Latest accounting and regulatory developments
Periodic newsletters that analyze important accounting developments, such as new FASB and IASB pronouncements or exposure drafts. Concise examples and answers to frequently asked questions assist readers in understanding and implementing the critical guidance.
SEC issues final rule on pay ratio disclosure
September 10, 2015
This issue discusses the SEC’s recently issued final rule, "Pay Ratio Disclosure." Under the final rule, a registrant must annually disclose (1) the median of the annual total compensation of all its employees (excluding the individual that the SEC describes as the principal executive officer), (2) the annual total compensation of its CEO, and (3) the ratio of the median of the annual total compensation of all its employees to the annual total compensation of its CEO. Registrants must adopt the final rule for their first fiscal year beginning on or after January 1, 2017.
FASB proposes amendments to new revenue standard’s guidance on principal-versus-agent considerations
September 1, 2015
This issue summarizes the key provisions of the FASB’s proposed ASU that would amend the Board’s new revenue standard to address issues raised regarding how an entity should assess whether it is the principal or the agent in contracts that include three or more parties (“principal-versus-agent considerations”). In addition, this newsletter reproduces the proposed ASU’s (1) questions for respondents and (2) illustrative examples that would amend or supplement the new revenue standard’s existing examples.
Anticipating the independent private sector audit after the Year 2 conflict minerals reporting cycle
August 25, 2015
This issue discusses findings from our analysis of registrants’ Year 2 filings under the SEC’s final rule on conflict minerals. This newsletter also examines (1) the current state of conflict minerals reporting under the final rule, especially in light of a recent federal appellate court ruling regarding the rule’s constitutionality; (2) the independent private sector audit (IPSA); and (3) recommended next steps for registrants that are subject to the final rule and other conflict minerals reporting requirements.
FASB issues ASU on employee benefit plan accounting
August 14, 2015
This issue discusses the FASB's recently issued ASU 2015-12, (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Health and Welfare Benefit Plans, which provides guidance on certain aspects of the accounting by employee benefit plans. The ASU, which is being released in response to consensuses reached by the EITF, (1) requires an employee benefit plan to use contract value as the only measurement amount for fully benefit-responsive investment contracts, (2) simplifies and increases the effectiveness of plan investment disclosure requirements for employee benefit plans, and (3) provides employee benefit plans with a measurement-date practical expedient similar to the practical expedient provided to employers in ASU 2015-04, Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets.
SEC proposes rule on "clawback" policies
August 5, 2015
This issue discusses SEC Proposed Rule Release No. 33-9861, Listing Standards for Recovery of Erroneously Awarded Compensation, which is aimed at ensuring that executives do not receive “excess compensation” if the financial results on which previous awards of compensation were based are subsequently restated because of material noncompliance with financial reporting requirements. The newsletter highlights key provisions of the proposed rule and their potential accounting and tax consequences to help companies better understand the proposal and determine how (or whether) to comment on it.
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