FASB to Propose Removal of Outdated Guidance
Amendments to the disclosure requirements for deferred taxes will be proposed by the Financial Accounting Standards Board (“FASB”). Announced on May 3, the planned changes are part of the FASB’s technical corrections project to remove outdated or flawed accounting requirements from U.S. GAAP. The proposed changes are limited in scope since the guidance is out-of-date and few companies will be impacted. One proposal could include eliminating from the FASB’s Accounting Standards Codification rules that impact privately held fishing vessel owners. The deferred tax credit reporting rule under ASC 995-740-50-2, U.S. Steamship Entities — Income Taxes — Disclosure, originally established for. Read More.
FASB Webcast to Focus on Aerospace and Defense Revenue Recognition
On Thursday, the Financial Accounting Standards Board (“FASB”) will host the first in a webcast series discussing how its revenue recognition standard will impact different sectors. The first webcast will focus on the aerospace and defense sector, and feature speakers from the FASB, GE and Raytheon. Panelists will cover the standard’s more significant changes, as well as give attendees the opportunity to ask questions and help shape the new revenue recognition guidance. The hour-long webcast starts at 2 p.m. ET. To attend, register at FASB.org.
Outgoing FASB Member Reflects on Tenure
As his tenure on the Financial Accounting Standards Board (“FASB”) winds down, Lawrence Smith is looking back on the accomplishments he helped the board achieve. In a letter on the FASB website, Smith highlights efforts of the past 15 years (10 on the board, 5 as staff member) such as the Accounting Standards Codification, the elimination of qualifying special purpose entities, and the new leases standard. Smith also discusses some of his regrets while with the FASB, and recommends future efforts the board should undertake. Smith’s full letter can be viewed on FASB.org.
FASB Staff Discusses Conceptual Framework
In a nearly four-minute video, staff members of the Financial Accounting Standards Board (“FASB”) discuss the board’s Conceptual Framework project. Project Managers Jill Switter and Nick Cappiello offer background details on the project, while other FASB members discuss the cost benefits of conceptual framework, how the board uses it and what is coming next. Visit FASB.org to watch the Conceptual Framework project video .
FASB Reaches Decisions on Revenue Recognition Guidance for Nonprofits
Progress continues on the Financial Accounting Standards Board’s (“FASB”) project on the revenue recognition of grants and similar contracts by nonprofits. At its Wednesday meeting, the FASB reached decisions on the following matters: The proposed amendments to distinguish between conditional and unconditional contributions will pertain to both a resource provider and a recipient. To satisfy the definition of a “donor-imposed condition,” a right of return or a releasing of the promisor from their responsibility to transfer assets must be present in the agreement. In order to be considered a condition, the agreement must indicate that the recipient is only entitled. Read More.
Forthcoming Accounting Guidance Updates to Impact Nonprofits
Some of the Financial Accounting Standards Board’s Accounting Standards Updates will certainly have an effect on nonprofit organizations. As the standards’ effective dates draw near, the American Institute of Certified Public Accountants (“AICPA”) has highlighted five standards nonprofits should become familiar with: Going concern requirements Consolidation requirements Simplifying the presentation of debt issuance costs Fair value disclosures when net asset value per share is used Inventory measurement More on these standards is available on AICPA.org. In addition, Cherry Bekaert’s Melisa Galasso will host an AICPA webinar on April 25 to offer nonprofits guidance on these Accounting Standards Updates.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", Consolidation, Debt Issuance Costs, Fair Value Accounting, FASB, Financial Accounting Standards Board "FASB", Going Concern, Inventory, Nonprofits