In brief
Timely, high-level overviews of significant business, regulatory, financial reporting, accounting and auditing matters
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In brief
In brief: FASB issues final standard on investment companies (No. 2013-30)6/11/13 | Assurance services
On June 7, 2013, the FASB issued amendments to ASC 946 that modify the definition of an investment company under US GAAP. This In brief article provides an overview of the new guidance.
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In brief: Boards discuss application of revenue model to credit card reward programs and other sweep issues (No. 2013-29)5/29/13 | Assurance services
The FASB and IASB met in May to discuss sweep issues related to their revenue recognition project, including accounting for credit card reward programs. This In brief article provides a summary of the decisions reached by the boards.
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In brief: FASB suggests a disclosure approach for the repurchase agreement project (No. 2013-28)5/28/13 | Assurance services
The FASB met on May 23, 2013 to discuss feedback received on its repurchase agreement proposal. Based on the feedback received, the FASB tentatively decided to retain the current effective control model and require additional disclosures for transfers of financial assets with contemporaneous agreements that result in the transferor retaining the risks associated with the transferred financial asset.
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In brief: FASB will issue an exposure draft of an insurance contracts standard (No. 2013-27)5/23/13 | Assurance services
FASB voted on May 23, 2013 to issue an exposure draft on insurance contracts that could fundamentally change earnings and revenue patterns for insurers and some banks.
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In brief: FASB and IASB publish revised exposure draft on leases (No. 2013-26)5/16/13 | Assurance services
The FASB and IASB issued a revised exposure draft on leases on May 16, 2013 with a comment period ending September 13, 2013. Almost all entities will be impacted. This In brief article provides an overview of the revised proposal.
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In brief: PCAOB reproposes related parties auditing standard and related amendments (No. 2013-25)5/9/13 | Assurance services
The PCAOB reproposed a related parties auditing standard and amendments on significant unusual transactions and financial relationships with executive officers. This In brief article provides an overview of the key aspects of the reproposal.
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In brief: FASB proposes amendments to Codification glossary terms (No. 2013-24)5/7/13 | Assurance services
On May 6, 2013, the FASB released an exposure draft proposing technical corrections and improvements to the FASB Accounting Standards Codification (the Codification). The proposal is part of the FASB's ongoing project to improve the Codification. This set of proposed changes is focused on improving the Codification’s master glossary. The proposed amendments are not intended to change U.S. GAAP. Instead, they are aimed at making the glossary easier to understand and reducing the number of glossary terms. This In brief article provides an overview of the proposal.
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In brief: FASB proposes to defer quantitative disclosures for nonpublic employee benefit plans (No. 2013-23)5/2/13 | Assurance services
On April 30, 2013, the FASB issued a proposal that would indefinitely defer for nonpublic employee benefit plans certain quantitative fair value disclosures for investments in their plan sponsors' nonpublic entity equity securities. Comments on the FASB's exposure draft are due May 31, 2013. This In brief article provides an overview the FASB's proposal.
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In brief: FASB finalizes guidance for applying liquidation basis of accounting (No. 2013-22)4/23/13 | Assurance services
On April 22, the FASB issued Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The new standard addresses when and how an entity should apply the liquidation basis of accounting. This In brief article provides an overview of the key provisions of the new standard.
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In brief: FASB and Private Company Council propose private company decision-making framework (No. 2013-21)4/17/13 | Assurance services
On April 15, 2013, the Financial Accounting Standards Board (Board) and Private Company Council (Council) jointly issued an invitation to comment on a proposed private company decision-making framework (the "framework").
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In brief: FASB exposes consequential amendments for classification and measurement of financial instruments (No. 2013-20)4/12/13 | Assurance services
On April 12, the FASB issued an exposure draft of consequential amendments to the Accounting Standards Codification (ASC) that would result from its financial instruments classification and measurement proposal.
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In brief: Lease accounting proposal expected by mid-May 2013; alternative views expressed (No. 2013-19)4/11/13 | Assurance services
The FASB met on April 10, 2013 to discuss the costs, benefits, and complexity associated with the proposed lease accounting rules. The FASB members expressed their individual points of view and voted 4 to 3 in favor of moving forward with the revised exposure draft. The FASB and IASB expect to issue a joint exposure draft in mid-May 2013. This In brief article provides an overview of the decisions reached at the FASB meeting.
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In brief: FASB issues exposure draft on reporting discontinued operations (No. 2013-18)4/4/13 | Assurance services
On April 2, 2013, the FASB issued a proposal that changes the criteria for reporting discontinued operations. The proposal also enhances disclosure requirements for discontinued operations and adds new disclosures for individually material dispositions that do not qualify as discontinued operations.
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In brief: PCAOB proposes framework for reorganization of PCAOB auditing standards (No. 2013-17)3/29/13 | Assurance services
On March 26, the Public Company Accounting Oversight Board (PCAOB) proposed a framework for reorganizing the existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system (the "Release"). In addition, the PCAOB is proposing certain related amendments to its rules and auditing standards, and proposing to rescind certain interim auditing standards that the PCAOB believes are no longer necessary under the proposed reorganization. The Release states that the amendments are not expected to impose new requirements on auditors or substantively change the requirements of the PCAOB standards.
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In brief: FASB issues Q&A and extends comment period for credit impairment proposal (No. 2013-16)3/28/13 | Assurance services
On March 25, the FASB issued a document that addresses key questions about its proposed impairment model for financial assets. In addition, the FASB reached a decision at its March 28 meeting to extend the comment period for its impairment proposal to May 31, 2013.
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In brief: Boards meet separately on revenue – FASB on effective date and non-public entities, IASB on early application (No. 2013-15)3/22/13 | Assurance services
The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) met separately in March to discuss specific U.S. GAAP and IFRS matters related to the proposed revenue recognition standard. The FASB focused on non-public entities and reached decisions on disclosure requirements, transition, and effective date. The FASB also amended its previous decision about effective date for public entities. The IASB decided to permit early application of the revenue standard. The decisions by both boards are tentative and subject to change. Any remaining “sweep” issues will be discussed at future meetings.
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In brief: FASB moves forward with final standard on investment companies (No. 2013-14)3/14/13 | Assurance services
On March 13, 2013, the FASB met to discuss investment companies, a joint project with the IASB. The FASB discussed certain proposed disclosures designed to increase transparency into an investment company's interest in an investee fund. These investee fund disclosures have been the final area of focus as the FASB finalizes its standard on investment companies. At its meeting, the FASB decided to remove the proposed disclosures from the current project and re-evaluate them at a later date. The FASB also agreed to move forward with issuing a final standard on investment companies.
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In brief: IASB issues exposure draft on impairment of financial instruments (No. 2013-13)3/8/13 | Assurance services
Following several years of discussions and two previously published proposals, the IASB has issued an exposure draft, Financial Instruments: Expected Credit Losses. The proposed guidance introduces an expected loss impairment model that will replace the incurred loss model used today. This In brief article provides an overview the IASB's proposal.
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In brief: IASB issues exposure draft on novation of derivatives (No. 2013-12)3/6/13 | Assurance services
The IASB has issued an exposure draft proposing a limited scope amendment to IAS 39, Financial instruments: Recognition and measurement, and to the forthcoming chapter on hedge accounting in IFRS 9, Financial instruments. The exposure draft proposes some relief from the hedge accounting requirements when a derivative is novated to a central counterparty (CCP), such as a central clearing organization, under certain circumstances.
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In brief: Boards conclude key revenue redeliberations with decisions on disclosures and transition (No. 2013-11)2/21/13 | Assurance services
The FASB and IASB (the “boards”) reached decisions at their February 20 meeting on disclosure requirements, transition, and effective date for the revenue recognition standard. These decisions substantively conclude the boards' redeliberations on this project. The boards’ decisions are tentative and subject to change. Any remaining “sweep” issues will be discussed at future meetings.
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In brief: Accounting implications of recent events in Venezuela (No. 2013-09)2/19/13 | Assurance services
On February 8, 2013, the Venezuela government announced that effective February 13, 2013 its currency would be devalued 32% and that the government-regulated rate mechanism referred to as the Transaction System for Foreign Currency Denominated Securities (SITME) market would be eliminated. The Venezuelan government also created a new department referred to as the Superior Body for the Optimization of the Exchange System to oversee foreign currency exchange policies. This In brief article highlights the key financial reporting impacts of these developments.
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In brief: South Sudan considered highly inflationary in 2013 (No. 2013-10)2/19/13 | Assurance services
At its November 2012 meeting with the SEC staff, the Center for Audit Quality’s SEC Regulations Committee’s International Practices Task Force (IPTF) discussed whether South Sudan’s economy should be considered highly inflationary. The SEC staff affirmed that South Sudan’s economy should be treated as highly inflationary for US GAAP purposes no later than the first reporting period (including annual and interim periods) beginning on or after January 1, 2013. This In brief article describes why South Sudan is considered highly inflationary and highlights some of the financial reporting implications.
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In brief: FASB proposes a new model for classification and measurement of financial instruments (No. 2013-08)2/15/13 | Assurance services
On February 14, the FASB issued a revised proposal for the classification and measurement of financial instruments. Classification and measurement is one part of the FASB and IASB’s broader financial instruments project. The other parts consist of impairment and hedge accounting. The IASB previously finalized its classification and measurement approach, but in late 2012, proposed targeted amendments to its guidance. This In brief article provides an overview of the proposal.
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In brief: Private Company Council holds its second meeting (No. 2013-07)2/14/13 | Assurance services
On February 12, the Private Company Council (Council) held its second meeting with the FASB (Board). Agenda items included discussing the private company decision-making framework (the "framework"), determining which projects to add to the Council’s technical agenda, selecting additional accounting topics for pre-agenda research, and providing input on selected current FASB projects.
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In brief: FASB finalizes new requirements on items reclassified from accumulated other comprehensive income (Revised February 14, 2013*) (No. 2013-05)2/6/13 | Assurance services
On February 5, 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance is the culmination of the board’s redeliberation on reporting reclassification adjustments from accumulated other comprehensive income. The new requirements will take effect for public companies in fiscal years, and interim periods within those years, beginning after December 15, 2012 (the first quarter of 2013 for public, calendar-year companies). This In brief article provides an overview of the key provisions.
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In brief: FASB decides on new accounting model for certain guarantees (No. 2013-06)2/6/13 | Assurance services
The FASB decided at its February 6 meeting that certain guarantees issued by non-insurers, including certain financial guarantees issued by banks and other financial institutions, should be included in the scope of the proposed insurance contracts standard. The FASB’s tentative decision will be exposed for comment as part of its insurance contracts exposure draft. The exposure draft is expected by the end of the second quarter of 2013. This In brief article provides an overview of the FASB's tentative decision.
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In brief: FASB finalizes amendment to clarify the scope of balance sheet offsetting disclosures (No. 2013-04)2/1/13 | Assurance services
On January 31, 2013, the FASB issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (the "ASU"). The ASU limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. This In brief article provides an overview of the scope clarification.
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In brief: Boards decide on scope of revenue recognition standard and other matters (No. 2013-03)1/31/13 | Assurance services
The FASB and IASB (the “boards”) decided at their January meeting to clarify the scope of the revenue standard, and they confirmed the accounting for repurchase agreements and performance fees by asset managers. They also confirmed that the accounting for transfers of non-financial assets that are not an output of an entity's ordinary activities should follow the guidance in the revenue recognition standard. This In brief article provides an overview of the boards' decisions and what's next.
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In brief: FASB proposes amendments to repurchase agreement accounting model (No. 2013-02)1/17/13 | Assurance services
On January 15, the FASB published for public comment an exposure draft to amend the accounting for repurchase agreements (aka “repos”) in an effort to identify those transactions that should be accounted for as a secured borrowing and to improve the associated accounting and disclosure requirements. The proposal will likely affect some companies that engage in certain types of repurchase agreements, including repos-to-maturity. It will also affect companies that engage in repurchase financing agreements and currently account for the components as a linked transaction. This In brief article provides an overview of the key provisions of the proposal.
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In brief: FASB further clarifies the scope of balance sheet offsetting disclosures (No. 2013-01)1/10/13 | Assurance services
At its January 9 meeting, the FASB discussed feedback on its exposure draft that proposes clarifications to the scope of the new balance sheet offsetting disclosures required by ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The exposure draft proposes that the offsetting disclosures only be applied to derivatives, repurchase agreements, and securities lending transactions to the extent that they are subject to a master netting arrangement or similar agreement. The FASB decided to clarify what would be considered a derivative for the purposes of the new offsetting disclosures and proceed with issuing the final scope clarification. This In brief article provides an overview of the board's decisions.
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In brief: FASB proposes new model for accounting for credit losses on debt instruments (No. 2012-60)12/21/12 | Assurance services
This week, the FASB issued a proposal that introduces a new model for accounting for credit losses on debt instruments. The proposal calls for an entity to recognize an allowance for credit losses based on its current estimate of contractual cash flows not expected to be collected. The FASB’s proposed model eliminates any threshold required to record a credit loss and allows entities to consider a broader information set when establishing their allowance for loan losses. In addition, the model aims to simplify current practice by replacing today’s multiple impairment models with one model that applies to all debt instruments. This In brief article provides an overview of the proposal.
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In brief: FASB clarifies scope of nonpublic entity fair value disclosure exemption (No. 2012-59)12/20/12 | Assurance services
On December 19, 2012, the FASB met to clarify the applicability of an exemption from a specific fair value disclosure for nonpublic entities. The board decided to clarify that all nonpublic entities are exempt from the requirement to disclose the categorization by level of the fair value hierarchy for items disclosed but not measured on the balance sheet at fair value. This In brief article provides an overview of the board's decision and what's next.
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In brief: Boards conclude redeliberations on key revenue measurement and recognition issues (No. 2012-58)12/18/12 | Assurance services
The FASB and IASB reached decisions at their December meeting on allocating the transaction price to separate performance obligations, applying the proposed model to bundled arrangements, constraining the cumulative amount of revenue recognized on licenses, and accounting for contract acquisition costs. The boards’ decisions are tentative and subject to change. This In brief article provides an overview of the boards' decisions and what's next.
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In brief: FASB agrees on changes to reporting of discontinued operations (No. 2012-57)12/13/12 | Assurance services
On December 12, 2012, the FASB (the “board”) met to resume redeliberations on its discontinued operations project. The project had been inactive since early 2010 while the board focused on its higher priority projects. At this meeting, the board reaffirmed its previous decision about the definition of a discontinued operation, modified certain disclosure requirements, and directed its staff to issue a revised exposure draft as soon as possible.
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In brief: Private Company Council holds its inaugural meeting (No. 2012-56)12/10/12 | Assurance services
On December 6, the Private Company Council (the Council) held its inaugural meeting with the FASB. Key agenda items for the meeting included (1) discussion of stakeholder feedback on the Private Company Decision-Making Framework, (2) the direction of the Council's technical agenda, and (3) the official transition from the Private Company Financial Reporting Committee (PCFRC) to the Council. This In brief article provides an overview of the Council and FASB's discussion of each of these items.
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In brief: IASB proposes limited amendments to its financial instruments guidance under IFRS 9 (No. 2012-55)11/29/12 | Assurance services
This week, the IASB issued its exposure draft proposing limited amendments to IFRS 9 (2010), Financial instruments. The proposed amendments are intended to: (1) Address application issues that have arisen since the original issuance of IFRS 9 with regard to financial assets measured at amortized cost, (2) Consider the interaction with the IASB’s insurance project, and (3) Reduce differences between IFRS 9 and the FASB’s proposed classification and measurement approach. This In brief article provides an overview of the IASB's proposed amendments and what's next.
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In brief: Boards make decisions on several major outstanding revenue issues (No. 2012-54)11/20/12 | Assurance services
An overview of the FASB and IASB's November 2012 decisions on revenue recognition from variable consideration; presentation of amounts not expected to be collected; and licenses, from PwC's CFOdirect Network.
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In brief: FASB amends new disclosures on items reclassified from accumulated other comprehensive income (No. 2012-53)11/19/12 | Assurance services
The FASB (the "board") met on November 14, 2012 to discuss the feedback received on the exposure draft on the new disclosures on items reclassified from accumulated other comprehensive income. The board decided to move towards a final standard after making decisions on presentation, interim disclosures, and the effective date. This In brief article provides an overview of those decisions and what's next.
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In brief: FASB plans to propose amendments to repurchase agreement accounting model before year-end (No. 2012-52)11/9/12 | Assurance services
At its November 7 meeting, the FASB (the “board”) discussed the effect on financial reporting complexity of the decisions reached in its project on accounting for repurchase agreements ("repos"). The board confirmed its previous decisions on the project and indicated it will issue an exposure draft for public comment later this quarter. The comment letter period will end on March 29, 2013. The board also made decisions at this meeting about transition, early adoption, and transition disclosures. This In brief article provides an overview of those decisions.
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In brief: FASB moving forward on "going concern" standard (No. 2012-50)11/8/12 | Assurance services
Years after adding the project to its agenda, the FASB took a significant step forward at its November meeting toward developing a new going concern standard. With the stated objectives of bringing increased discipline, structure, and consistency to existing disclosure practices, the FASB decided to require management to formally perform going concern assessments and provide related footnote disclosures.This In brief article provides an overview of the FASB's key decisions and what's next.
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In brief: AICPA seeks feedback on its Financial Reporting Framework for Small- and Medium-Sized Entities (No. 2012-51)11/8/12 | Assurance services
On November 1, 2012, the American Institute of Certified Public Accountants (AICPA) issued an exposure draft of its proposed Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs). The FRF for SMEs is intended to provide a financial reporting alternative for private companies not required to prepare US GAAP financial statements. It is a self-contained, special purpose framework that uses historical cost as its primary measurement basis. The AICPA requests that preparers, auditors, and users of the financial statements of privately owned SMEs submit comments on the proposed framework by January 30, 2013. This In brief article highlights the key features of the proposed framework and what's next.
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In brief: IASB finalizes definition of an "investment entity" (No. 2012-49)11/2/12 | Assurance services
Read this discussion of the IASB's October 2012 amendments to its existing guidance on the definition of an "investment entity," from PwC's CFOdirect Network.
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In brief: FASB amends and clarifies scope of balance sheet offsetting disclosures (No. 2012-48)11/1/12 | Assurance services
Over the past several months, issuers and other constituents in a variety of industries have raised concerns to the FASB staff and board regarding the scope of the new balance sheet offsetting disclosure requirements required by Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities. In response to these concerns, at its October 31 meeting the FASB decided to amend and clarify the scope of the balance sheet offsetting disclosures. These disclosures are effective in Q1 2013 for calendar year-end companies. This In brief article provides an overview of the FASB's decision and what's next.
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In brief: IFRS Foundation responds to SEC’s final report on IFRS Work Plan (No. 2012-47)10/29/12 | Assurance services
On October 23, 2012, the IFRS Foundation (the organization that oversees the IASB) published a response (the "Foundation Staff response") to the SEC’s final report on its IFRS Work Plan (the "SEC Staff report") issued in July 2012. The Foundation Staff response is an assessment of the matters discussed in the SEC Staff report, including the operations of the IFRS Foundation and the IASB, the use of IFRS as global accounting standards, and issues related to incorporating IFRS into the US financial reporting system. This In brief article provides an overview of the Foundation Staff response.
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In brief: FASB and IASB decide on revenue contract modifications and measures of progress (No. 2012-46)10/19/12 | Assurance services
The FASB and IASB (the "boards") met on October 18, 2012 to discuss their joint project on revenue recognition. They reached decisions on contract modifications and measures of progress towards satisfying a performance obligation. The boards' decisions are tentative and subject to change. Other key issues still to be redeliberated include collectibility, the constraint on recognizing revenue from variable consideration, licenses, allocation of transaction price, disclosures, and transition. This In brief article provides an overview of the boards discussions and key decisions.
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In brief: FASB clarifies scope of new repurchase accounting model (No. 2012-45)10/5/12 | Assurance services
At its October 3 meeting, the FASB decided to eliminate the existing guidance for evaluating if a repurchase agreement entered into as part of a "repurchase financing" should be considered linked to a previously transferred financial asset. The board's decision means that under its proposed amendments to the existing model, these repurchase agreements will be accounted for as secured borrowings. This In brief article provides an overview of the FASB's discussions.
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In brief: FASB and IASB make progress on revenue redeliberations; more to come (No. 2012-44)9/28/12 | Assurance services
The FASB and IASB (the "boards") met on September 24 and 27 to discuss their joint project on revenue recognition. They reached decisions on certain topics relating to the constraint on recognizing variable consideration, collectibility, time value of money, and distributor and reseller arrangements. The boards’ decisions are tentative and subject to change. The boards directed their staff to conduct further analysis on certain items, including aspects of the variable consideration constraint and presentation issues relating to collectibility. Other key issues still to be redeliberated include licenses, contract modifications, allocation of transaction price, disclosures, and transition. This In brief article provides an overview of the decisions.
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In brief: COSO releases "Internal Control over External Financial Reporting: Compendium of Approaches and Examples" for public comment (No. 2012-43)9/18/12 | Assurance services
On September 18, 2012, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released the Internal Control over External Financial Reporting: Compendium of Approaches and Examples (the Compendium) for public comment through November 20, 2012. In conjunction with the release of the Compendium, COSO has made available two other documents. This In brief article provides an overview of the Compendium.
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In brief: FASB determines additional disclosure requirements for repurchase agreements (No. 2012-42)9/12/12 | Assurance services
The FASB decided at its September 5 meeting to propose additional disclosure requirements for repurchase agreements accounted for as secured borrowings and for repurchase agreements accounted for as sale transactions with a forward repurchase commitment. This In brief article provides an overview of the proposed disclosures.
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In brief: IASB issues draft of forthcoming new hedge accounting requirements (No. 2012-40)9/11/12 | Assurance services
On September 7, 2012, the IASB issued a draft of the general hedge accounting requirements that will be added to IFRS 9, Financial Instruments (the Draft). The current rules on hedge accounting in IAS 39, Financial Instruments: Recognition and Measurement have frustrated many preparers, as the requirements have not been well linked with common risk management practices. The detailed rules have at times made achieving hedge accounting impossible or very costly, even when the hedge was an economically rational risk management strategy. The IASB has addressed several of these concerns in this third phase of its efforts to replace IAS 39 with IFRS 9. This In brief article provides an overview of the key provisions of the Draft.
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In brief: FASB reaches conclusion on impairment model for financial assets measured at FV-OCI (No. 2012-41)9/11/12 | Assurance services
The FASB recently began discussing a revised impairment model for financial assets. At its September 7 meeting, the FASB made a key decision with respect to the impairment model by tentatively concluding that the current expected credit loss (CECL) model should apply to financial assets measured at fair value with changes in fair value recorded through other comprehensive income (FV-OCI). However, the FASB also decided to allow a practical expedient in applying the new model. This In brief article provides an overview of the FASB's discussions.
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In brief: SEC adopts rule requiring payment disclosures by resource extraction issuers (No. 2012-39)8/24/12 | Assurance services
On August 22, 2012, the SEC commissioners voted (by a 2 to 1 margin with recusals from Chairman Schapiro and Commissioner Paredes) to approve the final rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring resource extraction issuers to disclose certain payments made to governments. It is expected that the final rule will impact approximately 1,100 issuers. The final rule represents the culmination of a process that began in December 2010 when the SEC exposed a proposed rule for public comment, generating over 150 unique comment letters.This In brief article provides an overview of the new rule.
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In brief: FASB makes key decisions about the revised impairment model for financial assets (No. 2012-37)8/23/12 | Assurance services
Earlier this month, the FASB directed its staff to explore a revised impairment model for financial instruments. At its August 22 meeting, the board made some key decisions about the revised model. The board is considering a model that incorporates the concept of expected losses, but applies that concept to all financial assets and uses a single measurement approach. This In brief article provides an overview of the key decisions made at the board meeting.
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In brief: SEC adopts rule for disclosing use of conflict minerals (No. 2012-38)8/23/12 | Assurance services
On August 22, 2012, the SEC commissioners voted 3-2 to approve the final rule requiring companies to publicly disclose their use of conflict minerals and whether those minerals originated in the Democratic Republic of the Congo (DRC) or adjoining countries (“covered countries”). This In brief article provides an overview of the final rule.
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In brief: PCAOB adopts Auditing Standard related to audit committee communications (No. 2012-35)8/17/12 | Assurance services
On August 15, the PCAOB adopted Auditing Standard No. 16, Communications with Audit Committees (AS 16). The standard establishes requirements that enhance the relevance and quality of the communications between the auditor and the audit committee, and is intended to foster constructive dialogue between the two on significant audit and financial statement matters. The enhanced communications may benefit audit committees in their oversight responsibilities and auditors in conducting effective audits. The standard and related amendments, if approved by the SEC, will be effective for public company audits of fiscal periods beginning after December 15, 2012...
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In brief: FASB proposes new disclosures on items reclassified from accumulated other comprehensive income (No. 2012-36)8/17/12 | Assurance services
On August 16, 2012, the FASB issued an exposure draft requiring new footnote disclosures for reclassifications from accumulated other comprehensive income to net income. The FASB believes its proposed footnote disclosures balance preparer concerns for a practical approach with financial statement users need for greater transparency about the impact of reclassification adjustments on net income. Comments on the exposure draft are due October 15, 2012. This In brief article provides an overview of the exposure draft.
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In brief: FASB debates the path forward for investment property entities (No. 2012-34)8/10/12 | Assurance services
The FASB met on August 8, 2012 to discuss the next steps on its project on investment property entities. The FASB did not make a final decision on the path forward; however, the board tentatively decided not to continue developing an entity-based approach for investment property. This In brief article provides an overview of the key issues and what's next for the project.
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In brief: FASB makes further decisions on repurchase agreement accounting (No. 2012-33)8/2/12 | Assurance services
Read this update on the FASB's August 2012 FASB tentative decision to extend a previously proposed exception to the financial asset sale accounting rules for certain sale and repurchase agreements, from PwC's CFOdirect Network.
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In brief: FASB decides to explore a revised impairment model for financial assets (No. 2012-32)8/1/12 | Assurance services
Over the past several months, the FASB and IASB have jointly deliberated a proposed "three bucket" impairment model for financial assets. After recently announcing its intent to further discuss key aspects of the model, the FASB met on August 1 to discuss the next steps for the project. After considering the results of outreach efforts and constituent feedback, the FASB unanimously agreed with concerns that aspects of the "three bucket" impairment model are complex and difficult to understand. As a result, the FASB will not move forward with an exposure draft on the "three bucket" impairment model and will instead explore a revised approach. This In brief article provides an overview of the key issues and what's next.
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In brief: FASB issues Invitation to Comment on Private Company Decision-Making Framework (No. 2012-31)8/1/12 | Assurance services
Read this update on the FASB's Invitation to Comment on Private Company Decision-Making Framework, from PwC's CFOdirect Network.
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In brief: FASB clarifies accounting for Continuing Care Retirement Communities refundable entrance fees (No. 2012-29)7/27/12 | Assurance services
On July 24, 2012, the FASB issued guidance addressing the accounting for refundable entrance fees received by continuing care retirement communities. In summary, the FASB clarified that a continuing care retirement community should classify the refundable entrance fee as deferred revenue only when its resident contract provides for repayment of the fee upon reoccupancy, the repayment is limited to the proceeds received from the new occupant, and the entity's policy and practice is to enforce the refund limitation. Otherwise, the entrance fee is classified as a liability. This In brief article provides further information on the new guidance.
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In brief
In brief: FASB issues final standard to simplify indefinite-lived intangible impairment test (No. 2012-30)7/27/12 | Assurance services
On July 27, the FASB issued Accounting Standards Update No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (the revised standard). The revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment. It allows companies to perform a "qualitative" assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. This In brief article provides an overview of the revised standard.
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In brief
In brief: FASB and IASB redeliberate to make the proposed revenue standard less "onerous" (No. 2012-28)7/20/12 | Assurance services
The FASB and IASB (the boards) met on July 19 to discuss their joint project on revenue recognition. They reached decisions on identifying separate performance obligations, performance obligations satisfied over time, and onerous performance obligations.
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In brief
In brief: Lease accounting redeliberations come to an end, but alternative views are on the horizon (No. 2012-26)7/19/12 | Assurance services
At their July 17 joint meeting, the FASB and IASB (the boards) completed their redeliberations of the leases project and instructed their staff to begin drafting the revised exposure draft. The boards expect to issue the revised exposure draft by the end of November 2012 with a 120-day comment period. The difficulties encountered during the 18-month-long redeliberation process were highlighted when the board members were asked whether they planned to present an alternative view to the revised proposals. Some members of each board indicated that they may present alternative views. This In brief article highlights some of their concerns.
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In brief
In brief: FASB announces intent to further discuss key aspects of proposed impairment model for financial assets (No. 2012-27)7/19/12 | Assurance services
On July 18, the FASB and IASB (the boards) met to discuss the financial instruments project. At the conclusion of the meeting, the FASB announced its intent to continue discussions about several key aspects of the impairment model, as well as consider the
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In brief
In brief: SEC Staff releases final report on its IFRS Work Plan (No. 2012-25)7/16/12 | Assurance services
Read this update on the SEC staff's July 2013 final report on its IFRS Work Plan, from PwC's CFOdirect Network
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In brief
In brief: FASB solicits input on ways to improve disclosure effectiveness (No. 2012-24)7/13/12 | Assurance services
Read this discussion on the FASB's bid for input on ways to improve disclosure effectiveness, from PwC's CFOdirect Network.
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In brief
In brief: FASB proposes guidance for applying liquidation basis of accounting (No. 2012-22)7/9/12 | Assurance services
On July 2, 2012, the FASB issued a proposal addressing when and how an entity should apply the liquidation basis of accounting. The proposal would require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is "imminent," as defined in the proposal. This In brief article provides an overview of the FASB's proposal.
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In brief
In brief: FASB votes to discontinue loss contingencies project (No. 2012-23)7/9/12 | Assurance services
After a long hiatus on its loss contingencies project, the FASB voted today to remove this controversial project from its agenda. This In brief article highlights the project history and some of the reasons cited by board members for discontinuing the pro
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In brief
In brief: FASB tentatively agrees on approach for repurchase agreement accounting (No. 2012-19)6/29/12 | Assurance services
The FASB tentatively decided this week to propose specifying the types of repurchase agreements (also known as "repos") that should be accounted for as secured borrowings based on six criteria. These types of transactions would be an exception to the gene
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In brief
In brief: IASB finalizes amendments to transition guidance for new consolidation standards (No. 2012-20)6/29/12 | Assurance services
This week, the International Accounting Standards Board (IASB) issued a final standard that amends the transition guidance for three standards. The three affected standards are: IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, and
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In brief
In brief: GASB approves new pension standards for state and local governments (No. 2012-21)6/29/12 | Assurance services
This week, the GASB voted to approve new pension accounting and reporting standards that will result in significant changes for governmental defined benefit pension plans and the employers participating in them. GASB Statement No. 67, Financial Reporting
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In brief
In brief: U.S. Supreme Court upholds health care law (No. 2012-17)6/28/12 | Assurance services
Read this commentary on the June 2012 US Supreme Court ruling on the ACA, and its effect on financial statement accounting and disclosures, from PwC's CFOdirect Network.
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In brief
In brief: FASB proposes new disclosures about liquidity and interest rate risks (No. 2012-18)6/28/12 | Assurance services
Read this discussion of the FASB's June 2012 proposed new disclosures about liquidity and interest rate risks, from PwC's CFOdirect Network.
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In brief
In brief: FASB to issue a revised proposal on reclassifications from other comprehensive income (No. 2012-16)6/22/12 | Assurance services
This week the FASB decided to issue an exposure draft requiring new footnote disclosures for reclassifications from accumulated other comprehensive income to net income. In its 2011 standard on the presentation of comprehensive income, the FASB required r
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In brief
In brief: A dual model for lease accounting: redrawing the lines (No. 2012-15)6/15/12 | Assurance services
After more than a year of deliberations, in June 2012 the FASB and IASB took a big step forward in finalizing their revised proposals for lease accounting. PwC's CFOdirect Network comments.
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In brief
In brief: FASB Chairman provides status update on insurance contracts project (No. 2012-14)6/7/12 | Assurance services
At the June 5 meeting of the Financial Accounting Standards Advisory Council (FASAC), as clarified at a subsequent FASB education session, FASB Chairman Leslie Seidman provided an update on the status of the insurance contracts project. She indicated that
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In brief
In brief: FASB and IASB redeliberate lessee accounting - May 2012 (No. 2012-13)5/25/12 | Assurance services
Read this commentary on the February 2012 FASB and IASB deliberations on lessee accounting, from PwC's CFOdirect Network.
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In brief
In brief: FASB and IASB agree to principles-based definition for investment companies (No. 2012-12)5/24/12 | Assurance services
The FASB and IASB met on May 21, 2012 to redeliberate the investment company definition project for the first time. The boards considered two items: (1) whether the IASB will continue with an entity-based approach or apply an asset-based approach and (2)
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In brief
In brief: Financial Accounting Foundation announces new council to improve standard setting for private companies (No. 2012-11)5/23/12 | Assurance services
Today, the Financial Accounting Foundation (FAF) approved a plan establishing a council to improve the standard-setting process for private companies. The FAF's plan is generally consistent with its original proposal issued in October, but it includes sev
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In brief
In brief: FASB and IASB agree on a three-category financial asset classification and measurement approach (No. 2012-10)5/22/12 | Assurance services
This week, the FASB and IASB (the boards) continued their joint discussions on classification and measurement of financial assets and agreed on a three-category approach for eligible debt investments. The three categories are (1) amortized cost, (2) fair