US Week in Review - Week ending 24 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

    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.

    Share-based payments FRD

    We have updated our Financial Reporting Developments publication on share-based payments to reflect the latest guidance on common practice issues. In addition, we have removed guidance relating to the income tax accounting considerations of share-based payments that was formerly included in this publication, since all income tax related topics have been consolidated in our publication on ASC 740, Income Taxes.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    FASB issues two Emerging Issues Task Force (EITF) proposals

    The FASB issued two proposed accounting standards updates based on EITF consensuses on the following topics:

    Comments are due by 23 December 2013.

    23 October 2013 FASB meeting

    Disclosures about investments in another investment company: The Board voted to propose requiring new disclosures by an investment company that invests in another investment company. The disclosures would be required for investments that exceed 5% of a reporting investment company's net assets. The comment period would end 90 days after the proposal is issued or 15 May 2014, whichever is later.

    The Board also discussed its project on not-for-profit financial reporting: financial statements.

    For additional details, see the FASB's Summary of Board Decisions.

    24 October 2013 FASB meeting

    Consolidation principal versus agent analysis: The Board voted to provide a scope exception from ASC 810 for any entity required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 that governs registered money market funds. The Board directed the staff to consider what additional guidance would be necessary to determine whether requirements are "similar" to those in the rule. An asset manager would be required to provide additional disclosures if it had provided support to the fund.

    For additional details, see the FASB's Summary of Board Decisions.

    Upcoming meetings and webcasts

    30 October 2013 joint FASB-IASB videoconference meeting

    The Boards are scheduled to discuss their project on revenue recognition.

    30 October 2013 FASB meeting

    The FASB is scheduled to discuss its project on the definition of a nonpublic entity.

    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.

    September 2013 EITF meeting minutes

    The minutes for the September 2013 EITF meeting have been posted. These minutes document the Task Force's discussions on the following issues: (1) accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period, (2) determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity and (3) accounting for investments in qualified affordable housing projects.

    International Accounting Standards Board (IASB)

    Accounting Standards Advisory Forum (ASAF) meeting summary

    The ASAF is an advisory group to the IASB, consisting of national accounting standard setters and regional bodies with an interest in financial reporting. The principal purpose of the new advisory group is to provide technical advice and feedback to the IASB. The ASAF met in London on 25-26 September and discussed:

    • Disclosure initiative
    • Insurance contracts
    • Leases
    • Accounting for macro hedging
    • Financial instruments: Impairment
    • Conceptual framework: Prudence

    A summary is available on the IASB website.

    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


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