This week's PwC update on financial reporting developments includes: Webcast: Mergers & Acquisition — May 20... BoardroomDirect: Special Edition (ProxyPulse, first edition 2014)... IFRS news – May 2014... Market trends in retiree healthcare and financial reporting implications... and more
PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
Webcast: Mergers & Acquisition — May 20
Join us for our upcoming Mergers & Acquisitions webcast on Tuesday, May 20th from 1:00 – 2:00 EDT. This is our first webcast in our upcoming "Accessing the Capital Markets” webcast series.
This webcast will feature Beth Paul, PwC Strategic Thought Leader, Ravi Rao, National Office SEC Services Partner, and Dimitri Drone and Matt Sabatini, both Partners in our Transaction Services group. It will cover accounting, financial reporting and valuation considerations in connection with the acquisition of a business. This webcast will qualify for 1.0 CPE credit.
We invite you to register for the webcast.
BoardroomDirect: Special Edition (ProxyPulse, first edition 2014)
PwC’s Center for Board Governance released a Special Edition of BoardroomDirect, the Center’s newsletter for directors and executives. The Special Edition announces ProxyPulse, first edition 2014 - a collaboration of PwC’s Center for Board Governance and Broadridge Financial Solutions. ProxyPulse contains key trends from the 2013 fall "mini-season" covering the 1,066 shareholder meetings held between July 1 and December 31, 2013, along with comparative data from the 2012 fall mini-season.
IFRS news – May 2014
This issue of IFRS news looks at (1) IASB’s discussion paper on accounting for macro hedging, (2) integrated reporting, (3) IFRS in the US, (4) foreign exchanges—a moving target, (5) revenue standard expected in second half of May, (6) IASB’s research program, (7) leasing deliberations, and (8) Q&As: perpetual debt.
Market trends in retiree healthcare and financial reporting implications
The Affordable Care Act (ACA) has created a lot of buzz about healthcare exchanges. Most recently the enrollment period opened for individuals to purchase insurance on public exchanges. ACA has also created an interest in private exchanges for both active employees and retirees. Although private exchanges that offer individual plans to Medicare-eligible retirees have been available for several years, there has been a renewed interest in these exchanges as an alternative means of providing retiree healthcare coverage. The increased attention due to these recent developments, coupled with a continued focus by employers on ways to mitigate rapidly rising retiree healthcare costs, has accelerated changes in the design of retiree healthcare benefit plans. This publication issued by PwC's Human Resource Services practice focuses on the accounting implications of such changes.
Executive Compensation: Clawbacks 2013 proxy disclosure study
This publication issued by PwC's Human Resource Services practice provides an analysis of 2009 through 2012 year-end proxy disclosures for 100 large public companies relative to their compensation recoupment or “clawback” policies. When providing employees with bonuses, stock options, or other incentive awards, companies often establish provisions that allow them to recoup all or a portion of the award under certain circumstances. These provisions, referred to as clawbacks, are detailed by most public companies in their annual proxy statement.
Clawback policies, although not new, have been receiving more attention in recent years. The companies sampled featured a wide range of clawback triggers in their clawback policies, but the most common reason companies seek to clawback is when there is a restatement, either with or without employee involvement, or misconduct. This is not surprising given the Sarbanes-Oxley Act requirements and pending Dodd-Frank-related regulations. However, as further described in this study, we saw many companies developing new types of clawbacks over the last few years, in particular in response to the 2008 credit crisis.
Global Tax Accounting Services Newsletter (January-March 2014)
This newsletter discusses a variety of global accounting, reporting and tax law developments in the first quarter of 2014, and the related tax accounting considerations. It also points out some significant tax law and tax rate changes that occurred around the globe during the quarter ended March 31, 2014. Finally, it highlights some similarities and differences for income tax accounting under IFRS and US GAAP, and provides guidance on when tax law changes should be accounted for under these frameworks.
SEC approves PCAOB's Dodd-Frank amendments for broker-dealer audits
The SEC issued an order approving, on an accelerated basis, the PCAOB's proposed amendments, as well as certain updates and clarifications, to tailor certain of the board's rules to the audits and auditors of brokers and dealers registered with the SEC, as authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The amendments insert references to audits and auditors of broker-dealers in relevant board rules, and call for broker-dealer audit client information on the board's registration, withdrawal, and reporting forms (PCAOB Forms 1, 1-WD, 2, 3, and 4). The amendments also (1) require registered firms that audit broker-dealers to comply with certain of the board's professional practice standards, (2) update a number of board rules and forms based on the board's experience administering and enforcing PCAOB rules, and (3) make certain updates to the board's ethics and independence requirements.
The amendments will become effective 21 days after publication in the Federal Register.
FAF issues 2013 Annual Report
The FAF has issued its 2013 Annual Report. In addition to presenting the FAF’s 2013 audited financial statements, the annual report outlines the future direction of the FAF and its standard-setting boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
FASB meetings and project updates
Meeting summary: The following meetings were held over the past week:
Next open board meeting: The FASB will meet on May 14. The board plans to discuss its projects on (1) accounting for financial instruments—classification and measurement and (2) financial statements of not-for-profit entities. See the FASB’s website for further information on the meeting.
Project update: The FASB has updated the summary of its project on consolidation: principal versus agent analysis.
PCAOB issues supplemental request for comment on proposal for the reorganization of auditing standards
The PCAOB issued a supplemental request for comment on its proposal for the reorganization of PCAOB auditing standards. The board also released an online demonstration version that presents the existing auditing standards as they would look if reorganized according to the proposed framework.
The supplemental request details the proposed line-by-line amendments to PCAOB auditing standards and rules that are needed to implement the proposed reorganization. The online demonstration version includes mapping tools to help users understand the difference between the existing organizational structure of the standards and the proposed new organizational structure.
Comments are requested by July 8, 2014.
IASB publishes amendments to IFRS 11: Joint Arrangements
The IASB published amendments to IFRS 11, Joint Arrangements. IFRS 11 addresses the accounting for interests in joint ventures and joint operations. The amendments add new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business.