US Week in Review - Week ending 31 May 2012

    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.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    FAF issues final report on PCC

    The Financial Accounting Foundation issued its final report on its establishment of the Private Company Council (PCC) to improve the standard-setting process for private companies. The report describes the PCC's responsibilities and operating procedures, and includes background and key issues considered by the Trustees.

    30 May 2012 FASB meeting

    Technical corrections - The FASB discussed feedback received and agreed to certain changes to its proposal. The Board also agreed on transition guidance and effective dates for selected amendments.

    Investment property entities - The FASB discussed the feedback received on its proposal. No decisions were made.

    For additional details of the Board's discussions, see the FASB Action Alert.

    Upcoming meetings and webcasts

    6 June 2012 FASB meeting

    The Board is scheduled to discuss the following projects:

    • Impairment of indefinite-lived intangible assets
    • Not-for-profit financial reporting: financial statements
    • Definition of a nonpublic entity
    • Revenue recognition

    For additional details of the planned discussions, see the FASB calendar.

    Education sessions

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

    Securities and Exchange Commission (SEC)

    SEC staff revises its nonpublic submission policy for foreign private issuers

    The Division of Corporation Finance staff revised its policy for the nonpublic submission of initial registration statements by foreign private issuers (FPIs) to be consistent with its confidential submission policy for emerging growth companies (EGCs). The SEC staff has allowed certain FPIs and foreign governments to submit initial registration statements on a confidential basis. Under the old policy, draft registration statements, staff comments and issuer responses before the FPI's first public filing remained confidential.

    The revised policy requires eligible FPIs to publicly file all nonpublic draft registration statements as exhibits to their first public registration statement. In addition, all SEC staff comments and FPI responses will be posted on EDGAR following completion of the registration process. The new policy applies to FPIs that submit initial drafts after 30 May 2012.

    International Accounting Standards Board (IASB)

    May 2012 IFRIC Update

    The May IFRIC Update summarizes the IFRS Interpretations Committee meeting held in London on 15-16 May 2012. The following issues were discussed:

    • Current agenda
    • IFRS Interpretations Committee tentative agenda decisions
    • Issues considered for Annual Improvements
    • Post-implementation review - IFRS 8 Operating Segments
    • IFRS Interpretations Committee work in progress
    • Trustee's review of the efficiency and effectiveness of the IFRS Interpretations Committee

    PAFA issues resolution to adopt IFRS

    The Pan African Federation of Accountants (PAFA) General Assembly has issued a resolution to adopt IFRS and the IFRS for SMEs. The IASB acknowledges the resolution as a broad policy statement that requires action from the 39 constituent members of PAFA, which was established in May 2011 to accelerate the development of the accountancy profession in Africa. While some PAFA members have already adopted IFRS or are taking steps toward doing so, the Board hopes that the PAFA policy will encourage others to follow.

    Upcoming Thought center webcasts and podcasts

    The Ernst & Young Q2 2012 financial reporting update
    Co-sponsored by Financial Executives International (FEI)
    7 June 2012, 1:00 p.m. Eastern time

    The lessons learned from year-end reporting
    Hosted by Ernst & Young's Global IFRS Services
    26 June 2012, 11:00 a.m. Eastern time


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