US Week in Review - Week ending 23 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

    Dodd-Frank Act publication - 2013 update

    We have updated our publicationDodd-Frank Act: Key points for companies beyond the financial services sector for certain rulemaking and key developments affecting nonfinancial companies through the end of 2013. Companies should continue to monitor developments.

    US GAAP income tax accounting considerations of the Mexican 2014 tax reform

    Mexico enacted tax reform (Final Reform) on 11 December 2013. US multinationals with Mexican subsidiaries should include the accounting effects of the Final Reform in their financial statements in the interim or annual period that includes the 11 December 2013 enactment date. For additional details, see our Tax Alert.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    FASB issues final and proposed guidance on EITF issues

    The FASB issued Accounting Standards Update (ASU) 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).

    The Board also issued a proposed ASU on Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). Comments are due by 30 April 2014.

    Refer to our EITF Update for further details.

    FASB and Private Company Council (PCC) to host town hall

    The FASB and the PCC plan to host their second town hall meeting on 8 May 2014. For more information, see the FASB's news release.

    22 January 2014 FASB meeting

    The FASB discussed three PCC issues in preparation for the upcoming PCC meeting, as well as pre-agenda research on Operating segments and Pensions and other postretirement benefits. These discussions were educational, and no decisions were reached. For additional details, see the FASB's Tentative Board Decisions.

    22-23 January 2014 joint FASB-IASB videoconference meeting

    Insurance contracts: The FASB and the IASB discussed the feedback they received on their respective insurance contracts proposals. FASB members didn't say which topics they will redeliberate, but several FASB members indicated they were rethinking some of their views. Some FASB members highlighted broad issues they would need to consider in redeliberations, including: (1) distinguishing between volatility, accounting mismatches and economic mismatches, (2) whether financial reporting comparability of insurers and other types of companies including financial institutions is important and (3) when the benefits of making the accounting more complex would outweigh the costs. In its redeliberations, the IASB plans to address constituents' concerns related to other comprehensive income, unlocking the contractual service margin, participating contracts, insurance contract revenue and transition. Some IASB members also indicated they may support returning to the summarized margin approach the IASB included in its 2010 proposal. The IASB will determine at a later date which, if any, other issues to redeliberate.

    Leases: The Boards discussed possible approaches for revising the lessor and lessee accounting models in their joint proposal but did not reach any decisions. The Boards also discussed possible methods of providing relief for small-ticket leases (e.g., computers, copiers). The Boards plan to discuss this project again at their March meeting.

    Upcoming meetings and webcasts

    28 January 2014 PCC meeting

    Members of the FASB and the PCC are scheduled to discuss:

    • PCC Issue No. 13-01A, Accounting for identifiable intangible assets in a business combination
    • PCC Issue No. 13-02, Applying variable interest entity guidance to common control leasing arrangements
    • PCC Issue No. 13-03B, Accounting for certain receive-variable, pay-fixed interest rate swaps - combined instruments approach
    • Other selected FASB projects

    29 January 2014 FASB meeting

    The FASB is scheduled to discuss its projects on Consolidation: principal versus agent analysis and Accounting for financial instruments: classification and measurement. The Board also will discuss its priorities for projects for the FASB and the EITF.

    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)

    Timeliness of executive compensation disclosures in registration statements

    A registrant that files a registration statement on Form S-1 after its fiscal year-end must disclose executive compensation for its most recent fiscal year, even before it files its Form 10-K. A Form S-3 registration statement (other than an automatic shelf registration by a well-known seasoned issuer) filed after the filing of Form 10-K must disclose executive compensation for the most recent fiscal year, even if the proxy statement has not yet been filed.

    This document tells you what you need to know about the requirements for updating executive compensation disclosures in registration statements.

    Upcoming Thought Center webcasts and podcasts

    Hedge Accounting for non-financial entities
    28 January 2014, 11:00 a.m. Eastern time

    CFO: need to know
    A quarterly webcast series
    5 March 2014, 12:00 p.m. Eastern time


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