This week's PwC update on financial reporting includes: Setting the standard — September 2013... Points of view: Global valuation standards and the valuation profession... IASB Update — September 2013... and more.
PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
Setting the standard — September 2013
Our Setting the standard publication is designed to keep you informed about the standard setting activities of the FASB and IASB. We provide you with the most up-to-date information on the joint convergence projects as well as updates on other projects of the FASB.
In this edition, we update you on the latest on where the boards stand with issuing a final revenue recognition standard as well as the progress being made on their financial instruments and insurance contracts proposals. We also provide insights into stakeholder reaction to the controversial leases proposal, for which nearly 600 comment letters were recently submitted.
We wrap up this edition with the latest on a host of other FASB-only proposals, including reporting on discontinued operations, going concern, development stage entities, and the definition of a public business entity.
Points of view: Global valuation standards and the valuation profession
With increasing frequency, global markets are shining a spotlight on valuation practices and the valuation profession. The importance of fair value and similar measurements in financial reporting mandates corresponding high-quality valuation guidance and professional standards. In the following companion publications, we share our points of view on the need to establish (1) a leading global valuation standard setter and (2) a framework for professional conduct, education, credentialing, and performance.
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 October 2. The Board will (1) decide whether to approve two consensuses-for-exposure reached at the September 13, 2013 Emerging Issues Task Force meeting, and (2) discuss its project on transfers and servicing: repurchase agreements and similar transactions. See the FASB’s website for more information on the meeting.
Project updates: The FASB has updated the summaries of its projects on:
FPIs that prepare their financial statements in accordance with IFRS are not required to submit interactive data files to the SEC
This week, the SEC sent an email to its website subscribers reconfirming its prior position that foreign private issuers that prepare their financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the IASB, are not required to submit interactive data files to the SEC, as defined in Rule 11 of Regulation S-T, until the SEC specifies on its website a taxonomy for use by such foreign private issuers in preparing their Interactive Data Files.
The SEC staff is continuing to review taxonomies for use by foreign private issuers. Additionally, an exposure draft Interim Release Package on the IFRS Taxonomy 2013 has been published for comment by the IFRS Foundation. The public comment period will end on November 11, 2013.
IASB Update — September 2013
This issue of IASB Update, issued by the IASB staff, provides a summary of the IASB’s September 13-18 meetings. The FASB joined the IASB in a joint session to discuss their projects on (1) accounting for financial instruments: impairment and classification and measurement and (2) revenue recognition.
Some of the topics discussed at the IASB-only sessions included: (1) comment letters received on the Defined benefit plans: Employee contributions exposure draft, (2) IAS 1, Presentation of financial statements proposed amendments, (3) annual improvements project, (4) business combinations under common control, and (6) rate-regulated activities.
IESBA clarifies definition of "those charged with governance"
IFAC's International Ethics Standards Board for Accountants (IESBA) released final changes to the definition of “those charged with governance” in its Code of Ethics for Professional Accountants (the Code). The changes are intended to more closely align the definitions of “those charged with governance” in the Code with the International Standards on Auditing (ISAs).
The changes will become effective on July 1, 2014
The table in the attachment lists meetings of standard-setting bodies, PwC webcasts and other events occurring in October 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.
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, visit CFOdirect Network (www.cfodirect.pwc.com), PwC’s online resource for financial executives.