US Week in Review - Week ending 17 October 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

    Standard Setter Update now available

    Our Third Quarter 2013 Standard Setter Update - Financial reporting and accounting developments publication highlights significant developments in financial accounting and reporting between 1 July 2013 and 30 September 2013 and summarizes certain proposals presently under consideration by the FASB, EITF, Private Company Council (PCC), SEC, PCAOB, ASB and GASB.

    EY comment letter on PCC proposal on common control leasing arrangements

    In our comment letter, we said the PCC's proposal to permit private companies to avoid applying the variable interest entity (VIE) guidance to common control leasing arrangements when certain criteria are met would achieve the desired result of excluding the effects of a lessor's financial position and operating results from a lessee's financial statements. However, our experience suggests that the same objective may be achieved by clarifying the example in the Codification on the application of the VIE model.

    FRD on equity method investments

    We are issuing our Financial Reporting Developments publication on equity method investments to clarify and enhance our guidance on the accounting for such investments in accordance with ASC 323.

    Updated FRD on earnings per share

    We have updated our Financial Reporting Developments publication on earnings per share to enhance our interpretative guidance by noting, among other things, that the presumption of share settlement for earnings-per-share purposes of equity-linked instruments may affect the numerator of the diluted earnings-per-share calculation. We also added guidance on the earnings-per-share calculation for the carve-out of an existing business or previously existing subsidiary and expanded guidance on pro forma earnings per share.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    Disclosure framework project

    The FASB has issued a "Q&A: FASB’s Disclosure Framework Project" fact sheet that describes the objectives, scope and status of the project.

    Upcoming meetings and webcasts

    23 October 2013 FASB meeting

    The FASB is scheduled to discuss its projects on Not-for-profit financial reporting: financial statements and Investment companies: disclosures about investments in another investment company.

    24 October 2013 FASB meeting

    The FASB is scheduled to discuss its project on Consolidation: principal versus agent analysis.

    For additional details, see the FASB's calendar.

    Education sessions

    See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.

    Securities and Exchange Commission (SEC)

    Two key accounting positions filled at the SEC

    Mark Kronforst was named chief accountant of the SEC's Division of Corporation Finance. He had been the division's associate director for disclosure operations and previously held other positions in the division. Mr. Kronforst succeeds Craig Olinger, who served as acting chief accountant and will continue to serve as the division's deputy chief accountant.

    Daniel Murdock was named the deputy chief accountant overseeing the accounting group in the SEC's Office of the Chief Accountant. Before joining the SEC staff, Mr. Murdock served as a professional practice director in Deloitte & Touche LLP's national office and was responsible for the audits of several large companies.

    Government Accounting Standards Board (GASB)

    GASB Report

    The September 2013 issue of the GASB Report is available in AccountingLink.

    Upcoming Thought Center webcasts and podcasts

    News from the street: capital markets outlook for 2014 and beyond
    Live from the EY Strategic Growth Forum
    13 November 2013, 4:30 p.m. Eastern time

    Make talent your job
    Live from the EY Strategic Growth Forum
    14 November 2013, 2:00 p.m. Eastern time

    Energy independence: is it a reality that will transform the US economy?
    Live from the EY Strategic Growth Forum
    15 November 2013, 2:00 p.m. Eastern time


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