CPAs and Advisors with Your Growth in Mind

Financial Services

Hedge Accounting Proposal Coming Later This Summer

On June 9, the Financial Accounting Standards Board (“FASB”) announced that proposed updates to its hedge accounting guidance will be released in either August or September. FASB research staffers plan to submit the proposal’s latest version at a meeting in July reflecting changes offered during the “fatal flaw” review. Such reviews are commonly held prior to the FASB release of a key proposed or final update. FASB Technical Director Susan Cosper does not expect staff members to present new issues during next month’s meeting, but rather suggest the FASB to revisit the transaction guidance.

Topics: ,

FASB Credit Loss Standard to be Issued Thursday

The Financial Accounting Standards Board’s (“FASB”) long-anticipated guidance in response to the 2008 financial crisis is scheduled for a Thursday release. The accounting board’s final standard for writing down bad loans and securities will be issued as Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326), and listed under U.S. GAAP as Topic 326, Financial Instruments — Credit Losses. Barring any changes, public companies must implement the new amendments beginning in 2020.

Topics: , ,

FASB Approves Credit Loss Standard

After reviewing the costs and benefits of its new guidance for writing down bad loans and securities , the Financial Accounting Standards Board (“FASB”) voted last week to proceed with a final standard based on the proposed Accounting Standards Update, Financial Instruments—Credit Losses (Subtopic 825-15). The standard will help companies with the financial reporting of credit losses on loans and other financial instruments, and is expected to be released in June. Relative to its decision, the FASB has deferred the new standard’s effective date by one year for public companies that fall under the Securities and Exchange Commission filer requirements. Such public companies must apply the forthcoming guidance to fiscal years, and interim periods. Read More.

Topics: , , ,

FASB to Review Credit Loss Standard on Wednesday

With the publication of its planned credit loss standard on track for a June release, the Financial Accounting Standards Board (“FASB”) will meet Wednesday to weigh the costs and benefits of the new guidance. The upcoming standard for writing down bad loans and securities is based on guidance from Proposed Accounting Standards Update No. 2012-260, Financial Instruments — Credit Losses (Subtopic 825-15), and is the sole item on this week’s FASB meeting agenda. The accounting board will also decide whether to keep or delay the standard’s 2019 effective date for public entities.

Topics: ,

Results from April 18th Revenue Recognition TRG Meeting

Earlier this week, the Revenue Recognition Transition Resource Group (“TRG”) held a meeting to discuss the issues regarding the implementation of Topic 606, Revenue from Contracts with Customers, and International Financial Reporting Standards 15, Revenue from Contracts with Customers. Staff members and the TRG agreed on the following matters: Memo No. 50, Scoping Considerations for Incentive-based Capital Allocations. Incentive-based capital allocations are within the scope of Topic 606. Memo No. 51, Contract Asset Treatment in Contract Modifications. A contract asset is sustained in the new modified contract and recognized under the new modified contract similar to receivables, resulting in prospective accounting.. Read More.

Topics: , ,

Transition Resource Group Members for Credit Losses Standard Announced

On Tuesday, the Financial Accounting Standards Board (“FASB”) named the members of the Transition Resource Group (“TRG”) for its forthcoming credit losses standard. Comprised of financial statement preparers, auditors, users and financial services regulators, the TRG will address issues companies may face during the implementation process. Members are expected to share their feedback with the FASB, which will help determine how the Board should address such issues. It is anticipated that the FASB will release the credit losses standard this year. The complete list of the TRG members for the FASB’s credit losses standard is available on the Business Wire website. Details on the credit losses standard are. Read More.

Topics: , ,