US Week in Review - Week ending 14 November 2013
The US Week in Review highlights this week’s developments and emerging issues in the financial reporting world and gives you direct access to relevant technical accounting guidance and thought leadership produced by EY.
What’s new from EY
The Private Company Council (PCC) modified its proposal to exempt private companies from evaluating certain common control leasing arrangements for consolidation under the variable interest entity guidance and sent it to the FASB for final endorsement. Our To the Point publication tells you what you need to know about the proposal and other topics discussed at the PCC meeting this week.
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 to equity. The proposal would clarify that the nature of a host contract in a hybrid instrument issued in the form of 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 publication tells you what you need to know about the proposal.
Continue to use our SEC financial reporting publications
We have determined that the SEC Financial Reporting Series we issued last year remains up-to-date and relevant for the upcoming financial reporting season, and readers should continue to use these publications while monitoring changes to SEC reporting guidance.
The series is available on AccountingLink and comprises the following publications:
- 2012 SEC annual reports - Form 10-K
- 2013 proxy statements - An overview of the requirements
- 2013 SEC quarterly reports - Form 10-Q
We have updated our Financial Reporting Developments publication, Consolidated and other financial statements, by adding a new chapter with interpretive guidance on preparing condensed consolidating financial information under SEC Rule 3-10 of Regulation S-X. Among other things, we also shortened the discussion on accounting for certain equity contracts on the stock of a subsidiary that was formerly in this publication, and added cross-references to our other publications that address this accounting in more detail.
Standard Setter updates
Financial Accounting Standards Board (FASB)
12 November 2013 meeting with the Private Company Council (PCC)
See our To the Point publication above.
13 November 2013 FASB meeting
Reporting discontinued operations: To address constituents' concerns about its April 2013 proposal, the FASB decided to incorporate in the definition of a discontinued operation a requirement that a disposition reported as discontinued represent a strategic shift in an entity's operations and to provide more implementation guidance on how the definition would work. The Board also decided to require fewer disclosures than initially proposed and to exclude oil and gas properties applying the full cost method of accounting from the scope of the proposal.
The Board tentatively decided that the proposal would be effective for public companies for fiscal years and interim periods within those years beginning on or after 15 December 2014. For nonpublic companies, it would be effective for fiscal years beginning on or after 15 December 2015 and interim periods thereafter. The proposal would be applied prospectively and early adoption would be permitted. The FASB said it expects to issue final guidance early in the first quarter of 2014.
The FASB also discussed its project on Technical corrections and improvements.
For additional details, see the FASB's Summary of Board Decisions.
14 November 2013 Emerging Issues Task Force meeting
For details of the Task Force discussion, see our upcoming November 2013 EITF Update publication.
Upcoming meetings and webcasts
20 November 2013 joint FASB-IASB videoconference meeting
The Boards are scheduled to discuss their projects on Leases and Accounting for financial instruments: classification and measurement.
For additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
Securities and Exchange Commission (SEC)
Investor Advisory Committee to meet next week
The SEC Investor Advisory Committee will meet on 22 November 2013 to consider subcommittee recommendations on a fiduciary duty standard for broker-dealers and for the SEC to request legislation from Congress to fund investment adviser examinations. SEC commissioners also will address the group. The meeting will be webcast on the SEC's website.
Government Accounting Standards Board (GASB)
Toolkit to help pension plans implement new pension standards
The GASB issued an online toolkit designed to help preparers and auditors of state and local government pension plans implement new accounting and financial reporting standards. The toolkit is available on the GASB website.
Register now for the Q4 2013 financial reporting update webcast
The final 2013 quarterly financial reporting update webcast is scheduled for 19 December from 1 p.m. to 2:30 p.m. Eastern time. EY panelists will discuss highlights from the AICPA conference on SEC and PCAOB developments, reminders for year-end closing and other current financial reporting matters during this 90-minute webcast.
To register, go to Q4 financial reporting update.
Upcoming Thought Center webcasts and podcasts
Insurance contracts: exposure draft comment letters
18 November 2013, 11:00 a.m. Eastern time
EY Q4 2013 financial reporting update
In co-operation with Financial Executives International (FEI)
19 December 2013, 1:00 p.m. Eastern time