Flashline - Week ending January 31, 2013 (No. 2013-05)

Flashline 01/31/2013 by Assurance services

PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters). 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
  • Q4-2012 Current Accounting and Reporting Developments webcast — NEW on-demand option now available
  • FASB meetings and project updates
  • IFRS for SMEs Update — January 2013
  • IFRIC Update — January 2013
  • Appendix: Key dates in February

PwC

Key questions for board and audit committee members

We’re pleased to announce the release of the 2013 edition of our popular publication Key questions for board and audit committee members. These questions can provide a basis to enhance the quality of board and management discussions at year-end and throughout the year. Topics addressed include strategy and risk management, anti-corruption and compliance, financial reporting and audit quality, new tax law and potential corporate tax reform and information technology.

To the point: Current issues for boards of directors

We’ve issued the Winter 2013 edition of our publication To the point: Current issues for boards of directors. This edition focuses on (1) the guidance on the Foreign Corrupt Practices Act (FCPA) that was issued jointly by the SEC and DOJ this past November, (2) the directors role in data security and preventing cyber attacks, and (3) policy updates issued by proxy advisor ISS for the 2013 proxy season.

In brief: Boards decide on scope of revenue recognition standard and other matters

The FASB and IASB (the “boards”) decided at their January meeting to clarify the scope of their proposed 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 comments on AICPA's proposed Financial Reporting Framework for Small- and Medium-Sized Entities

PwC submitted its response letter on the AICPA's exposure draft, 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.

We support efforts to enhance financial reporting for private companies. However, we believe 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 Financial Accounting Standards Board (FASB). Accordingly, we believe the best course of action for now is to allow time for the PCC and FASB’s processes to work before moving forward with the framework.

Our response letter outlines our observations and recommendations to enhance the FRF for SMEs if the AICPA decides to move forward with it. Our comments primarily focus on due process considerations, minimizing confusion and clarifying the intended use of the framework, and providing assistance to stakeholders in understanding the implications of using a non-GAAP framework.

Q4-2012 Current Accounting and Reporting Developments webcast — NEW on-demand option now available

Did you miss our Q4 2012 "Current Accounting & Reporting Developments" webcast? If so, you still have an opportunity to view the webcast and earn CPE credit. New this quarter, we are offering the webcast in an on-demand format. You can access the on-demand version whenever it works best for you. A post-event questionnaire, when completed, qualifies participants for 1.5 CPE credits.

Financial Accounting Standards Board (FASB)

FASB meetings and project updates

Meeting summaries: FASB held the following board meetings over the past week:

  • FASB and IASB joint board meeting — January 30: The boards discussed their joint projects on (1) revenue recognition, (2) insurance contracts, and (3) leases. See the FASB’s website for a summary of the decisions reached at the meeting. [Also see above for PwC’s In brief article on the boards’ revenue recognition decisions.]
  • FASB board meeting — January 31: The board discussed its projects on (1) going concern and (2) nonpublic entities: clarification of a fair value disclosure requirement. It also ratified the EITF consensuses and consensuses-for-exposure reached at the January 17 EITF meeting. See the FASB’s website for a summary of the decisions reached at the meeting.

Next open board meetings: The next scheduled FASB meeting is on February 6, 2013. The FASB will discuss its project on insurance contracts. See the FASB’s website for further information on the meeting.

Project updates: The FASB has updated the following project summaries:

See the FASB’s website for further information on the meetings.

International Accounting Standards Board (IASB)

IFRS for SMEs Update — January 2013

The January 2013 edition of the IASB's IFRS for SMEs Update covers, among other things, (1) IFRS Foundation Trustees appoint Darrel Scott as Chairman of the SMEIG, (2) SMEIG meeting February 2013—agenda papers available, (3) updated English-language training modules, and (4) a status report on IFRS for SMEs translations.

IFRS Interpretations Committee

IFRIC Update — January 2013

The January 2013 edition of IFRIC Update provides a summary of the IFRS Interpretations Committee's January 22-23 meeting. The meeting included discussion of the following current agenda items:

  • IAS 1 Presentation of Financial Statements—Disclosure requirements about assessment of going concern
  • IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IFRIC 12 Service Concession Arrangements—Variable payments for the separate acquisition of PPE and intangible assets
  • IAS 32 Financial Instruments: Presentation—Put options written on non-controlling interests
  • IAS 37 Provisions, Contingent liabilities and Contingent Assets—Interpretation on levies

Also covered were agenda decisions, issues considered for annual improvements, and discussion of other work in progress.

Appendix: Key dates in February

The table in the attachment lists meetings of standard-setting bodies, PwC webcasts and other events occurring in February 2013 that may be of interest to you. Click on the name of the meeting, webcast or event for more information. For additional events, see the events calendar on PwC's CFOdirect Network.

Edited by:

Brad Mescher
Director
Phone: 1-973-236-7261
Email: brad.mescher@us.pwc.com

Saira Gilani
Senior Manager
Phone: 1-973-236-5811
Email: saira.s.gilani@us.pwc.com

Flashline is a weekly alert highlighting current financial-reporting developments (including accounting, auditing and regulatory matters) and is produced by the National Professional Services Group of PwC. It is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. To access additional content on financial reporting issues, register for CFOdirect Network (www.cfodirect.pwc.com), PwC’s online resource for financial executives.