PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters). This week's topics include:
In brief: FASB decides on new accounting model for certain guarantees
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.
BoardroomDirect: January 2013
The January 2013 edition of BoardroomDirect includes articles highlighting (1) PwC’s annual publication: 2013 Key questions for board and audit committee members and (2) PwC's 16th Annual Global CEO Survey. Other topics include (1) directors’ involvement in IT and social governance, (2) the latest on the upcoming 2013 proxy season, and (3) a brief on Mary Jo White – the nominee for SEC chair.
FASB issues two final Accounting Standards Updates
The FASB issued the following final Accounting Standards Updates (ASU):
See PwC’s In brief article for an overview of the ASU.
See PwC’s In brief article for an overview of the scope clarification.
FAF to conduct post-implementation review of FAS 109 on income taxes
The Financial Accounting Foundation (FAF), the oversight body of the FASB, announced that FAS 109, Accounting for Income Taxes (codified in Accounting Standards Codification Topic 740, Income Taxes) will be the subject of its next post-implementation review (PIR). Issued in 1992, FAS 109 sets forth financial accounting and reporting standards for the effects of income taxes that result from an organization’s activities during the current and preceding years. The PIR process is designed to be an independent assessment to assist the FAF’s Board of Trustees with its ongoing efforts to evaluate the effectiveness of the FASB’s standard-setting process.
FASB meetings and project updates
Meeting summary: The FASB met on February 6 and discussed its project on insurance contracts. See the FASB’s website for a summary of decisions reached at the meeting. Also see PwC’s In brief article, FASB decides on new accounting model for certain guarantees.
Next open board meetings: The FASB has the following meetings scheduled for next week:
See the FASB’s website for further information on the meetings.
Project updates: The FASB has updated the following project summaries:
IASB Update — January 2013
This issue of IASB Update, issued by the IASB staff, provides a summary of the IASB’s January 20-31 meetings. The FASB joined the IASB for some of the sessions. The IASB and FASB continued discussions on their projects on (1) revenue recognition, (2) leases, and (3) insurance contracts.
The topics discussed at the IASB-only sessions were (1) insurance contracts, (2) rate-regulated activities, (3) leases, (4) revenue recognition, (5) financial instruments: hedge accounting, (6) matters arising from the IFRS Interpretations Committee, (7) integrated reporting, (8) conceptual framework , and (9) post-implementation review of IFRS 8, Operating Segments.
CAQ publishes highlights of November 2012 International Practices Task Force joint meeting with SEC staff
The AICPA Center for Audit Quality (CAQ) has published highlights of the November 20, 2012, International Practices Task Force (IPTF) joint meeting with the SEC staff. Topics discussed at the meeting include:
OMB proposes sweeping revisions to Circular A-133 and other grants management requirements
The U.S. Office of Management and Budget (OMB) issued for comment a proposal titled Proposed OMB Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards, which proposes broad reforms to compliance audits performed under OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (also referred to as single audits or Circular A-133 audits), as well as a number of other key grant reforms. The proposal was developed to combine multiple federal regulations for administering grants into a single, comprehensive, streamlined policy guide.
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.