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FASB Wants Public Companies for Segment Reporting Study

Marking the first phase of its segment reporting outreach, the Financial Accounting Standards Board (“FASB”) is requesting that public companies participate in a study to improve U.S. GAAP guidance regarding the aggregation of operating segments and the reportable segments method. Specifically, the FASB wants public companies to share how they apply the criteria under FASB Accounting Standards Codification (“ASC”) 280, Segment Reporting, and how two alternatives would impact how their financial statements are presented. One alternative involves reorganizing the process for deciding which operating segments are reported and moving the quantitative thresholds for reportable segments to an earlier stage of. Read More.

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FASB to Clarify Collaborative Arrangements Guidance

Pharmaceutical and biotechnology companies that set up joint ventures to develop drugs will receive new accounting guidance soon. In a unanimous decision on July 26, the Financial Accounting Standards Board (“FASB”) agreed to finalize a small change to U.S. GAAP that would help companies account for transactions in collaborative arrangements as revenue. The FASB hopes the update will help companies follow the revenue guidance under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. Likely to be issued before year’s end, the update will reflect guidance under Proposed Accounting Standards Update (“ASU”) No. 2018-240, Collaborative Arrangements (Topic 808): Targeted Improvement. The. Read More.

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SEC Proposes Simplification for Guaranteed Debt Offering Disclosures

A proposal by the Securities and Exchange Commission (“SEC”) would simplify the disclosure requirements for guaranteed debt offerings and promote increased registration of offerings. Issued as Release No. 33-10526, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities, the proposed changes are intended to reduce companies’ regulatory compliance expenses when offering debt to investors and help issuers organize deals supported by collateral. SEC chairman Jay Clayton also noted that changes will make disclosures easier to follow and encourage debt offerings to be achieved on an SEC-registered basis. The proposal amends Rule 3-10 of. Read More.

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SEC Fiscal Year 2019 Budget Approved

Last week, the House of Representatives approved the Securities and Exchange Commission’s (“SEC”) $1.7 billion budget for the agency’s fiscal year 2019. Next year’s spending budget is a modest improvement from the SEC’s 2018 version ($1.6 billion) and is part of a bigger bill that funds other agencies like the Department of Treasury, Internal Revenue Service, and Commodity Futures Trading Commission. House Republican leaders tied the SEC’s budget to several deregulatory provisions. For instance, the SEC cannot force public companies to reveal their political spending or enforce a law that reformats the proxy cards in shareholder votes via a universal. Read More.

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FASB Issues New Amendments to Codification

The latest round of changes to the Accounting Standards Codification (“ASC”) was recently issued by the Financial Accounting Standards Board (“FASB”). Released as Accounting Standards Update (“ASU”) No. 2018-09 Codification Improvements, the amendments clarify and make limited improvements to the Codification, as well as eliminate inconsistencies. As part of its efforts to periodically update the Codification, the FASB says the amendments will make the Codification easier for users to understand. Most of the latest changes are considered minor, but some amendments such as those involving comprehensive income reporting requirements and the requirements for distinguishing between liabilities and equity may impact numerous. Read More.

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Nearly 1,000 Companies to Receive Smaller Reporting Company Status

With unanimous approval, the Securities and Exchange Commission (“SEC”) voted last month to issue a final rule that will give 966 companies smaller reporting company status. The rule, Release No. 33-10513, Amendments to Smaller Reporting Company Definition, raises the public float threshold (i.e., the value of a company’s publicly traded stock) for a smaller reporting company from $75 million to $250 million. Additionally, companies with no public float or have a public float under $700 million can qualify as a smaller reporting company if annual revenues were less than $100 million in their most recently concluded fiscal year. The SEC. Read More.

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