ASU No. 2014-14 to Help Creditors with Government-Guaranteed Mortgage Loans
Issued by the Financial Accounting Standards Board, Accounting Standards Update (ASU) No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, impacts creditors with government-guaranteed mortgage loans, counting those guaranteed by the Federal Housing Administration and the U.S. Department of Veterans Affairs. Per the ASU’s amendments, a mortgage loan is required to be derecognized and a separate other receivable be recognized upon foreclosure if the conditions below are met: The loan includes a government guarantee that is inseparable from the loan prior to foreclosure. The creditor plans to transfer the real. Read More.
Topics: Accounting Standards Update "ASU", Creditors, Debt Restructuring, Federal Housing Administration, Financial Accounting Standards Board "FASB", Foreclosure, Government-Guaranteed Mortgage Loans, U.S. Department of Veterans Affairs
FASB Announces Itinerary for Wednesday’s Meeting
Scheduled for Wednesday, the Financial Accounting Standards Board (“FASB”) meeting will cover four topics essential to the standard-setter’s ongoing efforts: 1. Agenda prioritization. FASB plans to review staff research and analysis from a number of prospective projects and which ones will be added to its agenda. 2. Financial instruments— impairment . Discussions will continue on FASB’s Proposed Accounting Standards Update, Financial Instruments-Credit Losses. In particular, the conversation will focus on impairment guidance for debt securities and clarifying the measurement principle in the Current Expected Credit Losses model. 3. Insurance— disclosures concerning short-duration contracts . Talks will continue on disclosures on short duration contracts, including disclosures. Read More.
FASB Issues Guidance on Consolidated Collateralized Financing Entities
Issued by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update (ASU) No. 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, applies to any reporting entity required to consolidate a collateralized financing entity under the Variable Interest Entities guidance when: (1) the reporting entity measures all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements; and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. As defined under. Read More.
Standard Setters Still at Odds over Lease Project
At their July 23rd joint meeting, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) resumed efforts to converge U.S. GAAP and IFRS. In particular, the top focus was FASB’s Proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842), and IASB’s Exposure Draft (ED) No. 2013-6, Leases. Conflicted on recognizing the gains for sale-leaseback transactions, the boards continue to have opposing attitudes toward their lease accounting project. During the meeting, FASB agreed to allow sellers of assets to recognize the full gain from the time of the transaction. On the conflicting end, IASB agreed to let. Read More.
FASB Backs Task Force’s Recent Meeting Decisions
Reflecting decisions from its Emerging Issues Task Force’s June meeting, the Financial Accounting Standards Board (“FASB”) approved two Accounting Standards Updates. Per its meeting yesterday, the FASB will release Issue No. 12-G, “Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity”, and Issue No. 13-F, “Accounting for the Effect of a Federal Housing Administration Guarantee.”
Topics: Accounting Standards Update "ASU", Consolidated Collateralized Financing Entitiy, Emerging issues Task Force, Federal Housing Administration Guarantee., Financial Accounting Standards Board "FASB", Financial Assets, Financial Liabilities
FASB Continues U.S. GAAP Simplification Initiative
Hoping to streamline inventory measurement and remove the requirements for extraordinary items, the Financial Accounting Standards Board recently released two proposed Accounting Standards Updates. The proposals, which are part of FASB’s efforts to simplify U.S. GAAP , include: — Inventory (Topic 330): Simplifying the Measurement of Inventory. This proposal is in response to stakeholder concerns about the current guidance on measuring inventory. Currently, reporting entities are required to measure inventory at the lower of cost or market. The new guidance would require inventory to be measured at the lower of cost and net realizable value. Thus, it would eliminate existing requirements to consider the replacement cost. Read More.