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FAF president discusses diversity in accounting

Sep 26, 2014

The FAF has issued the October/November edition of its column, “From the President’s Desk,” by FAF President and CEO Terri Polley. The column explores how to promote diversity within the accounting profession.

The column enumerates specific steps that the accounting profession can take to increase diversity, including marketing and awareness initiatives, school-based programs, initiatives to help minority students earn their CPAs, internships and other career opportunities, and accounting scholarships for minority students.   

The column is available on the FAF’s Web site.

IASB concludes the 2012–2014 annual improvements cycle

Sep 25, 2014

The IASB has issued a collection of amendments to IFRSs in response to issues addressed during the 2012–2014 cycle.

Four standards are affected by the amendments, which are summarized in the table below.

Standard Amendments

IFRS 5, Non-current Assets Held for Sale and Discontinued Operations

Add guidance to IFRS 5 regarding (1) reclassification of an asset from held for sale to held for distribution or vice versa and (2) discontinuation of held-for-distribution accounting.

IFRS 7, Financial Instruments: Disclosures (with consequential amendments to IFRS 1, First-time Adoption of International Financial Reporting Standard)

Clarify (1) whether a servicing contract constitutes continuing involvement  “for the purposes of the transfer disclosure requirements” and (2) the applicability of the IFRS 7 amendments on offsetting disclosures to condensed interim financial statements.

IAS 19, Employee Benefits

Clarify that the high-quality corporate bonds that an entity uses in estimating the discount rate for postemployment benefits should be denominated in the same currency as the benefits to be paid (thus, the depth of the market for high-quality corporate bonds should be assessed at currency level).

IAS 34, Interim Financial Reporting

Explain the meaning of “elsewhere in the interim report” and require a cross-reference.

The amendments are effective for annual periods beginning on or after January 1, 2016. Early application is permitted.

For more information, see the press release on the IASB’s Web site, the annual improvements project page on Deloitte’s IASPlus Web site, and Deloitte’s IFRS in Focus newsletter.

SASB issues provisional transportation standards

Sep 24, 2014

The SASB has issued provisional standards for the transportation sector. The standards are the fifth set in a planned series of industry-related SASB standards on accounting for environmental, social, and governance issues that could be material to a corporation’s performance. The standards focus on material sustainability matters that corporations are already required to disclose in their Form 10-K or 20-F filings with the SEC.

The standards apply to the following industries:

  • Automobiles.
  • Auto parts.
  • Car rental and leasing.
  • Airlines.
  • Logistics.
  • Marine transportation.
  • Rail transportation.
  • Road transportation.

The Board’s first four sets of provisional standards focus on communications, financials, health care, and nonrenewable resources.

The new provisional standards and corresponding industry briefs are available on the SASB’s Web site.

FASB meets to discuss its hedging project

Sep 23, 2014

At today’s meeting, the FASB discussed the future direction of its hedging project. The FASB staff presented to the Board a summary of feedback received on the hedging sections of its 2010 proposed ASU, “Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities.”

The staff proposed to the Board two alternatives for proceeding with the hedging project. No formal decisions were reached at this meeting. Formal deliberations of the hedging project will continue on a future date.

For more information, see the related Deloitte Accounting Journal entry and meeting minutes on the FASB’s Web site.

PCAOB issues practice alert on going concern

Sep 23, 2014

The PCAOB has issued Staff Audit Practice Alert No. 13, "Matters Related to the Auditor’s Consideration of a Company’s Ability to Continue as a Going Concern.”

The Board is issuing the alert in response to recent U.S. GAAP changes related to “disclosure of uncertainties about a company's ability to continue as a going concern.” The alert states that “auditors should continue to look to the existing requirements in AU sec. 341 when evaluating whether substantial doubt regarding the company's ability to continue as a going concern exists for purposes of determining whether the auditor's report should be modified to include an explanatory paragraph regarding going concern.”

For more information, see the press release and practice alert on the PCAOB’s Web site.

SEC posts draft of EDGAR filer manuals for upcoming EDGAR release

Sep 23, 2014

Last week, the SEC posted to its Web site drafts of volumes I, II, and III of its Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) Filer Manual for upcoming EDGAR Release 14.2.

The new release, which is scheduled for implementation on October 20, 2014, will introduce several changes, including the following:

  • New submission form types.
  • New exhibits on EDGARLink Online.
  • Item 6.06 of Form 8-K (“Static Pool”) on EDGARLink Online for additional submission types.
  • Removal of references to leased line filings, since EDGAR no longer supports the leased line filing method.
  • Minor, documentation-only corrections.

This draft has not been approved by the Commission and is subject to change. The final version of the EDGAR Filer Manual will be posted on the SEC’s Web site once it has been approved.

For more information, see the SEC's Web site:

EITF discusses four Issues at September meeting

Sep 19, 2014

At its meeting yesterday, the EITF discussed Issues related to pushdown accounting, hybrid financial instruments, dropdown transactions related to master limited partnerships, and the fair value hierarchy.

Specifically, the EITF discussed the following:

  • Issue No. 12-F, “Pushdown Accounting.”
  • Issue No. 13-G, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.”
  • Issue No. 14-A, “Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions.”
  • Issue No. 14-B, “Fair Value Hierarchy Levels for Certain Investments Measured at Net Asset Value.”

For a detailed summary of the meeting, see Deloitte’s September EITF Snapshot.

GASB seeks feedback on effectiveness of Statement 34

Sep 19, 2014

The GASB has prepared a survey to gather information on the effectiveness of Statement No. 34, “Basic Financial Statements — and Management’s Discussion and Analysis — for State and Local Governments,” and related standards.

The survey seeks feedback on the following:

  • “What requirements related to management’s discussion and analysis, government-wide financial statements, fund financial statements, and budgetary comparisons are effective or ineffective in providing information that is essential for decision-making and that enhances the ability to assess a government’s accountability?
  • What concerns exist regarding the application of the standards?
  • How do the perceptions of the benefits of the information in financial reports compare with the costs of applying the standards?”

The GASB requests that the survey be completed by October 10, 2014.

For more information, see the survey and the press release on the GASB’s Web site.

Summary of the September 2014 PCC meeting

Sep 18, 2014

At its meeting this week, the FASB’s Private Company Council (PCC) voted to finalize an “alternative that would exempt private companies from separately recognizing and measuring non-competition agreements and customer-related intangible assets that are not capable of being sold or licensed independently in a business combination.” The alternative will be sent to the FASB for endorsement.

Other topics discussed at the meeting included:

  • How the accounting for stock-based compensation could be improved for private companies.
  • The PCC’s views on the FASB’s leases project.

The PCC’s next meeting is scheduled for December 11, 2014.

For more information about the PCC’s September 16, 2014, meeting, see the related Deloitte Accounting Journal entry and the media recap on the FASB’s Web site.

FASB proposes technical corrections and improvements to the Codification

Sep 16, 2014

The FASB has issued a proposed ASU, “Technical Corrections and Improvements,” which would make minor changes to the FASB Accounting Standards Codification.

The technical corrections are divided into four main categories:

  1. Amendments to align Codification wording with that in pre-Codification standards.
  2. Corrections to references and clarification of guidance to avoid misapplication and misinterpretation.
  3. Minor edits to simplify the Codification and thereby improve its usefulness.
  4. Minor enhancements to Codification guidance that are not expected to have a significant effect on current practice.

Comments on the proposed ASU are due by December 1, 2014.

For more information, see the proposed ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.