US Week in Review - Week ending 29 December 2011

    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 Ernst & Young.

    Certain materials referenced below are available exclusively in AccountingLink. The site is available free of charge, but requires a one-time registration.

    Ernst & Young publications

    To the Point: Reclassifications are deferred - for now

    The FASB has issued Accounting Standards Update 2011-12 (ASU 2011-12), Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. ASU 2011-12 defers the requirement that companies present reclassification adjustments for each component of AOCI in both net income and OCI on the face of the financial statements. Our To the Point publication summarizes the new rule.

    Updated FRD on foreign currency matters

    We have updated our Financial reporting developments publication, Foreign currency matters, to clarify the guidance for the accounting for the cumulative translation adjustment (CTA) and for the EITF's current project to address the accounting for the CTA when an entity sells or transfers a group of assets within a foreign subsidiary that meets the definition of a business. We have also updated other sections of our publication on the accounting for intercompany foreign currency transactions of a long-term investment nature.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    Upcoming meetings and webcasts

    The FASB and the IASB will host roundtables in February and March 2012 to discuss their proposals on investment companies. The US roundtable will also include a discussion about the FASB's proposal on investment property entities. For details, see the FASB site.

    Education sessions

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

    American Institute of CPAs (AICPA)

    ASB issues SAS on auditor's written communication

    The Auditing Standards Boards (ASB) of the AICPA has issued Statement on Auditing Standards (SAS) No. 125, Alert That Restricts the Use of the Auditor's Written Communication. SAS 125 addresses the auditor's responsibility to include in the auditor's report or other written communication issued by the auditor, language that restricts the use of the auditor's written communication. SAS 125, which also amends other SASs, was issued by the ASB as a result of its Clarity Project to supersede SAS No. 87, Restricting the Use of an Auditor's Report. SAS 125 is effective for the auditor's written communications related to audits of financial statements for periods ending on or after 15 December 2012.

    Upcoming Thought center webcasts and podcasts

    International transfer pricing update 
    11 January 2012, 2:00 a.m. Eastern time


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