Flashline - Week ending February 13, 2014 (No. 2014-07)

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Flashline 02/13/2014 by Assurance services
Flashline - Week ending February 13, 2014 (No. 2014-07)

At a glance

This week's PwC update on financial reporting developments includes: Save the date: Q1-2014 Current Accounting and Reporting Developments webcast—Tuesday, March 18... SEC staff release updated Financial Reporting Manual... IFRIC Update — January 2014... and more.

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

This week's topics include:

  • Save the date: Q1-2014 Current Accounting and Reporting Developments webcast—Tuesday, March 18
  • SEC staff release updated Financial Reporting Manual
  • SEC approves PCAOB standards for broker-dealer audits and supplemental information
  • FASB meetings and project updates
  • COSO issues paper on how COSO Frameworks improve organizational performance and governance
  • CFTC issues final rule on customer funds held by Future Commission Merchants
  • IFRIC Update — January 2014

PwC

Save the date: Q1-2014 Current Accounting and Reporting Developments webcast—Tuesday, March 18

Please mark your calendars and plan to attend our first quarter 2014 'Current Accounting and Reporting Developments' webcast at 1:00 p.m. ET on Tuesday, March 18. This 90-minute webcast provides insights and information about key emerging accounting, regulatory, and market developments impacting financial reporting. The webcast will provide 1.5 CPE credits to participants.

We invite you to pre-register for the webcast through the CFOdirect Network.

Securities and Exchange Commission (SEC)

SEC staff release updated Financial Reporting Manual

The SEC's Division of Corporation Finance has published an updated version of its Financial Reporting Manual. The manual covers a variety of topics such as financial statement requirements, pro forma information, non-GAAP measures, and MD&A, to name a few. One notable update in the updated version relates to guidance concerning critical accounting estimate disclosures for share-based compensation in IPOs.

The manual serves as an internal, informal reference document to provide general guidance to SEC staff when reviewing for compliance with SEC reporting rules. Though non-authoritative, the manual is a helpful source for companies and auditors to reference for general information on SEC reporting matters.

SEC approves PCAOB standards for broker-dealer audits and supplemental information

On February 12, the SEC approved attestation standards pertaining to audits of brokers and dealers intended to help protect customer funds by enhancing the quality of compliance information provided to the US SEC and used in its regulatory oversight of broker-dealers.

The SEC also approved an auditing standard applicable when auditors are engaged to perform audit procedures and report on supplemental information that broker-dealers and others file with the SEC.

The newly approved PCAOB standards and amendments are effective for fiscal years ending on or after June 1, 2014.

Financial Accounting Standards Board (FASB)

FASB meetings and project updates

Meeting summary: The FASB met on February 12 and discussed its project on accounting for goodwill for public business entities and not-for-profits. The FASB’s website will be updated shortly for the board’s meeting summary.

Next open board meeting: The FASB will meet on February 19. The board plans to discuss its projects on (1) insurance contracts, (2) accounting for financial instruments, (3) FASB endorsement of Private Company Council (PCC) consensus, and (4) consolidation – principle versus agent analysis. See the FASB’s website for further information on the meeting.

Project update: The FASB has updated the summary of its project on accounting for financial instruments

Committee of Sponsoring Organizations (COSO)

COSO issues paper on how COSO Frameworks improve organizational performance and governance

COSO has published a paper titled Improving Organizational Performance and Governance: How the COSO Frameworks Can Help to illustrate how the enterprise risk management (ERM) and internal control frameworks can contribute to enhancing organizational performance and governance for sustainable success and add value to governance strategies and business planning.

Commodity Futures Trading Commission (CFTC)

CFTC issues final rule on customer funds held by Future Commission Merchants

The Commodity Futures Trading Commission (CFTC) has approved a new rule requiring enhanced customer protections for futures commission merchants (FCMs). Audits of FCMs will be required to be performed in accordance with PCAOB standards by a PCAOB-registered firm that must have undergone a PCAOB inspection.

In this rule, the CFTC identified the independence of the certified public accountant as one of the factors for the governing body of the FCM to consider when assessing the qualification of an auditor engaged to perform an FCM audit.

IFRS Interpretations Committee

IFRIC Update — January 2014

The January 2014 edition of IFRIC Update provides a summary of the IFRS Interpretations Committee's January 29-30 meeting. The meeting included discussion on the following current agenda items:

  • IFRS 10 Consolidated Financial Statements—exemption from preparing consolidated financial statements requirements in IFRS 10: Applicability to a subsidiary of an investment entity
  • IAS 28 Investments in Associates and Joint Ventures—application of the equity method by a non-investment entity investor to an investment entity investee
  • IFRS 11 Joint Arrangements—analysis of implementation issues
  • IAS 12 Income Taxes—recognition of deferred tax assets for unrealized losses
  • IAS 34 Interim Financial Reporting—condensed statement of cash flows

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.