Financial reporting briefs

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1 December 2014 In this issue: Top story... 2 Accounting update... 3 Regulatory developments... 6 Other considerations... 8 Effective date highlights... 9 Reference library Financial reporting briefs Health care What you need to know about this quarter s accounting, financial reporting and other developments

2 Top story Welcome to the December 2014 Financial reporting briefs health care. This edition highlights the latest developments in financial reporting for the health care industry and alerts you to some important considerations for Interested in what happened at the AICPA National Conference on Current SEC and PCAOB Developments? We ve got it covered in our Top story. Our Accounting update section highlights the latest developments at the FASB and some yearend reminders. In our Regulatory developments section, we offer other insights about the SEC and the PCAOB. Our Other considerations section provides you with other news from the quarter and a summary of open comment periods. Need more information? Check out our Reference library, where we list our recent publications on the topics discussed here and provide links to them. AICPA National Conference on Current SEC and PCAOB Developments Representatives of the Securities and Exchange Commission (SEC or Commission), the Financial Accounting Standards Board (FASB or Board) and the International Accounting Standards Board (IASB) (collectively, the Boards) and the Public Company Accounting Oversight Board (PCAOB) shared their views on various accounting, financial reporting and auditing issues at the annual AICPA National Conference on Current SEC and PCAOB Developments in Washington, DC. Highlights included: Another possible IFRS alternative for US registrants James Schnurr, the new SEC Chief Accountant, said he is exploring the possibility of allowing US registrants to voluntarily disclose IFRS financial information as a supplement to their US GAAP financial statements and asked for feedback. He said he hopes to make a recommendation to the Commission in the near future about whether and how to further incorporate IFRS into the US financial reporting system. New revenue recognition standard Representatives of the SEC, the FASB and the IASB discussed efforts to implement the new revenue recognition standard that the FASB and IASB issued earlier this year. Many have raised specific application questions that they would like addressed before making the necessary process and system changes. The Boards are reaching out to entities to better understand implementation challenges and the FASB is considering whether to propose delaying the effective date of its standard. Disclosure effectiveness and simplification Representatives of the SEC provided an update on the Commission s disclosure effectiveness initiative, highlighting key focus areas related to Regulations S-X and S-K. FASB officials discussed the Board s simplification and disclosure initiatives and discussed how the Board analyzes costs and benefits of new standards. In several panels, preparers, auditors, lawyers and standard setters discussed ways to make disclosures more effective under existing rules. PCAOB matters PCAOB representatives discussed recent standard-setting efforts related to both audit performance and auditor reporting standards. SEC representatives questioned the slow pace of the PCAOB s standard-setting process and urged the PCAOB to focus on audit performance standards. PCAOB representatives said they are looking for ways to make their standard-setting process more efficient. They also provided updates on audit firm inspections, enforcement matters and initiatives to measure audit quality. Internal control over financial reporting SEC representatives discussed internal control over financial reporting and emphasized the need for management to appropriately evaluate control deficiencies. SEC representatives continued to question whether entities are identifying all material weaknesses and whether they are identifying and evaluating control deficiencies appropriately. They said entities should carefully consider the potential magnitude of undetected errors that could have occurred. Our publication, 2014 AICPA National Conference on Current SEC and PCAOB Developments, discusses the conference in more detail. 2 Financial reporting briefs Health care December 2014

3 Accounting update FASB considers delaying revenue standard and issuing more guidance The FASB is exploring whether to propose a delay in the effective date of the new revenue recognition standard and expects to make a decision on whether to issue such a proposal by early in the second quarter of Meanwhile, the FASB and the IASB, which jointly issued the standard, are considering whether more guidance is needed on topics their Joint Transition Resource Group on Revenue Recognition (TRG) discussed this year. The Boards have asked their staffs to research whether improvements can be made to the guidance on the principal-agent assessment in arrangements involving intangible goods and services as well as on identifying performance obligations. We also expect the Boards to consider providing more guidance on licenses of intellectual property, a topic the TRG discussed at both of its meetings this year. The Boards are using the TRG discussions to determine which issues require more attention. The next TRG meeting is scheduled for 26 January The SEC staff, meanwhile, is weighing what additional measures or actions it could take to help registrants implement the new standard. The health care industry task forces, one of several industry task forces organized by the American Institute of Certified Public Accountants (AICPA) also is discussing implementation issues. We believe health care entities should continue to work on implementing the new standard. As a reminder, public companies also should be making disclosures about the effects of the new standard as discussed in SEC Staff Accounting Bulletin Topic 11.M. Under US GAAP, the current effective date for public entities, including not-for-profit conduit bond obligors, is fiscal years and interim periods beginning after 15 December New consolidation guidance is coming soon The FASB plans to issue a final standard in early 2015 that would rescind the deferral from FAS 167 guidance for certain investment companies, permanently exempt most money market funds and make other changes to today s consolidation guidance. The FASB staff has said the earliest the standard will be issued is February 2015, meaning it may be issued in time for entities to adopt it early for use in their 2014 financial statements. Entities considering early adoption will need to evaluate their internal controls over consolidation procedures and implement any necessary changes in time for their year-end reporting. While the new guidance will be aimed at asset managers, it could affect entities in the health care industry, particularly those that are involved with limited partnerships or similar entities. However, the guidance is not expected to affect the health care-specific consolidation guidance in Accounting Standards Codification The guidance is expected to: (1) relax the criteria in US GAAP for determining when fees paid to a decision maker or service provider do not represent a variable interest, (2) amend the criteria for determining whether a limited partnership (or similar entity) is a variable interest entity and (3) eliminate the current presumption that a general partner controls a limited partnership in the voting model. The expected effective date for public business entities is fiscal years and interim periods beginning after 15 December The effective date for nonpublic business entities is fiscal years beginning after 15 December 2016, and interim periods beginning after 15 December Early adoption is expected to be permitted. New guidance on two EITF issues, including pushdown accounting The FASB issued guidance that allows all acquired entities to choose to apply pushdown accounting (i.e., reflect the acquirer s basis of accounting for the acquired entity s assets and liabilities) when an acquirer obtains control of them. At the same time, the SEC staff rescinded its guidance on pushdown accounting, meaning that SEC registrants and non-registrants will follow the new US GAAP guidance, which was effective immediately. The FASB also issued guidance that requires all entities to use what is called the whole instrument approach to determine the nature of a host contract in a hybrid financial instrument issued in the form of a share (e.g., a preferred share with a redemption feature). Under that guidance, issuers and investors must consider all of a hybrid instrument s stated and implied substantive terms and features, including any embedded derivative features being evaluated for bifurcation. Both standards are based on consensuses of the Emerging Issues Task Force (EITF). Financial reporting briefs Health care December

4 Accounting update The FASB also issued an EITF proposal that would eliminate the requirement for entities that measure investments using the net asset value practical expedient to categorize them in the fair value hierarchy table. Comments are due by 15 January Deliberations conclude on not-for-profit proposal The FASB has finished deliberations on a proposal that would change financial reporting by all not-forprofit entities, including business-oriented health care entities. The Board has tentatively decided to change net asset classification, expense classification and disclosures about liquidity. Not-for-profit entities also would be required to present an intermediate measure of operations and make conforming changes to the statement of cash flows. The Board revised some of its earlier decisions about the treatment of transfers in and out of the intermediate measure of operations for capital-like transactions (i.e., gifts of long-lived assets and gifts of cash to acquire or construct long-lived assets) and board designations to address concerns raised by members of its Not-for-Profit Advisory Committee. The Board has directed the staff to draft a proposed Accounting Standards Update (ASU), which will be subject to an external review process before the Board seeks public comment. The Board will continue to consider the benefits, costs and complexities of the proposal. FASB still debating financial instruments guidance In the classification and measurement portion of the financial instruments project, the FASB is still discussing whether to allow marketable equity securities to be classified as available for sale, and how to define core deposit liabilities and what type of information should be disclosed about them. On impairment, the Board continued to work on its lifetime expected credit losses model. The proposed guidance could affect all entities, not just those that hold loans and debt securities. Specifically, it also would be applied to trade receivables, reinsurance receivables, loans made to meet a not-for-profit entity s mission (i.e., programmatic loans), lease receivables recognized by lessors and certain financial guarantee contracts. We expect the Board to issue final guidance on both classification and measurement and impairment in The Board added hedging back to its active agenda and made a preliminary decision to address hedge effectiveness requirements, the potential elimination of the shortcut and critical terms match methods and simplifying hedge documentation, among other topics. Boards close to finishing redeliberations on leases The FASB and the IASB moved closer to wrapping up redeliberations on guidance that would require lessees to put most leases on their balance sheets. The Boards reaffirmed that a lease would be defined as a contract that conveys the right to use an asset for a period of time in exchange for consideration, as they proposed in Both Boards have agreed to limit changes in their models to current lessor accounting. They aren t likely to issue new standards before the second half of Another private company accounting alternative The FASB endorsed an accounting alternative developed by the Private Company Council (PCC) that would allow private companies to simplify their accounting for intangible assets acquired in a business combination and said it would consider similar relief for public business entities and not-for-profits. Final guidance on the alternative is expected by the end of the year. Under the alternative, which is the fourth the FASB has approved under US GAAP, a private company could elect to limit the customer-related intangibles it recognizes separately to those capable of being sold or licensed independently from the other assets of the business. Recognition of noncompetition agreements will be precluded. If elected, the alternative would be applied prospectively for all business combinations entered into after the effective date, and entities that elect the alternative will be required to elect the private company accounting alternative for goodwill in ASU Financial reporting briefs Health care December 2014

5 Accounting update Full speed ahead on simplification The FASB voted to issue final guidance to simplify income statement presentation by eliminating extraordinary items in what is likely to be the first ASU it issues as part of its simplification initiative. Under the initiative, the FASB is moving quickly to improve US GAAP by addressing narrow topics. In recent months, the FASB has received comments on proposals on the presentation of debt issuance costs, the measurement date for defined benefit plan sponsors, the accounting for fees paid in a cloud computing arrangement and the subsequent measurement of inventory. In commenting on the inventory proposal, we and others expressed concerns that it would increase the cost and complexity of financial reporting for certain entities using the last-in, first-out method of accounting and wouldn't provide useful information to investors. The FASB also has launched a project to simplify the accounting for share-based payments and has decided to propose changes to the accounting for transactions in which an employee uses shares to satisfy the employer s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. In addition, a proposal is expected in early 2015 that would eliminate the exception for the income statement recognition of income taxes on intercompany transactions and would require all deferred tax assets and liabilities to be classified as noncurrent. The FASB also plans to discuss the balance sheet classification of debt, including demand bonds. New actuarial tables may raise benefit plan sponsors obligations The Society of Actuaries has issued new mortality tables and a new improvement scale that reflect today s longer life expectancies. Entities that use them (or use them as a starting point) for developing their assumptions could see an increase in their benefit obligation. Entities will need to disclose any significant changes in benefit obligations and the general approach used to estimate mortality rates in management s discussion and analysis. Entities that do not use the tables should be considering longer life expectancies and should be prepared to support their assumptions with credible data. Disclosure framework and other projects on the FASB agenda The FASB is continuing to work on its widely watched disclosure framework project. The Board is trying to develop a framework for its consideration of new requirements and its evaluation of existing ones. The FASB also is trying to develop guidance that would allow entities to apply discretion in determining which disclosures they should make. Other projects on the FASB agenda include goodwill impairment for public business entities and not-forprofits, government assistance disclosures, clarifying the definition of a business and short-term improvements in accounting for liabilities and equity. Financial reporting briefs Health care December

6 Regulatory developments Updating your system of internal control Most entities subject to internal control reporting are in the process of adopting the 2013 Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). While we do not expect transitioning to the 2013 framework to require significant changes in a company s system of internal control if it was effective under the 1992 framework, a company may identify gaps in internal control and/or in its documentation that need to be addressed to evidence that the new framework s 17 principles are present and functioning. Entities may find it difficult to evaluate the effects of any deficiencies they find in information technology general controls (ITGC). These controls often have a pervasive effect on both automated controls and controls that depend on information provided by the system. Further, a company s failure to correct pervasive or recurring ITGC deficiencies may indicate a deficiency in the company s overall control environment. As a reminder, companies are required to state in their year-end filings with the SEC whether they used the 2013 framework, the original COSO framework or another framework to assess their system of internal controls. PCAOB guidance on related parties The SEC approved a new PCAOB standard and related amendments intended to increase the auditor s focus on a company s transactions with related parties, significant unusual transactions, and a company s financial relationships and transactions with its executive officers, which are associated with risks of error or fraud. Auditors will now be required to make a number of inquiries of management and others inside a company, make certain communications to the audit committee and perform certain specific procedures, including reading executives compensation agreements. Companies should revisit the controls they have in place to identify, account for and, if necessary, disclose these transactions. The standard and amendments are effective for audits of financial statements for fiscal years beginning on or after 15 December 2014, including reviews of interim financial information within those years. PCAOB evaluates changes to auditor s going concern assessment The PCAOB is evaluating potential revisions to its standard that requires auditors to assess a company s ability to continue as a going concern in light of new US GAAP guidance requiring management to make a similar assessment. The PCAOB plans to issue a staff consultation paper on the topic in the coming months. The PCAOB staff stated in a practice alert in late September that, while the FASB has issued guidance for preparers, the requirements in the PCAOB s auditing standards have not changed. As a result, auditors should apply the requirements in the PCAOB s auditing standards, the alert said. The US GAAP guidance is effective for annual periods beginning after 15 December 2016 and for interim periods thereafter (with early adoption permitted). The AICPA s Auditing Standards Board also is discussing whether to revise its auditing standard in light of the new US GAAP guidance. PCAOB projects on transparency, auditor s report and other topics The PCAOB is expected to issue a supplemental request for comment to consider the possibility of naming the audit engagement partner and other firms that participate in the audit in a new form that would be filed with the PCAOB. The PCAOB also plans to issue a new proposal in the coming months on how to make the auditor s report more meaningful by including more information than today s pass/fail model. In addition, the PCAOB staff is drafting proposals to address planning and supervision in multilocation audits and the auditor s use of specialists. The PCAOB s staff also is developing a release that will discuss the potential for the development and disclosure of audit quality indicators and plans to seek input on the usefulness of such information to investors, regulators, audit firms and other stakeholders in the coming months. 6 Financial reporting briefs Health care December 2014

7 Regulatory developments The PCAOB recently received comments on whether it should update its rules on auditing accounting estimates and fair value measurements in light of significant deficiencies the staff has found in these areas. Commenters generally supported enhancing the existing standards, and some said additional guidance on evaluating the reasonableness of estimates with significant measurement uncertainty and how to consider the use of third parties involved in the development of an estimate would be helpful. In our response to the staff consultation paper, we said we believe there is an opportunity to improve existing standards but we expressed concern that a single standard would not effectively consider the wide array of accounting estimates and fair value measurements that need to be addressed and could result in unintended consequences. Financial reporting briefs Health care December

8 Other considerations Summary of open comment periods Proposal Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) Comment period ends 15 January Financial reporting briefs Health care December 2014

9 Effective date highlights Note: Early adoption generally is permitted unless otherwise noted. Effective in 2014 for public (1) calendar year-end entities (2) ASU Business Combinations (Topic 805), Pushdown Accounting Effective immediately (18 November 2014). After the effective date, an acquired entity may elect to apply the guidance to future change-in-control events or to its most recent change-in-control event. ASU Technical Corrections and Improvements Related to Glossary Terms Effective upon issuance (14 March 2014). ASU Definition of a Public Business Entity An Addition to the Master Glossary The term public business entity is being used to consider the scope of new guidance beginning in ASU Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists Effective for fiscal years, and interim periods within those years, beginning after 15 December ASU Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting Effective for an entity that determines liquidation is imminent during annual reporting periods beginning after 15 December 2013, and interim reporting periods therein. ASU ASU Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date Statement of Cash Flows (Topic 230), Not-for-Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows Effective for fiscal years, and interim periods within those years, beginning after 15 December Effective for fiscal years, and interim periods within those years, beginning after 15 June ASU Other Expenses (Topic 720), Fees Paid to the Federal Government by Health Insurers Effective for calendar years beginning after 31 December Effective after 2014 for public (1) calendar year-end entities (2) ASU ASU ASU ASU Derivatives and Hedging (Topic 815), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity Presentation of Financial Statements Going Concern (Subtopic ), Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern Compensation Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Transfers and Servicing (Topic 860), Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures Effective for fiscal years, and interim periods within those fiscal years, beginning after 15 December Effective for annual periods ending after 15 December 2016, and interim periods within annual periods beginning after 15 December Effective for annual periods and interim periods within those annual periods, beginning after 15 December Effective for the first interim or annual period beginning after 15 December Disclosures for transactions accounted for as secured borrowings: Effective for annual periods beginning after 15 December 2014, and for interim periods beginning after 15 March ASU Revenue from Contracts with Customers (Topic 606) Effective for annual reporting periods beginning after 15 December 2016, including interim reporting periods within that reporting period. ASU Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective for all disposals (or classifications as held for sale) of components of an entity, and all businesses or nonprofit activities that, on acquisition, are classified as held for sale, that occur within annual periods beginning on or after 15 December 2014, and interim periods within those years. ASU Service Concession Arrangements (Topic 853) Effective for annual periods, and interim periods within those annual periods, beginning after 15 December ASU Investments Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Qualified Affordable Housing Projects Effective for annual periods, and interim reporting periods within those annual periods, beginning after 15 December ASU Not-for-Profit Entities (Topic 958), Services Received from Personnel of an Affiliate Effective for fiscal years beginning after 15 June 2014, and interim and annual periods thereafter. 1 Refer to each ASU to determine which types of entities (e.g., public business entities, not-for-profits, employee benefit plans) are subject to these effective dates. 2 The JOBS Act allows emerging growth companies to follow private company effective dates for new or revised accounting standards issued after 5 April However, an emerging growth company must follow public company effective dates for all such standards if it has disclosed an election to do so. Financial reporting briefs Health care December

10 Effective date highlights Effective in 2014 for nonpublic (3) calendar year-end entities ASU Business Combinations (Topic 805), Pushdown Accounting Effective immediately (18 November 2014). After the effective date, an acquired entity may elect to apply the guidance to future change-in-control events or to its most recent change-in-control event. ASU Technical Corrections and Improvements Related to Glossary Terms Effective upon issuance (14 March 2014). ASU Definition of a Public Business Entity An Addition to the Master Glossary The term public business entity is being used to consider the scope of new guidance beginning in ASU Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting Effective for an entity that determines liquidation is imminent during annual reporting periods beginning after 15 December 2013, and interim reporting periods therein. ASU ASU ASU Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income Statement of Cash Flows (Topic 230), Not-for-Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows Effective for fiscal years ending after 15 December 2014, and interim and annual periods thereafter. Effective for fiscal years beginning after 15 December 2013, and interim and annual periods thereafter. Effective for fiscal years, and interim periods within those years, beginning after 15 June ASU Technical Corrections and Improvements Effective upon issuance (1 October 2012) for amendments that do not have transition guidance. Amendments that are subject to transition guidance: effective for fiscal periods beginning after 15 December ASU Health Care Entities (Topic 954), Continuing Care Retirement Communities Refundable Advance Fees Effective for fiscal periods beginning after 15 December ASU Other Expenses (Topic 720), Fees Paid to the Federal Government by Health Insurers Effective for calendar years beginning after 31 December Effective after 2014 for nonpublic (3) calendar year-end entities ASU ASU ASU ASU Derivatives and Hedging (Topic 815), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity Presentation of Financial Statements Going Concern (Subtopic ), Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern Compensation Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Transfers and Servicing (Topic 860), Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures Effective for fiscal years beginning after 15 December 2015, and interim periods within fiscal years beginning after 15 December Effective for annual periods ending after 15 December 2016, and interim periods within annual periods beginning after 15 December Effective for annual periods and interim periods within those annual periods, beginning after 15 December Effective for annual periods beginning after 15 December 2014, and interim periods beginning after 15 December ASU Revenue from Contracts with Customers (Topic 606) Effective for annual reporting periods beginning after 15 December 2017, and interim reporting periods within annual reporting periods beginning after 15 December ASU ASU Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Consolidation (Topic 810), Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements Effective for all disposals (or classifications as held for sale) of components of an entity and all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after 15 December 2014, and interim periods within annual periods beginning on or after 15 December Effective for annual periods beginning after 15 December 2014, and interim periods within annual periods beginning after 15 December ASU Service Concession Arrangements (Topic 853) Effective for annual periods beginning after 15 December 2014, and interim periods within annual periods beginning after 15 December ASU Derivatives and Hedging (Topic 815), Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps Simplified Hedge Accounting Approach Effective for annual periods beginning after 15 December 2014, and interim periods within annual periods beginning after 15 December ASU Intangibles Goodwill and Other (Topic 350), Accounting for Goodwill Effective for goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after 15 December 2014, and interim periods within annual periods beginning after 15 December ASU ASU Investments Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Qualified Affordable Housing Projects Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists Effective for annual periods beginning after 15 December 2014, and interim periods within annual periods beginning after 15 December Effective for fiscal years, and interim periods within those years, beginning after 15 December ASU Not-for-Profit Entities (Topic 958), Services Received from Personnel of an Affiliate Effective for fiscal years beginning after 15 June 2014, and interim and annual periods thereafter. 3 Refer to each ASU to determine which types of entities (e.g., private companies, not-for-profits, employee benefit plans) are subject to these effective dates. 10 Financial reporting briefs Health care December 2014

11 Reference library Click on any of the EY publications below, all of which are available free of charge on AccountingLink at To the Point PCC discusses expanding the use of the term public business entity and other projects (15 December 2014) FASB holds forum on financial disclosures (9 December 2014) FASB makes pushdown accounting optional (19 November 2014) A whole-istic approach to defining host contracts in hybrid instruments issued as shares (4 November 2014) Joint Transition Resource Group tackles new revenue topics (3 November 2014) FASB proposes eliminating certain investments from the fair value hierarchy (31 October 2014) Benefit plan sponsors may need to consider new mortality tables in making year-end assumptions (30 October 2014) Boards reaffirm the definition of a lease but continue to work on its application (24 October 2014) Spotlight on transactions with related parties, significant unusual transactions and executives (22 October 2014) FASB finishes deliberations on not-for-profit proposal (16 October 2014) FASB issues simplification proposals on debt issuance costs and retirement benefits (16 October 2014) Michigan enacts legislation that could affect income apportionment (13 October 2014) FASB launches project to simplify share-based payment accounting (9 October 2014) PCC wraps up intangible assets and discusses share-based payments (18 September 2014) Technical Line Year-end financial reporting reminders (11 December 2014) Companies may be subject to excise taxes under Affordable Care Act (5 December 2014) New consolidation guidance is coming soon (14 November 2014) Financial reporting developments Derivatives and hedging (4 December 2014) Lease accounting (26 November 2014) Discontinued operations (12 November 2014) Discontinued operations (following the adoption of ASU ) (12 November 2014) Impairment or disposal of long-lived assets (12 November 2014) Bankruptcies, liquidations and quasi-reorganizations (22 October 2014) Accounting for income taxes (18 September 2014) Equity method investments (18 September 2014) Business combinations (16 September 2014) Consolidation and the Variable Interest Model: Determination of a controlling financial interest (15 September 2014) Comment letters FASB proposal to simplify the presentation of debt issuance costs (15 December 2014) FASB proposal to simplify the measurement date of an employer s defined benefit obligation and plan assets (9 December 2014) FASB Technical corrections and improvements (26 November 2014) PCAOB staff consultation paper: auditing accounting estimates and fair value measurements (3 November 2014) FASB proposal to eliminate the concept of extraordinary items (30 September 2014) FASB proposal to simplify the measurement of inventory (30 September 2014) Other 2014 AICPA National Conference on Current SEC and PCAOB Developments (15 December 2014) 2014 SEC annual reports Form 10-K (4 December 2014) 2015 proxy statements An overview of the requirements (4 December 2014) 2015 SEC quarterly reports Form 10-Q (4 December 2014) Disclosure effectiveness: What investors, company executives and other stakeholders are saying November 2014 Disclosure effectiveness: What companies can do now October 2014 SEC in Focus (9 October 2014) Third quarter 2014 Standard Setter Update Financial reporting and accounting developments October 2014 SEC Comments and Trends September 2014 EITF Update September 2014 Board Matters Quarterly Critical insights for today s audit committee September 2014 On-demand webcasts EY Q financial reporting update The new revenue recognition standard a closer look SEC comments and trends: current reporting issues Accounting for income taxes: a quarterly perspective Upcoming webcasts New revenue recognition standard for health care entities (19 December 2014) EY Assurance Tax Transactions Advisory 2014 Ernst & Young LLP. All Rights Reserved. SCORE No. BB2901 ey.com/us/accountinglink About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. Financial reporting briefs Health care December