This week's PwC update on financial reporting developments includes: M&A snapshot: Cross-border acquisitions — Navigating SEC reporting requirements... 2014 Conflict minerals survey: Full report now available... IFRS news—April 2014... and more
PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
M&A snapshot: Cross-border acquisitions — Navigating SEC reporting requirements
The contract is signed but the financial statement preparation is just beginning. In addition to managing legal, regulatory and cultural differences, buyers are required to comply with specific SEC reporting requirements related to cross-border acquisitions. Other financial reporting requirements may also be triggered if debt or equity will be raised as part of the transaction. Without proper planning, timely consummation of the acquisition could be jeopardized.
This edition of Mergers & acquisitions — a snapshot is the second in our series focused on navigating the waters of a cross-border acquisition. The series looks at various aspects along the deal continuum, including pre-acquisition due diligence and strategies, financial reporting requirements, tax implications, and post-acquisition considerations. This edition provides insights on SEC and other financial reporting requirements that may apply in a cross-border acquisition.
Missed the first edition in our series? You can access it on CFOdirect Network.
2014 Conflict minerals survey: Full report now available
With the deadline for conflict minerals reporting and disclosure fast approaching, PwC recently surveyed 700 stakeholders on their preparation, progress, and challenges. We found many will need to rush to comply with the regulations required by Dodd-Frank Section 1502. See our full report for detailed survey findings.
IFRS news — April 2014
This issue of IFRS news looks at (1) leases – convergence is no longer a priority, (2) IFRS 10 practice issues, (3) other comprehensive income - feedback from the Conceptual Framework Discussion Paper, (4) European Union backs IFRS Foundation, (5) exposure draft on IAS 1 narrow scope amendments, (6) joint arrangement implementation issues, (7) equity method in separate financial statements, and (8) Q&As: onerous contracts.
FASB meetings and project updates
Meeting summary: The FASB met on April 4 and discussed its projects on (1) accounting for financial instruments – classification and measurement, (2) investment companies: disclosures about investments in another investment company, and (3) disclosure framework: entity’s decision process. See the FASB’s website for the board’s meeting summary.
Next open board meeting: The FASB will meet on April 16. The board plans to discuss its projects on (1) consolidation-principal versus agent analysis and (2) insurance contracts. See the FASB’s website for further information on the meeting.
Project updates: The FASB has updated the summaries of its projects on:
SEC staff issues updated FAQs on conflict minerals disclosures
The SEC's Division of Corporation Finance has updated its Frequently Asked Questions: Conflict Minerals document, which provides guidance on various aspects of Exchange Act Section 13(p), Rule 13p-1 and Item 1.01 of Form SD relating to disclosure of the use of conflict minerals from the Democratic Republic of the Congo or adjoining countries. Questions 13-21 were added and mainly deal with the Independent Private Sector Audit (IPSA) of a client’s conflict minerals report.
PCAOB updates standard-setting agenda
The PCAOB issued an updated standard-setting agenda, which provides a brief project overview of the board's current standard-setting agenda and outlines key milestones on various standard-setting projects.
PEEC adopts new definition of "those charged with governance"
The AICPA Professional Ethics Executive Committee (PEEC) has adopted a new definition of “those charged with governance” in ET section 92 of the AICPA Code of Professional Conduct. The objective of the new definition is to more closely align the definition with the Auditing Standards Board (ASB), International Standard on Auditing (ISAs), and International Ethics Standards Board for Accountants (IESBA) definitions and related guidance.
The Ethics definition is effective the last day of the month that it appears in the Journal of Accountancy, which is anticipated to be April 30, 2014.