US Week in Review - Week ending 5 April 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.

    Ernst & Young publications

    SEC in Focus - April 2012 edition

    Our SEC in Focus newsletter summarizes developments relating to SEC matters, including items we have not previously reported in Week in Review. This issue highlights capital formation initiatives, including the Jumpstart Our Business Startups Act (JOBS Act), which gives private companies greater access to capital and eases the regulatory requirements for certain companies seeking to go public. The JOBS Act, signed into law by President Obama today, represents a major change in how private companies can access capital through either the private or public markets.

    Joint Project Watch - March 2012

    The standard-setting activities of the FASB and the IASB on their joint projects continue to move forward. The Boards have issued final guidance or exposure drafts on several projects and continue to redeliberate others. Our Joint Project Watch publication is designed to give you a snapshot of key developments from a US GAAP perspective, along with our observations about the potential implications for companies.

     Comment letter: Exposure draft of Internal Control - Integrated Framework

    In our letter, we support the Committee of Sponsoring Organizations' efforts to help organizations effectively and efficiently develop and maintain systems of internal control by enhancing the 1992 framework to reflect changes in the business and operating environment since its development. We also outline our concerns about the proposal and suggest modifications to clarify a number of areas in the proposed framework and to make it more helpful to users.

    Quarterly tax developments

    Our new publication is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. Every quarter, we will summarize enacted and effective tax legislation, global tax treaties, regulatory developments and other items to consider as you prepare your tax provision. We'll also list our tax alerts and other publications that provide more detail on the topics we discuss.

    April issue of BoardMatters Quarterly

    The April 2012 issue of BoardMatters Quarterly: Navigating global business issues focuses on international business matters and explores the risks and key considerations related to global economic events, international taxes, changing trade patterns and political instability.

    SEC Reporting Series publications revised for mine safety disclosures

    We have updated two of our SEC Financial Reporting Series publications to reflect the final SEC mine safety disclosure rules. The publications, which were issued in November 2011, are intended as reference tools for preparing annual reports on Form 10-K and quarterly reports on Form 10-Q. The publications, available on Accountinglink, are:

    • 2011 SEC annual reports - Form 10-K
    • 2012 SEC quarterly reports - Form 10-Q

    The SEC mine safety disclosure rules, which were effective 27 January 2012, amended Forms 10-K and 10-Q to add new Item 4, Mine Safety Disclosures. All registrants should reflect the new title in their Exchange Act reports. Item 4 requires registrants to include a brief summary if they have mine safety violations or other regulatory matters that are reported in an exhibit to the report. If a registrant does not have matters to report, the response to Item 4 should be "not applicable." As part of the final rules, the SEC also adopted new Item 104 of Regulation S-K and amended Item 601 of Regulation S-K to add a new exhibit to Form 10-K and Form 10-Q (Exhibit 95, Mine Safety Disclosure Exhibit).

    Leading corporate sustainability issues in the 2012 proxy season: is your board prepared?

    As proxy season begins, investors are challenging boards to improve oversight and enhance stakeholder communication on hot-button environmental and social issues. This push is being made as regulators, legislators and the public are paying greater attention to environmental and social issues in connection with corporate growth opportunities and risk management efforts. Our new publication provides insights about investor priorities and can help management and boards prepare more effectively for shareholder engagement.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    Upcoming meetings and webcasts

    9 April 2012

    The FASB will decide whether to ratify consensuses-for-exposure on EITF Issues No. 12-A, "Not-for-Profit Entities: Classification of the Sale of Donated Securities in the Statement of Cash Flows," No. 12-C, "Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Lending Institution," and No. 12-E, "Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs," that were reached at the 15 March 2012 EITF meeting.

    11 April 2012

    The FASB will discuss its project on accounting for financial instruments: liquidity and interest rate risk disclosures to discuss (a) incorporating elements of the risks and uncertainties project, (b), effective date and transition and (c) whether to proceed to drafting a Proposed Accounting Standards Update for vote by written ballot.

    See the FASB calendar for upcoming events.

    Government Accounting Standards Board (GASB)

    GASB issues Statements Nos. 65 and 66

    Statement No. 65, Items Previously Reported as Assets and Liabilities, clarifies the appropriate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting.

    Statement No. 66, Technical Corrections - 2012, enhances the usefulness of financial reports by resolving conflicting accounting and financial reporting guidance that could diminish the consistency of financial reporting.

    The provisions of both Statements are effective for periods beginning after 15 December 2012 and would be applied on a prospective basis. Early adoption is encouraged.

    American Institute of CPAs (AICPA)

    AICPA Health Care Expert Panel develops Technical Question and Answer on application of Accounting Standards Update No. 2011-07

    Developed by the AICPA Health Care Expert Panel, Technical Question and Answer (TPA) 6400.47 has been issued to provide nonauthoritative guidance regarding the application of Accounting Standards Update No. 2011-07, Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities, in consolidated financial statement presentations when the organization also issues financial statements for individual subsidiaries.

    International Accounting Standards Board (IASB)

    IFRS Foundation publishes IFRS Taxonomy 2012

    The IFRS Foundation XBRL Team has issued IFRS Taxonomy 2012. The IFRS Taxonomy is the XBRL (eXtensible Business Reporting Language) representation of the IFRSs, including IASs, Interpretations, and the IFRS for Small and Medium-sized Entities (IFRS for SMEs) issued by the IASB at 1 January 2012. The Taxonomy also contains XBRL tags for all IFRS disclosure requirements.

    March edition of IFRS for SMEs

    The IFRS for SMEs Update is a staff update on the latest news surrounding IFRS for Small and Medium-sized Entities (SMEs).

    International Federation of Accountants/International Auditing and Assurance Standards Board (IFAC/IAASB)

    2011 IFAC Annual Report issued

    The 2011 IFAC Annual Report is now available. The report provides:

    • highlights of IFAC's initiatives during 2011
    • a report on service delivery
    • a report on IFAC's financial statements
    • messages from President Göran Tidström, CEO Ian Ball, and Public Interest Oversight Board Chairman Eddy Wymeersch

    Upcoming Thought center webcasts and podcasts

    Global PE watch: Striving for growth - a return to entrepreneurship 2012 
    10 May 2012, 11:00 a.m. Eastern time


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