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FASB Amends Guidance for Reporting Pension Costs

Later this year, some companies will be required to change the way they present expenses related to retirement benefits. The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which is intended to improve the presentation of pension costs. The amended guidance requires companies to report expenses for employees’ pensions under the same line as other compensation costs. The other pension-related expenses mentioned in FASB ASC 715-30-35-04, Compensation—Retirement Benefits — Defined Benefit Plans — Pension — Subsequent Measurement . Read More.

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Fair Value Measurement Proposal Released

The Financial Accounting Standards Board (“FASB”) has unanimously approved the release of a proposal related to its disclosure framework project. Proposed Accounting Standards Update No. 2015-350, Fair Value Measurement (Topic 820): Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement, seeks to improve the footnote disclosure rules under Topic 820, Fair Value Measurement. The proposal calls for the elimination of requirements in Topic 820 considered redundant and no longer useful, as well as updates to other rules. As mentioned in our December 7th blog , the FASB also proposes the addition of three new disclosure requirements for public businesses: The changes. Read More.

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The New Revenue Recognition Standard — Step 2: Identify the Performance Obligations

As mentioned in our previous blog , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606) and ushers in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-09 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC. Read More.

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Joint Transition Resource Group Preps Agenda for Initial Meeting

Following the creation of its Joint Transition Resource Group for Revenue Recognition (“the Group”) last month, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) are preparing for the advisory panel’s first meeting. Scheduled for July 18th, the meeting’s agenda will cover four issues identified by the boards. Based on feedback from companies, auditors, investors and regulators, the issues addressed during the meeting include: Calculating intangible goods and services revenue; Modifying revenue for additional fees and charges; Including royalties and intellectual property licenses into a revenue amount; and Incorporating amortization or write-down expenses into a revenue amount. Read More.

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FASB’s Going Concern Amendment to Affect PCAOB Standards

In the coming weeks, the Financial Accounting Standards Board (“FASB”) plans to release an amendment that requires struggling companies to inform investors regarding their chances of surviving. Entitled proposed Accounting Standards Update No. 2013-300, Presentation of Financial Statements (Topic 205)—Disclosure of Uncertainties about an Entity’s Going Concern Presumption, the update is in response to investors and regulators who believed auditors issued going concern reviews of companies after the stock price mirrored the market’s knowledge of their pending demise. Per the FASB’s final update to U.S. GAAP, a company will be required to add in its financial statement footnotes when “substantial. Read More.

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FASB Removes Guidance for Development Stage Entities

Issued recently by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update No. 2014-10 (“ASU No 2014-10”), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, eliminates from U.S. GAAP all required incremental financial reporting for development stage entities. Currently, a development stage entity is defined as an entity that gives all of its efforts to creating a new business in which planned principal operations have not begun, or have started but yet to generate any significant revenue. Per current U.S. GAAP standards, a development stage. Read More.

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