Foreign Filers:The SEC Giveth,The SEC Taketh Away;FASB on Pension Disclosures;FEI 'Respectfully Disagrees' With FAF Proposal
By Edith Orenstein, FEI Financial Reporting Blog - The SEC voted yesterday (Feb. 13) to propose a package of amendments to the rules for Foreign Private Issuers (FPI). On the FASB front, FASB voted Feb. 13 to move ahead on the proposed amendment of FAS 132R, “Employers’ Disclosures about Pensions and Other Postretirement Benefits.” Separately, also at yesterday's FASB meeting, the board agreed to amend AICPA SOP 90-7, “Financial Reporting by Entities in Reorganization Under the Bankruptcy Code,” to remove the requirement in the SOP for entities applying fresh-start reporting to early adopt new accounting standards that would result in a change in accounting principle in the emerging entity’s financial statements within 12 months following emergence. In other FASB news, more comments were filed this week on the Financial Accounting Foundation’s proposal (the "FAF proposal") to restructure the FAF, FASB and GASB. Letters sent by FEI's Committee on Corporate Reporting (CCR) and Committee on Private Companies (CPC)each supported the FAF engaging in an analysis of how it may improve the FAF’s and FASB’s governance, and the standard-setting process.
However, both of the FEI letters also raised significant concerns about the FAF’s proposed reduction in size of the FASB board from seven members to five, and about the FAF’s proposed simple majority voting (vs. super-majority voting) requirement, particularly in light of the proposed reduction in size of the board.
Read more about the above SEC and FASB news here.