FASB Staff to Resume Performance Reporting Research
As work on the Financial Accounting Standards Board’s (“FASB”) performance reporting project continues, FASB members have asked their research staff to review reporting practices related to the costs linked to generating revenue. At the FASB’s March 28 meeting, board members shared their interest in gaining a better understanding of which information in income statements can and cannot be disaggregated. Members also want the FASB’s research staff to look into the issue without limiting the options for the project’s completion. The research staff is expected to meet with financial executives regarding their reporting practices and ask investors and securities analysts which. Read More.
Spending Bill to Help SEC, Block Political Spending Disclosures
Congress’ latest budget bill provides the Securities and Exchange Commission (“SEC”) $50 million for information technology upgrades and $244 million for potentially relocating the agency’s headquarters. Signed by President Trump on March 23, the $1.3 trillion spending bill increases the SEC’s budget to help pay for IT improvements. The upgrades address criticism the SEC has faced in recent years over its information securities practices and inability to keep up with an automated market. Criticism increased last year after the SEC’s Electronic Data Gathering And Retrieval system was hacked . The spending bill also offers the SEC financial support for the construction of a new headquarters. Leases for the agency’s. Read More.
SEC Staff Revises FAQs on IFRS Taxonomy
The Securities and Exchange Commission (“SEC”) staff recently updated the Frequently Asked Questions (“FAQs”) section regarding the International Financial Reporting Standards (“IFRS”) Taxonomy. The revised guidance addresses how IFRS Taxonomy should be used in company filings. It also includes an access link to XBRL submissions prepared through the IFRS Taxonomy in financial statement and footnote data sets. Read the updated FAQs at SEC.gov.
FASB Removes Outdated SEC Interpretive Guidance for Financial Instruments Standard
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-04, Investments — Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, which eliminates out-of-date interpretive guidance from the Securities and Exchange Commission (“SEC”) on financial instruments. The change to U.S. GAAP was made in response to ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The U.S. GAAP update is highlighted in Staff Accounting Bulletin (“SAB”) No. 117, in which. Read More.
Topics: Accounting Standards Update "ASU", Debt Securities, FASB, Financial Accounting Standards Board "FASB", Financial Instruments, Financial Liabilities, SEC, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB"
SEC Guidance on Tax Reform Added to FASB Codification
Last month, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends certain Securities and Exchange Commission (“SEC”) guidance under Topic 740 related to the Tax Cuts and Jobs Act. ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, adds guidance to the FASB Accounting Standards Codification that answers questions regarding how certain income tax effects from the Tax Cuts and Jobs Act should be applied to companies’ financial statements. The guidance also lists which financial statement disclosures are required under a measurement period approach. More on ASU No. 2018-05 is available on FASB.org.
Topics: Accounting Standards Update "ASU", FASB, Financial Accounting Standards Board "FASB", Income Taxes (Topic 740), SEC, Securities and Exchange Commission "SEC", Tax Cuts and Jobs Act, Tax Reform
FASB Simplifies Provisions in Lease Standard
The Financial Accounting Standards Board (“FASB”) has asked its staff to prepare a final draft of an amendment to the board’s lease standard that would simplify how lessors account for specific property leases with recurrent service charges. At its March 28 meeting, FASB members agreed to allow lessors combine receipts from property leases and service income related to those leases by meeting certain requirements. To be accounted for as one, the lease part of the rental arrangement and the service charges need to be bound by the same transfer between the tenant and the landlord. Also, the lease contracts will. Read More.