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US Week in Review: Week ending 13 June 2024


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.

Technical Line: Navigating the reporting requirements related to an initial public offering

Comment letter on PCAOB proposal on firm and engagement metrics

In our comment letter, we express general support of the PCAOB’s efforts to enhance stakeholder understanding of the audit and offer some support for the requirement to publicly report a set of firm metrics on an annual basis. However, we have significant concerns about the public disclosure of engagement metrics, as they could be misinterpreted or misused. We encourage the PCAOB to conduct further study of metrics and perform additional outreach to explore other solutions that may be more cost effective in achieving the proposal’s objectives.

Comment letter on PCAOB proposal on firm reporting

In our comment letter, we support the proposal’s overall objectives, including enhanced transparency that would provide decision-useful information about audit quality. We support certain elements of the proposal, including those addressing cybersecurity and quality controls. We also express concerns about the proposed requirements that would impose new and substantial costs on registered firms and would not provide decision-useful information for stakeholders.

June 2024 Financial reporting briefs issued

The June 2024 edition of Financial reporting briefs provides a snapshot of the major accounting and regulatory developments during the quarter. It includes a reference library listing the EY publications issued during the period and other recent publications.

Regulatory matters

Securities and Exchange Commission (SEC)

SEC appoints Erica Williams to a second term as PCAOB Chairperson through October 2029

Standard Setter updates

Financial Accounting Standards Board (FASB)

FASB directs staff to draft proposed ASUs on Accounting for environmental credit programs and Share-based consideration payable to a customer at its 12 June meeting

EITF to discuss Determining the accounting acquirer (Issue 24-A) at its 14 June meeting

FASB to discuss Accounting for and disclosure of software costs at its 19 June meeting

Public Company Accounting Oversight Board (PCAOB)

PCAOB staff Spotlight report highlights 2023 conversations with audit committee chairs

PCAOB amends rules to lower threshold for liability of individuals involved in firm violations to negligence from recklessness (subject to SEC approval)

PCAOB amends standards to clarify the auditor’s responsibilities when using technology-assisted analysis (subject to SEC approval)

PCAOB proposes clarifying requirements on designing and performing substantive analytical procedures

Upcoming webcasts

Accounting for income taxes: a quarterly perspective – June 2024
18 June 2024, 11 a.m. Eastern time

AI challenges and opportunities: considerations for boards
20 June 2024, 11 a.m. Eastern time

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