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SEC proposes hyperlinks to exhibits for certain filings

Aug 31, 2016

The SEC has issued a proposed rule, “Exhibit Hyperlinks and HTML Format.”

The pro­posed rule would “require registrants that file registration statements and periodic and current reports that are subject to the exhibit requirements under Item 601 of Regulation S-K, or that file on Forms F-10 or 20-F, to include a hyperlink to each exhibit listed in the exhibit index of these filings.” In addition, the hyperlinks must be in HTML format.

Com­ments are due by October 27, 2016. For more in­for­ma­tion, see the press release and pro­posed rule on the SEC’s Web site.

SEC issues final rule granting regulatory access to data held by security-based swap data repositories

Aug 29, 2016

The SEC has issued a final rule that amends Rule 13n-4 of the Securities Exchange Act of 1934 to give certain regulators and other authorities access to the data held by security-based swap data repositories.

Specifically, the final rule:

  • Requires “either a memorandum of understanding or other arrangement between the Commission and the recipient of the data to address the confidentiality of the security-based swap data provided to the recipient.”
  • Identifies “the five prudential regulators named in the statute, as well as the Federal Reserve banks and the Office of Financial Research, as being eligible to access data.”
  • Addresses “factors that the Commission may consider in determining whether to permit other entities to access data.”

The final rule will become ef­fec­tive on November 1, 2016. For more in­for­ma­tion, see the press release and final rule on the SEC’s Web site.

GASB proposes guidance on certain debt extinguishment issues

Aug 29, 2016

The GASB has issued an exposure draft (ED), “Certain Debt Extinguishment Issues,” that governmental entities “would apply when extinguishing debt prior to its maturity.” Specifically, the proposal would provide guidance on “transactions in which only existing resources are placed in a trust for the purpose of extinguishing debt.”

Com­ments on the ED are due by October 28, 2016. For more in­for­ma­tion, see the press release and ED on the GASB’s Web site.

Highlights from the FASB’s August 24 meeting

Aug 26, 2016

At its August 24, 2016, meeting, the FASB discussed its projects on (1) pension and net periodic postretirement benefit cost, (2) the definition of a business, (3) inventory disclosures, and (4) consolidation.

Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost

The FASB discussed comments received on its January 2016 proposed ASU Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. No tentative decisions were made. For more information, see the meeting minutes on the FASB’s Web site.

Clarifying the definition of a business

The FASB continued redeliberating its November 2015 proposed ASU Clarifying the Definition of a Business and affirmed its positions related to (1) the proposed threshold test, (2) substantive processes, and (3) the definition of outputs. For more information, see the meeting minutes on the FASB’s Web site.

Disclosure framework — disclosure review: inventory

The FASB discussed potential changes to inventory disclosure requirements. No technical decisions were made. For more information, see the meeting minutes on the FASB’s Web site.

Consolidation — interests held through related parties that are under common control

The FASB discussed comments received on its June 2016 proposed ASU Interests Held Through Related Parties That Are Under Common Control and made tentative decisions related to scope, indirect interests, transition, effective date, and cost-benefit analysis. The Board directed the staff to begin drafting an ASU for a vote by written ballot. For more information, see Deloitte's related journal entry as well as the meeting minutes on the FASB’s Web site.

FASB issues guidance on certain cash flow classification issues

Aug 26, 2016

The FASB has issued Accounting Standards Update (ASU) No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” in response to EITF Issue 15-F.

The ASU ad­dresses eight cash flow clas­si­fi­ca­tion issues that have been cre­at­ing di­ver­sity in prac­tice:

  1. Debt pre­pay­ment or debt ex­tin­guish­ment costs.
  2. Set­tle­ment of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing.
  3. Con­tin­gent con­sid­er­a­tion pay­ments made after a busi­ness com­bi­na­tion.
  4. Pro­ceeds from the set­tle­ment of in­sur­ance claims.
  5. Pro­ceeds from the set­tle­ment of cor­po­rate-owned life in­sur­ance poli­cies, in­clud­ing bank-owned life in­sur­ance poli­cies.
  6. Dis­tri­b­u­tions re­ceived from equity method in­vestees.
  7. Ben­e­fi­cial in­ter­ests in se­cu­ri­ti­za­tion trans­ac­tions.
  8. Sep­a­rately iden­ti­fi­able cash flows and ap­pli­ca­tion of the pre­dom­i­nance prin­ci­ple.

For more in­for­ma­tion, see Deloitte's related Heads Up newsletter as well as the ASU on the FASB’s Web site.

OCC updates "Bank Accounting Advisory Series"

Aug 26, 2016

The Office of the Comptroller of the Currency (OCC) has updated its "Bank Accounting Advisory Series" (BAAS), which “expresses the office’s views on accounting topics relevant to national banks and federal savings associations.”

The August 2016 update of the BAAS contains revisions related to the following topics:

  • Contingencies.
  • Fair value accounting.
  • Deferred taxes.
  • Transfers of financial assets and servicing.
  • Acquisitions.

For more information, see the BAAS update on the OCC’s Web site

SEC requests comments on certain Regulation S-K disclosure requirements

Aug 26, 2016

The SEC has published a request for comment as part of its disclosure effectiveness initiative.

The request for comment seeks feedback on certain disclosure requirements in Subpart 400 of Regulation S-K related to management, certain security holders, and corporate governance matters. The Commission plans to take the comments received into account when developing its study on Regulation S-K, which is required by the Fixing America’s Surface Transportation Act.

Comments are due by October 31, 2016. For more information, see the press release and request for comment on the SEC’s Web site.

SEC issues final rule for investment advisers

Aug 25, 2016

The SEC has issued a final rule, “Form ADV and Investment Advisers Act Rules,” to improve the reporting and disclosure requirements for investment advisers.

Specifically, the final rule amends:

  • Form ADV to (1) require investment advisers to disclose additional information (e.g., about their “separately managed account business”), (2) include an approach under which “private fund adviser entities operating a single advisory business” can use a single Form ADV to register, and (3) make certain technical corrections to “Form ADV items and instructions.”
  • The Investment Advisers Act to (1) require advisers to maintain records of performance-related calculations and communications and (2) “remove transition provisions that are no longer necessary.”

The rule is effective 60 days after the date of its publication in the Federal Register, and advisers will need to begin complying with the amendments on October 1, 2017. For more information, see the press release and final rule on the SEC’s Web site.

FAF completes post-implementation review of GASB’s guidance on pollution remediation 

Aug 24, 2016

The FAF has released a post-implementation review (PIR) report on GASB Statement No. 49, “Accounting and Financial Reporting for Pollution Remediation Obligations.”

The PIR report concluded that Statement 49 has achieved its objectives. Specific findings noted by the PIR team included the following:

  • Creditors and other financial statement users have received helpful information about pollution remediation liabilities.
  • The standard is generally comprehensible and “can be applied as intended.”
  • The standard has “achieved its expected benefits” without resulting in significant “implementation and ongoing application costs.”

For more information, see the press release and PIR report on the FAF’s Web site as well as the GASB’s response letter to the FAF on the GASB’s Web site.

FASB issues new standard on not-for-profit financial statements

Aug 19, 2016

The FASB has issued Accounting Standards Update (ASU) No. 2016-14, “Presentation of Financial Statements of Not-for-Profit Entities,” which simplifies how a not-for-profit organization (1) classifies net assets and (2) presents information in financial statements.

The purpose of the ASU is to improve “presentation and disclosures to help not-for-profits provide more relevant information about their resources (and the changes in those resources) to donors, grantors, creditors, and other users.” According to the FASB in Focus newsletter on the ASU, the new standard addresses:

  • “Complexity and understandability of net asset classifications.”
  • “Deficiencies in information about liquidity and availability of resources.”
  • “Lack of consistency in the type of information provided about expenses and investment return.”
  • “Misunderstandings about and opportunities to enhance the utility of the statement of cash flows.”

The ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018.

For more information, see the press release, FASB in Focus newsletter, ASU, cost-benefit analysis, and video discussion of the new standard on the FASB’s Web site.

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