FASB Member Questions Revenue Standard
Last week during a meeting of the Financial Accounting Standards Board’s (“FASB”) Financial Accounting Standards Advisory Council, FASB member Lawrence Smith expressed uncertainty about Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Smith said that implementation of the revenue recognition standard will be of significant costs to companies, and the FASB would’ve been better off making targeted improvements to its revenue guidance instead of a complete rewrite. He also noted that smaller accounting firms and companies do not have experts to help with the standard or Codification. As a result, those firms and companies are making mistakes because they are. Read More.
FASB Discusses Proposed Callable Debt Securities Standard
After reviewing feedback from its proposed Accounting Standards Update, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, the Financial Accounting Standards Board (“FASB”) has made tentative decisions on the following: Requests to Require a True “Yield-to-Worst” Amortization Method. Premiums on purchased callable debt securities will be amortized to the earliest call date. Requests to Clarify Consequential Amendments to Paragraph 946-320-35-20. The amendment to industry guidance was corrected to affirm that the FASB did not intend to change practice for investment companies holding debt securities. Requests to Clarify “Callable” and the Interaction with Paragraph 310-20-35-26.. Read More.
Topics: Agenda Consultation, Amortization, callable debt securities, Conceptual Framework Project, FASB, Financial Accounting Standards Board "FASB", Proposed Accounting Standards Update, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)
Decisions from FASB’s January 25 Meeting
In addition to making progress on its hedge accounting project , the Financial Accounting Standards Board (“FASB”) made decisions at its January 25 meeting on the following projects: Agenda Consultation. After reviewing feedback on its Invitation to Comment, Agenda Consultation, and discussing research to conduct on intangible assets, pensions and other postretirement benefit plans, and distinguishing liabilities from equity, the FASB made no technical decisions. The FASB plans to discuss feedback on reporting performance and cash flows at a later meeting. Disclosure Framework: Disclosure Review—Income Taxes. No technical decisions were made concerning the summary of comments the FASB received regarding the proposed Accounting Standards Update, Income Taxes. Read More.
Topics: Agenda Consultation, Disclosure Framework, Financial Accounting Standards Board "FASB", Income Taxes (Topic 740), Intangible Assets, Invitation to Comment, liabilities and equity, Other Postemployment Benefits "OPEB", pensions