Dataline
Analysis, views, and insight on significant financial reporting developments
5/14/2013 | 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. Read more
Dataline: Cumulative translation adjustment – A compromise to achieve consistency (No. 2013-10)
5/16/2013 | Assurance services
4/17/2013 | Assurance services
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Dataline: FASB solicits feedback on its framework for improving financial statement disclosures (No. 2012-09)8/27/12 | Assurance services
On July 12, 2012, the FASB issued a Discussion Paper — Invitation to Comment on Disclosure Framework. In the Discussion Paper, the Board is seeking stakeholder feedback on twenty-two questions designed to identify information that should be disclosed in notes to the financial statements to make them more relevant, flexible, and better organized. Comments on the DP are due November 16, 2012. This Dataline takes a look at the topics on which the FASB is requesting comments and offers our observations.
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Dataline: Indefinite-lived intangible asset impairment -- FASB issues guidance that simplifies impairment test and allows early adoption (No. 2012-08)8/17/12 | Assurance services
The FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (the revised standard), on July 27, 2012. The revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a "qualitative" assessment to determine whether further impairment testing is necessary. The approach is similar to the guidance finalized last year for goodwill impairment testing. This Dataline looks at the key provisions of the revised standard and offers our observations.
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Dataline: Revenue from contracts with customers -- 'Ready, set, redeliberate' (No. 2012-07)8/9/12 | Assurance services
The FASB and IASB met in July to begin redeliberating their joint revenue recognition project. This PwC Dataline summarizes the boards’ redeliberations and tentative decisions made during the July board meeting, and the potential effects on certain industries. It also includes audio links to additional information on selected topics.
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Dataline: SEC Staff releases its final report on its IFRS Work Plan (No. 2012-06)8/8/12 | Assurance services
The SEC Staff recently published its final Staff Report regarding the potential impact of incorporation of IFRS into the US financial reporting system. This Dataline looks at the six key areas covered in the Staff Report and offers our observations.
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Dataline: New fair value measurement standard -- Adoption of the new guidance: First quarter 2012 measurement and disclosure observations (No. 2012-05)6/14/12 | Assurance services
This PwC Dataline provides observations on how new fair value guidance was implemented in the first quarter by a sample of 37 companies from a variety of industries. It identifies leading practices and points of interest to assist reporting entities as they develop their future fair value disclosures. The companies we sampled are from a variety of industries, including (1) financial services - banking and capital markets, asset management, and insurance, and (2) other industries - utilities, energy, manufacturing, and real estate.
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Dataline: Responses are in on the re-exposed proposed revenue standard -- Constituents voice their support...and concerns (No. 2012-04)5/31/12 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contracts with Customers, on November 14, 2011. The boards received approximately 360 comment letters in response to the updated exposure draft, down significantly from the nearly 1,000 comment letters received on the exposure draft released in June 2010. Since issuing the updated exposure draft, the boards have continued extensive outreach efforts, including four public and numerous private, industry-focused roundtables. This PwC Dataline addresses the areas of focus in roundtables and in comment letters received by the boards on the updated exposure draft.
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Dataline: Emerging growth companies -- Frequently asked questions about Title I of the JOBS Act (Revised June 13, 2012*) (No. 2012-03)4/30/12 | Assurance services
The JOBS Act of 2012 created a number of special accommodations under the U.S. securities laws for a newly designated group of companies known as "emerging growth companies" (EGCs). A principal goal of the JOBS Act (which is short for the Jumpstart Our Business Startups Act) is to encourage job creation and economic growth by making it easier for private companies to access the public capital markets. This Dataline provides responses to frequently asked questions about the EGC provisions of Title I of the JOBS Act.
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Dataline: New fair value measurement standard -- Implementation guidance for new disclosure requirements (No. 2012-02)2/27/12 | Assurance services
In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (the ASU). The ASU resulted from a joint project with the International Accounting Standards Board (IASB). The IASB also issued IFRS 13, Fair Value Measurement, in May 2011. Many of the changes to existing fair value measurement guidance represent clarifications and are intended to align U.S. GAAP and IFRS. However, certain of the amendments to U.S. GAAP are substantive and several new disclosures are required. This Dataline includes a series of questions and answers providing implementation guidance on selected new disclosure...
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Dataline: Presentation of comprehensive income -- Applying the FASB's final standard on presenting comprehensive income after deferral of the reclassifications requirement (No. 2012-01)1/19/12 | Assurance services
The FASB issued a final standard in June 2011 requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. In response to concerns from some preparers, the FASB issued an amendment in December 2011 to indefinitely defer one of the requirements contained in its June 2011 final standard. That requirement called for reclassification adjustments from accumulated other comprehensive income to be measured and presented by income statement line item in net income and also in other comprehensive income. In Dataline 2011-24 we discussed the final standard as originally issued. Now that the FASB has...
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Dataline (Supplement): Revenue from contracts with customers - Automotive industry (No. 2011-35)12/19/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the automotive industry.
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Dataline: Highlights of the 2011 AICPA National Conference on Current SEC and PCAOB Developments (No. 2011-37)12/15/11 | Assurance services
The 2011 AICPA National Conference on Current SEC and PCAOB Developments was held on December 5, 6, and 7, 2011. Similar to prior years, the Conference hosted representatives from regulators and standard setters, along with auditors, users, preparers, and industry experts who expressed views on a wide range of important accounting, auditing, and financial reporting topics. We provide you highlights of the topics discussed at the Conference in this Dataline.
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Dataline (Supplement): Revenue from contracts with customers - Entertainment and media industry (No. 2011-35)12/7/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the entertainment and media industry.
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Dataline: SEC Staff continue progress on IFRS work plan -- Comparison between IFRS and US GAAP frameworks and analysis of IFRS in practice (No. 2011-36)12/6/11 | Assurance services
On November 16, 2011, the SEC's Office of the Chief Accountant (the SEC Staff) published two staff papers. The first summarizes differences between the US GAAP and IFRS frameworks, and the second analyzes how IFRS is applied in practice. The papers were published pursuant to the SEC StaffÆs work plan to analyze considerations relevant to the Commission's decision on whether, when, and how IFRS might be incorporated into the US financial reporting system. This Dataline provides a summary of selected differences between US GAAP and IFRS noted in the first paper. It also summarizes the Staff's key observations included in the second paper on how IFRS is applied in practice. ...
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Dataline (Supplement): Revenue from contracts with customers - Pharmaceutical and life sciences industry (No. 2011-35)12/1/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the pharmaceutical and life sciences industry.
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Dataline (Supplement): Revenue from contracts with customers - Retail and consumer industry (No. 2011-35)12/1/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the retail and consumer industry.
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Dataline: Revenue from contracts with customers -- The proposed revenue standard is re-exposed (revised January 3, 2012) (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB (the "boards") released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011 and are requesting comments by March 13, 2012. The boards have asked whether the proposed guidance is clear, and requested feedback specifically on: performance obligations satisfied over time; presentation of the effects of credit risk; recognition of variable consideration; the scope of the onerous performance obligation test; interim disclosures; and transfer of nonfinancial assets that are outside an entity's ordinary activities (for example, sale of PP&E). It is unclear when a final standard will be issued; however, the boards have indicated that the final standard will have an effective date no...
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Dataline (Supplement): Revenue from contracts with customers - Aerospace and defense industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the aerospace and defense industry.
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Dataline (Supplement): Revenue from contracts with customers - Technology industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the technology industry.
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Dataline (Supplement): Revenue from contracts with customers - Transportation and logistics industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the transportation and logistics industry.
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Dataline (Supplement): Revenue from contracts with customers - Telecommunications industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the telecommunications industry.
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Dataline (Supplement): Revenue from contracts with customers - Asset management industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the asset management industry.
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Dataline (Supplement): Revenue from contracts with customers - Industrial products and manufacturing industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the industrial products and manufacturing industry.
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Dataline (Supplement): Revenue from contracts with customers - Engineering and construction industry (No. 2011-35)11/22/11 | Assurance services
The FASB and IASB released an updated exposure draft, Revenue from Contract with Customers, on November 14, 2011, and are requesting comments by March 13, 2012. In Dataline 2011-35, we share our analysis of and insight on the overall proposal. This industry supplement to Dataline 2011-35 provides specific examples and assessments of the potential affect of the updated proposal on the engineering and construction industry.
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Dataline: Consolidation of VIEs and partnerships--more changes under consideration -- FASB proposes to require principal versus agent analysis (No. 2011-33)11/17/11 | Assurance services
On November 3, 2011, the FASB issued an exposure draft proposing changes to the consolidation accounting guidance for variable interest entities (VIEs) and partnerships that are not VIEs. A reporting entity that has a variable interest in a VIE and decision-making authority would need to assess whether it uses its decision-making authority to act in a principal or an agent capacity. A decision maker determined to be an agent would not consolidate the entity. In addition, the presumption that a general partner controls a partnership that is a voting interest entity (VOE) can be overcome by applying the same principal versus agent assessment and determining that the general partner is using its power in an agent capacity. This Dataline...
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Dataline: Investment property entities -- The good, the bad and the ugly (No. 2011-34)11/17/11 | Assurance services
On October 21, 2011, the FASB issued an exposure draft related to investment property entities ("IPEs"). The proposal could impact financial reporting not only for traditional real estate investors, but also non-traditional real estate/integral equipment owners, such as power plants, cell towers, and pipelines. In this Dataline, we share our insight and analysis of the proposal.
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Dataline: Investing in a new investment company definition -- FASB proposes to align investment company definition with IFRS proposal (No. 2011-32)11/8/11 | Assurance services
On October 21, 2011, the FASB issued a proposal to (1) amend the criteria for determining whether an entity is an investment company and (2) address when an investment company should apply consolidation accounting. The proposal would apply to an entity's interim and annual reporting periods in fiscal years that begin after the effective date, which has not been determined. Comments on the FASB's proposal (and a related proposal issued by the IASB) are due January 5, 2012. This Dataline takes a look at the key provisions of the proposal and shares our observations on it.
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Dataline: A look at the new IFRS consolidation standard and how it compares to US GAAP -- Many aspects of the IASB's consolidation guidance are now converged with US GAAP (revised November 15, 2011*) (No. 2011-29)10/27/11 | Assurance services
The IASB released IFRS 10, Consolidated Financial Statements, in May 2011, introducing new guidance on when investors will have to consolidate investees. Many aspects of the new guidance are now converged with U.S. GAAP. The new approach combines the concepts of power to control and exposure to variable returns in the determination of whether control exists, and whether consolidation is required. This Dataline takes an in-depth look at the new guidance in IFRS 10. It includes numerous examples and illustrations to help you get up to speed quickly on the new approach.
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Dataline: Accounting for derivative instruments -- Treasury and financial reporting implications of using an OIS (not LIBOR) curve in the valuation of certain derivatives (No. 2011-30)10/27/11 | Assurance services
Methodologies utilized to value derivative instruments continue to evolve, even for "plain vanilla" products. Some derivatives dealers have begun exploring valuing certain derivatives using an overnight index swap ("OIS") curve to discount the cash flows, rather than the LIBOR swap curve that has been used in the past. Derivatives to be valued using the OIS curve include collateralized derivatives and derivatives cleared through a central clearing house. This new method of valuation is the latest in a series of changes in recent years, which if implemented will result in changes for derivatives dealers across all aspects of their organizations and also for the counterparties to these trades. This Dataline addresses...
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Dataline: New fair value measurement standard -- Implementation guidance for key changes to the measurement of financial instruments at fair value (revised March 1, 2012*) (No. 2011-31)10/27/11 | Assurance services
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Many of the changes to existing fair value measurement guidance represent clarifications and are intended to align U.S. GAAP and IFRS. However, certain of the amendments to U.S. GAAP are substantive and require analysis of current practice. This Dataline provides implementation guidance on certain aspects of the ASU, specifically regarding the fair value measurement of financial instruments, including (1) the application of premiums and discounts, (2) measuring the fair value of financial instruments with offsetting market and credit risks, and (3) the...
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Dataline: Goodwill impairment -- FASB issues guidance that simplifies goodwill impairment test and allows early adoption (No. 2011-28)9/29/11 | Assurance services
The FASB issued ASU 2011-08, Testing Goodwill for Impairment (the revised standard) on September 15, 2011. The revised standard is intended to reduce the cost and complexity of the annual goodwill impairment test by providing both public and nonpublic entities with the option of performing a "qualitative" assessment to determine whether further impairment testing is necessary. The revised standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted for certain companies. This Dataline provides details and insights on the revised standard.
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Dataline: Financial reporting considerations stemming from an uncertain global economy -- Accounting and reporting observations (No. 2011-27)9/15/11 | Assurance services
In recent months, capital markets and currency exchanges have experienced significant volatility. The downgrade of long-term U.S. Treasuries, the European debt crisis, and slowing gross domestic product (GDP) growth in the world's leading economies have contributed to an uncertain global economy. Companies should consider the impact of the changing economic environment on their accounting and financial reporting and monitor areas of their business that might be affected by an economic slowdown. This Dataline discusses the key areas of financial reporting that could be impacted by a broader economic slowdown.
Dataline
Dataline: Accounting for certain equity-linked financing transactions (No. 2011-25)7/7/11 | Assurance services
Many companies, public and private, issue equity-linked securities for a variety of reasons, including obtaining capital to fund current liquidity needs and expand future operations. Including equity-linked features in a financing transaction frequently enables companies to lower cash interest costs due to the value of the equity-linked feature. This Dataline is intended to assist companies in evaluating the accounting for equity-linked financing transactions at issuance and on an ongoing basis.
Dataline
Dataline: Financial instruments -- An update on the FASB's financial instruments project redeliberations as of June 30, 2011 (No. 2011-26)7/7/11 | Assurance services
The accounting for financial instruments is a priority joint project of the FASB and IASB; however, the FASB and IASB have reached different conclusions on many aspects of the project to date. This PwC Dataline provides an update on the FASB's rediberations as of June 30, 2011.
Dataline
Dataline: Presentation of comprehensive income -- The FASB issues final standard on presenting other comprehensive income (Superseded by Dataline 2012-01 on 01/19/2012) (No. 2011-24)6/28/11 | Assurance services
The FASB has issued a final standard (ASU 2011-05) requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The option to present items of other comprehensive income in the statement of changes in equity is eliminated. This Dataline takes a look at the new guidance.
Dataline
Dataline: Fair value measurement -- FASB and IASB complete joint project (No. 2011-23)6/9/11 | Assurance services
In May 2011, the FASB and IASB completed their joint project on fair value measurement and issued their respective final standards. The joint project was part of the Memorandum of Understanding between the FASB and IASB. The objective of the project was to bring together as closely as possible the fair value measurement and disclosure guidance issued by the two boards. The issuance of the final standards results in global fair value measurement and disclosure guidance and minimizes differences between U.S. GAAP and IFRS. This PwC Dataline describes the key changes to U.S. GAAP as well as other notable clarifying guidance included in the FASB's final standard. It also highlights key differences that will remain between U.S. GAAP and IFRS.
Dataline
Dataline: Hedge accounting -- Applying the shortcut method to "late" hedges (No. 2011-22)6/2/11 | Assurance services
This Dataline discusses certain considerations in the application of the shortcut method of hedge accounting to a late hedge.
Dataline
Dataline: Leasing -- Redeliberations of the leasing project -- Some new twists (No. 2011-21)5/6/11 | Assurance services
This Dataline discusses the redeliberation decisions reached on the FASB and IASB's joint leasing project during the board meetings in January 2011 through April 2011. We also include PwC observations on the potential implications as well as examples on the application of the boards' tentative decisions.
Dataline
Dataline: Goodwill impairment - FASB proposes changes to impairment test (No. 2011-20)5/5/11 | Assurance services
On April 22, 2011, the FASB issued an exposure draft of a proposed ASU that would change the goodwill impairment test. The proposal would allow an entity first to assess "qualitatively" whether it is necessary to perform the current two-step goodwill impairment test under US GAAP. Further testing would be required only if an entity determines it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount. Comments on the proposal are due on June 6, 2011. This Dataline takes a closer look at the proposal and includes our observations on certain key areas.
Dataline
Dataline: Revenue from contracts with customers -- Key decisions propel the project forward (No. 2011-19)4/21/11 | Assurance services
The FASB and IASB began redeliberations on their proposed revenue standard in January 2011 and have continued those redeliberations through April. The boards have focused their discussions on common themes in the comment letters, and have reached several tentative decisions. Some decisions confirm conclusions in the exposure draft and others significantly change direction from what was proposed previously. This Dataline summarizes key aspects of the proposed standard, certain themes identified in the comment letters, and tentative decisions made during recent board meetings.
Dataline
Dataline: Troubled Debt Restructurings -- FASB issues clarifying guidance for creditors' evaluations of whether a restructuring is a troubled debt restructuring (No. 2011-18)4/20/11 | Assurance services
On April 4, 2011 the FASB issued Accounting Standard Update No. 2011-02, Receivables (Topic 310): A CreditorÆs Determination of Whether a Restructuring Is a Troubled Debt Restructuring (the ASU). The ASU provides additional guidance to creditors for evaluating whether a modification or restructuring of a receivable constitutes a troubled debt restructuring. This PwC Dataline discusses the key provisions of the new guidance and offers our observations. ...
Dataline
Dataline: Accounting and disclosure implications of the earthquake in Japan and related events (No. 2011-17)3/28/11 | Assurance services
On March 11, 2011, an earthquake struck off the northeast coast of Japan, triggering a tsunami. The power supply in certain parts of Japan has been cut-off with rolling blackouts scheduled in other areas. Further compounding the situation, nuclear power plants were damaged causing worries about the possible meltdown of nuclear reactors and the release of harmful radioactive materials. While not all-inclusive of the types of issues that may be created by these events, this Dataline discusses several accounting and disclosure-related matters companies may encounter in dealing with the financial reporting implications of these tragic events.
Dataline
Dataline: Revenue from contracts with customers -- The constituents have been heard... (No. 2011-16)3/1/11 | Assurance services
The FASB and IASB received over 960 comment letters in response to their June 24, 2010 exposure draft, Revenue from Contracts with Customers. A number of recurring themes were noted in the comment letters, even across industries. Areas of focus included transfer of control, identification of performance obligations, determining the transaction price, transition, segmentation, accounting for warranties, licenses of intellectual property, and disclosures. At their January and February 2011 meetings, the boards began redeliberating their proposals, focusing on the common themes in the comment letters, and reached a number of tentative decisions. This Dataline summarizes key aspects of the proposed standard, certain themes identified in the...
Dataline
Dataline: Pension/OPEB accounting -- Understanding changes expected from the IASB (No. 2011-15)2/28/11 | Assurance services
The IASB is nearing completion of various amendments to its standard on accounting for defined benefit pensions and other postretirement benefits (OPEB). The IASB has concluded that fluctuations in the value of the benefit obligations and plan assets (i.e., gains and losses) should be recognized in the balance sheet in full, with a charge or credit to other comprehensive income (OCI) in the periods in which the gain or loss occurs. We expect the final amendments to be issued in April 2011, with an effective date no earlier than January 1, 2013. This Dataline looks at the decisions made by the IASB to date and offers our insight on the upcoming changes in this area of IFRS. Since the FASB and IASB's longer-term objective is to converge...
Dataline
Dataline: Insurance contracts -- Comment letter themes being addressed in fast paced redeliberations (revised March 4, 2011*) (No. 2011-14)2/25/11 | Assurance services
Several key issues surfaced from the comment letters, three public roundtable discussions, and other outreach efforts regarding the IASB's July 2010 exposure draft (ED) and the FASB's related September 2010 discussion paper (DP) setting out proposed changes to insurance accounting. Respondents' preferences on the overall measurement model were mixed with US constituents tending to support the FASB approach (in the event of a converged standard), and a clear majority of non-US constituents supporting the IASB approach. This Dataline provides a brief summary of the FASB DP and IASB ED along with a detailed analysis of the comments received on both the DP and ED for major issues, as well as the steps the boards have taken through February...
Dataline
Dataline: Fair value measurement -- FASB and IASB joint project near completion (No. 2011-12)2/24/11 | Assurance services
On June 29, 2010, both the FASB and IASB issued exposure drafts of proposed changes to their standards aimed at bringing together as closely as possible the fair value measurement and disclosure guidance of the two boards. The boards have been considering the feedback they received on the exposure drafts, and except for effective dates and transition, the boards have completed their redeliberations and plan to finalize their new standards in March 2011. Although many of the changes to existing U.S. GAAP will not have a significant effect on practice, some will. This Dataline summarizes key aspects of the FASB's exposure draft and decisions reached by the boards during redeliberations conducted subsequent to the issuance of their...
Dataline
Dataline: FASB redeliberates its financial instruments proposal -- An update on significant changes as of February 24, 2011 (No. 2011-13)2/24/11 | Assurance services
The accounting for financial instruments is a priority convergence project for the FASB and IASB. The boards are aiming to finalize most of their respective guidance in 2011. The FASB received a significant amount of input from financial statement users, preparers, and accounting firms on its May 2010 proposal. The tentative decisions the FASB has made in its redeliberations point to significant changes from the proposal. This Dataline provides an update on the FASB's redeliberations, with a focus on the significant changes the FASB has tentatively decided to make thus far to its May 2010 proposal.
Dataline
Dataline: Leasing -- FASB and IASB agree on changes that will reduce complexity of the proposed leasing standard (No. 2011-11)2/23/11 | Assurance services
The comment period on the FASB and IASB's proposed accounting standard on leases ended on December 15, 2010 and the boards have begun redeliberating the exposure draft. Thus far, the boards have made tentative decisions to change the proposals in the exposure draft with respect to the definition of lease term (threshold for inclusion of extension options) and inclusion of variable or uncertain cash flows (i.e., contingent rent). The boards are also considering changes in the definition of a lease, profit and loss recognition patterns, and the lessor accounting model. This Dataline provides a summary of the overall status of the boards' redeliberations on lease accounting.
Dataline
Dataline: Balance sheet offsetting -- The FASB and IASB proposal (No. 2011-10)2/22/11 | Assurance services
On January 28, 2011, the FASB and the IASB jointly issued an exposure draft, Offsetting Financial Assets and Financial Liabilities. Entities that historically elected to present derivatives assets and liabilities subject to master netting arrangements on a net basis will be required to report them gross in their statement of financial position. This could significantly impact the balance sheet of many reporting entities that currently apply an accounting policy election to net these amounts. The exposure draft also proposes new disclosure requirements for financial assets and liabilities subject to offset. This Dataline looks at the key aspects of the exposure draft, which is open for public comment through April 28, 2011.
Dataline
Dataline: Impairment redux -- FASB and IASB are seeking comments on a converged impairment model for financial assets (No. 2011-09)2/21/11 | Assurance services
On January 31, 2011, the FASB and IASB published a supplementary document to solicit views on a converged model to account for impairments of certain financial assets managed in an open portfolio. Public comments on the supplement are due by April 1, 2011. The boards plan to jointly redeliberate the proposals in the supplement based on the feedback received on it. The IASB expects to issue a final impairment standard by June 2011, and the FASB expects to issue a final Accounting Standards Update that includes the credit impairment model in 2011. This PwC Dataline highlights the key proposals in the supplement.
Dataline
Dataline: Statement of comprehensive income -- The FASB is expected to allow one continuous statement, or separate consecutive statements of net income and other comprehensive income (No. 2011-08)2/15/11 | Assurance services
The FASB and IASB issued proposals in May 2010 to require companies to issue a single continuous statement of comprehensive income. Together the FASB and IASB received over 200 comment letters on the proposed new primary financial statement. Based on their re-deliberations, the Boards are expected to amend their proposals. Both Boards are expected to issue final standards incorporating the tentative conclusions by the end of the first quarter of 2011. This Dataline reflects the decisions that we anticipate will be formalized in a soon to be issued FASB Accounting Standards Update.
Dataline
Dataline: XBRL -- Looking back at 2010 and forward to 2011 (No. 2011-07)2/3/11 | Assurance services
A final version of the 2011 U.S. GAAP Financial Reporting Taxonomy is expected to be published for official use in 2011 after the FASB has completed its update and the SEC acknowledges it as a supported taxonomy for use by filers. Also, the SEC continues to release observations and interpretations based on its evaluation of submissions from the first two phase-in groups. Preparers should take advantage of lessons learned to date as they plan to meet the upcoming requirements. This Dataline describes recent guidance provided by the SEC staff and highlights other helpful information and reminders for preparers.
Dataline
Dataline: Accounting for hedging activities -- A comparison of the FASB's and IASB's proposed models (No. 2011-06)2/1/11 | Assurance services
In December 2010, the IASB released for public comment an exposure draft of proposed changes to the accounting for hedging activities under IFRS, resulting from the third phase of the IASB's project to revise financial instruments accounting. In May 2010, the FASB issued an exposure draft that proposed fundamental changes to the accounting for financial instruments under U.S. GAAP, including certain changes to hedge accounting. The two boards have taken different directions with their proposals. The FASB is planning to seek feedback from its constituents on the IASB's December 2010 exposure draft. This Dataline compares the FASB's May 2010 exposure draft and the IASB's December 2010 exposure draft.
Dataline
Dataline: Leasing -- The responses are in... (No. 2011-05)1/27/11 | Assurance services
The FASB and IASB received over 770 comment letters in response to their August 17, 2010 Exposure Draft, Leases. The comment period closed on December 15, 2010. The boards have also performed direct outreach with users and preparers, and held public roundtable discussions in London, Hong Kong, Chicago and Norwalk. This Dataline summarizes the key themes from the comment letters.
Dataline
Dataline: Accounting implications of the elimination of the preferential exchange rate in Venezuela (No. 2011-04)1/21/11 | Assurance services
On December 30, 2010, the government of Venezuela announced that it is eliminating the 2.6 BsF/$ preferential exchange rate. On January 14, 2011, the government of Venezuela published a clarification specifying how the announcement on December 30, 2010 will be administered. The elimination of the preferential exchange rate could affect the rate used for re-measurement of bolivar-denominated transactions, and could affect the accounting for certain bonds issued by the Venezuelan government. This Dataline discusses the accounting implications.
Dataline
Dataline: Pension and OPEB accounting -- Exploring changes in accounting policies (No. 2011-03)1/13/11 | Assurance services
Many funded retirement benefit plans have experienced significant losses on the investments held by the plan. At the same time, historic low discount rates have resulted in substantial increases in benefit obligations. These events have resulted in sizable losses that can be deferred in accumulated other comprehensive income (AOCI), but are then required to be amortized into income over future periods. Some employers may be considering changing their accounting policies for recognizing gains and losses that arise in their retirement benefit plans to reduce or eliminate the impact on future periods' reported net income of recognizing previously deferred losses. This Dataline explores the implications and considerations associated with an...
Dataline
Dataline: New revenue recognition guidance -- A more economic approach to accounting for arrangements with multiple deliverables (revised May 12, 2011*) (No. 2011-02)1/11/11 | Assurance services
In October 2009, the FASB issued new guidance for arrangements with multiple deliverables under which a company is required to use its best estimate of selling price for the deliverables in an arrangement when vendor specific objective evidence or third party evidence of the selling price is not available. In Dataline 2009-54, we provided our analysis and insights on the new guidance. In this new Dataline, we've updated and expanded on the discussion in Dataline 2009-54 to incorporate additional insight and implementation considerations based on our experience with companies that have early adopted the new guidance.
Dataline
Dataline (Supplement): A New Approach to Lease Accounting - Real estate lessee supplement (No. 2010-38)1/6/11 | Assurance services
The FASB and IASB's recently-issued exposure draft titled Leases contains the boards' proposal for a new approach to lease accounting that could fundamentally change the way both lessees and lessors account for leases. Under the proposed model, a lessee's rights and obligations under all leases - existing and new - would be recognized on its balance sheet. Lessors would report leases using either a performance-obligation approach or a derecognition approach. Dataline 2010-38 provides an overview and various insights into the boards' proposed standard. In January 2011, PwC issued a real estate lessee supplement to this Dataline summarizing the exposure draft from a lessee's perspective.
Dataline
Dataline: Accounting for costs associated with acquiring or renewing insurance contracts -- Questions and interpretive responses on implementing ASU 2010-26 (No. 2011-01)1/5/11 | Assurance services
In October 2010, the FASB released ASU 2010-26, Financial Services--Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. The ASU represents a final consensus of the Emerging Issues Task Force on Issue 09-G. ASU 2010-26 will likely change how insurance companies account for acquisition costs, particularly in determining what costs are deferrable. The new requirements are effective for fiscal years beginning after December 15, 2011, either prospectively or by retrospective adjustment. Earlier application is permitted as of the beginning of a company's annual reporting period (e.g., in 2011 for calendar year companies). This Dataline highlights certain frequently asked questions about the...
Dataline
Dataline: Revenue from contracts with customers -- The responses are in... (No. 2010-45)12/20/10 | Assurance services
The FASB and IASB received over 960 comment letters in response to their June 24, 2010 exposure draft, Revenue from Contracts with Customers. The comment period closed on October 22, 2010. A number of recurring themes were noted in the comment letters, even across industries. Areas of focus included transfer of control, identification of performance obligations, determining the transaction price, transition, segmentation, accounting for warranties, licenses of intellectual property, and disclosure requirements. The boards expect to issue the final standard in 2011, with a likely effective date no earlier than 2014. This Dataline summarizes key aspects of the proposed standard as well as the themes in comment letters received by the boards.
Dataline
Dataline: Highlights of the 2010 AICPA National Conference on Current SEC and PCAOB Developments (No. 2010-44)12/16/10 | Assurance services
Last week's annual AICPA National Conference on Current SEC and PCAOB Developments focused on restoring public trust and investor confidence in the U.S. capital markets. Presenters called for all members of the financial reporting supply chain, including boards, management and auditors, to play a role in these efforts. This Dataline takes a closer look at the topics discussed at the conference.
Dataline
Dataline: 2010 year-end accounting and reporting considerations (No. 2010-43)12/13/10 | Assurance services
This year end, companies continue to face many complex financial reporting issues such as asset impairments, debt modifications, revenue recognition and pensions. Recently issued legislation has created additional reporting considerations. Also, the SEC has put additional emphasis on compliance with certain existing disclosure requirements such as disclosures of loss contingencies, goodwill impairment, segments, and liquidity. Recently issued guidance by the FASB has become effective in 2010, including new guidance on consolidations, updates to fair value disclosures, and disclosures about the credit quality of finance receivables. While not intended to serve as an all-inclusive checklist, this Dataline should be helpful as a timely...
Dataline
Dataline: Highlights of November 2010 meeting of FASB's Valuation Resource Group (No. 2010-42)11/4/10 | Assurance services
At its November 2010 meeting, the FASB's Valuation Resource Group (VRG) discussed issues relating to: (1) fair value measurement of contingent consideration in a business combination, (2) application of the multi-period excess earnings method and the Greenfield method to value intangible assets, (3) consideration of premiums and discounts in fair value measurements, (4) a proposed Accounting Standards Update on determining the carrying amount of a reporting unit when performing step 1 of the goodwill impairment test, and (5) measurement uncertainty analysis disclosure. This Dataline summarizes the key points discussed by the FASB and VRG and shares the firm's insights.
Dataline
Dataline: Multiemployer benefit plans -- Recent accounting & reporting developments (No. 2010-41)11/2/10 | Assurance services
The recent economic crisis has resulted in increased levels of underfunding for many multiemployer pension and other postretirement benefit plans. Financial statement users have raised concerns about the current disclosure requirements and the lack of information they provide about the commitments and risks involved with an employer's participation in a multiemployer plan. In response, both the FASB and IASB recently issued separate exposure drafts that propose significant additional disclosure requirements for participating employers. This Dataline describes the accounting considerations for employers who participate in a defined benefit multiemployer plan, as well as the additional disclosure requirements proposed by the FASB and IASB.
Dataline
Dataline: FASB proposes guidance to assist creditors in identifying trouble debt restructurings (No. 2010-40)10/26/10 | Assurance services
The Financial Accounting Standard Board recently exposed for comment a proposed Accounting Standard Update that would provide additional guidance to assist lenders in determining whether a restructuring of a receivable constitutes a troubled debt restructuring (TDR). This Dataline discusses the key provisions and scope of the proposed ASU and shares PwC's insight on it.
Dataline
Dataline: Insurance Contracts -- Fundamental Accounting Changes Proposed (Revised February 16, 2011*) (No. 2010-39)9/24/10 | Assurance services
The FASB has issued a discussion paper seeking comments on its preliminary views on accounting for insurance contracts that would fundamentally change the accounting by insurers and other entities that issue contracts with insurance risk. The discussion paper is an outgrowth of the IASB and FASB's joint efforts to develop a single converged insurance standard. The FASB's release of the discussion paper follows the IASB's late-July issuance of an exposure draft containing its proposals on the same topic. This Dataline discusses both documents and offers the firm's insights on the proposals.
Dataline
Dataline: A New Approach to Lease Accounting -- Proposed Rules Would Have Far Reaching Implications (No. 2010-38)9/16/10 | Assurance services
The FASB and IASB's recently-issued exposure draft titled Leases contains the boards' proposal for a new approach to lease accounting that could fundamentally change the way both lessees and lessors account for leases. Under the proposed model, a lessee's rights and obligations under all leasesùexisting and newùwould be recognized on its balance sheet. Lessors would report leases using either a performance-obligation approach or a derecognition approach. This Dataline provides an overview and various insights into the boards' proposed standard. The Dataline also includes both lessee and lessor examples of how to apply the proposed standard. ...
Dataline
Dataline: The GASB's Derivatives Standard -- Recognition and Reporting Guidance for State and Local Government Entities (No. 2010-37)9/9/10 | Assurance services
Entities that apply accounting rules issued by the Governmental Accounting Standards Board (GASB) are implementing a comprehensive new accounting standard on derivative instruments. The standard requires that derivatives be reported at fair value on the balance sheet and that all potential hedges be evaluated for effectiveness. The standard is expected to dramatically affect balance sheets, as most governments historically accounted for derivatives off-balance sheet. The standard impacts financial statements prepared for fiscal years ending June 30, 2010 and thereafter. This Dataline discusses the key provisions of the new standard and offers PwC's observations on implementing it.
Dataline
Dataline: Stock-Compensation Arrangements - Accounting for Clawbacks (No. 2010-36)9/2/10 | Assurance services
The Dodd-Frank Wall Street Reform and Consumer Protection Act, was signed into law by President Obama on July 21, 2010. The Act includes a requirement that all U.S. public companies incorporate so-called clawback provisions into incentive compensation arrangements for executive officers. Those clawback provisions will be triggered in the event of certain accounting restatements, and require companies to recover any excess compensation resulting from the misstated financial results during the 3-year period prior to the restatement.Companies have also implemented or are considering other types of clawback features beyond those required in the Act.
Dataline
Dataline: Changes to Financial Instruments Accounting -- Impacts for Nonfinancial Services Companies (No. 2010-34)8/26/10 | Assurance services
The FASB's proposal to change the accounting for financial instruments and hedge accounting could have broad implications to companies across all industries, including those in commercial and industrial industries. The proposed changes could result in a significant expansion of the use of fair value. This Dataline discusses a few of the more common instruments and transactions that could be affected if proposed ASU, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities, is adopted in its current form.
Dataline
Dataline: Financial Statement Presentation -- A Look at the FASB and IASB's Staff Draft (Revised February 3, 2011*) (No. 2010-35)8/26/10 | Assurance services
In July 2010, the FASB and IASB issued a 'Staff Draft' of the Exposure Draft on Financial Statement Presentation to facilitate additional outreach efforts. The staff draft contains significant changes from the discussion paper issued in 2008 and incorporates much of the feedback from comment letters and field tests. This Dataline discusses the key tentative decisions reached by the boards and reflected in the staff draft, together with information the firm has obtained through its observations of board meetings and project updates published by the boards.
Dataline
Dataline: FASB and IASB Propose Changes to Fair Value Measurements and Disclosures (No. 2010-33)8/9/10 | Assurance services
This Dataline describes the key proposed changes in the FASB's exposure draft, Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, as well as other notable clarifying guidance. The Dataline also includes PwC's observations about the potential impact of the proposal on practice and commentary about alignment with the IASB's exposure draft titled Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (Limited re-exposure of proposed disclosure).
Dataline
Dataline: Disclosure of Certain Loss Contingencies -- An Analysis of the FASB's Proposed Changes (Revised February 1, 2011*) (No. 2010-32)8/3/10 | Assurance services
On July 20, 2010, the FASB issued an exposure draft of a proposed Accounting Standards Update, Contingencies -- Disclosure of Certain Loss Contingencies. The proposed disclosures in the exposure draft consist of qualitative and quantitative information about loss contingencies aimed at enabling financial statement users to understand their nature, potential magnitude, and potential timing (if known). This Dataline provides a summary of the proposal and includes PwC's insights on selected matters.
Dataline
Dataline: New Disclosure Requirements for Finance Receivables and Allowance for Credit Losses -- A Summary of ASU 2010-20 (No. 2010-31)7/29/10 | Assurance services
The FASB recently issued ASU 2010-20 to address concerns about the sufficiency, transparency, and robustness of credit risk disclosures for finance receivables and the related allowance for credit losses. The ASU requires that entities disclose information at disaggregated levels, specifically defined as "portfolio segments" and "classes." Among other things, the expanded disclosures include roll-forward schedules of the allowance for credit losses and information regarding the credit quality of receivables (including their aging) as of the end of a reporting period. Certain finance receivables that were modified during a reporting period and those that were previously modified and have re-defaulted require enhanced disclosures. The new...
Dataline
Dataline: PCAOB Proposes New Auditing Standard on Confirmations (No. 2010-30)7/22/10 | Assurance services
On July 13, 2010, the PCAOB released for public comment a proposed auditing standard, Confirmation, and related amendments to its interim standards. The proposed standard includes updates to the PCAOB's existing interim standard to reflect significant advances in technology, including increased use of electronic communication methods, and proposes new requirements regarding the confirmation of specific accounts, confirmation procedures, and the evaluation of audit evidence obtained from performing confirmation procedures. It also contains proposed conforming amendments to existing standards. Comments on the proposed standard and amendments are due September 13, 2010. The standard would be effective for audits of fiscal years ending on...
Dataline
Dataline: Accounting Implications of Recent Events in Venezuela (No. 2010-29)7/19/10 | Assurance services
In May 2010, the government of Venezuela effectively eliminated the indirect market of foreign currency exchange (referred to as the "parallel" market). On June 9, 2010, several large Venezuelan commercial banks began operating the Transaction System for Foreign Currency Denominated Securities ("SITME"). Continued use of the parallel market rate for re-measurement of bolivar denominated transactions is no longer acceptable. This Dataline provides an update on Venezuela being considered a highly-inflationary economy.
Dataline
Dataline: Impact of ASU 2009-16 and 2009-17 on Transfers of Trade Receivables -- On- vs. Off-Balance Sheet Treatment (No. 2010-27)6/12/10 | Assurance services
Companies often transfer trade receivables to fund working capital and liquidity needs. Examples of such transfers include factoring arrangements and transfers to bank-sponsored commercial paper conduits. The recent amendments to ASC 860, Transfers and Servicing, and ASC 810, Consolidation, have significantly altered the accounting analysis of trade receivable transfers, making it more likely that many structures used to effect such transfers will be accounted for as secured borrowings. The SEC staff recently weighed-in on the relevant cash flow classification issues that result from certain structures that meet sale accounting requirements. Structures continue to evolve in the marketplace and assessing these structures under the new...
Dataline
Dataline: Statement of Comprehensive Income--The FASB has proposed to require a new primary financial statement (No. 2010-26)6/11/10 | Assurance services
A second proposal recently released by the FASB would require a new primary financial statement, referred to as the statement of comprehensive income, that would replace the income statement. The new statement would contain subtotals for net income and other comprehensive income within a single continuous statement. The components of net income and other comprehensive income would not change as part of the proposal, and earnings-per-share would continue to be based on net income. The IASB has issued a similar proposal that calls for a statement of profit or loss and other comprehensive income. Although the components of other comprehensive income and the treatment of those components (i.e., recycling) vary between U.S. GAAP and IFRS,...
Dataline
Dataline: FASB Proposes Changes to Financial Instruments Accounting (No. 2010-25)6/10/10 | Assurance services
The FASB recently issued a proposal to overhaul the accounting requirements for financial instruments. Under the proposal, most financial instruments (including loans held by banks and held-to-maturity securities) would be measured at fair value with changes in fair value recognized in net income, unless an instrument qualifies and an entity elects to recognize the changes in fair value in other comprehensive income. Major changes to impairment and hedge accounting are also being proposed. As part of their convergence efforts, the FASB and IASB are jointly reconsidering the accounting for all financial instruments, however, the two boards so far have reached fundamentally different conclusions. This PwC Dataline provides an overview of...
Dataline
Dataline: XBRL: SEC Compliance Updates and Consideration of Upcoming Phase-In Requirements (No. 2010-24)5/27/10 | Assurance services
The second year of the SEC's XBRL mandate provides compliance challenges that impact nearly 2,000 of the world's largest public companies.áIn addition, many public companies are entering into their initial year of the mandate and can benefit from lessons learned by the first wave of companies. The SEC staff held a public seminar on March 23, 2010 and continues to update their compliance and disclosure interpretations and frequently asked questions to provide additional guidance about compliance with the final rules. Preparers will want to take advantage of the lessons learned to date as they plan to meet the upcoming requirements. This PwC Dataline describes recent guidance provided by the SEC staff and offers other helpful information...
Dataline
Dataline: Pension/OPEB Accounting -- An Analysis of the IASB's Exposure Draft (No. 2010-23)5/13/10 | Assurance services
The IASB has proposed changes to the accounting for defined benefit pensions and other postretirement benefits (OPEB). While the proposal is not the result of joint deliberations, the objective of the IASB and FASB is to eventually adopt a converged standard. Thus, the changes proposed by the IASB will be considered by the FASB for purposes of achieving convergence. This Dataline highlights the key provisions of the IASB's proposal and offers PwC's observations on it.
Dataline
Dataline: Disclosure of Certain Loss Contingencies -- A FASB Project Update (No. 2010-22)5/10/10 | Assurance services
The FASB originally issued an exposure draft of its proposal to require new disclosures about certain loss contingencies in June 2008, and received a high volume of feedback from the marketplace. Based on this feedback, the FASB began redeliberations on the proposal in August 2009 and continued redeliberations at its April 14, 2010 meeting. The approach the FASB is now considering would result in a major shift from the original proposal, and may alleviate concerns of many constituents that certain proposed disclosures in the original proposal would impact their legal strategies and be prejudicial to their cause. The FASB plans to expose a draft of the standard in May 2010 for a 30-day public comment period, and appears committed to...