US Week in Review - Week ending 8 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 - Support grows for keeping US GAAP but basing future standards on IFRS

    The incorporation of IFRS into the US financial reporting system was once again a focus of discussion at the AICPA National Conference on Current SEC and PCAOB Developments in Washington D.C. this week. Representatives from the SEC, FASB and IASB all indicated that the SEC could incorporate IFRS into the US financial system but retain US GAAP. Our To the Point publication tells you what you need to know about these developments.

    Technical Line - Consolidation and investment company accounting could change

    Our Technical Line discusses two recent FASB proposals that together could be especially important for asset managers. The first proposal would amend existing consolidation guidance and would affect all reporting entities. The second proposal would redefine an investment company and how it accounts for investments. Our Technical Line publication tells you what you need to know about the proposals.

    Technical Line - New investment property guidance may be in store for real estate entities

    The FASB proposed a new accounting standard for investment property entities that could change the financial reporting for many entities that invest in real estate. Entities that meet the criteria for investment property entities would be required to measure their real estate investment property at fair value, with changes in fair value recognized in net income. They would present investment properties and related debt on their consolidated balance sheets and rental revenue and related expenses on their consolidated income statements. Investment property entities would not apply the proposed lessor accounting model to leases of their investment properties. Our Technical Line publication tells you what you need to know about the proposal.

    Standards effective in 2011

    Several new accounting pronouncements are effective for 2011 interim or annual periods for calendar-year entities. We have listed those pronouncements in our publication, along with a description of the related Ernst & Young resources. All entities should carefully evaluate which accounting requirements apply to them for the first time in 2011.

    Standard Setter updates

    Financial Accounting Standards Board (FASB)

    New FASAC chairman

    The Financial Accounting Foundation (FAF) appointed Charles H. Noski, vice chairman of Bank of America Corporation, as chairman of the Financial Accounting Standards Advisory Council (FASAC) for a one-year term beginning 1 January 2012. For more details, see the FAF's News Release.

    7 December 2011 FASB meeting

    Presentation of reclassification adjustments in OCI - After discussing comments on its proposal, the Board affirmed its decision to defer the requirement in ASU 2011-05, Presentation of Comprehensive Income, to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. The deferral will not affect the requirement that companies present items of net income, other comprehensive income and total comprehensive income in either one continuous statement or two consecutive statements. The Board plans to re-evaluate presentation requirements for reclassification adjustments in the first half of 2012.

    For additional detail of the Board's discussion, see the FASB's Action Alert.

    8 December 2011 FASB meeting

    The FASB voted to extend the comment periods of the consolidation, investment companies and investment property entities proposals to 15 February 2012, in response to concerns raised by constituents. Also, the FASB indicated plans to hold public roundtables on the investment companies and investment property entities projects after the comment period ends.

    For additional detail of the Board’s discussion, see the FASB's Action Alert.

    Upcoming meetings and webcasts

    14-16 December 2011 joint FASB/IASB meeting

    The Boards are scheduled to discuss their leases, accounting for financial instruments: impairment and insurance contracts projects. See the FASB calendar for additional information.

    Education sessions

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

    Government Accounting Standards Board (GASB)

    GASB proposes financial projections for assessing economic condition of governments

    The Governmental Accounting Standards Board (GASB) proposed in a Preliminary Views document that state and local governments should present five-year projections of cash inflows, cash outflows and financial obligations that would accompany their financial statements as required supplementary information. The objective of this requirement is to better enable taxpayers, bond holders and other interested parties to assess a government's financial health. The GASB is seeking public comment through 16 March 2012.

    Upcoming Thought center webcasts and podcasts

    Global IFRS 2011: IFRS 9 Financial Instruments - status and what lies ahead? (IFRS perspective)
    13 December 2011, 4:00 a.m. Eastern time

    Global IFRS 2011: IFRS 9 Financial Instruments - status and what lies ahead? (IFRS perspective) REPLAY
    13 December 2011, 3:00 p.m. Eastern time

    Ernst & Young Q4 2011 financial reporting update
    15 December 2011, 1:00 p.m. Eastern time

    Accounting for income taxes: a quarterly perspective
    16 December 2011, 11:00 a.m. Eastern time


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