US Week in Review - Week ending 2 January 2014
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 staff of the Securities and Exchange Commission (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 To the Point publication summarizes the SEC staff's findings and recommendations to be considered by the Commission for future revisions.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB issues private company framework and definition of public business entity
The FASB issued a private company decision-making framework that it and the Private Company Council (PCC) plan to use to identify the differences in the information needs of users of private company and public company financial statements. The FASB and the PCC intend to use the framework to find opportunities for private companies to reduce the cost and complexity of preparing US GAAP financial statements.
The FASB issued a new definition of a public business entity that will be considered in future standard setting, such as determining which entities can use any private company accounting alternatives under US GAAP that the FASB will provide. The FASB expects to issue its first two private company alternatives in early January.
Financial Accounting Foundation (FAF) names new trustee
The FAF announced that it has appointed investor and asset manager Ann M. Spruill to the FAF Board of Trustees, effective 1 January 2014.
Upcoming meetings and webcasts
8 January 2014 FASB meeting
The FASB is scheduled to discuss its project on Consolidation - principal versus agent analysis.
For additional details, see the FASB's calendar.
See the FASB's calendar for upcoming education sessions. No decisions are made at these sessions.
International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)
IAESB exposure draft on IES 8
The International Accounting Education Standards Board (IAESB) issued a proposed revision of International Education Standard (IES) 8, Professional Competence for Engagement Partners Responsible for Audits of Financial Statements. A revised draft of IES 8 was initially exposed for public comment in August 2012 and, while respondents' comments were generally supportive, further clarification was requested on the scope of the standard and in explaining the requirement on learning outcomes. As a result, the IAESB has made substantial changes to the content of IES 8. The revised standard focuses on the professional competence requirement for engagement partners who have responsibility for audits of financial statements. Comments are due 17 April 2014.
Upcoming Thought Center webcasts and podcasts
Let's talk: sustainability
A new point of view for business leaders
16 January 2014, 12:00 p.m. Eastern time
Hedge Accounting for non-financial entities
28 January 2014, 11:00 a.m. Eastern time