PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
In brief: PCAOB proposes significant changes to auditor’s report
As highlighted in last week’s Flashline, the PCAOB issued for public comment two related proposals that aim to significantly change the auditor's reporting model. The first proposal would require the auditor to disclose additional information in the auditor’s report about the audit and the auditor. The second proposal would require the auditor to perform additional procedures with respect to other information in documents containing audited financial statements, and to communicate certain information in the auditor’s report such as whether the auditor has identified a material inconsistency, a material misstatement of fact, or both.
PwC has issued two In brief articles providing an overview of each proposal:
Comments on both the proposals are requested by December 11, 2013.
PwC’s 2013 stock compensation and pension/OPEB assumption and disclosure surveys
We are pleased to share with you the results of our Stock Compensation 2013 Assumption and Disclosure Survey. This survey presents our analysis of the 2012 year-end assumptions and disclosures for Mature and High Tech/Emerging companies. In preparing the survey, we analyzed 110 Mature companies, comprising Fortune 100 companies and other large and established companies, with a December 31 measurement date. We also looked at 46 High Tech/Emerging companies and compared side-by-side information that may be of interest.
We've also issued the results of our Pension/OPEB 2013 Assumption and Disclosure Survey, which presents our analysis of the 2012 year-end assumptions and disclosures under ASC 715-20, ASC 715-30, and ASC 715-60. In preparing the survey, we analyzed 100 companies, comprising Fortune 100 companies and other large and established companies, with a December 31 measurement date.
We hope you will find the results of our surveys useful in benchmarking your company’s assumptions and other data points associated with stock compensation and pension/OPEB plans.
FASB meetings and project updates
Meeting summary: The FASB did not hold any board meetings this week.
Next open board meeting: The FASB’s next board meeting will be held on September 4. The topics for this meeting will be announced shortly before the meeting.
Project update: The FASB did not update project summaries in the past week.
FAF review concludes GASB standards on risk financing and insurance-related activity achieve their purpose
The Financial Accounting Foundation (FAF), the oversight body of the FASB and GASB, released a post-implementation review (PIR) report on GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk Financing Omnibus—an amendment of GASB Statement No. 10.
The PIR report concluded overall that the standards achieve their purpose. In particular, the findings stated, among other things, that (1) Statements 10 and 30 resolve the issues underlying their need, (2) preparers and experienced practitioners are able to understand and apply the standards as intended, and (3) the standards have increased consistency and comparability across governments’ insurance activities.
FAF proposed changes to GASB standard-setting process
The FAF Board of Trustees has issued for public comment a revised proposal to clarify the characteristics of information that the GASB may incorporate into the financial accounting and reporting concepts, standards, and guidance that it issues for state and local governments.
The proposal, GASB Scope of Authority: Consultation Process–Revised Proposal, outlines a revised process through which the GASB would consult with the FAF Trustees’ Standard-Setting Process Oversight Committee to determine whether certain information that the GASB might consider for standard-setting activity is “financial accounting and reporting information” within the scope of the board’s standard-setting mission.
Comments on the proposal are requested by September 30, 2013.
IFAC News—August 2013
This edition of IFAC News includes updates from the standard-setting boards, committees, and leadership, as well as coverage of recent IFAC events. Some of the topics addressed include:
IAASB eNews—August 2013
This issue of IAASB eNews, the newsletter of IFAC’s International Auditing and Assurance Standards Board, includes highlights of the IAASB’s June meeting. It also includes various other items, such as articles on:
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.