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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.

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AICPA Updates Two Technical Questions and Answers

The American Institute of Certified Public Accountants (“AICPA”) has amended the following Technical Questions and Answers (“TQA”) sections: Section 1200.01, “Disclosure of Revenues of an Agent”: The amendment this TQA Section acknowledges that the AICPA has yet to revise the TQA to reflect Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and ensuing ASUs amending Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The AICPA will delete this TQA upon ASU No. 2014-09’s effective date for all entities. Section 6910.25, “Considerations in Evaluating Whether Certain Liabilities Constitute ‘Debt’. Read More.

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FASB to Curtail Fair Value Disclosure Requirements

The Financial Accounting Standards Board (“FASB”) has finalized amendments that would prevent companies from disclosing irrelevant and unnecessary information on financial statement footnotes related to how they measure the fair value of select assets and liabilities. Decided at the FASB’s March 7 meeting, the amendments will be based on Proposed Accounting Standards Update No. 2015-350, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. The FASB believes the changes will lower costs for companies and improve disclosures for investors and analysts. Companies will have to adopt the amended disclosure requirements for fiscal. Read More.

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New AICPA Technical Questions and Answers Issued

The American Institute of Certified Public Accountants (“AICPA”) recently issued a new Technical Question and Answer (“TQA”) and amendments for TQA Section 2220, Long-Term Investments. The new TQA, Section 2220.28, Definition of Readily Determinable Fair Value and Its Interaction With the NAV Practical Expedient, features amendments to TQA section 2220.18, “Applicability of Practical Expedient.” It eliminates TQA section 2220.24, “Disclosures—Ability to Redeem Versus Actual Redemption Request” and TQA section 2220.25, “Impact of ‘Near Term’ on Categorization Within Fair Value Hierarchy.” Section 2220.28 also offers guidance in understanding and applying the Financial Accounting Standards Board (“FASB”) FASB Master Glossary definition “readily. Read More.

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FASB Proposes Codification Improvements

The Proposed Accounting Standards Update, Codification Improvements, has been issued by the Financial Accounting Standards Board (“FASB”) to help improve certain aspects of U.S. GAAP. Covered in the proposal are the following: Comprehensive Income – Overall (Subtopic 220-10): The proposal clarifies that the disclosure of tax benefits concerning deductible temporary differences and carryforwards resulting from a semi-reorganization as defined under Subtopic 852-20, are not considered comprehensive income. Debt—Modifications and Extinguishments (Subtopic 470-50): The proposal clarifies that when the fair value option is selected on extinguished debt, the extinguished debt’s net carrying amount matches its fair value at the reacquisition date.. Read More.

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FASB Working to Fix Inconsistencies of U.S. GAAP

The Financial Accounting Standards Board (“FASB”) has released a proposed Accounting Standards Update to eliminate inconsistencies in parts of the U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). Impacting various areas in the FASB Accounting Standards Codification, the proposed changes will apply to all reporting entities within the scope of the related accounting guidance.  Some of the amendments under Proposed Accounting Standards Update No. 2017-320 Codification Improvements, impact: Subtopic 718-740, Compensation—Stock Compensation—Income Taxes: The FASB proposes clarifying that an entity must disclose excess tax benefits (or tax deficiencies) in the reporting period when the tax deduction for compensation expense is taken on its. Read More.

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