FASB Publishes Two Standards to Streamline Company Disclosures
For years, companies have asked the Financial Accounting Standards Board (“FASB”) to improve its guidance on fair value measurement and pension disclosures. Their requests were finally granted last week in the form of two Accounting Standards Updates (“ASU”): ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, aims to remove irrelevant disclosures concerning methods for assessing the fair value of certain assets and liabilities as stated under FASB ASC 820, Fair Value Measurement. The standard divides fair value measurements into a three-tier fair value hierarchy conditional on the reasoning used in the measurement.. Read More.
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.
Topics: Accounting Standards Codification, Accounting Standards Update, Compensation—Retirement Benefits (Topic 715), Defined Benefit Plans, FASB, Financial Accounting Standards Board "FASB", Interest Costs, Net Periodic Pension Costs, Statement of Financial Accounting Standards
FASB Makes Technical Corrections to Accounting Guidance
Amendments to key parts of U.S. GAAP were announced this week by the Financial Accounting Standards Board (“FASB”). Issued as Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements, the amendments relate to several topics in the FASB Accounting Standards Codification. FASB Chairman Russell Golden says the changes are narrow in scope and should be easy for reporting entities to understand and implement. The following amendments in ASU No. 2016-19 impact all reporting entities: Subtopic 715-30, Compensation—Retirement Benefits—Defined Benefit Plans—Pension, and Subtopic 715-60, Compensation—Retirement Benefits—Defined Benefit Plans—Other Postretirement, and Topic 944, Financial Services—Insurance. ASU No. 2016-19 advises uniform use. Read More.
Topics: Accounting Standards Codification, Debt Restructuring, Defined Benefit Plans, Fair Value Measurement (Topic 820), FASB Technical Corrections, Financial Accounting Standards Board "FASB", Financial Instruments (Topic 825), Goodwill, Insurance (Topic 944), Intangibles, Liability Arrangements, Not-for-Profit Entities (Topic 958), Other Postretirement Employee Benefit Plans, Real Estate, Transfers & Servicing
Exposure Drafts on Retirement Benefits Issued
Announced on January 26th , the following Exposure Drafts have been issued by the Financial Standards Accounting Board: Proposed Accounting Standards Update (ASU), Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . Proposed ASU, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans . Comments on these Exposure Drafts are due Monday, April 25th. Electronic Feedback Forms are available to submit comments regarding the proposed ASUs on Compensation—Retirement Benefits (Topic 715) and Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) .