Flashline - Week ending March 14, 2013 (No. 2013-11)
Flashline
PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
- Reminder: Q1 accounting and reporting developments webcast—March 20
- Dataline: Boards finalize revenue redeliberations – A comprehensive look at the new revenue model
- In brief: FASB moves forward with final standard on investment companies
- Conflict minerals: What's your perspective? Hear ours.
- FASB meetings and project updates
- IASB issues exposure draft on impairment of financial instruments
- PEEC approves changes to AICPA Code of Professional Conduct re: auditor independence and ethics
- IAASB seeks input on strategic review
PwC
Reminder: 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.
Dataline: Boards finalize revenue redeliberations – A comprehensive look at the new revenue model
The FASB and IASB substantively concluded redeliberations of their joint 2011 exposure draft, Revenue from Contracts with Customers, in February. The boards reached decisions on the remaining key issues including disclosures, transition, and effective date at their most recent meetings. Dataline 2013-04 includes details of these decisions, as well as a comprehensive look at the model at the end of the redeliberations. Any remaining “sweep” or new issues identified by the boards will be discussed at future board meetings, as needed.
In brief: FASB moves forward with final standard on investment companies
On March 13, the FASB met to discuss investment companies, a joint project with the IASB. The FASB discussed certain proposed disclosures designed to increase transparency into an investment company's interest in an investee fund. These investee fund disclosures have been the final area of focus as the FASB finalizes its standard on investment companies.
At its meeting, the FASB decided to remove the proposed disclosures from the current project and re-evaluate them at a later date. The FASB also agreed to move forward with issuing a final standard on investment companies.
This In brief article provides an overview of the board's decisions.
Conflict minerals: What's your perspective? Hear ours.
Conflict minerals compliance has quickly become one of the most pressing issues for both SEC and non-SEC registered companies. Those affected need to examine their supply chain and determine the source of their 3TG minerals through implementation of an effective diligence program, acquire an independent audit, and comply with SEC disclosure requirements.
Take our survey to tell us where your company stands. Then register for our webcast on April 9, 3:00pm-4:30pm, to learn the results and our perspectives.
Financial Accounting Standards Board (FASB)
FASB meetings and project updates
Meeting summary: The FASB met on March 13 and discussed its projects on (1) investment companies and (2) reporting discontinued operations. See the FASB’s website for a summary of decisions reached at the meeting. Also see above for PwC’s In brief article on the boards’ investment companies decisions.
Next open board meeting: The next scheduled FASB meeting is on March 20. The FASB will discuss its project on revenue recognition. See the FASB’s website for further information on the meeting.
Project updates: The FASB has updated the following project summaries:
International Accounting Standards Board (IASB)
IASB issues exposure draft on impairment of financial instruments
Following several years of discussions and two previously published proposals, the IASB has issued an exposure draft, Financial Instruments: Expected Credit Losses. The proposed guidance introduces an expected loss impairment model that will replace the incurred loss model used today.
The exposure draft builds upon the expected credit loss model previously agreed between the IASB and the FASB, but it has been simplified to reflect feedback received from interested parties. The FASB has published separately for public comment an alternative expected credit loss model, and the two sets of proposals have overlapping comment periods.
Comments on the exposure draft are requested by July 5.
Also, PwC issued an In brief article that provides an overview of the proposal.
American Institute of Certified Public Accountants (AICPA)
PEEC approves changes to AICPA Code of Professional Conduct re: auditor independence and ethics
The AICPA Professional Ethics Executive Committee (PEEC) has approved a number of changes to the AICPA Code of Professional Conduct (AICPA Code) relating to auditor independence, including:
- Revisions to the “Internal Audit Assistance Services” section of Interpretation No. 101-3, “Nonattest Services”
- A new "partner equivalents" standard that applies AICPA independence requirements to non-partners who act in a partner capacity
The PEEC also approved a number of changes to the AICPA Code relating to ethics, including:
- Deletion of the holding out definition, as well as revisions to the definitions of practice of public accounting and professional services
- Adoption of new Interpretation No. 501-11, “Use of the CPA Credential,” under Rule 501, Acts Discreditable
- Adoption of new Interpretation No. 502-6, “Use of the CPA Credential,” under Rule 502, Advertising and Other Forms of Solicitation
- Revisions to Interpretation No. 505-2, “Application of the Rules of Conduct to Members Who Own a Separate Business,” under Rule 505, Form of Organization and Name
- Deletion of a number of ethics rulings in ET Section 191, Ethics Rulings on Independence, Integrity and Objectivity, and ET Section 591, Ethics Rulings on Other Responsibilities and Practices
The applicability, definitions, interpretations and ethics rulings contained in this release are effective on May 31, 2013, unless otherwise stated.
International Federation of Accountants (IFAC)
IAASB seeks input on strategic review
IFAC's International Auditing and Assurance Standards Board (IAASB) has released an online survey seeking public comment, insights, and views from all stakeholders to help shape its future direction for 2015 and beyond. It is seeking the input of interested parties at this early stage to identify key issues for discussion.
Comments are requested by May 7.
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.