April 13, 2012
We are pleased to send you ParenteBeard's weekly audit and accounting e-alert. It is our intention to deliver you the most up-to-date, relevant and technical accounting and audit-related information to assist you in your business and personal needs. We hope you find this e-alert informative.
FASB Ratifies EITF Consensuses-for-Exposure
The FASB approved the following EITF consensuses-for-exposure at their April 9, 2012, meeting:
- Issue No. 12-A, “Not-for-Profit Entities: Classification of the Sale of Donated Securities in the Statement of Cash Flows”;
- Issue No. 12-C, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution”; and
- Issue No. 12-E, “Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs.”
The consensuses-for-exposure will be issued for a 90 day comment period.
The EITF Flash Report covering the EITF’s March 15, 2012, meeting discussing these issues is available here.
GASB Meeting Scheduled
The GASB is scheduled to meet Wednesday-Friday, April 17-20, 2012, in Norwalk, CT. Topics expected to be discussed at the meeting include:
- Pension accounting and financial reporting;
- Financial guarantees;
- Fair value measurement and application;
- Recognition and measurement approaches, and the conceptual framework; and
- Proposed technical plan.
Additional information regarding the meeting is available here.
SEC Staff Provides Guidance on JOBS Act
The SEC Division of Corporation Finance (Corp Fin) has issued the following guidance regarding confidential submissions under the “Jumpstart Our Business Startups Act” (JOBS Act):
- “Division announcement regarding confidential submission of draft registration statements under the Jumpstart Our Business Startups Act” (Announcement); and
- “Frequently Asked Questions on Confidential Submission Process for Emerging Growth Companies” (FAQ).
The JOBS Act was signed into law by President Barack Obama on April 5, 2012, and is intended to increase American job creation and economic growth by improving access to the public capital markets for emerging growth companies. Among other things, the JOBS Act amends the Securities Act of 1933 (Securities Act) to include a new Section 6(e) that provides for the confidential submission of registration statements for review. Under Section 6(e), an emerging growth company may confidentially submit to the SEC a draft registration statement for confidential, non-public review prior to public filing, provided that the initial confidential submission and all amendments thereto are publicly filed not later than 21 days before the date on which the issuer conducts a road show, as defined by the Securities Act.
The Announcement and FAQ provide guidance on this confidential submission process. Specifically, the Announcement discusses new procedures for submitting draft registration statements on a confidential basis under Section 6(e). The FAQ addresses questions relating to the confidential submission of registration statements for review pursuant to new Securities Act Section 6(e).
A copy of the Jumpstart Our Business Startups (JOBS Act) is available here.
A copy of the FAQ is available here.
SEC Announces Formation of New Investor Advisory Committee
The SEC announced the formation of a new Investor Advisory Committee required by the Dodd-Frank Act. The 21-member committee replaces the advisory committee that was disbanded after the Dodd-Frank Act became law. The committee is expected to submit findings and recommendations for review and consideration by the SEC. The Dodd-Frank Act established the new committee to advise the SEC on:
- Regulatory priorities;
- The regulation of securities products;
- Trading strategies;
- Fee structures;
- The effectiveness of disclosure; and
- Other initiatives to protect investor interests and to promote investor confidence and the integrity of the securities marketplace.
Members of the newly formed committee were nominated by all five sitting Commissioners of the SEC and represent a wide variety of interests, including senior citizens and other individual investors, mutual funds, pension funds, and state securities regulators.
A news release on this matter is available from the SEC here.
Our strategic partnership with CCH, a Wolters Kluwer business, has enabled us to craft our Audit & Accounting eAlert. The articles have been selected from CCH’s Accounting Research Manager Daily and/or Weekly Summary and we hope you find them valuable and relevant. Please feel free to contact ParenteBeard LLC at info@ParenteBeard.com if you have any questions related to these stories or ParenteBeard's services.
©2012 CCH. All Rights Reserved.