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US Week in Review: Week ending 16 September 2021

16 Sep 2021
Subject AccountingLink
Publications US Week in Review

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

New and updated FRDs on issuer’s accounting for debt and equity financings

Our new Financial reporting developments (FRD) publication, Issuer’s accounting for debt and equity financings (after the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity), reflects the amendments issued in ASU 2020-06 and discusses their application for convertible instruments in ASC 470-20 and the equity classification guidance in ASC 815-40 after an entity adopts the new guidance. Appendix D provides a summary of other updates to reflect standard-setting activity and enhancements to our interpretive guidance. It also describes the reorganization of the content from our previous edition.

Entities that have not adopted ASU 2020-06 should refer to our updated FRD, Issuer’s accounting for debt and equity financings (before the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity). Appendix F provides a summary of the updates to reflect standard-setting activity and enhancements to our interpretive guidance for entities that have not adopted ASU 2020-06.

Updated FRD on foreign currency matters

Our FRD publication on foreign currency matters has been updated to clarify and enhance our interpretative guidance.

Updated FRD on the new leases standard

Our FRD publication on accounting for leases under ASC 842 has been updated to reflect recent standard-setting activity and to clarify and enhance our interpretive guidance. Refer to Appendix E of the publication for a summary of the updates.

What audit committees need to know for Q3 2021 webcast

The EY Center for Board Matters will host its What audit committees need to know for Q3 2021 webcast on 23 September 2021 at 3 p.m. Eastern time. The webcast will provide insights and considerations on the macroeconomic outlook, public policy developments, the SEC’s regulatory agenda and the changing tax landscape.

Final reminder: Register for our What you need to know for Q3 2021 financial reporting webcast

EY panelists will discuss current financial reporting matters and standard-setting activities during our webcast, What you need to know for Q3 2021 financial reporting, on 22 September 2021 from 3:30 p.m. to 5:00 p.m. Eastern time. Slides will be available 15 minutes before the start of the webcast, so tune in early if you would like to download them beforehand.

Standard Setter updates

Financial Accounting Standards Board (FASB)

FASB proposes clarifying guidance for equity securities subject to contractual sale restrictions

The FASB proposed clarifying that a contractual restriction on the sale of an equity security would not be considered part of the unit of account of the equity security and, therefore, would not be considered when measuring its fair value. Comments are due by 14 November 2021. See our upcoming To the Point.

15 September 2021 FASB meeting

The FASB directed the staff to draft a final ASU that would amend ASC 842 to allow a lessee that is not a public business entity to elect to use a risk-free rate as the discount rate for its leases by class of underlying asset, rather than for all leases as currently required. The ASU would also require lessees to use the rate implicit in the lease when it is readily determinable, even if they make the risk-free rate election. The FASB is expected to issue the amendments before the effective date of ASC 842 for private companies that have not yet adopted the standard so they can include them in their implementation plans. For details, see the FASB’s Tentative Board Decisions.

Upcoming meetings

22 September 2021 FASB meeting

The FASB will discuss the results of staff research on three potential projects and decide whether to add any of them to its agenda. The FASB also will discuss its project on Disclosure of supplier finance program obligations. For details, see the FASB’s calendar.

International standard setter updates

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

Climate change information and the 2021 reporting cycle

In response to significantly increasing investor demand and regulatory attention on climate-related reporting, IFAC released a statement on Corporate Reporting: Climate Change Information and the 2021 Reporting Cycle. This is a call to action to professional accountants to play an active role in determining the way climate change information is reported in the 2021 reporting cycle and beyond.

Upcoming webcasts

Accounting for income taxes: a quarterly perspective

21 September 2021, 11 a.m. Eastern time

Think ESG: the investor perspective on ESG reporting

21 September 2021, 1 p.m. Eastern time

What you need to know for Q3 2021 financial reporting

22 September 2021, 3:30 p.m. Eastern time

What audit committees need to know for Q3 2021

23 September 2021, 3 p.m. Eastern time

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Week in Review