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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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SEC Requests Comments on Proposed Stock Compensation Rule Changes

The Securities and Exchange Commission (“SEC”) is seeking comments on the proposed amendments to its requirements for unregistered stock compensation plans. With the issuance of Release No. 33-10521, Concept Release on Compensatory Securities Offerings and Sales, the SEC wants to update Rule 701 of the Securities Act of 1933 and the Form S-8 registration statement, and exempt additional stock compensation plans from its registration and reporting rules. Comments on the proposal are due 60 days after the publication of Release No. 33-10521 in the Federal Register.

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SEC Doubles Private Company Reporting Exemption for Stock Offerings

In an amended rule issued on July 18, the Securities and Exchange Commission (“SEC”) expanded its reporting exemption for stock compensation distributed by private entities. Published as Release No. 33-10520, Rule 701 — Exempt Offerings Pursuant to Compensatory Arrangements, the amendment increases the threshold from $5 million to $10 million for stock offerings excluded from the SEC’s reporting requirements. Only private companies and foreign companies already exempt from the agency’s reporting rules are eligible for the exemption. SEC chairman Jay Clayton said the reporting threshold was raised to keep pace with the country’s rapidly evolving economy. Clayton also noted that. Read More.

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Proposed Taxonomy Improvements to Impact Leases and Nonprofit Entities

Financial Accounting Standards Board (“FASB”) staff members have issued proposed Taxonomy improvements to the following Accounting Standards Updates (“ASU”): ASU No. 2018-09, Codification Improvements: Comments on the proposed amendments are due Tuesday, August 14. ASU No. 2018-10, Codification Improvements to Topic 842, Leases: Comments on the proposed amendments are due Friday, August 17. FASB staff also proposed Taxonomy improvements for the Proposed ASU, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. Comments are due Friday, August 10. All comments on the proposed Taxonomy improvements must be emailed to xbrled@fasb.org .

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Finnish Banker Named IFRS Chairman

On Wednesday, the IFRS Foundation announced that Erkki Liikanen will succeed Michel Prada as the organization’s next chairman. Liikanen joins the IFRS Foundation after serving the last 14 years as governor of Finland’s central bank. He will serve a three-year term starting in October. Representing the panel that oversees the IFRS Foundation, Monitoring Board chair Jean-Paul Servais said Liikanen will be instrumental in leading the Foundation due to his senior international experience, financial sector knowledge, and international network and diplomatic skills. Prada also issued a statement on Liikanen, wishing him the best in leading the Foundation towards global adoption of. Read More.

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