Flashline - Week ending October 24, 2013 (No. 2013-43)

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Flashline 10/24/2013 by Assurance services
Flashline - Week ending October 24, 2013 (No. 2013-43)

At a glance

This week's PwC update on financial reporting includes: Now available: IFRS and US GAAP: similarities and differences - 2013 edition... Investor Exchange 2013 highlights... On-demand version: Q3-2013 Current Accounting and Reporting Developments webcast... and more.

PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).

This week's topics include:

  • Now available: IFRS and US GAAP: similarities and differences—2013 edition
  • Investor Exchange 2013 highlights
  • On-demand version: Q3-2013 Current Accounting and Reporting Developments webcast
  • SEC issues proposal on crowdfunding
  • FASB seeks comments on two EITF consensuses-for-exposure
  • FASB issues proposed UGT Implementation Guide on notional amount disclosures
  • FASB meetings and project updates
  • Final minutes of the September 13 EITF meeting
  • Materials for the November 14 EITF meeting
  • ARSC proposes significant changes to compilation literature under clarity project

PwC

Now available: IFRS and US GAAP: similarities and differences—2013 edition

The 2013 edition of our popular IFRS and US GAAP: similarities and differences guide is now available. This publication is designed to improve companies’ broad understanding of the major differences between International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP). For US preparers, public or private, big or small, knowledge of IFRS is important. Although a potential change to IFRS for US public companies is a longer-term vision, IFRS is increasingly relevant now to many US businesses as they engage in cross-border M&A, report to their non-US stakeholders, and manage their overseas operations.

Investor Exchange 2013 highlights

Investor Exchange 2013 highlights summarizes the interchange of information and opinions that were shared between investors and PwC professionals at our inaugural Investor Exchange. At the meeting, we explored how a variety of issues may impact companies’ financial reporting, data integrity, operations, access to materials, supply chain, and customer loyalty. We also shared information from PwC’s 2013 Investor Survey.

Some of the topics covered included: Risks in a post-financial crisis world – a discussion of market and industry risks; Sustainability – emerging trends; and Behind the audit curtain – how auditors, company management, and audit committees work to resolve accounting issues. Additionally, former U.S. Securities and Exchange Commissioner, Elisse B. Walter, spoke about her experiences in Washington, DC.

Investors are more interested than ever in understanding the risks that today’s companies face, and how they’re managing those risks. Explore insights that were shared by the panelists and the audience on a range of issues such as global tax policies, technology risks, and megatrends like urbanization and natural resource scarcity.

On-demand version: Q3-2013 Current Accounting and Reporting Developments webcast

Did you miss our Q3-2013 "Current Accounting & Reporting Developments" webcast on September 23? If so, you still have an opportunity to view the webcast and earn CPE credit! The Q3 2013 webcast is now available in an on-demand format for your convenience. You can access the on-demand version whenever it works best for you. A post-event questionnaire, when completed, qualifies participants for 1.5 CPE credits.

Securities and Exchange Commission (SEC)

SEC issues proposal on crowdfunding

The SEC issued proposed rules, under the JOBS Act, to permit companies to offer and sell securities through crowdfunding. Crowdfunding describes an evolving method of raising capital that has been used outside of the securities arena to raise funds through the Internet for a variety of projects ranging from innovative product ideas to artistic endeavors like movies or music. Title III of the JOBS Act created an exemption under the securities laws so that this type of funding method can be easily used to offer and sell securities as well. The JOBS Act also established the foundation for a regulatory structure for this funding method.

The SEC is seeking public comment on the proposed rules for a 90-day period following their publication in the Federal Register.

Financial Accounting Standards Board (FASB)

FASB seeks comments on two EITF consensuses-for-exposure

The FASB has issued for public comment two proposed Accounting Standards Updates (ASUs) that contain the consensuses-for-exposure reached at the September 2013 EITF meeting. The proposed ASUs are:

Comments on the proposed ASUs are requested by December 23, 2013.

Also, see the September 2013 edition of PwC’s EITF observer for a synopsis of the discussions and decisions reached at the EITF's meeting.

FASB issues proposed UGT Implementation Guide on notional amount disclosures

The FASB issued a proposed US GAAP Financial Reporting Taxonomy (UGT) Implementation Guide titled Notional Amount Disclosures. The proposed guide provides examples to help users of the UGT understand how the modeling for notional amount disclosures is structured within the UGT. The examples are based on the assumption that the entity meets the criteria for reporting notional amount disclosures under US GAAP and/or SEC authoritative literature.

Comments on the proposed guide are requested by December 12, 2013.

FASB meetings and project updates

Meeting summaries: The FASB held the following meetings this week:

  • October 23: The board discussed its projects on: (1) not-for-profit financial reporting: financial statements and (2) investment companies: disclosures about investments in another investment company. See the FASB’s website for a summary of the decisions reached at the meeting.
  • October 24: The board discussed its project on consolidation: principal versus agent analysis. See the FASB’s website for a summary of the decisions reached at the meeting.

Next open board meetings: The board will hold the following meetings next week:

  • FASB board meeting – October 30. The FASB will discuss its project on the definition of a nonpublic entity.
  • FASB and IASB joint board meeting – October 30. The boards will discuss their joint project on revenue recognition.

See the FASB’s website for more information on the meetings.

Project update: The FASB has updated the summary of its project on leases.

Emerging Issues Task Force (EITF)

Final minutes of the September 13 EITF meeting

The FASB staff has published the final minutes of the September 2013 EITF meeting. At the meeting, the EITF reached consensuses-for-exposure on two issues affecting certain stock-based awards with performance targets and certain hybrid financial instruments (see the proposed ASUs on these items under the FASB section above). Discussions also continued on an issue affecting investments in qualified affordable housing projects.

Also, see the September 2013 edition of PwC’s EITF observer for a synopsis of the discussions and decisions reached at the EITF's meeting.

Materials for the November 14 EITF meeting

The FASB staff has published the following materials for the November 14 EITF meeting:

  • Proposed Agenda
  • Comment Letters Nos. 1-23 for proposed ASU, Proposed Accounting Standards Update—Consolidation (Topic 810): Measuring the Financial Liabilities of a Consolidated Collateralized Financing Entity (EITF Issue No. 12-GR)
  • Comment Letters Nos. 1-3 for proposed ASU, Service Concession Arrangements (Topic 853) (EITF Issue No. 12-H)
  • Comment Letters Nos. 1-18 for proposed ASU, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Collateralized Mortgage Loans upon a Troubled Debt Restructuring (EITF Issue No 13-E)

American Institute of Certified Public Accountants (AICPA)

ARSC proposes significant changes to compilation literature under clarity project

The AICPA’s Accounting and Review Services Committee (ARSC) released for public comment an exposure draft that contains three proposed standards. The proposed standards apply the ARSC’s clarity drafting conventions, however represent significant revisions in requirements from existing standards.

  • Preparation of Financial Statements would provide requirements and guidance when an accountant is engaged to prepare financial statements for an entity but has not been engaged to perform a compilation, review, or audit with respect to those financial statements.
  • Compilation Engagements would provide requirements and guidance that would apply only when an accountant is engaged to perform a compilation of historical financial statements.
  • Association with Financial Statements would provide requirements and guidance when an accountant agrees to permit the use of the accountant’s name in a report, document, or written communication that includes financial statements with respect to which the accountant did not issue a compilation, review, or audit report.

Comments are requested by May 2, 2014.


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, visit CFOdirect Network (www.cfodirect.pwc.com), PwC’s online resource for financial executives.