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January

Michael Piwowar appointed as SEC acting chairman

Jan 30, 2017

Last week, President Donald Trump appointed Michael S. Piwowar as acting chairman of the SEC, since the chairman position was left vacant when Mary Jo White resigned.

Earlier this month, President Trump nominated Jay Clayton as chairman; however, confirmation hearings with Congress regarding this nomination have not yet started.

For more information, see Mr. Piwowar’s biography page on the SEC’s Web site.

Highlights from the FASB’s January 25 meeting

Jan 27, 2017

At its January 25, 2017, meeting, the FASB discussed its projects on (1) agenda consultation, (2) disclosure framework — income taxes, and (3) hedging.

Agenda consultation

The Board discussed feedback received on its August 2016 invitation to comment, Agenda Consultation, including on topics such as (1) intangible assets (including research and development), (2) pensions and other postretirement benefit plans, and (3) distinguishing liabilities from equity. The Board will discuss the feedback received on reporting performance and cash flows at a later date. No decisions were made.

For more information, see the meeting minutes on the FASB’s Web site.

Disclosure framework: disclosure review — income taxes

The Board discussed comments received on its July 2016 proposed ASU, Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes. No decisions were made. The FASB will host a public roundtable meeting on March 17, 2017, at its offices in Norwalk, Connecticut.

For more information, see the meeting minutes on the FASB's Web site.

Accounting for financial instruments — hedging

The Board discussed comments received on its September 2016 proposed ASU, Targeted Improvements to Accounting for Hedging Activities, and made tentative decisions about a number of the proposed amendments.

For more information, see Deloitte's related journal entry as well as the meeting minutes on the FASB’s Web site.

SEC updates EDGAR filer manual

Jan 27, 2017

The SEC has issued a final rule adopting Release 17.0.2 of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system filer manual.

Volume I, Volume II, and Volume III of the EDGAR manual are being updated “to support an upgrade to the passphrase authentication process; and update the recommended Internet browser language for all EDGAR websites.” The EDGAR system will be upgraded on January 30, 2017.

For more information, see the final rule on the SEC’s Web site.

FASB simplifies measurement of goodwill impairment test

Jan 26, 2017

The FASB has issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which removes step 2 from the goodwill impairment test.

As a result, under the ASU, “an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount [and] should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.”

The ASU’s effective dates are as follows:

  • For public business entities that are SEC filers, December 15, 2019.
  • For public business entities that are not SEC filers, December 15, 2020.
  • For all other entities, including not-for-profit entities, December 15, 2021.

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

FAF announces new video series

Jan 26, 2017

The Financial Accounting Foundation (FAF) has posted the first video in a new series, "Accounting Leaders: The Next Generation,” to its Web site.

The video series aims to explore the qualities of great leadership in the accounting profession. Over the next few months, the FAF will continue to post short videos featuring interviews and insights from leaders and stakeholders on various topics.

The first video, What Makes a Great Leader, is available now. For more information, see the Accounting Leaders section of the FAF’s Web site.

FASB amends certain topics on the basis of SEC staff announcements

Jan 24, 2017

The FASB has issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments — Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update).”

The guidance in this ASU is based on the following SEC staff announcements made at the September 2016 and November 2016 EITF meetings:

  • “Disclosure of the impact that recently issued accounting standards will have on the financial statements of a registrant when such standards are adopted in a future period (in accordance with Staff Accounting Bulletin [SAB] Topic 11.M).”
  • “Amendment of SEC Staff Observer comment: accounting for tax benefits resulting from investments in qualified affordable housing projects due to issuance of ASU No. 2014-01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.”

For more in­for­ma­tion, see De­loitte’s Sep­tem­ber 2016 and November 2016 EITF Snap­shot newsletters as well as the final ASU on the FASB’s Web site.

FASB and ASBJ hold biannual meeting

Jan 19, 2017

On January 18–19, 2017, the FASB met with the Accounting Standards Board of Japan (ASBJ) in Tokyo, Japan. The meeting is the 21st in a series of biannual meetings the two standard setters hold to further their “cooperative efforts to develop high-quality global accounting standards.”

In addition to giving updates on their respective standard-setting activities at the meeting, the two boards exchanged views on technical topics in which they both have an interest, including performance reporting, goodwill and intangible assets, and negative interest rates.

The next meeting between the FASB and ASBJ is expected to be held in the second half of 2017 in Norwalk, Connecticut. For more information about the January meeting, see the press release on the FASB’s Web site.

FASB amends consolidation guidance for not-for-profit entities

Jan 12, 2017

The FASB has issued ASU 2017-02, “Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity,” which amends the consolidation guidance for not-for-profit entities in ASC 958-810.

The amendments in the ASU:

  • “[R]etain the consolidation guidance that was in [ASC] 810-20 for NFPs by including it within Subtopic 958-810.”
  • Add guidance on when an “NFP limited partner should consolidate a for-profit limited partnership.”
  • Add “kick-out rights,” “participating rights,” and “protective rights” to the ASC 958-810 glossary.
  • Clarify the application of fair value elections.

The ASU is effective for NFPs for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. For more information, see Deloitte's related Heads Up newsletter as well as the ASU on the FASB’s Web site.

SEC publishes examination priorities for 2017

Jan 12, 2017

The SEC’s Office of Compliance Inspections and Examinations has published its examination priorities for 2017.

The priorities focus on electronic investment advice, money market funds, and financial exploitation of senior investors. In addition, the priorities “reflect a continuing focus on protecting retail investors, including individuals investing for their retirement, and assessing market-wide risks.”

The document is not necessarily comprehensive and “may be adjusted in light of market conditions, industry developments, and ongoing risk assessment activities.”

For more information, see the press release and 2017 examination priorities on the SEC’s Web site.

IASB proposes changes to IFRSs as part of annual improvements process

Jan 12, 2017

The IASB has published an exposure draft (ED), “Annual Improvements to IFRS Standards 2015–2017 Cycle.”

The ED proposes amendments to three IFRSs:

  • IAS 12, Income Taxes — These amendments would “clarify that the requirements in paragraph 52B of IAS 12 apply not just in the circumstances described in paragraph 52A of IAS 12, but to all income tax consequences of dividends.”
  • IAS 23, Borrowing Costs — Paragraph 14 would be amended “to clarify that when a qualifying asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that qualifying asset as part of the funds that it has borrowed generally.”
  • IAS 28, Investments in Associates and Joint Ventures — These amendments would “clarify that an entity is required to apply IFRS 9 Financial Instruments, including its impairment requirements, to long-term interests in an associate or joint venture that, in substance, form part of the net investment in the associate or joint venture but to which the equity method is not applied.”

Comments on the ED are due by April 12, 2017. For more information, see the press release and ED on the IASB’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.