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About "Assurance services"
The PwC assurance services practice examines and attests to the financial performance and operations of your business. Beyond financial audits, this PwC practice also provides internal control audits, business and performance reporting, and social, environmental, and other compliance reviews.
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Flashline
Flashline - Week ending May 16, 2013 (No. 2013-20)5/17/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Inaugural edition of "Private company reporter — A PCC meeting synopsis"... Dataline: Cumulative translation adjustment — A compromise to achieve consistency... Register for PwC's Leasing Webcast Series — May 29 & June 11... and more.
Dataline
Dataline: Cumulative translation adjustment – A compromise to achieve consistency (No. 2013-10)5/16/13 | Assurance services
On March 5, 2013 the FASB issued ASU No. 2013-05, which amends ASC 830, Foreign Currency Matters, and ASC 810, Consolidation,to address diversity in practice related to the release of cumulative translation adjustments ("CTA") into earnings upon the occurrence of certain derecognition events. This Dataline provides an overview of the ASU.
Private company reporter
Private company reporter (May 7, 2013 meeting)5/16/13 | Assurance services
At its May meeting, the PCC approved alternatives in the areas of business combinations and interest rate swaps which are now subject to endorsement by the FASB.
In brief
In brief: FASB and IASB publish revised exposure draft on leases (No. 2013-26)5/16/13 | Assurance services
The FASB and IASB issued a revised exposure draft on leases on May 16, 2013 with a comment period ending September 13, 2013. Almost all entities will be impacted. This In brief article provides an overview of the revised proposal.
PwC comment letter (FASB)
PwC Comments on Proposed ASU: Financial Instruments—Overall (Subtopic 825-10)—Recognition and Measurement of Financial Assets and Financial Liabilities and the Proposed Amendments to the FASB Accounting Standards Codification5/15/13 | Assurance services
PwC supports the FASB’s proposed comprehensive framework for classifying financial instruments, which is not dependent on legal form. We agree that the primary drivers for how financial assets are classified and measured should be a company's business model for managing its financial assets, as well as the cash flow characteristics of the instruments. The accounting model should faithfully portray the economic consequences of transactions in the context of a company's business strategies and the nature of those financial instruments.
Dataline
Dataline: COSO issues the updated Internal Control-Integrated Framework and related illustrative documents (No. 2013-09)5/14/13 | Assurance services
On May 14, 2013, COSO published an updated Internal Control-Integrated Framework and related illustrative documents. This Dataline highlights noteworthy updates to the Framework, summarizes the purpose of the illustrative documents, and highlights key considerations for clients.
10Minutes
10Minutes on conflict minerals5/9/13 | Assurance services
10Minutes on conflict minerals provides insight into the strategic benefits and risks companies will want to focus on as they comply with the SEC's conflict minerals rule. The rule is effective for 2013 calendar year operations, so regardless of whether companies view conflict minerals as a supply chain opportunity, risk to their brand or another regulatory to-do, they should act now to prepare.
In brief
In brief: PCAOB reproposes related parties auditing standard and related amendments (No. 2013-25)5/9/13 | Assurance services
The PCAOB reproposed a related parties auditing standard and amendments on significant unusual transactions and financial relationships with executive officers. This In brief article provides an overview of the key aspects of the reproposal.
Flashline
Flashline - Week ending May 9, 2013 (No. 2013-19)5/9/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: 10Minutes on conflict minerals... Point of view: Consolidation—A single model would enhance information reported to investors... FASB proposes amendments to Codification glossary terms... and more.
In brief
In brief: FASB proposes amendments to Codification glossary terms (No. 2013-24)5/7/13 | Assurance services
On May 6, 2013, the FASB released an exposure draft proposing technical corrections and improvements to the FASB Accounting Standards Codification (the Codification). The proposal is part of the FASB's ongoing project to improve the Codification. This set of proposed changes is focused on improving the Codification’s master glossary. The proposed amendments are not intended to change U.S. GAAP. Instead, they are aimed at making the glossary easier to understand and reducing the number of glossary terms. This In brief article provides an overview of the proposal.
Point of view
Point of view: Consolidation - A single model would enhance information reported to investors5/6/13 | Assurance services
This Point of view highlights that a single definition of control leading to one consolidation model in the U.S. would benefit all stakeholders.
Webcast
Q2 2013 Current Accounting and Reporting Developments webcast - June 19, 20135/6/13 | Assurance services
Hosted by PwC's National Professional Services Group, these quarterly webcasts are designed to keep you informed about emerging accounting, regulatory, and market developments impacting financial reporting. Please join us on Wednesday, June 19 at 1:00pm ET for this 90 minute webcast featuring insights from a broad range of PwC specialists who will update you on current technical topics and emerging issues that may impact your business.
IFRS news
IFRS news - May 20135/6/13 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) integrated reporting - IIRC publishes consultation draft, (2) levies - IC to issue interpretation on accounting for levies, (3) insurers face change - update on the insurance contract, (4) recent activity at the IASB on ED on interim standard for regulatory deferral accounts, new Chairman of FASB, EU endorsement of amendments to IFRS 10, 11 and 12, and (5) know your IFRS 'ABC': ‘F’ for fair value.
Flashline
Flashline - Week ending May 2, 2013 (No. 2013-18)5/2/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: A summary of the IASB proposal on impairment of financial assets... FAF names Russell Golden next FASB chairman... FASB finalizes guidance for applying liquidation basis of accounting... and more.
In brief
In brief: FASB proposes to defer quantitative disclosures for nonpublic employee benefit plans (No. 2013-23)5/2/13 | Assurance services
On April 30, 2013, the FASB issued a proposal that would indefinitely defer for nonpublic employee benefit plans certain quantitative fair value disclosures for investments in their plan sponsors' nonpublic entity equity securities. Comments on the FASB's exposure draft are due May 31, 2013. This In brief article provides an overview the FASB's proposal.
Dataline
Dataline: How FASB's financial instruments proposals would affect not-for-profit organizations (No. 2013-08)4/26/13 | Assurance services
In February 2013, the FASB issued a revised exposure draft of a proposed standard for the classification and measurement of financial instruments (the "C&M proposal"). A proposed impairment model for debt instruments was described in a separate exposure draft issued in December 2012 (the "impairment proposal"). This Dataline discusses how the classification, measurement, and impairment approaches described in those proposals might be applied by most not-for-profit organizations.
Dataline
Dataline: A summary of the IASB proposal on impairment of financial assets – Including a comparison to the IAS 39 model and the FASB’s credit loss proposal (No. 2013-07)4/25/13 | Assurance services
In March 2013, the IASB an exposure draft (ED), Financial Instruments: Expected Credit Losses, that proposes an expected loss model to replace the current incurred loss model of IAS 39, Financial Instruments: Recognition and Measurement. In December, 2012, the FASB also released a proposal on impairment of financial assets. This Dataline looks at the IASB's proposal and compares it to the IAS 39 model and the FASB's proposal.
Flashline
Flashline - Week ending April 25, 2013 (No. 2013-17)4/25/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: A summary of the IASB proposal on impairment of financial assets... FAF names Russell Golden next FASB chairman... FASB finalizes guidance for applying liquidation basis of accounting... and more.
In brief
In brief: FASB finalizes guidance for applying liquidation basis of accounting (No. 2013-22)4/23/13 | Assurance services
On April 22, the FASB issued Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The new standard addresses when and how an entity should apply the liquidation basis of accounting. This In brief article provides an overview of the key provisions of the new standard.
M&A snapshot
We’re acquiring a company with significant in-process research and development (IPR&D) activities. What's next? (M&A snapshot)4/23/13 | Assurance services
This edition of Mergers & acquisitions — a snapshot provides an overview of the accounting rules and a glimpse into some of the issues companies face in the accounting and valuation of acquired IPR&D.
Flashline
Flashline - Week ending April 18, 2013 (No. 2013-16)4/18/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: PwC network firms comment on three IASB proposals... FASB exposes consequential amendments for classification and measurement of financial instruments... AICPA provides resources to help with regulator-prescribed auditor's reports... and more.
Dataline
Dataline: Balance sheet offsetting – Questions and interpretive responses about the new disclosure requirements (No. 2013-06)4/17/13 | Assurance services
In January 2013, the FASB issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (the "ASU") and a number of implementation questions have arisen as companies begin drafting the new disclosures. The questions and interpretive responses in this Dataline may be helpful as companies finalize their disclosures.
In brief
In brief: FASB and Private Company Council propose private company decision-making framework (No. 2013-21)4/17/13 | Assurance services
On April 15, 2013, the Financial Accounting Standards Board (Board) and Private Company Council (Council) jointly issued an invitation to comment on a proposed private company decision-making framework (the "framework").
Webcast
Were you unable to attend the Q1 2013 Current Accounting and Reporting Developments webcast ? Watch our on-demand version (CPE eligible)4/16/13 | Assurance services
Did you miss the Q1 2013 "Current Accounting & Reporting Developments" webcast on March 20? If so, you still have an opportunity to view the webcast and earn CPE credit. Find out how.
In brief
In brief: FASB exposes consequential amendments for classification and measurement of financial instruments (No. 2013-20)4/12/13 | Assurance services
On April 12, the FASB issued an exposure draft of consequential amendments to the Accounting Standards Codification (ASC) that would result from its financial instruments classification and measurement proposal.
Flashline
Flashline - Week ending April 11, 2013 (No. 2013-15)4/11/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: In brief: Lease accounting proposal expected by mid-May 2013; FASB members express alternative views... Mary Jo White sworn in as Chairman of the SEC... Next EDGAR release set to support 2013 US GAAP Taxonomy... and more
In brief
In brief: Lease accounting proposal expected by mid-May 2013; alternative views expressed (No. 2013-19)4/11/13 | Assurance services
The FASB met on April 10, 2013 to discuss the costs, benefits, and complexity associated with the proposed lease accounting rules. The FASB members expressed their individual points of view and voted 4 to 3 in favor of moving forward with the revised exposure draft. The FASB and IASB expect to issue a joint exposure draft in mid-May 2013. This In brief article provides an overview of the decisions reached at the FASB meeting.
Webcast
FASB and IASB proposals on impairment of financial assets webcast – April 25, 20134/8/13 | Assurance services
The FASB and IASB both recently issued proposals on financial instruments impairment for public comment. On this PwC webcast, we provide an overview of the key elements of both proposals (including the FASB's FAQ) and compare and contrast them.
IFRS news
IFRS news - April 20134/8/13 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) Impairment of financial instruments - IASB publishes exposure draft, (2) Discount rates and IAS 19 - IC debates the meaning of 'high quality' and 'deep market', (3) IFRS for SMEs - post implementation feedback, (4) recent activity at the IASB on IAS 19R employee contributions exposure draft, conceptual framework discussions, early adoption of revenue standard, request for information on rate regulation, IASB work plan update, ASAF membership; and (5) know your IFRS 'ABC': ‘E’ for equity accounting.
Flashline
Flashline - Week ending April 4, 2013 (No. 2013-14)4/4/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: In brief: PCAOB proposes framework for reorganization of PCAOB auditing standards... PwC shares views on proposed amendments to repurchase agreement accounting model... PwC comments on tentative agenda decision on reissuing previously issued financial statements... and more
In brief
In brief: FASB issues exposure draft on reporting discontinued operations (No. 2013-18)4/4/13 | Assurance services
On April 2, 2013, the FASB issued a proposal that changes the criteria for reporting discontinued operations. The proposal also enhances disclosure requirements for discontinued operations and adds new disclosures for individually material dispositions that do not qualify as discontinued operations.
PwC comment letter (FASB)
PwC Comments on Proposed ASU: Transfers and Servicing (Topic 860): Effective Control for Transfers with Forward Agreements to Repurchase Assets and Accounting for Repurchase Financings3/29/13 | Assurance services
PwC fully supports the Board’s continuing efforts to respond in a timely manner to stakeholder concerns over elements of the transfers of financial assets accounting model.
In brief
In brief: PCAOB proposes framework for reorganization of PCAOB auditing standards (No. 2013-17)3/29/13 | Assurance services
On March 26, the Public Company Accounting Oversight Board (PCAOB) proposed a framework for reorganizing the existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system (the "Release"). In addition, the PCAOB is proposing certain related amendments to its rules and auditing standards, and proposing to rescind certain interim auditing standards that the PCAOB believes are no longer necessary under the proposed reorganization. The Release states that the amendments are not expected to impose new requirements on auditors or substantively change the requirements of the PCAOB standards.
Flashline
Flashline - Week ending March 28, 2013 (No. 2013-13)3/28/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FASB issues three XBRL implementation guides ... IASB publishes proposals for amendments to IAS 19 on employee contributions... PCAOB proposes framework for reorganization of its auditing standards... and more.
In brief
In brief: FASB issues Q&A and extends comment period for credit impairment proposal (No. 2013-16)3/28/13 | Assurance services
On March 25, the FASB issued a document that addresses key questions about its proposed impairment model for financial assets. In addition, the FASB reached a decision at its March 28 meeting to extend the comment period for its impairment proposal to May 31, 2013.
Setting the standard
Setting the standard -- What you need to know about the FASB's and IASB's standard setting activities -- March 20133/25/13 | Assurance services
Our Q1-2013 edition provides updates on the latest developments in revenue recognition, classification and measurement of financial instruments, impairment of financial assets, leases, insurance contracts, and more.
Dataline
Dataline: Financial instruments classification and measurement – FASB issues its exposure draft (No. 2013-05)3/22/13 | Assurance services
Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. The boards have agreed on changes that will broadly converge the accounting for debt investments and financial liabilities, but significant differences in accounting for equity investments will remain. The FASB issued its exposure draft on February, 14 2013 with a comment period ending May 15, 2013. The comment period on the IASB exposure draft, which was issued in November 2012, ends on March 28, 2013. This Dataline looks at FASB’s proposals as outlined in its exposure draft and compares them to the IASB's model.
In brief
In brief: Boards meet separately on revenue – FASB on effective date and non-public entities, IASB on early application (No. 2013-15)3/22/13 | Assurance services
The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) met separately in March to discuss specific U.S. GAAP and IFRS matters related to the proposed revenue recognition standard. The FASB focused on non-public entities and reached decisions on disclosure requirements, transition, and effective date. The FASB also amended its previous decision about effective date for public entities. The IASB decided to permit early application of the revenue standard. The decisions by both boards are tentative and subject to change. Any remaining “sweep” issues will be discussed at future meetings.
Flashline
Flashline - Week ending March 21, 2013 (No. 2013-12)3/21/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FASB to join IFRS Foundation’s Accounting Standards Advisory Forum... NASDAQ proposes listed companies have an internal audit function... IESBA strengthens key sections of Code of Ethics for Professional Accountants... and more.
Quarter close
The quarter close — First quarter 2013: Publication and new video perspectives3/18/13 | Assurance services
This edition of The quarter close highlights current developments in financial reporting, including key standard-setting developments in revenue, financial instruments, and other hot topics, as well as SEC and PCAOB regulatory updates.
Corporate Governance Series
Shareholder questions: considerations for 2013 annual meetings3/18/13 | Assurance services
This PwC publication is intended to help management and the board of directors of public companies prepare for the annual meeting of shareholders. It contains example questions on topics that may be top-of-mind for shareholders, along with background information and suggested actions for management’s consideration.
- Regulatory and standard-setting developments -- March 18, 2013
3/18/13 | Assurance services
This document provides a high-level summary of activities of the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), the Public Company Accounting Oversight Board (PCAOB), and others that may be of interest to audit committees, companies, and their stakeholders. It includes some of the relevant regulations, standards, and guidance that were recently issued or are on the horizon, both inside and outside of the U.S.
EITF observer
EITF observer: A meeting synopsis - March 20133/18/13 | Assurance services
At the EITF's March 14 meeting, the Task Force discussed four Issues, reaching a final consensus on two issues (12-B and 12-G) and consensus-for-exposure on one Issue (13-B). Further discussion is expected on one issue (12-F). This edition of EITF observer provides a synopsis of the meeting.
Flashline
Flashline - Week ending March 14, 2013 (No. 2013-11)3/14/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FASB meetings and project updates... IASB issues exposure draft on impairment of financial instruments... IAASB seeks input on strategic review... and more.
In brief
In brief: FASB moves forward with final standard on investment companies (No. 2013-14)3/14/13 | Assurance services
On March 13, 2013, the FASB met to discuss investment companies, a joint project with the IASB. The FASB discussed certain proposed disclosures designed to increase transparency into an investment company's interest in an investee fund. These investee fund disclosures have been the final area of focus as the FASB finalizes its standard on investment companies. At its meeting, the FASB decided to remove the proposed disclosures from the current project and re-evaluate them at a later date. The FASB also agreed to move forward with issuing a final standard on investment companies.
Webcast
Conflict minerals - Next steps: An auditor's perspective - April 9, 20133/13/13 | Assurance services
Conflict minerals compliance has quickly become one of the most pressing issues for both SEC and non-SEC registered companies. As we have spoken to a large number of companies regarding their conflict minerals implementation programs, we would like to share with you some observations and key takeaways.
Dataline
Dataline: Revenue from contracts with customers: Boards finalize redeliberations – A comprehensive look at the new revenue model (No. 2013-04)3/8/13 | Assurance services
The FASB and IASB substantively concluded redeliberations of their joint 2011 exposure draft, Revenue from Contracts with Customers, in February 2013. The boards reached decisions on the remaining key issues including disclosures, transition, and effective date at their most recent meetings. Details of these decisions, as well as a comprehensive look at the model at the end of the key redeliberations, are included in this Dataline. Any remaining “sweep” or new issues identified by the boards will be discussed at future board meetings, as needed.
In brief
In brief: IASB issues exposure draft on impairment of financial instruments (No. 2013-13)3/8/13 | Assurance services
Following several years of discussions and two previously published proposals, the IASB has issued an exposure draft, Financial Instruments: Expected Credit Losses. The proposed guidance introduces an expected loss impairment model that will replace the incurred loss model used today. This In brief article provides an overview the IASB's proposal.
Webcast
Classification and measurement of financial instruments - An overview of the FASB proposal webcast – March 12, 20133/7/13 | Assurance services
This webcast provides an overview of the revised FASB proposal on financial instruments classification and measurement which is open for public comment until May 15, 2013.
- Brand: What's in a name? Careful consideration of brand valuation issues can improve deal reporting
3/7/13 | Assurance services
Mergers and acquisitions for retail and consumer product companies can be influenced by the brands involved in the transaction. Such "brand-rich" transactions can bring accounting complexities that requires close attention to the valuation and purchase accounting process.
IFRS news
IFRS news - March 20133/7/13 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) the disclosure problem – IASB takes on the challenge, (2) improving IFRS – a point of view, (3) Profile: Mary Tokar – new IASB board member, (4) IAS 10 and 11 – key issues to consider on transition, and more.
Flashline
Flashline - Week ending March 7, 2013 (No. 2013-10)3/7/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FAF approves new FASB/GASB agenda-setting process and accepts post-implementation review report... FASB meetings and project updates... IASB proposes scope exception for hedge accounting... and more.
In brief
In brief: IASB issues exposure draft on novation of derivatives (No. 2013-12)3/6/13 | Assurance services
The IASB has issued an exposure draft proposing a limited scope amendment to IAS 39, Financial instruments: Recognition and measurement, and to the forthcoming chapter on hedge accounting in IFRS 9, Financial instruments. The exposure draft proposes some relief from the hedge accounting requirements when a derivative is novated to a central counterparty (CCP), such as a central clearing organization, under certain circumstances.
Flashline
Flashline - Week ending February 28, 2013 (No. 2013-09)2/28/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FAF approves new FASB/GASB agenda-setting process and accepts post-implementation review report... FASB meetings and project updates... IASB proposes scope exception for hedge accounting... and more.
Flashline
Flashline - Week ending February 21, 2013 (No. 2013-08)2/22/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: FASB’s new guidance on the reporting of amounts reclassified from accumulated other comprehensive income... Final minutes of the January 17 EITF meeting... and more.
Dataline
Dataline: FASB issues guidance on the reporting of amounts reclassified from accumulated other comprehensive income (No. 2013-03)2/21/13 | Assurance services
The FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, on February 5, 2013. The standard is effective for public entities for annual periods, and interim periods within those periods, beginning after December 15, 2012. Non-public companies will adopt the standard one year later, but would be exempt from certain interim disclosure requirements.
In brief
In brief: Boards conclude key revenue redeliberations with decisions on disclosures and transition (No. 2013-11)2/21/13 | Assurance services
The FASB and IASB (the “boards”) reached decisions at their February 20 meeting on disclosure requirements, transition, and effective date for the revenue recognition standard. These decisions substantively conclude the boards' redeliberations on this project. The boards’ decisions are tentative and subject to change. Any remaining “sweep” issues will be discussed at future meetings.
In brief
In brief: Accounting implications of recent events in Venezuela (No. 2013-09)2/19/13 | Assurance services
On February 8, 2013, the Venezuela government announced that effective February 13, 2013 its currency would be devalued 32% and that the government-regulated rate mechanism referred to as the Transaction System for Foreign Currency Denominated Securities (SITME) market would be eliminated. The Venezuelan government also created a new department referred to as the Superior Body for the Optimization of the Exchange System to oversee foreign currency exchange policies. This In brief article highlights the key financial reporting impacts of these developments.
In brief
In brief: South Sudan considered highly inflationary in 2013 (No. 2013-10)2/19/13 | Assurance services
At its November 2012 meeting with the SEC staff, the Center for Audit Quality’s SEC Regulations Committee’s International Practices Task Force (IPTF) discussed whether South Sudan’s economy should be considered highly inflationary. The SEC staff affirmed that South Sudan’s economy should be treated as highly inflationary for US GAAP purposes no later than the first reporting period (including annual and interim periods) beginning on or after January 1, 2013. This In brief article describes why South Sudan is considered highly inflationary and highlights some of the financial reporting implications.
In brief
In brief: FASB proposes a new model for classification and measurement of financial instruments (No. 2013-08)2/15/13 | Assurance services
On February 14, the FASB issued a revised proposal for the classification and measurement of financial instruments. Classification and measurement is one part of the FASB and IASB’s broader financial instruments project. The other parts consist of impairment and hedge accounting. The IASB previously finalized its classification and measurement approach, but in late 2012, proposed targeted amendments to its guidance. This In brief article provides an overview of the proposal.
Flashline
Flashline - Week ending February 14, 2013 (No. 2013-07)2/14/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Q1 accounting and reporting developments webcast—March 20... FASB issues final ASU on fair value disclosure exemption for nonpublic entities... Private Company Council adds three projects to agenda... and more.
In brief
In brief: Private Company Council holds its second meeting (No. 2013-07)2/14/13 | Assurance services
On February 12, the Private Company Council (Council) held its second meeting with the FASB (Board). Agenda items included discussing the private company decision-making framework (the "framework"), determining which projects to add to the Council’s technical agenda, selecting additional accounting topics for pre-agenda research, and providing input on selected current FASB projects.
IFRS news
IFRS news - February 20132/8/13 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) Back to basics – the IASB goes to work on the Conceptual Framework, (2) IAS 19R: Are you ready?, (3) Cannon Street press, and (4) Questions and answers.
Flashline
Flashline - Week ending February 7, 2013 (No. 2013-06)2/7/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: BoardroomDirect: January 2013... FASB issues two final Accounting Standards Updates... FAF to conduct post-implementation review of FAS 109 on income taxes... IASB Update — January 2013... and more
In brief
In brief: FASB finalizes new requirements on items reclassified from accumulated other comprehensive income (Revised February 14, 2013*) (No. 2013-05)2/6/13 | Assurance services
On February 5, 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance is the culmination of the board’s redeliberation on reporting reclassification adjustments from accumulated other comprehensive income. The new requirements will take effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012 (the first quarter of 2013 for public, calendar-year companies). This In brief article provides an overview of the key provisions.
In brief
In brief: FASB decides on new accounting model for certain guarantees (No. 2013-06)2/6/13 | Assurance services
The FASB decided at its February 6 meeting that certain guarantees issued by non-insurers, including certain financial guarantees issued by banks and other financial institutions, should be included in the scope of the proposed insurance contracts standard. The FASB’s tentative decision will be exposed for comment as part of its insurance contracts exposure draft. The exposure draft is expected by the end of the second quarter of 2013. This In brief article provides an overview of the FASB's tentative decision.
In brief
In brief: FASB finalizes amendment to clarify the scope of balance sheet offsetting disclosures (No. 2013-04)2/1/13 | Assurance services
On January 31, 2013, the FASB issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (the "ASU"). The ASU limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. This In brief article provides an overview of the scope clarification.
Flashline
Flashline - Week ending January 31, 2013 (No. 2013-05)1/31/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Key questions for board and audit committee members... To the point: Current issues for boards of directors... In brief: Boards decide on scope of revenue recognition standard and other matters...PwC comments on AICPA's proposed Financial Reporting Framework for Small- and Medium-Sized Entities... and more
In brief
In brief: Boards decide on scope of revenue recognition standard and other matters (No. 2013-03)1/31/13 | Assurance services
The FASB and IASB (the “boards”) decided at their January meeting to clarify the scope of the revenue standard, and they confirmed the accounting for repurchase agreements and performance fees by asset managers. They also confirmed that the accounting for transfers of non-financial assets that are not an output of an entity's ordinary activities should follow the guidance in the revenue recognition standard. This In brief article provides an overview of the boards' decisions and what's next.
PwC comment letter (AICPA)
PwC Comments on Proposed AICPA Financial Reporting Framework for Small- and Medium-Sized Entities1/29/13 | Assurance services
PwC fully supports efforts to enhance financial reporting for private companies, and believes that the most appropriate way to achieve meaningful change for private company stakeholders is through the collaborative efforts of the recently established Private Company Council (PCC) and the FASB. However, should the AICPA decide to issue this new non-GAAP framework, our comment letter provides observations and recommendations on changes the AIPCA should make to minimize confusion and enhance clarity. ...
- PwC 2012 SEC Comment Letter Trends for Industry Sectors
1/29/13 | Assurance services
PwC discusses key comment letter trends and considerations for the drafting of 2012 year-end financial reporting based on industry related comment letters published by the SEC staff on Form 10-Ks and Form 10-Qs. Reports are available for the following industries: Automotive, Energy companies, Industrial products, Power & utilities, and Retail & consumer.
Flashline
Flashline - Week ending January 24, 2013 (No. 2013-04)1/24/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: Boards conclude redeliberations on key revenue measurement and recognition issues... President Obama nominates Mary Jo White to run the SEC... SEC staff releases updated Financial Reporting Manual... FASB meetings and project updates... and more
Dataline
Dataline: Revenue from contracts with customers -- Boards conclude redeliberations on key revenue measurement and recognition issues (No. 2013-02)1/23/13 | Assurance services
The FASB and IASB (the "boards") met in November and December 2012 to continue redeliberating their joint revenue recognition project. The boards reached tentative decisions on key remaining measurement and recognition issues, including the constraint for recognizing revenue from variable consideration, collectibility, licenses, allocation of transaction price, and contract acquisition costs.
EITF observer
EITF observer: A meeting synopsis - January 20131/21/13 | Assurance services
At the EITF's January 17 meeting, the Task Force discussed seven Issues, reaching a final consensus on two issues (11-A and 12-D) and consensus-for-exposure on two Issues (13-A and 13-C). Further discussion is expected on three issues (12-B, 12-F and 12-H). This edition of EITF observer provides a synopsis of the meeting.
Flashline
Flashline - Week ending January 17, 2013 (No. 2013-03)1/17/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: Credit losses on financial assets — An overview of the FASB's current expected credit loss model... New PwC Guide to Accounting for Utilities and Power Companies — 2013 Edition... FASB requests comments on proposed improvements to accounting for repurchase agreements... and more
In brief
In brief: FASB proposes amendments to repurchase agreement accounting model (No. 2013-02)1/17/13 | Assurance services
On January 15, the FASB published for public comment an exposure draft to amend the accounting for repurchase agreements (aka “repos”) in an effort to identify those transactions that should be accounted for as a secured borrowing and to improve the associated accounting and disclosure requirements. The proposal will likely affect some companies that engage in certain types of repurchase agreements, including repos-to-maturity. It will also affect companies that engage in repurchase financing agreements and currently account for the components as a linked transaction. This In brief article provides an overview of the key provisions of the proposal.
Dataline
Dataline: Credit losses on financial assets -- An overview of the FASB's current expected credit loss model (No. 2013-01)1/16/13 | Assurance services
Impairment is a major component of the FASB and IASB's (the boards’) joint project to revisit most aspects of financial instruments accounting. In the aftermath of the recent financial crisis, the current incurred loss approach has been criticized for delaying the recognition of credit losses. The FASB has issued a new exposure draft on financial asset impairment. Our Dataline explains their "current expected credit loss" model and how it differs from the IASB's model.
Accounting guides
Guide to Accounting for Utilities and Power Companies - 2013 edition1/12/13 | Assurance services
PwC's newly developed Guide to Accounting for Utilities and Power Companies provides accounting guidance for reporting entities in the utility and power industry to consider when preparing financial statements in accordance with accounting principles generally accepted in the United States of America. It addresses a variety of areas such as commodity contracts, power-related investments, inventory, plant, asset retirement obligations, regulated operations, and more.
Flashline
Flashline - Week ending January 10, 2013 (No. 2013-02)1/10/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: FASB requests comments on proposed clarification to fair value disclosure exemption for nonpublic entities... ASB issues Omnibus Statement on Auditing Standards—2013... GASB approves final standard on reporting for government combinations and disposals of government operations... and more
In brief
In brief: FASB further clarifies the scope of balance sheet offsetting disclosures (No. 2013-01)1/10/13 | Assurance services
At its January 9 meeting, the FASB discussed feedback on its exposure draft that proposes clarifications to the scope of the new balance sheet offsetting disclosures required by ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The exposure draft proposes that the offsetting disclosures only be applied to derivatives, repurchase agreements, and securities lending transactions to the extent that they are subject to a master netting arrangement or similar agreement. The FASB decided to clarify what would be considered a derivative for the purposes of the new offsetting disclosures and proceed with issuing the final scope clarification. This In brief article provides an overview of the board's decisions.
PwC comment letter (FASB)
PwC Comments on Proposed ASU: Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities1/7/13 | Assurance services
PwC agrees with the proposed change to limit the disclosures to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to a master netting arrangement or similar agreement.
Flashline
Flashline - Week ending January 3, 2013 (No. 2013-01)1/3/13 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: US lawmakers reach fiscal cliff agreement; deal includes business "tax extenders"... Tax accounting insights: Around the world — When is a tax law enacted or substantively enacted?... FASB publishes 2013 U.S. GAAP Financial Reporting Taxonomy... and more
Webcast
Power and Utilities Executive webcast series: Practical guidance on recent financial reporting developments - Q4 2012 – January 10, 20131/2/13 | Assurance services
This PwC webcast is designed to help corporate accounting senior executives and will feature discussions on, and examples related to the accounting considerations relevant to the upcoming cycle of annual reports, key issues and new accounting standards as well as trends from an SEC comment letter perspective.
Flashline
Flashline - Week ending December 20, 2012 (No. 2012-50)12/21/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Point of view: Assessing going concern - Stakeholders would benefit from clarity in U.S. disclosure requirements... FASB proposes improvements to accounting for credit losses on financial assets... IFAC News - December 2012... and more
In brief
In brief: FASB proposes new model for accounting for credit losses on debt instruments (No. 2012-60)12/21/12 | Assurance services
This week, the FASB issued a proposal that introduces a new model for accounting for credit losses on debt instruments. The proposal calls for an entity to recognize an allowance for credit losses based on its current estimate of contractual cash flows not expected to be collected. The FASB’s proposed model eliminates any threshold required to record a credit loss and allows entities to consider a broader information set when establishing their allowance for loan losses. In addition, the model aims to simplify current practice by replacing today’s multiple impairment models with one model that applies to all debt instruments. This In brief article provides an overview of the proposal.
IFRS news
IFRS news - December 2012/January 201312/20/12 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) Making headway on financial instruments, (2) Boards make progress on revenue, (3) IAS 19 and discount rates, (4) Impairment of non-financial assets, and (5) Cannon Street press.
In brief
In brief: FASB clarifies scope of nonpublic entity fair value disclosure exemption (No. 2012-59)12/20/12 | Assurance services
On December 19, 2012, the FASB met to clarify the applicability of an exemption from a specific fair value disclosure for nonpublic entities. The board decided to clarify that all nonpublic entities are exempt from the requirement to disclose the categorization by level of the fair value hierarchy for items disclosed but not measured on the balance sheet at fair value. This In brief article provides an overview of the board's decision and what's next.
Setting the standard
Setting the standard -- What you need to know about the FASB's and IASB's standard setting activities -- December 201212/19/12 | Assurance services
There is no shortage of activity to report this quarter as the boards forged ahead on their major convergence projects. The FASB and IASB made several key decisions as they move closer toward issuing exposure drafts and final standards. In the Q4-2012 edition of Setting the standard, we update you on the latest developments of the joint standard setting projects of the FASB and IASB, as well as the latest on FASB-only projects.
In brief
In brief: Boards conclude redeliberations on key revenue measurement and recognition issues (No. 2012-58)12/18/12 | Assurance services
The FASB and IASB reached decisions at their December meeting on allocating the transaction price to separate performance obligations, applying the proposed model to bundled arrangements, constraining the cumulative amount of revenue recognized on licenses, and accounting for contract acquisition costs. The boards’ decisions are tentative and subject to change. This In brief article provides an overview of the boards' decisions and what's next.
Point of view
Point of view: Assessing going concern -- Stakeholders would benefit from clarity in U.S. disclosure requirements12/17/12 | Assurance services
During the recent economic downturn, some stakeholders were surprised to learn that companies faced liquidity issues. As a result, the FASB and PCAOB are currently revisiting the accounting and auditing guidance around going concern assessments. Our Point of view on assessing going concern highlights that a standard that will require a company to provide earlier and more frequent, scalable disclosures that increase if conditions deteriorate will benefit stakeholders. However, we recognize that the auditor's role under the existing auditing standards is important to stakeholders. We believe improvements in the reporting model will be achieved most effectively by accounting and auditing standard setters working together to develop complementary standards.
Dataline
Dataline: Highlights of the 2012 AICPA National Conference on Current SEC and PCAOB Developments (No. 2012-22)12/13/12 | Assurance services
The 2012 AICPA National Conference on Current SEC and PCAOB Developments (the Conference) was held on December 3, 4, and 5, 2012. Conference presenters included representatives from regulatory and standard-setting bodies, auditors, users, preparers, industry experts, and an investor panel. Remarks centered mainly on the status of potential incorporation of IFRS into the U.S. financial reporting system, updates on regulatory and financial reporting matters, capital formation, and the auditing profession’s impact on the reliability and usefulness of financial statements.
Flashline
Flashline - Week ending December 13, 2012 (No. 2012-49)12/13/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: The quarter close: A look at this quarter's financial reporting issues — Q4 2012... Dataline: Highlights of the 2012 AICPA National Conference on Current SEC and PCAOB Developments...Regulatory and standard setting developments... M&A snapshot: Financial risk management considerations in an acquisition... and more
In brief
In brief: FASB agrees on changes to reporting of discontinued operations (No. 2012-57)12/13/12 | Assurance services
On December 12, 2012, the FASB (the “board”) met to resume redeliberations on its discontinued operations project. The project had been inactive since early 2010 while the board focused on its higher priority projects. At this meeting, the board reaffirmed its previous decision about the definition of a discontinued operation, modified certain disclosure requirements, and directed its staff to issue a revised exposure draft as soon as possible.
M&A snapshot
Financial risk management considerations in an acquisition (M&A snapshot)12/13/12 | Assurance services
The acquisition of a business can have a significant impact on both the risk exposures and risk management strategies of the combined entity. In many cases, an acquirer’s financial risk exposure will increase as a result of the acquisition. However, there may be situations in which the acquiree’s operations reduce the acquirer’s current risk exposure. In any event, identifying potential changes in enterprise risks, creating an action plan to address them, and managing changes to risk management strategies post-acquisition are critical to developing short- and long-term solutions for integrating financial risk management considerations in an acquisition.
Quarter close
The quarter close — Fourth quarter 2012: Publication and new video perspectives12/12/12 | Assurance services
This edition of The quarter close has the latest updates and timely reminders to help you navigate your year-end reporting process with a number of hot topics, including fair value, asset impairments, pensions, valuation allowances, and more.
- Regulatory and standard setting developments - December 12, 2012
12/12/12 | Assurance services
The regulatory and standard-setting environment continues to be fluid with new regulations and standards emerging from the Securities and Exchange Commission, the Financial Accounting Standards Board, the Public Company Accounting Oversight Board, and others. This issue of Regulatory and Standard-Setting Developments provides a high-level summary of some of the relevant regulations, standards, and guidance that were recently issued or are on the horizon, both in and outside of the U.S., and other information that may be of interest to audit committees, companies, and others.
- Using qualitative impairment testing for FCC licenses
12/11/12 | Assurance services
Accounting Standards Update 2012-02 would enable broadcasters to streamline goodwill impairment testing on FCC licenses maintained as indefinite-lived assets. This PwC whitepaper discusses variables for a qualitative analysis, sometimes referred to as “Step 0,” may be feasible for FCC licenses.
PwC comment letter (AICPA)
PwC Comments on Omnibus Proposal of the AICPA Professional Ethics Division - September 19, 201212/11/12 | Assurance services
PwC supports the PEEC's stated objective of clarifying the circumstances under which the AICPA Code of Professional Conduct applies to services provided by its members. PwC recommends that prior to adopting its proposal, the PEEC should further consider three things: (1) whether the PEEC's proposed revision to the definition of professional services will have the unintended effect of sweeping in services that have no connection with or relationship to the practice of accountancy; ...
In brief
In brief: Private Company Council holds its inaugural meeting (No. 2012-56)12/10/12 | Assurance services
On December 6, the Private Company Council (the Council) held its inaugural meeting with the FASB. Key agenda items for the meeting included (1) discussion of stakeholder feedback on the Private Company Decision-Making Framework, (2) the direction of the Council's technical agenda, and (3) the official transition from the Private Company Financial Reporting Committee (PCFRC) to the Council. This In brief article provides an overview of the Council and FASB's discussion of each of these items.
10Minutes
10Minutes on derivatives reform for non-financial services companies12/7/12 | Assurance services
For non-financial services companies, regulations introduced by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III will result in significant changes to the derivatives market. Every aspect of a corporation using derivative to manage risk will ultimately be affected—from risk strategies and corporate funding to operations and accounting. This 10Minutes provides insight on the impacts of new regulation on corporate entities and what those entities need to do now in order to meet impending reform deadlines and ensure they're well equipped to manage increased costs and compliance responsibilities.
Flashline
Flashline - Week ending December 6, 2012 (No. 2012-48)12/7/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: 2012 year-end accounting and reporting considerations — Leading practices and lessons learned on key topics... Dataline: Eurozone uncertainties — Financial reporting considerations of a country's exit from the Eurozone... List of available speeches from the 40th Annual AICPA National Conference on Current SEC and PCAOB Developments... and more
Dataline
Dataline: Financial instruments classification and measurement - An update on the FASB's tentative approach to be exposed in Q1 2013 (No. 2012-21)12/7/12 | Assurance services
Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. The FASB expects to issue a revised exposure draft in the first quarter of 2013 for public comment. The board will likely ask for feedback on the amount of time needed to implement the changes before deciding on an effective date for the final standard. The IASB issued an exposure draft of its proposed changes to IFRS 9 in late November 2012 with a proposed effective date of January 1, 2015. The exposure draft has a 120-day comment period. This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.
Dataline
Dataline: 2012 year-end accounting and reporting considerations - Leading practices and lessons learned on key topics (No. 2012-20)12/3/12 | Assurance services
This year end, entities continue to face many complex financial reporting issues such as providing new fair value disclosures, accounting for debt modifications, and evaluating revenue recognition guidance. Economic challenges around the world continue to have broad financial reporting implications. While not an all-inclusive list, this Dataline is intended to serve as a timely reminder of leading practices and lessons learned on key issues that companies should consider as they navigate the year-end financial reporting process.
Dataline
Dataline: Eurozone uncertainties - Financial reporting considerations of a country's exit from the Eurozone (No. 2012-19)11/30/12 | Assurance services
The Eurozone debt crisis continues to persist, leading some to believe that the crisis might result in a country exiting the Euro and adopting a new local currency. Many companies that could be affected by a country's exit from the Euro have started to consider how that might affect their operations, financing, and business strategies. Companies should also consider the financial reporting implications of the creation of a new currency.
PwC comment letter (FASB)
PwC Comments on Invitation to Comment: Disclosure Framework11/29/12 | Assurance services
PwC encourages the Board to continue its outreach to investors and other stakeholders as it decides which alternatives to proceed with and develops them into a proposal. PwC generally supports the Board's effort to improve the relevance and comparability of financial reporting by developing a framework for setting disclosure requirements.
Flashline
Flashline - Week ending November 29, 2012 (No. 2012-47)11/29/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: Dataline: COSO's proposed Internal Control Compendium, updated Framework, and Illustrative Tools... PwC shares views on FASB's disclosure framework discussion paper... SEC Chairman Mary Schapiro to step down... and more
In brief
In brief: IASB proposes limited amendments to its financial instruments guidance under IFRS 9 (No. 2012-55)11/29/12 | Assurance services
This week, the IASB issued its exposure draft proposing limited amendments to IFRS 9 (2010), Financial instruments. The proposed amendments are intended to: (1) Address application issues that have arisen since the original issuance of IFRS 9 with regard to financial assets measured at amortized cost, (2) Consider the interaction with the IASB’s insurance project, and (3) Reduce differences between IFRS 9 and the FASB’s proposed classification and measurement approach. This In brief article provides an overview of the IASB's proposed amendments and what's next.
Dataline
Dataline: COSO's proposed Internal Control Compendium, updated Framework, and Illustrative Tools (No. 2012-18)11/27/12 | Assurance services
On December 19, 2011, COSO issued an exposure draft of the proposed Internal Control-Integrated Framework (the updated Framework) for public comments that ended on March 31, 2012. This Dataline highlights the more noteworthy changes to the updated Framework, including requirements set out for effective internal control. It also summarizes the purpose of the companion documents to the updated Framework and highlights key considerations for companies, including transition to the updated Framework.
Flashline
Flashline - Week ending November 20, 2012 (No. 2012-46)11/21/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: SEC provides regulatory relief for entities impacted by Hurricane Sandy... FinREC issues working draft of new chapter of AICPA guide: Testing Goodwill for Impairment...COSO extends comment period on internal control compendium to December 4... and more
In brief
In brief: Boards make decisions on several major outstanding revenue issues (No. 2012-54)11/20/12 | Assurance services
An overview of the FASB and IASB's November 2012 decisions on revenue recognition from variable consideration; presentation of amounts not expected to be collected; and licenses, from PwC's CFOdirect Network.
In brief
In brief: FASB amends new disclosures on items reclassified from accumulated other comprehensive income (No. 2012-53)11/19/12 | Assurance services
The FASB (the "board") met on November 14, 2012 to discuss the feedback received on the exposure draft on the new disclosures on items reclassified from accumulated other comprehensive income. The board decided to move towards a final standard after making decisions on presentation, interim disclosures, and the effective date. This In brief article provides an overview of those decisions and what's next.
Flashline
Flashline - Week ending November 15, 2012 (No. 2012-45)11/16/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: SEC provides regulatory relief for entities impacted by Hurricane Sandy... FinREC issues working draft of new chapter of AICPA guide: Testing Goodwill for Impairment...COSO extends comment period on internal control compendium to December 4... and more
Webcast
Revenue recognition exposure draft update webcast – November 29, 201211/15/12 | Assurance services
The FASB and IASB (the "boards") issued a revised exposure draft for their joint revenue recognition proposal in November 2011. The boards have been re-deliberating the project since July 2012 and have made several tentative decisions on the comments received from constituents on this exposure draft. We invite you to join us as we discuss key topics re-deliberated and related business impacts on our next PwC webcast.
Dataline
Dataline: Accounting and disclosure implications of Hurricane Sandy (No. 2012-17)11/12/12 | Assurance services
Hurricane Sandy is expected to be the second-costliest Atlantic hurricane in history, only surpassed by Hurricane Katrina in 2005. Many businesses were disrupted by Hurricane Sandy and its aftermath including the New York Stock Exchange, which was closed for two days. While not all-inclusive, this Dataline discusses several accounting and disclosure-related matters companies may encounter in dealing with the financial reporting implications of Hurricane Sandy.
Webcast
Q4 Current Accounting and Reporting Developments webcast - December 13, 2012 - Unable to attend? Listen to the on-demand version (CPE eligible)11/11/12 | Assurance services
Hosted by PwC's National Professional Services Group, these quarterly webcasts are designed to keep you informed about emerging accounting, regulatory, and market developments impacting financial reporting. The December 13 webcast featured insights from a broad range of PwC specialists provided updates on the current state of technical topics and emerging issues that may impact your business. New this quarter, we are offering the Q4 2012 webcast in an on-demand version.
Flashline
Flashline - Week ending November 8, 2012 (No. 2012-44)11/9/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: In brief: FASB moving forward on “going concern” standard... FASB extends disclosure framework comment period to November 30... IASB finalizes definition of an “investment entity”... and more
In brief
In brief: FASB plans to propose amendments to repurchase agreement accounting model before year-end (No. 2012-52)11/9/12 | Assurance services
At its November 7 meeting, the FASB (the “board”) discussed the effect on financial reporting complexity of the decisions reached in its project on accounting for repurchase agreements ("repos"). The board confirmed its previous decisions on the project and indicated it will issue an exposure draft for public comment later this quarter. The comment letter period will end on March 29, 2013. The board also made decisions at this meeting about transition, early adoption, and transition disclosures. This In brief article provides an overview of those decisions.
In brief
In brief: FASB moving forward on "going concern" standard (No. 2012-50)11/8/12 | Assurance services
Years after adding the project to its agenda, the FASB took a significant step forward at its November meeting toward developing a new going concern standard. With the stated objectives of bringing increased discipline, structure, and consistency to existing disclosure practices, the FASB decided to require management to formally perform going concern assessments and provide related footnote disclosures.This In brief article provides an overview of the FASB's key decisions and what's next.
In brief
In brief: AICPA seeks feedback on its Financial Reporting Framework for Small- and Medium-Sized Entities (No. 2012-51)11/8/12 | Assurance services
On November 1, 2012, the American Institute of Certified Public Accountants (AICPA) issued an exposure draft of its proposed Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs). The FRF for SMEs is intended to provide a financial reporting alternative for private companies not required to prepare US GAAP financial statements. It is a self-contained, special purpose framework that uses historical cost as its primary measurement basis. The AICPA requests that preparers, auditors, and users of the financial statements of privately owned SMEs submit comments on the proposed framework by January 30, 2013. This In brief article highlights the key features of the proposed framework and what's next.
Dataline
Dataline: Implications to hedge accounting of changes to derivative counterparties or hedging relationships (No. 2012-16)11/6/12 | Assurance services
Market protocols for derivatives may be changing in the near future. Financial reform legislation could make novations (in this case, substitution of counterparties to a contract) more common as over-the-counter (OTC) transactions are migrated to central exchanges. In anticipation of these changes, the International Swaps and Derivative Association (ISDA) asked the SEC’s Office of the Chief Accountant if the novation of a bilateral OTC derivative contract to a central counterparty "on the same financial terms" would require the designation of a new hedging relationship.
IFRS news
IFRS news - November 201211/6/12 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) IASB exemption from consolidating investment entities, (2) PwC partner Peter Holgate's personal view of criticisms of IFRS, (3) revenue update, (4) Insurance contracts – proposal re-exposed, (5) IFRS Foundation response to SEC 'work plan', and (6) know your IFRS 'ABC' with our new questions-and-answers series. This month: A is for 'associates'.
Flashline
Flashline - Week ending November 1, 2012 (No. 2012-43)11/2/12 | Assurance services
PwC's weekly update on financial reporting. This week's topics include: PwC comments on FASB staff paper on private company decision-making framework... In brief: FASB to amend and clarify scope of balance sheet offsetting disclosures...In brief: IFRS Foundation responds to SEC’s final report on IFRS “Work Plan”... and more
In brief
In brief: IASB finalizes definition of an "investment entity" (No. 2012-49)11/2/12 | Assurance services
Read this discussion of the IASB's October 2012 amendments to its existing guidance on the definition of an "investment entity," from PwC's CFOdirect Network.
In brief
In brief: FASB amends and clarifies scope of balance sheet offsetting disclosures (No. 2012-48)11/1/12 | Assurance services
Over the past several months, issuers and other constituents in a variety of industries have raised concerns to the FASB staff and board regarding the scope of the new balance sheet offsetting disclosure requirements required by Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities. In response to these concerns, at its October 31 meeting the FASB decided to amend and clarify the scope of the balance sheet offsetting disclosures. These disclosures are effective in Q1 2013 for calendar year-end companies. This In brief article provides an overview of the FASB's decision and what's next.
PwC comment letter (FASB)
PwC Comments on Invitation to Comment: Private Company Decision-Making Framework - A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies10/30/12 | Assurance services
PwC generally believes that the draft framework identifies the appropriate matters to consider when determining whether a modification is appropriate. It identifies the significant differentiating factors that could support financial reporting differences between public and private companies.
In brief
In brief: IFRS Foundation responds to SEC’s final report on IFRS Work Plan (No. 2012-47)10/29/12 | Assurance services
On October 23, 2012, the IFRS Foundation (the organization that oversees the IASB) published a response (the "Foundation Staff response") to the SEC’s final report on its IFRS Work Plan (the "SEC Staff report") issued in July 2012. The Foundation Staff response is an assessment of the matters discussed in the SEC Staff report, including the operations of the IFRS Foundation and the IASB, the use of IFRS as global accounting standards, and issues related to incorporating IFRS into the US financial reporting system. This In brief article provides an overview of the Foundation Staff response.
Dataline
Dataline: Revenue from contracts with customers -- The redeliberations continue (No. 2012-15)10/25/12 | Assurance services
The FASB and IASB (the “boards”) met in September and October 2012 to continue redeliberating their joint revenue recognition project. They reached tentative decisions on the constraint for recognizing variable consideration, certain issues related to collectibility, time value of money, distributor and reseller arrangements, contract modifications, and measuring progress toward satisfying a performance obligation. This Dataline summarizes the boards’ redeliberations and tentative decisions made at the September and October joint meetings and the potential implications for certain industries.
In brief
In brief: FASB and IASB decide on revenue contract modifications and measures of progress (No. 2012-46)10/19/12 | Assurance services
The FASB and IASB (the "boards") met on October 18, 2012 to discuss their joint project on revenue recognition. They reached decisions on contract modifications and measures of progress towards satisfying a performance obligation. The boards' decisions are tentative and subject to change. Other key issues still to be redeliberated include collectibility, the constraint on recognizing revenue from variable consideration, licenses, allocation of transaction price, disclosures, and transition. This In brief article provides an overview of the boards discussions and key decisions.
- IFRS and US GAAP: similarities and differences - 2012 update
10/18/12 | Assurance services
While the near-term use of IFRS in the US by public companies will not be required, IFRS remains and is becoming increasingly relevant to many US businesses. Companies will be affected by IFRS at different times and to a different degree, depending on factors such as size, industry, geography, M&A activity, and global expansion plans. To assist companies in understanding the current IFRS and US GAAP differences and the potential implications thereof, PwC has issued an updated edition of our popular guide, IFRS and US GAAP: similarities and differences.
Dataline
Dataline: Highlights of the 2012 AICPA National Conference on Banks and Savings Institutions (No. 2012-14)10/18/12 | Assurance services
The 2012 AICPA National Conference on Banks and Savings Institutions was held September 10 through 12, 2012 in Washington, DC. Representatives from the banking regulators, SEC, and standard setters presented at the Conference along with auditors, users, preparers, and industry experts. Presenters expressed views on a wide range of important accounting, auditing, and financial reporting topics. This Dataline provides highlights of topics discussed at the Conference.
PwC comment letter (FASB)
PwC Comments on Proposed ASU, Presentation of Items Reclassified Out of Accumulated Other Comprehensive Income10/16/12 | Assurance services
PwC supports the proposal to provide information about the impact of reclassifications from accumulated other comprehensive income to net income in a single footnote. Most of the information to be disclosed is already included elsewhere in the financial statements. Consolidating it and providing a roadmap to the related disclosures will provide users with improved information without the operational challenges and costs that would have resulted from requiring separate presentation on the face of the income statement of the effects of the reclassifications on individual line items, particularly when such information is not readily available.
PwC comment letter (FASB)
PwC Comments on Proposed ASU: The Liquidation Basis of Accounting10/8/12 | Assurance services
PwC suggests enhancements to the proposed guidance in the event that others believe it will be helpful to preparers and financial statement users and will improve consistency as to when and how to prepare financial statements using the liquidation basis of accounting.
In brief
In brief: FASB clarifies scope of new repurchase accounting model (No. 2012-45)10/5/12 | Assurance services
At its October 3 meeting, the FASB decided to eliminate the existing guidance for evaluating if a repurchase agreement entered into as part of a "repurchase financing" should be considered linked to a previously transferred financial asset. The board's decision means that under its proposed amendments to the existing model, these repurchase agreements will be accounted for as secured borrowings. This In brief article provides an overview of the FASB's discussions.
IFRS news
IFRS news - October 201210/4/12 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) revenue recognition project redeliberations, and (2) an update by PwC UK Partner Peter Hogarth on the leasing project. It also includes an IFRS quiz on deferred tax.
In brief
In brief: FASB and IASB make progress on revenue redeliberations; more to come (No. 2012-44)9/28/12 | Assurance services
The FASB and IASB (the "boards") met on September 24 and 27 to discuss their joint project on revenue recognition. They reached decisions on certain topics relating to the constraint on recognizing variable consideration, collectibility, time value of money, and distributor and reseller arrangements. The boards’ decisions are tentative and subject to change. The boards directed their staff to conduct further analysis on certain items, including aspects of the variable consideration constraint and presentation issues relating to collectibility. Other key issues still to be redeliberated include licenses, contract modifications, allocation of transaction price, disclosures, and transition. This In brief article provides an overview of the decisions.
PwC comment letter (FASB)
PwC Comments on Proposed ASU: Disclosures about Liquidity Risk and Interest Rate Risk - Financial Instruments (Topic 825)9/25/12 | Assurance services
PwC agrees that improved disclosures about liquidity and interest rate risks could provide a deeper understanding of an entity's risk profile. While the Firm encourages the Board to continue its outreach to analysts and preparers as it further develops the proposed disclosures, it offers a number of recommendations for the Board's consideration.
Setting the standard
Setting the standard -- What you need to know about the FASB's and IASB's standard setting activities -- September 20129/25/12 | Assurance services
In the Q3-2012 edition of Setting the standard, we update you on the latest developments of the joint standard setting projects of the FASB and IASB, as well as the latest on FASB-only projects.
Dataline
Dataline: Disclosure of items reclassified from accumulated other comprehensive income -- FASB proposes new disclosures (No. 2012-13)9/20/12 | Assurance services
In August 2012, the FASB issued an exposure draft of a proposal requiring new footnote disclosures for reclassifications from accumulated other comprehensive income to net income. Among other things, an entity would be required to disclose, using a tabular format, the amount reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. An entity would not need to show the income statement line item affected for certain components such as net periodic pension cost. This Dataline looks at the key provisions of the proposal and offers our observations.
Accounting guides
Guide to Accounting for Financing Transactions: What You Need to Know about Debt, Equity, and the Instruments in Between - 2012 edition9/19/12 | Assurance services
The accounting guidance for the issuance, modification, conversion and repurchase of debt and equity securities has developed over many years into a complex set of rules. Before the FASB codified the accounting standards, the accounting guidance applicable to a single transaction was contained in a number of separate FASB Standards, EITF Issues, interpretations, and speeches. Although the guidance is now codified within the FASB's Accounting Standards Codification, the analysis continues to involve detailed and sequential consideration of the relevant provisions of the guidance. This PwC Guide provides a roadmap to the applicable accounting literature to help you determine which steps are necessary for a particular transaction.
Dataline
Dataline: Disclosures about liquidity risk and interest rate risk -- A closer look at the proposed standard (No. 2012-12)9/18/12 | Assurance services
In June 2012, the FASB issued a proposal that would require companies to provide new disclosures about liquidity and interest rate risks. The proposal calls for quantitative exhibits and qualitative disclosures about risks arising from an entity's recorded and unrecorded financial instruments and cash flow obligations. Additionally, it provides separate disclosure requirements for any entity or segment defined as a "financial institution." This Dataline looks at the proposed disclosures and offers our observations.
In brief
In brief: COSO releases "Internal Control over External Financial Reporting: Compendium of Approaches and Examples" for public comment (No. 2012-43)9/18/12 | Assurance services
On September 18, 2012, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released the Internal Control over External Financial Reporting: Compendium of Approaches and Examples (the Compendium) for public comment through November 20, 2012. In conjunction with the release of the Compendium, COSO has made available two other documents. This In brief article provides an overview of the Compendium.
Quarter close
The quarter close — Third quarter 2012: Publication and new video perspectives now available9/17/12 | Assurance services
This edition of The quarter close highlights the SEC report on IFRS, the latest on conflict minerals, health care reform, and several FASB releases that are sure to keep you busy this fall. Video perspectives are also now available.
- Regulatory and standard-setting developments -- September 17, 2012
9/17/12 | Assurance services
As potentially significant regulations and standards emerge from the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), the Public Company Accounting Oversight Board (PCAOB) and others, companies will want to stay ahead of the changes impacting their businesses. This publication provides a high-level summary of some of the relevant guidance, regulations, and standards that were recently issued or are being considered, both in and outside of the U.S.
Dataline
Dataline: Leases -- One size does not fit all: A summary of the boards' redeliberations (No. 2012-11)9/17/12 | Assurance services
The FASB and IASB jointly issued the initial leases exposure draft in August 2010 (the "initial ED"). A majority of the over 800 comment letters received raised significant concerns about the proposals. Redeliberations began in January 2011 and were substantially completed in July 2012. A "revised ED" is planned for the end of November 2012 (although this may slip into early 2013), with a 120-day comment period. This Dataline looks at both the lessee and lessor proposed accounting models that will be included in the revised ED.
EITF observer
EITF observer: A meeting synopsis - September 20129/13/12 | Assurance services
At the EITF's September 11 meeting, the Task Force discussed five Issues, reaching a final consensus on three issues (12-A, 12-C and 12-E) and consensus-for-exposure on two Issues (11-A and 12-G). This edition of EITF observer provides a synopsis of the meeting.
In brief
In brief: FASB determines additional disclosure requirements for repurchase agreements (No. 2012-42)9/12/12 | Assurance services
The FASB decided at its September 5 meeting to propose additional disclosure requirements for repurchase agreements accounted for as secured borrowings and for repurchase agreements accounted for as sale transactions with a forward repurchase commitment. This In brief article provides an overview of the proposed disclosures.
Dataline
Dataline: SEC adopts conflict minerals rule -- Public and nonpublic companies in many industries are affected (revised January 29, 2013) (No. 2012-10)9/11/12 | Assurance services
On August 22, 2012, the SEC approved a final rule requiring certain issuers to publicly disclose their use of conflict minerals [tantalum, tin, tungsten, and gold] and whether those minerals originated in the Democratic Republic of the Congo ("DRC") or adjoining countries (“covered countries”). This Dataline looks at the key provisions of the final rule. Also included is a supplement on frequently asked questions on conflict minerals.
In brief
In brief: FASB reaches conclusion on impairment model for financial assets measured at FV-OCI (No. 2012-41)9/11/12 | Assurance services
The FASB recently began discussing a revised impairment model for financial assets. At its September 7 meeting, the FASB made a key decision with respect to the impairment model by tentatively concluding that the current expected credit loss (CECL) model should apply to financial assets measured at fair value with changes in fair value recorded through other comprehensive income (FV-OCI). However, the FASB also decided to allow a practical expedient in applying the new model. This In brief article provides an overview of the FASB's discussions.
IFRS news
IFRS news - September 20129/11/12 | Assurance services
PwC's monthly report shedding light on the IASB's activities. This edition looks at (1) the IASB's review draft (RD) that details the new hedge accounting requirements, (2) joint venture or joint operation - classification of joint arrangements, and (3) IFRS quiz on operating segments.
In brief
In brief: IASB issues draft of forthcoming new hedge accounting requirements (No. 2012-40)9/11/12 | Assurance services
On September 7, 2012, the IASB issued a draft of the general hedge accounting requirements that will be added to IFRS 9, Financial Instruments (the Draft). The current rules on hedge accounting in IAS 39, Financial Instruments: Recognition and Measurement have frustrated many preparers, as the requirements have not been well linked with common risk management practices. The detailed rules have at times made achieving hedge accounting impossible or very costly, even when the hedge was an economically rational risk management strategy. The IASB has addressed several of these concerns in this third phase of its efforts to replace IAS 39 with IFRS 9. This In brief article provides an overview of the key provisions of the Draft.