US Week in Review - Week ending 27 March 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

    Technical Line: Venezuela - reconsidering exchange rates used for remeasurement

    Companies with operations in Venezuela should reconsider the exchange rate they use to remeasure their monetary assets and liabilities and related revenues and expenses denominated in bolivars due to recent changes in the Venezuelan foreign currency exchange market. With big differences in rates now available on various legal exchange mechanisms, companies need to consider their specific transactions and their ability to transact through each mechanism to determine the appropriate rate or rates to use. Our Technical Line publication discusses factors to consider when making this determination and addresses related financial reporting considerations and disclosures.

    March 2014 Financial reporting briefs issued

    We have issued the general and industry-specific March 2014 editions of Financial reporting briefs. These publications provide you with a snapshot of the major accounting and regulatory developments during the quarter. The Reference library at the end of each document lists the publications we issued during the quarter, along with the links to them on our AccountingLink website.

    EY comment letter on the SEC's 'Regulation A+' proposal

    In our comment letter on the SECs proposed amendments to allow exempt public offerings under Regulation A of up to $50 million in a 12-month period, we recommend that the SEC consider additional opportunities to leverage disclosure requirements in existing SEC rules and regulations for registered offerings and scale those requirements for unregistered offerings conducted under Regulation A. We also encourage the SEC to clarify certain terminology and disclosure requirements in the proposal that could be difficult to interpret or apply.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    26 March 2014 FASB meeting

    The FASB discussed:

    • Going concern - The FASB tentatively decided to pursue a model that would require management to evaluate whether it is probable that there is substantial doubt about a company's ability to continue as a going concern within 12 months of the date its financial statements are issued (or for nonpublic entities, available to be issued). The FASB plans to continue these discussions in May 2014.
    • Accounting for goodwill for public business entities and not-for-profits - A majority of the Board indicated a preference for simplifying the impairment test rather than requiring a direct write-off or an amortization approach. The Board decided to defer any decisions until it can evaluate the results of the IASB's post-implementation review of IFRS 3(R), Business Combinations. In that review, the IASB has asked a question about the subsequent measurement of goodwill.
    • Accounting for identifiable intangible assets in a business combination (PCC Issue 13-01A)

    The FASB also ratified the consensus on EITF Issue No. 13-D, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, and the consensus-for-exposure on EITF Issue No. 12-F, Recognition of New Accounting Basis (Pushdown) in Certain Circumstances, reached at the 13 March 2014 EITF meeting.

    For details, see the FASB's Tentative Board Decisions.

    Upcoming meetings and webcasts

    4 April 2014 FASB meeting

    The FASB is scheduled to discuss:

    • Accounting for financial instruments: classification and measurement
    • Investment companies: disclosures about investments in another investment company
    • Disclosure framework: entity's decision process

    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.

    International Accounting Standards Board (IASB)

    IASB issues a proposal related to its project on disclosure initiatives

    The IASB has published for public comment an exposure draft outlining proposed amendments to IAS 1 Presentation of Financial Statements. The proposal results from the IASB's disclosure initiative project.

    Public Company Accounting Oversight Board (PCAOB)

    PCAOB plans public meeting to discuss reporting model proposal, reopens comment period

    The PCAOB will hold a public meeting on 2-3 April 2014 to obtain more input on its proposal to enhance the auditor's reporting model. Panelists will include investors, preparers, audit committees and audit firm representatives, among others. We plan to summarize the feedback received shortly after the meeting. The PCAOB also has reopened the comment period for the reporting model proposal through 2 May 2014.

    Center for Audit Quality (CAQ)

    CAQ alert on auditors' cybersecurity responsibilities and issues for audit committees to consider

    The CAQ issued a Member Alert that summarizes the responsibilities of external auditors with respect to cybersecurity and includes items for audit committees to consider. The alert is intended to provide information related to a roundtable the SEC hosted on 26 March 2014 to discuss cybersecurity issues and challenges for market participants and public companies.

    Upcoming Thought Center webcasts and podcasts

    A practical discussion of the Affordable Care Act
    Implementation implications for your business processes, financial and technology systems, and internal controls
    1 April 2014, 2 p.m. Eastern time

    Let's talk: sustainability Q2 2014
    A new point of view for business leaders
    23 April 2014, 12 p.m. Eastern time


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