Circuit. Registrants will not be required to describe their products as "DRC conflict undeterminable" or “not found to be 'DRC conflict free'" in their CMR because the court said these requirements violate the First Amendment. Our To the Point publication describes the requirements that the SEC staff said are still in effect.

    1 May 2014

    To the Point - PCC discusses intangible assets and adds a project on defining public and private entities
    The Private Company Council (PCC) continued discussing how to simplify the accounting for intangible assets acquired in a business combination and added a project to its agenda to consider whether to change or consolidate the various definitions of public and nonpublic entities that exist in US GAAP. Our To the Point publication tells you what you need to know about the PCC meeting this week.

    24 April 2014

    To the Point - Boards make more progress on leases project
    The FASB and the IASB continued discussing ways to clarify and simplify their 2013 proposal to put most leases on lessees’ balance sheets. After disagreeing on key topics last month, the Boards reached joint decisions on lease modifications, combining certain contracts, in-substance fixed lease payments and the discount rate that would be used to measure lease assets and liabilities. They also agreed on how to include index- and rate-based variable lease payments in the initial measurement of lease assets and liabilities but reached different decisions about subsequent measurement. Our To the Point publication tells what you need to know about these decisions.

    17 April 2014

    To the Point - FASB lays out topics it will consider for insurance industry accounting
    After backing away from its proposal to overhaul the accounting for insurance contracts and deciding to focus on making targeted improvements, the FASB laid out the topics it will consider in redeliberations. The Board decided to divide the project into two components: short-term contracts (i.e., property-casualty and short-term health contracts) and long-duration contracts (i.e., life insurance and long-duration health contracts). Both components will be worked on concurrently.

    28 March 2014

    To the Point - Washington focuses on cybersecurity
    The Securities and Exchange Commission held a roundtable this week at which the Commissioners and staff discussed with public and private sector representatives the cybersecurity challenges faced by market participants. The Commissioners also asked for public comment. This publication summarizes key topics discussed at the roundtable and summarizes congressional action on cybersecurity.

    20 March 2014

    To the Point - Boards back away from some key aspects of leases proposal
    In joint redeliberations, the IASB supported a single on-balance sheet model for lessee accounting while the FASB supported a dual on-balance sheet model. Despite this fundamental difference, the Boards reiterated their commitment to seek a converged solution. The Boards also indicated that they do not intend to significantly change lessor accounting. Instead, they supported retaining a dual classification model. The Boards also reached tentative decisions on lease term, a short-term lease exception and other ways to simplify their 2013 proposal. Our To the Point publication tells what you need to know about these decisions.

    13 March 2014

    To the Point - FASB sets path on changes to accounting for financial instruments
    The FASB tentatively decided to retain the separate models in current US GAAP for classifying and measuring debt securities and loans, rather than overhaul its guidance in this area, as it had proposed. The FASB also confirmed that companies would apply its proposed "current expected credit loss" model to financial assets that are debt instruments measured at amortized cost. Our To the Point publication tells you what you need to know about these and other decisions that FASB has made in its financial instruments project.

    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.

    20 February 2014

    To the Point - FASB scales back scope of insurance contracts project
    The FASB scaled back the scope of its insurance contracts project and said it will focus on targeted improvements to the current guidance for long-duration contracts and disclosures for short-duration contracts. Contracts written by noninsurance entities will not be subject to the guidance for insurance. Our To the Point publication tells you what you need to know about the Board's decisions.

    28 January 2014

    To the Point - Board issues final guidance for service concession arrangements
    The FASB issued final guidance stating that entities should not account for certain service concession arrangements entered into with public-sector entities as leases under ASC 840, Leases, and should not recognize the related infrastructure as property, plant and equipment. Instead, entities should refer to other US GAAP, such as ASC 605, Revenue Recognition, to account for these arrangements. While the final guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication summarizes what you need to know about the new final guidance.

    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.

    16 January 2014

    To the Point - An easier way for certain private companies to account for goodwill
    The FASB issued final guidance that allows companies that don’t meet the new definition of a public business entity to amortize goodwill acquired in a business combination and to use a simpler one-step impairment test. While the guidance is effective for fiscal years beginning after 15 December 2014, early adoption is permitted, and companies can apply it to their 2013 financial statements if they have not yet made those statements available for issuance.

    2 January 2014

    To the Point - SEC staff recommends a comprehensive review of SEC disclosure requirements
    The staff of the SEC issued its Report on Review of Disclosure Requirements in Regulation S-K (Study) recommending that the SEC undertake a comprehensive review of its disclosure requirements as they apply to all public companies. The Study was mandated by the Jumpstart Our Business Startups Act (JOBS Act), which required the SEC to analyze and consider areas within its disclosure regime that could be simplified and modernized for emerging growth companies (EGCs). Our publication summarizes the SEC staff’s findings and recommendations to be considered by the Commission for future revisions.

    19 December 2013

    To the Point - SEC proposes 'Regulation A+' to expand exempt offerings
    The SEC proposed amendments to allow exempt offerings under Regulation A of up to $50 million within a 12-month period. The proposal, required by the Jumpstart Our Business Startups Act, would establish two tiers of offerings with different requirements, based on their size. Our To the Point publication summarizes what you need to know about the proposal.

    21 November 2013

    To the Point - Boards to redeliberate key aspects of lease accounting - again
    The FASB and the IASB discussed the feedback they received on their joint lease accounting proposal and decided to redeliberate the following topics: lease definition and scope, lessee accounting model, lessor accounting model, lease classification, lease measurement provisions and disclosure requirements. Our To the Point publication tells you what you need to know about the Boards' redeliberation plans.

    8 November 2013

    To the Point - Defining host contracts in hybrid instruments issued as shares
    The FASB recently proposed a single approach for determining whether a host contract in a hybrid instrument issued in the form of a share is more akin to debt or equity. The proposal would clarify that the nature of a host contract in a hybrid instrument issued in the form a share should be determined based on the consideration of all of its stated and implied substantive terms and features, including any embedded derivatives. It also would clarify that no single term or feature would in and of itself determine the nature of the host contract. Our To the Point tells you what you need to know about the proposal.

    7 November 2013

    To the Point - Leading practices for a smooth IPO registration
    The number of initial public offerings (IPOs) in the US has increased during 2013, which is likely to be the strongest year for IPOs since 2007. Understanding suggestions from the SEC staff and leading practices in the registration process will help a company meet its deadlines and have the flexibility to respond to market conditions. Our To the Point publication updates our 24 May 2012 edition based on recent observations from our extensive experience with companies that have successfully completed IPOs.

    24 October 2013

    To the Point - SEC proposes rules to permit crowdfunding
    The SEC voted unanimously to propose rules allowing private companies to raise up to $1 million a year in equity capital from potentially large pools of investors through a process called “crowdfunding,” as required by the Jumpstart Our Business Startups Act. The proposal would require companies to provide various disclosures in conjunction with the offerings and would create a regulatory framework for intermediaries to facilitate the transactions. Our To the Point publication summarizes what you need to know about the proposal.

    3 October 2013

    To the Point - Private Company Council votes to finalize proposals on interest rate swaps and goodwill
    The PCC modified its proposals to allow private companies to simplify their accounting for certain interest rate swaps and to amortize goodwill acquired in a business combination and sent them to the FASB for final endorsement. If endorsed by the FASB, the proposals would be the first accounting alternatives approved for private companies under US GAAP, in an effort to reduce cost and complexity for private companies. Our To the Point publication tells you what you need to know about the proposals.

    26 September 2013

    To the Point - Sweeping changes to auditor’s report may be on the horizon
    The PCAOB has proposed significant changes to the auditor’s report, including requiring auditors to discuss any matters they consider “critical” to the audit. We support making the auditor’s report more useful but believe that several aspects of the proposal require careful consideration. This To the Point discusses what you need to know about the proposal.

    19 September 2013

    To the Point - SEC proposes rule requiring most companies to disclose 'pay ratio'
    As mandated by the Dodd-Frank Act, the Securities and Exchange Commission (SEC) proposed a rule that would require most registrants to calculate and disclose the ratio of their principal executive officer’s total annual compensation to the median annual compensation of all other employees (the pay ratio). The SEC’s proposal would give companies significant flexibility in how to calculate the pay ratio. Our To the Point publication summarizes what you need to know about the proposed rule.

    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.

    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.

    8 August 2013

    To the Point - SEC finalizes sweeping changes to broker-dealer reporting rule
    The SEC issued final amendments to the broker-dealer reporting rule, SEC Rule 17a-5. All broker-dealers will be impacted by the rule amendments for both periodic and annual reporting . Our To the Point publication summarizes key elements of the final rule.

    17 July 2013

    To the Point - Companies can use a new benchmark interest rate for hedge accounting
    The FASB issued final guidance allowing companies to designate the Federal Funds Effective Swap Rate (which is the Overnight Index Swap rate or OIS in the US) as a benchmark interest rate for hedge accounting purposes, effective immediately. Our To The Point publication tells you what you need to know about the new guidance.

    11 July 2013

    To the Point - SEC allows general solicitation and disqualifies ‘bad actors’
    As required by the Jumpstart Our Business Startups Act, the SEC approved rules that will allow general solicitation and advertising in certain exempt securities offerings under Rule 506 of Regulation D and for offerings under Rule 144A of the Securities Act. The SEC also finalized a rule required by the Dodd-Frank Wall Street Reform and Consumer Protection Act to disqualify felons and other bad actors from participating in any exempt offerings under Rule 506. In addition, the SEC proposed amendments to enhance its ability to evaluate developments in offerings under Rule 506. Our To the Point publication summarizes what you need to know about the final rules and the proposal.

    3 July 2013

    To the Point - FASB seeks comment on three Private Company Council proposals
    The FASB issued proposals that would allow private companies to apply alternatives under US GAAP when accounting for intangible assets in a business combination, goodwill and certain hedges involving interest rate swaps. The alternatives were the first developed by the Private Company Council. Our To the Point publication tells you what you need to know about the proposals.

    27 June 2013

    To the Point - Accounting for insurance contracts could change significantly
    The exposure draft provides a principles-based model for accounting for insurance contracts. The proposal would apply to any entity that issues a contract that meets the definition of an insurance contract and would result in the measurement of many contract liabilities based on current assumptions, adjusted to reflect the time value of money. Our To the Point publication tells you what you need to know about the proposal.

    10 June 2013

    To the Point - Investment company guidance is final
    The FASB issued final guidance requiring an entity to have certain fundamental characteristics and to consider other typical characteristics to qualify as an investment company. The new guidance does not address disclosures about an investment in another investment company or issues related to the applicability of investment company accounting for real estate entities and the measurement of real estate investments. Our To the Point publication tells you what you need to know about the guidance.

    29 May 2013

    To the Point - Revenue recognition for credit card rewards and in-substance real estate
    The FASB and the IASB tentatively agreed that the new revenue recognition standard will not specifically address credit card reward programs. The FASB also clarified that the new standard should be applied to transfers of in-substance nonfinancial assets to noncustomers. Our To the Point publication summarizes these decisions.

    9 May 2013

    To the Point - Private Company Council proposes alternatives under US GAAP
    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.

    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.

    18 April 2013

    To the Point - A revised framework for considering relief to private companies
    The Private Company Council (PCC) and the FASB have issued an Invitation to Comment on a revised decision-making framework that they would use to consider whether and when to provide alternatives for private companies under US GAAP. Our To the Point publication summarizes the framework and highlights changes from the initial staff recommendations the FASB sought comment on in July 2012.

    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.

    19 March 2013

    To The Point - New group audit standard may require action by governments and their auditors
    AICPA AU-C 600, "Special Considerations- Audits of Group Financial Statements (Including the Work of Component Auditors) is effective for fiscal years ending on or after December 15, 2012. Our To The Point publication summarizes how this standard may enhance the focus on identifying subsequent events.

    14 February 2013

    To the Point - FASB proposes new classification and measurement model
    The FASB proposed a sweeping new classification and measurement model for financial instruments that would better converge some areas of US GAAP with IFRS 9. The proposal would apply to all entities across industries, with certain exceptions. Comments are due by 15 May 2013. Our To the Point tells you what you need to know about the proposal.

    14 February 2013

    To the Point - Private Company Council acts quickly to set its initial agenda
    At the second meeting of the PCC, the PCC and the FASB changed the staff's proposed private company decision-making framework and voted to expose the framework for public comment. The PCC also put three areas for potential exceptions or modifications to US GAAP for private companies on its agenda. Our To the Point summarizes those issues and other matters discussed at the meeting.

    10 January 2013

    To the Point - The PCAOB’s views on internal control audit deficiencies
    The PCAOB has issued a report on its 2010 inspections that provides its views about the number and significance of deficiencies in audits of internal control over financial reporting (ICFR) for the eight domestic registered firms that it inspects annually. Our To the Point discusses how we are responding to the issues identified by the PCAOB, and our continued focus on improving audit quality in this area.

    9 January 2013

    To the Point - New definition and disclosures coming for discontinued operations
    The FASB tentatively decided to propose a new definition of a discontinued operation that would raise the threshold to qualify (e.g., a separate major line of business or major geographical area) and permit an increased level of ongoing involvement (e.g., allows for continuing cash flows and significant continuing involvement). The FASB also tentatively decided to require disclosures about discontinued operations and about certain individually material disposal transactions that do not meet the definition of a discontinued operation. The Board directed its staff to draft a proposal as soon as possible. Our To the Point tells you what you need to know.

    20 December 2012

    To the Point - FASB proposes new credit impairment model
    The FASB proposed today a single, principles-based model to account for credit losses on financial assets. All companies would be affected by the proposal, which would change the accounting for credit losses on loans, debt securities and trade and other receivables. Our To the Point tells you what you need to know about the proposal.

    11 December 2012

    To the Point - Private Company Council holds inaugural meeting
    In its initial meeting in December, the Private Company Council asked the FASB staff to research four issues that the Council may consider in its review of whether and when to make accommodations for private companies. Our To the Point publication summarizes those issues and other matters discussed at the meeting.

    21 November 2012

    To the Point - Licenses constrain progress on revenue redeliberations
    The FASB and the IASB continue to redeliberate their joint proposal on revenue recognition. At a meeting this week, they made progress on how to address collectibility and the proposed constraint on variable consideration. However, they acknowledged that more work is needed on how to recognize revenue from licenses of intellectual property and directed their staffs to conduct additional outreach on whether an approach they are exploring is operational. Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

    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.

    7 November 2012

    To the Point - Proposed non-GAAP framework could make reporting easier for SMEs
    The AICPA is requesting comments on a proposed financial reporting framework for small- and medium-sized privately held entities that are not required to use US GAAP. The proposed framework is intended to be less complicated and less costly to apply than US GAAP. Our To the Point publication provides a brief overview of the framework.

    4 October 2012

    To the Point - The SEC's opportunity to consider disclosure overload
    To address growing concern about the volume of required disclosures, we recommended to the SEC that it expand its review of registration requirements for emerging growth companies, as required by the JOBS Act, to include disclosures required for all public companies. Our To the Point publication summarizes our comment letter to the SEC in which we recommend qualitative criteria the SEC could use to alter or eliminate Regulation S-K disclosure requirements for all public companies. We also suggest an overhaul of the method in which information required by Regulation S-K is filed by public companies and distributed to investors.

    20 September 2012

    To the Point - Private companies in the spotlight
    Standard setters, regulators and lawmakers are focusing on how to reduce financial reporting burdens and promote capital formation for private companies. Our To the Point highlights accounting, auditing and regulatory initiatives and other projects focused on private company financial reporting.

    6 September 2012

    To the Point - Redefining investment company accounting – again
    The FASB has made significant changes to its investment company proposal in redeliberations. Our To the Point publication tells you what you need to know about how the proposal has changed.

    6 September 2012

    To the Point - SEC proposes allowing solicitation and advertising in certain exempt offerings
    The SEC proposed rules that would allow general solicitation and advertising for certain exempt securities offerings as required by the Jumpstart Our Business Startups Act. The proposed relief would apply to exempt offerings conducted under new Rule 506(c) of Regulation D, as well as resales of restricted securities under Rule 144A of the Securities Act. Our To the Point publication summarizes what you need to know about the proposed rules.

    24 August 2012

    To the Point - Final conflict minerals rule addresses many stakeholder concerns
    The SEC approved a final rule requiring issuers to disclose their use of conflict minerals in their products and whether those minerals originated from the Democratic Republic of the Congo and neighboring countries. The rule was mandated by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act in response to humanitarian concerns that trade in conflict minerals is financing armed groups in the region. Our To the Point publication summarizes the final rule.

    24 August 2012

    To the Point - Oil, gas and minerals issuers must disclose payments to governments
    The SEC issued a final rule and amendments requiring issuers in resource extractive industries to disclose payments to the US and foreign governments.The rule was mandated by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule requires all issuers engaged in the commercial development of oil, natural gas or minerals to disclose the amount of payments by type, by project and by government annually.

    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.

    9 August 2012

    To the Point - Private companies - a framework for consideration
    The FASB issued an Invitation to Comment on its staff's initial recommendations for a private company decision-making framework that would help the FASB and the new Private Company Council decide whether and when to change US GAAP financial reporting requirements for private companies. Our To the Point publication summarizes the approach described in the discussion paper.

    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.

    17 July 2012

    To the Point - SEC staff releases Final Report on IFRS
    The SEC staff issued its Final Report on its IFRS Work Plan summarizing its findings about a possible move to a set of global accounting standards. The report does not include a recommendation to the Commission about whether or how to incorporate IFRS into the US financial reporting system. The report notes that the Commission has not yet made a policy decision. We don't expect a decision before 2013. Our To The Point publication summarizes the report.

    25 June 2012

    To the Point - SEC requires listing standards for compensation committees
    Our To the Point summarizes a final rule directing national securities exchanges to adopt minimum listing standards related to compensation committees and their use of advisers (i.e., compensation consultants, independent legal counsel and other advisers). The SEC also amended proxy rules to require new disclosures about whether the use of compensation consultants raised any conflicts of interest.

    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.

    14 June 2012

    To the Point - Spotlight on private company standard setting
    Improving the standard-setting process for private companies has become an area of focus on several fronts for the Financial Accounting Foundation and the Financial Accounting Standards Board. The creation of a Private Company Council and projects to develop a private company decision-making framework and to better define a nonpublic entity, reaffirm a strong commitment to private company stakeholders. Our To the Point highlights these initiatives.

    19 April 2012

    To the Point - Impairment of financial assets - a step closer to completion
    The FASB and the IASB continue to work out the details of their approach to estimating the impairment of financial assets. Our To the Point publication summarizes what you need to know about the latest tentative decisions.

    27 March 2012

    To the Point - PCAOB public meeting on auditor independence and audit firm rotation
    More than 40 panelists participated in the PCAOB public meeting to discuss ways to enhance auditor independence, objectivity and professional skepticism, including mandatory audit firm rotation. Many of the panelists opposed mandatory audit firm rotation and suggested alternatives. The Board also reopened the comment period on its August 2011 concept release until 22 April 2012. Our To the Point publication provides highlights of the two-day meeting.

    23 March 2012

    To the Point - JOBS Act to promote capital formation
    The US House of Representatives, which already overwhelmingly approved a version of the JOBS Act bill, is expected to approve the Senate's version of the bill. If President Barack Obama signs it into law, as expected, the JOBS Act would represent a major change in how private companies can access capital through either the private or public markets. Our To the Point publication summarizes the Act and what it would mean.

    22 March 2012

    To the Point - PCAOB proposals on related parties and significant unusual transactions
    The PCAOB has proposed an auditing standard on auditing transactions with related parties and amendments to its standards regarding auditing significant unusual transactions. Our To the Point tells you what you need to know about the proposal.

    19 January 2012

    To the Point - PCAOB seeks comment on expanded audit committee communications
    The Public Company Accounting Oversight Board (PCAOB) is seeking comment on a proposal that would require auditors to modify and expand their communications with audit committees beyond what the PCAOB and the Securities and Exchange Commission currently require.

    8 December 2011

    To the Point - Support grows for keeping US GAAP but basing future standards on IFRS
    The incorporation of IFRS into the US financial reporting system was once again a focus of discussion at the AICPA National Conference on Current SEC and PCAOB developments in Washington D.C. this week. Representatives from the SEC, FASB and IASB all indicated that the SEC could incorporate IFRS into the US financial system but retain US GAAP. Our To the Point publication tells you what you need to know about these developments.

    21 November 2011

    To the Point - SEC Staff issues two papers on IFRS
    As part of its Work Plan to consider whether, and if so, when and how IFRS should be incorporated into the US financial reporting system, the SEC staff released two papers: A Comparison of US GAAP and IFRS and An Analysis of IFRS in Practice. Our To the Point publications provides a summary of these documents.

    21 October 2011

    To the Point - Real estate investment properties could be moving to fair value
    The FASB issued an exposure draft that would require a real estate entity that meets the definition of an investment property entity to measure its investment properties at fair value, with changes in fair value recognized in net income. This proposal would significantly affect the way many entities that invest in real estate account for their investments. Our To the Point publication summarizes what you need to know about the proposal.

    21 October 2011

    To the Point - Redefining investment companies and how they account for investments
    The FASB issued an exposure draft that redefines an investment company and how it accounts for investments. The proposed definition may appear similar to current US GAAP, but there are some important differences. Some of the proposed changes to the definition and accounting could result in significant changes in practice for certain entities. Our To the Point publication summarizes what you need to know about the proposal.

    20 October 2011

    To the Point - SEC staff issues guidance on cybersecurity disclosures
    In response to an increase in the frequency and severity of cyber attacks and breaches, the SEC staff provided a framework for registrants to consider in evaluating whether to disclose information about risks and incidents involving cybersecurity. Our To the Point discusses the SEC guidance on cybersecurity disclosures.

    22 September 2011

    To the Point - Companies that participate in multiemployer plans will have to disclose more
    The FASB issued an ASU that requires companies participating in multiemployer pension plans to disclose more information about their involvement in those plans. The new disclosures will be required this year for calendar year-end public companies and will be deferred for one year for nonpublic entities. Our To the Point publication summarizes what you need to know about the new requirements.

    15 September 2011

    To the Point - Optional screen for goodwill impairment
    The FASB issued an ASU on testing goodwill for impairmentwhich gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. The ASU is effective for fiscal years beginning after 15 December 2011 and early adoption is permitted. Our To the Point summarizes what you need to know about the ASU.

    1 September 2011

    To the Point - Accounting for the annual pharma fee and fee adjustments
    The IRS has provided updated guidance on how it will calculate the annual fee imposed on pharmaceutical manufacturers as part of health care reform legislation in 2010. Beginning with the fee paid in 2012, the fee will include an adjustment representing a true-up of the prior year’s fee.

    17 August 2011

    To the Point - PCAOB seeks comment on mandatory audit firm rotation
    The PCAOB is seeking comment on a concept release that outlines its thoughts on possible ways to enhance auditor independence, objectivity and professional skepticism, including mandatory audit firm rotation. Our publication summarizes the concept release and tells you what you need to know about the issue.

    14 July 2011

    To the Point - Government pension rules face possible overhaul
    The GASB proposals would require governments to report more prominently in their statements of financial position net pension liabilities that, in many cases, would be larger than what they currently report. Our To the Point publication summarizes what you need to know about the GASB proposals.

    12 July 2011

    To the Point - SEC hears mixed feedback at roundtable on IFRS
    The SEC staff is gathering feedback to help the commissioners decide whether, and if so, when and how to incorporate IFRS into the financial reporting system for US issuers. That decision is expected later this year. Our To the Point publication summarizes what you need to know about the roundtable held by the SEC in July 2011.

    30 June 2011

    To the Point - PCAOB explores changes to the auditor's report
    The PCAOB is seeking comment on a concept release that explores possible changes to the form and content of the auditor's report on financial statements. Our To the Point summarizes what you need to know about the four alternatives the PCAOB described and provides our views about each of them.

    30 June 2011

    To the Point - SEC turns spotlight on broker-dealer financial reporting and custody
    The SEC has proposed a rule that would require broker-dealers with custody of assets to assert compliance with Financial Responsibility Rules and have an independent registered public accounting firm examine its compliance and issue a report based on that examination. Our To the Point publication summarizes what you need to know about the proposal.

    23 June 2011

    To the Point - SEC staff outlines common XBRL submission errors
    The SEC staff, in its latest update on interactive data submissions, outlined errors it identified in XBRL files submitted in the first two months of 2011. Our To the Point outlines these errors. The largest accelerated filers should pay particular attention because their limited liability protection expires later this year.

    16 June 2011

    To the Point - US perspective on IFRS amendments to employee benefit accounting
    The IASB today finalized amendments to International Accounting Standard (IAS) 19, Employee Benefits. While this was not a joint project with the FASB, the IASB’s amendments to IAS 19 may serve as a starting point for future changes to accounting for pension and other postretirement benefits under US GAAP. Our To the Point summarizes the rule from a US perspective.

    1 June 2011

    To the Point - SEC Staff Paper explores a way to incorporate IFRS in the US
    Our To the Point summarizes the an approach for incorporating IFRS into the US financial reporting system that was first described by an SEC official as “condorsement.” A roundtable is scheduled for 7 July 2011.

    26 May 2011

    To the Point - SEC allows whistleblowers to bypass corporate compliance programs
    Our To the Point summarizes the SEC final rules that encourage whistleblowers to report possible securities law violations to corporate compliance programs but do not require internal reporting to receive an SEC award.

    13 May 2011

    To the Point - Key differences between IASB's new consolidation guidance and US GAAP
    The IASB issued new consolidation accounting guidance establishing a single consolidation model for all entities. While consolidation accounting was once a joint project, the FASB will not issue consolidation guidance similar to the IASB’s guidance at this time. Our To the Point discusses key differences between the models.

    12 May 2011

    To the Point - The path to investment property guidance
    The FASB is expected to issue a proposal that would require entities to measure investment property at fair value. The proposal would apply only to certain entities that meet defined criteria of an investment property entity. Our To the Point summarizes what you need to know about this project.

    29 April 2011

    To the Point - Repo accounting amendments finalized
    The FASB amended its guidance on accounting for repurchase agreements by eliminating the requirement that the transferor demonstrate it has adequate collateral to fund substantially all the cost of purchasing replacement assets. As a result, more arrangements could be accounted for as secured borrowings rather than sales. Our To the Point summarizes the new rule.

    21 April 2011

    To the Point - Key insights for companies with new XBRL requirements
    Most accelerated and non-accelerated filers (Tier 3 companies) will be submitting their initial XBRL exhibits to the SEC and most large accelerated filers (Tier 2) will be submitting detail tagged XBRL exhibits for the first time. Our To the Point summarizes the experiences of the first wave of companies that began submitting XBRL exhibits to the SEC in 2009 and recently submitted detail tagged XBRL exhibits with their 2010 10-Ks.

    21 April 2011

    To the Point - Proposed risk retention requirements for sponsors of asset-backed securities
    Our To the Point summarizes the proposed SEC risk retention requirements for sponsors of asset-backed securities.

    7 April 2011

    To the Point - Proposed listing standards for compensation committees
    The SEC has proposed a rule directing national securities exchanges to adopt minimum listing standards related to compensation committees and their use of advisers Our To the Point summarizes the proposal, which is required by the Dodd-Frank Act.

    5 April 2011

    To the Point - Creditors may identify more loan modifications as troubled
    Our To the Point summarizes the FASB's guidance that will assist creditors in determining whether a loan modification is a troubled debt restructuring, The additional guidance could result in more loan modifications being classified as troubled debt restructurings.

    24 March 2011

    To the Point - Implementing the MLR - revenue recognition implications for insurers
    As the end of the first quarter approaches, health insurance issuers should consider the new minimum medical loss ratio requirements, including whether they should accrue any amounts for premium rebates to plan enrollees. Our To the Point provides information on accounting for MLR-related premium rebates.

    1 March 2011

    To the Point - Insurance project picks up steam - Boards make key decision on discount rate
    The IASB and the FASB have proposed fundamentally changing accounting for insurance contracts. Their goal is to develop a simpler, converged measurement model for insurance contracts. Our To the Point addresses certain matters discussed during redeliberation of the IASB’s Exposure Draft.

    10 February 2011

    To the Point - Hedge accounting: FASB seeks reaction to IASB’s proposed model
    The FASB is seeking comment on the IASB’s December 2010 hedge accounting proposal. The proposed IASB model would significantly change hedge accounting, going well beyond the changes the FASB proposed last year. This To the Point describes the IASB's proposal.

    28 January 2011

    Hot Topic - SEC adopts "say-on-pay" shareholder votes on executive compensation
    Our Hot Topic summarizes the SEC's rule that requires proxy statements to provide shareholders non-binding votes on executive compensation.

    19 January 2011

    Hot Topic - Credit quality disclosures: insurers need to use their judgment
    As a result of the FASB rule, companies are required to provide extensive new disclosures about the credit quality of their financing receivables, including credit risk exposures and the allowance for credit losses, Our Hot Topic includes items to be considered by insurance companies.

    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.

    22 December 2010

    Hot Topic - FASB and IASB joint projects update
    Our Hot Topic summarizes the Boards' plans related to their joint projects at 2010 year-end.

    22 December 2010

    Hot Topic - SEC proposes disclosure of payments to governments by issuers with oil and gas and mining operations
    The Dodd-Frank Act requires the SEC to develop a rule that would require certain issuers to disclose in their annual reports payments they make to foreign governments or the US government related to the commercial development of oil, natural gas or minerals. Our Hot Topic provides an overview of the more significant aspects of the proposed rule.

    22 December 2010

    Hot Topic - SEC rule proposal: Conflict minerals disclosures
    Our Hot Topic summarizes the SEC rule proposal that would require new disclosures by reporting issuers concerning conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country.

    10 December 2010

    Hot Topic - IFRS issues featured at AICPA Conference
    Our Hot Topic provides highlights of the discussion of convergence issues discussed at the 2010 AICPA Conference.

    12 November 2010

    Hot Topic - Health care reform: year-end accounting considerations for postretirement health care plans
    Our Hot Topic highlights some of the accounting considerations for sponsors of postretirement health care plans, including the effects of the new health care legislation.

    3 November 2010

    Hot Topic - FASB proposes changes to accounting for repurchase agreements
    Our Hot Topic provides an overview of the FASB's proposal to modify the accounting for repurchase agreements and other arrangements that both entitle and obligate the transferor (seller) to repurchase or redeem assets before their maturity.

    3 November 2010

    Hot Topic - SEC issues first Progress Report on IFRS Work Plan
    Our Hot Topic summarizes the SEC staff's first Progress Report on its Work Plan related to the possible move to a set of global accounting standards.

    27 October 2010

    Hot Topic - SEC proposal: "Say-on- pay" shareholder votes on executive compensation
    Our Hot Topic provides an overview of the more significant aspects of the SECs say-on-pay proposal.

    20 October 2010

    Hot Topic - FASB and IASB request input on when new standards should become effective
    The FASB and IASB are requesting comments about the time and effort required to adapt to the new joint standards they have proposed and when they should become effective. We strongly encourage entities to provide their views about how and when new standards should be implemented.

    13 October 2010

    Hot Topic - FASB proposes to clarify troubled debt restructuring guidance
    Our Hot Topic summarizes the FASB proposed ASU that would clarify the accounting guidance on identifying troubled debt restructurings for creditors.

    1 October 2010

    Hot Topic - FASB redefines costs to be deferred as acquisition costs
    Our Hot Topic discusses the new guidance in EITF Issue 09-G in which the FASB redefines costs to be deferred as acquisition costs It also compares the accounting for acquisition costs to what is being proposed by the IASB and FASB as part of the insurance contracts project.

    22 September 2010

    Hot Topic - SEC issues MD&A guidance: Liquidity and capital resources
    In September 2010, the SEC published interpretive guidance intended to improve liquidity and capital resources disclosure in MD&A. Our Hot Topic provides an overview of the more significant aspects of the SEC guidance.

    22 September 2010

    Hot Topic - SEC proposal: Short-term borrowings disclosures in MD&A
    In September 2010, the SEC unanimously voted to issue a proposal expanding short-term borrowings disclosure in MD&A. Our Hot Topic provides an overview of the more significant aspects of the proposal.

    1 September 2010

    Hot Topic - SEC final rule: Facilitating shareholder director nominations
    Our Hot Topic provides an overview of the more significant aspects of the final rule changing the proxy requirements to facilitate director nominations by shareholders (“proxy access”).

    31 August 2010

    Hot Topic - FASB Issues proposed ASU on disclosure about an employer’s participation in a multiemployer plan
    Our Hot Topic summarizes the FASB proposed ASU that would enhance the disclosure requirements for participants in multiemployer pension plans.

    30 July 2010

    Hot Topic - Annual re-assessment of compliance with SEC XBRL phase-in
    Our Hot Topic summarizes recent developments in the SEC interactive data mandate. Specifically, the SEC staff has clarified how the annual measurement of a registrant’s worldwide public float can change its membership in an XBRL phase-in group.

    23 July 2010

    Hot Topic - Changes to be proposed for investment property
    The FASB has tentatively decided to issue a proposed ASU that would require investment property to be measured at fair value. Our Hot Topic highlights the FASB's decisions to date on the investment property project.

    23 July 2010

    Hot Topic - Extractive industries: implications of the financial reform bill
    The new financial reform bill requires the SEC to develop a final rule that would require a resource extraction issuer to disclose payments made to foreign governments and the US Federal Government in their annual reports. Our Hot Topic summarizes the requirement affecting extractive companies.

    23 July 2010

    Hot Topic - FASB requires new disclosures about financing receivables and the allowance for credit losses
    Our Hot Topic summarizes the recently issued ASU that requires entities to provide extensive new disclosures in their financial statements about their financing receivables, including credit risk exposures and the allowance for credit losses.

    21 July 2010

    Hot Topic - SEC Concept Release: US proxy system
    Our Hot Topic summarizes an SEC Concept Release on whether the US proxy system is operating with the accuracy, reliability, transparency and integrity shareholders and issuers should expect.