Project to Improve Structure of FASB’s Codification Underway
A Financial Accounting Standards Board (“FASB”) group is undertaking a project to make improvements to the board’s Accounting Standards Codification. Led by the FASB’s Technical Corrections and Improvements project team, the project will focus on reorganizing the structure of the Codification’s content. All guidance in the Codification will remain untouched. Most changes will impact the industry Topics. Some Topics will be simplified to reflect superseded guidance, which often caused parts of remaining guidance left among lengthy passages of outdated guidance. The overlapping Topic structure from several industry Topics will also be eliminated, creating a more user-friendly structure. The planned changes will. Read More.
Private Companies Could Be Exempt From Guidance in Consolidation Standard
The Financial Accounting Standards Board (“FASB”) has agreed to issue a proposal exempting private companies under common control from the variable interest entity (“VIE”) guidance in Topic 810, Consolidation. Announced last week, the proposal is part of the board’s efforts to simplify the guidance under Topic 810, which helps companies decide when they must consolidate, or disclose on balance sheets, their holdings in other entities. Changes to be proposed include requiring private companies to provide thorough disclosures that explain their involvement with, and exposure to, the affiliate. Along with private companies’ exemption from the VIE model, the FASB is expected. Read More.
Financial Accounting Foundation 2016 Annual Report Issued
Now available for download and digital platforms is the Financial Accounting Foundation’s (“the Foundation”) 2016 Annual Report . The report highlights how last year’s standard-setting activities by the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”) contributed to decisions made by those who rely on financial reporting. In addition, the 2016 Annual Report includes letters from FASB, GASB, and Foundation leaders, an overview of funding sources for all three organizations, and details on what the Foundation did to support standard-setting activities throughout 2016. An interactive digital version of the 2016 Annual Report includes a video for non-technical audiences entitled “The Importance of GAAP.” The tablet-friendly version also features listings of all three organizations’ advisory groups and their. Read More.
FASB Clarifies the Customer in Service Concession Arrangements
The Financial Accounting Standards Board (“FASB”) is providing relief to companies confused about who is the customer in a service concession arrangement. Issued as Accounting Standards Update No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services, the new guidance states that the grantor is the customer in service concession arrangements. Public companies, in addition to nonprofits that have issued, or are a conduit bond obligor for, securities traded, listed, or quoted on an exchange or an over-the-counter market and an employee benefit plan that submits financial statements to the Securities and Exchange Commission, must apply. Read More.
Topics: Accounting Standards Update "ASU", FASB, Financial Accounting Standards Board "FASB", Revenue from Contracts with Customers (Topic 606), Securities and Exchange Commission "SEC", Service Concession Arrangements (Topic 853)
Accounting for Intangible Assets Continues to Be Major FASB Issue
Several Financial Accounting Standards Board (“FASB”) members want to proceed cautiously on overhauling the accounting for intangible assets. During the FASB’s May 11 meeting, outgoing FASB member Lawrence Smith said he is reluctant to move forward on a project without determining what problem must be solved. Fellow board member Harold Schroeder shared similar concerns, remarking that proper research must be conducted to avoid wasting time and resources. For most of the FASB’s 44-year existence, questions have mounted over accounting for intangible assets. Some of those questions involve how intangible assets should be disclosed on balance sheets, as well as how. Read More.
Decisions Reached on Distinguishing Liabilities from Equity Project
At its May 10 meeting, the Financial Accounting Standards Board (“FASB”) reached the following decisions on its proposed Accounting Standards Update, Distinguishing Liabilities from Equity (Topic 480): I. Accounting for Certain Financial Instruments with Down Round Features, and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception: Display (Earnings Per Share). Impacting companies within the scope of Topic 260, Earnings Per Share, an earnings per share (“EPS”) numerator modification will be required to income offered to common shareholders in basic EPS for equity-classified freestanding financial instruments. Additionally,. Read More.
Topics: Accounting Standards Update "ASU", Distinguishing Liabilities (Topic 480), Earnings Per Share (Topic 260), Equity (Topic 505), FASB, Financial Accounting Standards Board "FASB", liabilities and equity