Quarterly Outlook: December 2011

This edition of KPMG's Quarterly Outlook summarizes major developments that may impact your accounting and financial reporting in the current period and the near future.
 
In the Financial Reporting Matters for the Current Quarter section, we address accounting considerations for European sovereign debt exposure, goodwill and other indefinite-lived intangible assets impairment testing, clarifications on determining whether a debt restructuring should be accounted for as a troubled debt restructuring, and changes to multiemployer pension plan disclosures.

We also summarize the discussions at the AICPA National Conference on Current SEC and PCAOB Developments and other current matters.

The Upcoming Financial Reporting Matters section discusses fair value measurement requirements, presentation of comprehensive income, accounting for costs associated with insurance contracts, and new accounting considerations for repurchase agreements.

The Looking Ahead - Ongoing Standard-Setting and Other Activities section previews financial reporting matters that are currently underway. We discuss the status of the IASB's and FASB's major convergence projects between U.S. GAAP and IFRS, including financial instruments, revenue recognition, leases, insurance contracts, balance sheet offsetting, consolidation, and investment companies.

We describe the recent FASB activities on investment property entities, derecognition of in-substance real estate, and other relevant topics. We also summarize the SEC activities related to the consideration of incorporating IFRS in the United States, the SEC's Financial Reporting Manual update, Dodd-Frank Act developments, and the new reverse merger listing rule.

We discuss the concept releases on the auditor reporting model initiative, auditor independence and audit firm rotation, audit transparency, and provide an update on the PCAOB's audit practice alerts on fraud risks in certain emerging markets, and responding to risk in the current economic environment.