June 22, 2012
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FASB Webcast Scheduled
The FASB has scheduled a webcast entitled IN FOCUS: FASB Update for Nonpublic Entities. This live webcast, offered free of charge, will take place on Thursday, June 28, 2012, from 1:00 to 2:40 p.m. (EDT). Participants in the live broadcast will be eligible for up to two hours of CPE credit.
The webcast will feature FASB members Tom Linsmeier and Marc Siegel, in addition to members of the FASB staff. The webcast will provide an overview of the following topics:
- The Financial Accounting Foundation’s newly established Private Company Council;
- The private company decision-making framework project and the related project reexamining the definition of a nonpublic entity; and
- The work of the FASB’s Not-for-Profit Advisory Committee.
The webcast will also present a brief discussion of several the FASB’s current projects, including the following: (a) not-for-profit financial reporting; (b) the disclosure framework and its relationship to the private company decision-making framework; (c) the joint FASB and IASB joint projects on leases, revenue recognition, and accounting for financial instruments (focusing on latest developments); and (d) other projects of interest to private companies and not-for-profit organizations.
The FASB’s Media Advisory on the webcast is available here.
Highlights from the EITF Meeting of June 21, 2012
Final Consensuses Reached at the Meeting
Consensus-for-Exposure Reached at the Meeting
12-B, “Not-for-Profit Entities: Services Received from Employees of an Affiliate”; and
12-D, “Accounting for Joint and Several Liability for which the Total Amount of the Obligation at the Reporting Date is Fixed.”
Further Discussion Expected Based on the Results of the Meeting
11-A, “Parent’s Accounting for the Cumulative Translation Adjustment upon the Loss of a Controlling Financial Interest in a Subsidiary or Group of Assets That Is a Nonprofit Activity or a Business within a Consolidated Foreign Entity.”
At the Agenda Committee Meeting of May 14, 2012, the committee added Issue No. 12-F, “Recognition of New Accounting Basis (Pushdown) in Certain Circumstances” to the EITF’s agenda. At the meeting, the FASB Chairman directed the FASB staff to form an EITF Working Group to discuss the scope of this issue. This issue is expected to be discussed at a future EITF meeting.
The EITF’s scheduled meeting for July 26, 2012, has been canceled.
PCAOB Extends SAG Nomination Period
The PCAOB has extended the nomination period for its Standing Advisory Group (SAG) for the 2013-2015 term. The new deadline for submissions is July 15, 2012.
Appointments will be announced in November, and the new terms begin in January 2013. Membership in the SAG is personal to the member, and the duties and responsibilities cannot be delegated to others.
The SAG was established in 2003 to advise the PCAOB on the development of auditing and related professional practice standards. The SAG includes auditors, investors, public company executives, and others. The group is chaired by PCAOB Chief Auditor and Director of Professional Standards Martin F. Baumann.
The PCAOB news release and nomination forms are available here.
SEC Adopts New Rule
The SEC has approved a rule that directs national securities exchanges to adopt listing standards for public company boards of directors and compensation advisers. The new rule, required by the Dodd-Frank Act, requires exchange listing standards to address the following:
- The independence of the members on a compensation committee;
- The committee’s authority to retain compensation advisers;
- The committee’s consideration of the independence of any compensation advisers; and
- The committee’s responsibility for the appointment, compensation, and oversight of the work of any compensation adviser.
Once an exchange’s new listing standards are in effect, a listed company must meet the standards in order for its shares to continue trading on that exchange. The SEC also amended its proxy disclosure rules to require new disclosures from companies about their use of compensation consultants and conflicts of interest.
The new rule and rule amendments will take effect 30 days after publication in the Federal Register. Each exchange that lists equity securities must propose listing standards that comply with the new rule no later than 90 days after it takes effect. The new listing standards must be approved by the SEC within one year of the new rule becoming effective.
The press release on the new SEC rule is available here.
The new SEC rule is available here.
Chief Accountant James Kroeker to Leave SEC
Chief Accountant James L. Kroeker will leave the SEC in July to enter the private sector.
Mr. Kroeker came to the SEC in 2007 as Deputy Chief Accountant and has been the agency’s Chief Accountant since January 2009. In that role, Mr. Kroeker has guided the operations of the SEC’s Office of the Chief Accountant and counseled the SEC on a wide range of accounting and auditing issues.
The SEC press release is available here.
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