PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
Save the date: Q1 accounting and reporting developments webcast - March 20
At 1:00 pm ET on Wednesday, March 20, we will be hosting our first quarter 2013 'Current Accounting and Reporting Developments' webcast. This 90-minute webcast is designed to provide insights and information about key emerging accounting, regulatory, and market developments impacting financial reporting. On the webcast, you’ll hear from a broad range of PwC specialists who will update you on matters that may impact your business. Additionally, PwC will offer this webcast in an on-demand format to access at your convenience. The on-demand version will be available after March 20.
We invite you to pre-register for the webcast through the CFOdirect Network. Participants in both the live and the on-demand versions of the webcast will be eligible to receive 1.5 CPE credits.
IFRS news—February 2013
This issue of IFRS news looks at (1) key questions underpinning the debate and progress on the Conceptual Framework project, (2) top 10 issues for transition and disclosure on IAS 19R (the revised employee benefits standard), (3) recent activity at the IASB on hedge accounting, asset impairment disclosures, revenue recognition, and novated OTC derivatives; and (4) assessing contingent payments in a business combination.
FASB issues final ASU on fair value disclosure exemption for nonpublic entities
The FASB issued Accounting Standards Update No. 2013-03, Financial Instruments (Topic 825): Clarifying the Scope and Applicability of a Particular Disclosure to Nonpublic Entities (the ASU). The ASU amends the FASB Codification to clarify that the requirement to disclose “the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)” does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. The amendments are effective immediately.
FASB requests comments on new model for classification and measurement of financial instruments
On February 14, the FASB published for public comment a revised exposure draft for the classification and measurement of financial instruments. Classification and measurement is one part of the broader joint FASB and IASB project on financial instruments. The other parts of the project are impairment and hedge accounting. The IASB previously finalized its classification and measurement approach, but in late 2012 proposed targeted amendments to its standard.
The FASB’s proposal calls for a mixed measurement approach for financial assets and financial liabilities – either fair value or amortized cost. It is intended to be responsive to the considerable feedback the FASB received on its 2010 exposure draft, which proposed fair value measurement for all financial instruments.
Private Company Council adds three projects to agenda
On February 12, the Private Company Council (PCC), a new body recently created by the Board of Trustees of the Financial Accounting Foundation (FAF), voted to add three items to its agenda: (1) consolidating variable interest entities, (2) accounting for “plain vanilla” interest rate swaps with single counterparties, and (3) recognizing and measuring various identifiable intangible assets acquired in business combinations.
The PCC also decided, along with the FASB, to make certain amendments to the FASB’s staff paper on a proposed private company decision-making framework. The framework outlines criteria to determine whether and in what circumstances it is appropriate to adjust financial reporting requirements for private companies following U.S. GAAP. The proposal is expected to be re-exposed in March, with a 90-day comment period.
FASB issues XBRL implementation guide for subsequent events
The FASB issued U.S. GAAP Financial Reporting Taxonomy Implementation Guide—Subsequent Events.The guide is the first in a series of XBRL Implementation Guides that are designed to help Taxonomy users understand how certain disclosures are structured within the Taxonomy. The purpose of the Implementation Guide is to demonstrate the modeling for disclosures required about events occurring subsequent to the end of a public company’s reporting period.
FASB meetings and project updates
Meeting summaries: The FASB held the following board meetings over the past week:
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 and IIRC formalize cooperation on work to develop integrated corporate reporting framework
On February 7, the IASB and IIRC announced an agreement to deepen their cooperation on the IIRC’s work to develop an integrated corporate reporting framework. The integrated reporting initiative aims to create a better language for businesses to communicate with their investors, in order to deliver more sustainable value creation and more efficient capital markets. The IIRC is a global coalition of market participants and other stakeholders who are working towards the publication of the International Integrated Reporting Framework. A draft of the framework will be released on April 16 for public comment.
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.