This week's PwC update on financial reporting developments includes: Participate in the PwC/FEI revenue recognition survey... New entertainment and media industry supplement to In depth on final revenue recognition standard... The quarter close – Directors edition... Family Business Corporate Governance Series... and more
PwC's weekly alert highlighting current financial reporting developments (including accounting, auditing and regulatory matters).
This week's topics include:
Participate in the PwC/FEI revenue recognition survey
The new Revenue Recognition standard will affect nearly all companies on some level. What level of impact do your clients expect from the new standard?
PwC, along with Financial Executives International (FEI) and their Financial Executives Research Foundation, are conducting a survey to gauge the impact of the new standard on companies’ financials and operations. The survey will also attempt to gauge any concerns companies have with the new standard and/or the transition timeline. When available, the results will be summarized in a report and shared.
The survey can be accessed on CFOdirect.
New entertainment and media industry supplement to In depth on final revenue recognition standard
In depth US2014-01 summarizes the FASB and IASB's converged standard on revenue recognition, including several industry-specific supplements containing examples and insight on the revenue standard. This week we've released an additional industry supplement focusing on entertainment and media.
The quarter close – Directors edition
The quarter close – Directors edition is designed to keep directors informed about the latest accounting and financial reporting issues. We create this version specifically for audit committee members and financial experts, basing it upon The quarter close, which is intended primarily for CFOs and Controllers.
Topics featured in the Q2-2014 Directors edition include: (1) overseeing the process of going public, (2) accounting for software costs, (3) an overview of the new discontinued operations guidance, (4) the latest private company accounting alternative for leases under common control, (5) financial institutions prepare to comply with new regulations, and (6) corporate governance – audit committee excellence.
Family Business Corporate Governance Series: What is a board's role in a family business?
PwC’s Center for Board Governance has introduced a new series on Family Business Corporate Governance. The first module, What is a board’s role in a family business? looks at (1) the common types of boards in family companies, (2) why leaders might want to evolve or change the governance model, and (3) what to expect from the board if they did so.
FASB meetings and project updates
Meeting summary: The FASB met on June 25. The board discussed its research project on financial statement presentation. See the FASB’s website for the board’s meeting summary.
Next open board meeting: The FASB will not hold any board meetings next week. The next FASB meeting is scheduled for July 7, the topics to be discussed at the meeting will be announced next week.
Project updates: The FASB has updated the summaries of its projects on:
SEC adopts cross-border security-based swap rules
The SEC has adopted the first of a series of rules and guidance on cross-border security-based swap activities for market participants. The rules and guidance explain when a cross-border transaction must be counted toward the requirement to register as a security-based swap dealer or major security-based swap participant. The rules also address the scope of the SEC’s cross-border anti-fraud authority.
The SEC also adopted a procedural rule regarding the submission of “substituted compliance” requests. This rule represents a first step in the SEC’s efforts to establish a framework to address the possibility that market participants may be subject to more than one set of comparable regulations across different jurisdictions as a result of their cross-border swaps activity.
The new rules will be effective 60 days after their publication in the Federal Register. However, the rules addressing the application of the dealer and major participant definitions, and the procedures for submitting substituted compliance requests, will not impose requirements on market participants until after relevant substantive rulemakings have been completed.
CAQ releases findings on its field testing of the PCAOB's proposals for changing the auditor's reporting model
The AICPA’s Center for Audit Quality (CAQ) submitted its comments to the PCAOB on the board's auditor’s reporting model proposal, outlining key findings from a collaborative effort by members of the public company auditing profession to field test certain aspects of the proposal such as reporting on critical audit matters and other information. Observations on critical audit matters focus on proper identification, communication, and documentation. Observations on other information focus on the scope of the auditor's responsibility and the ambiguity of the information that may be included in the scope of other information.
CAQ issues highlights of March 21 meeting of SEC Regulations Committee
The CAQ's SEC Regulations Committee meets periodically with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations. Highlights of the March 21 meeting are now available.
Numerous financial reporting matters were discussed during the meeting, including the following topics:
SASB provisionally releases sustainability accounting standards for the non-renewable resources sector
The standards are intended to provide guidance to companies on identifying metrics associated with non-financial information that can be included in Management’s Discussion and Analysis of Form 10-K (at their discretion). The standards provide companies with guidance on potentially material topics, standard metrics associated with each topic, and technical guidance to assist companies in reporting on the metrics.
The SASB is an independent 501(c)3 non-profit organization and is accredited to set standards by the American National Standards Institute (ANSI). Its mission is to engage in the creation and dissemination of standards for use by publicly listed corporations, on a voluntary basis, for disclosing material sustainability issues. The SASB is not a regulator, and has no affiliation with the FASB or the AICPA.
IASB to form transition resource group for impairment of financial instruments
The IASB announced its intention to create a transition resource group that will focus on the upcoming new requirements for impairment of financial instruments. The group will provide a discussion forum to support stakeholders on implementation issues that may arise as a result of the new impairment requirements under IFRS 9 Financial Instruments (2014), which will be issued in 2014.
IASB vice-chairman discusses the future of financial reporting
In his remarks at the IFRS Conference in London, IASB Vice-Chairman Ian Mackintosh discussed the future of financial reporting, including: (1) the completion of the major convergence projects with the FASB, (2) some important projects on the IASB’s new work program, and (3) the evolving priorities of the IASB in recognition of the widespread adoption of IFRS.
IASB Update — June 2014
This issue of IASB Update, issued by the IASB staff, provides a summary of the IASB’s June 17-19 meetings. Some of the topics discussed were: (1) insurance contracts, (2) leases, (3) proposed amendments to IFRS 2 — Share-based payment transactions, (4) proposed amendments to IAS 12 — Recognition of deferred tax assets for unrealized losses, (5) business combinations under common control, and (6) conceptual framework.
 SASB standards are considered provisional for one year after the initial release. During this time, SASB welcomes feedback from the public. SASB’s research team will incorporate this feedback before issuing the final standard one year after the issuance of the provisional standard.