Proposed Taxonomy Improvements to Impact Leases and Nonprofit Entities
Financial Accounting Standards Board (“FASB”) staff members have issued proposed Taxonomy improvements to the following Accounting Standards Updates (“ASU”): ASU No. 2018-09, Codification Improvements: Comments on the proposed amendments are due Tuesday, August 14. ASU No. 2018-10, Codification Improvements to Topic 842, Leases: Comments on the proposed amendments are due Friday, August 17. FASB staff also proposed Taxonomy improvements for the Proposed ASU, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. Comments are due Friday, August 10. All comments on the proposed Taxonomy improvements must be emailed to email@example.com .
FASB to Resume Quarterly Disclosure Project
After a three-year pause, the Financial Accounting Standards Board (“FASB”) will resume its project to improve the information companies disclose in quarterly financial statements. The FASB has held regular talks about the project, but the board has failed to discuss quarterly disclosure requirements since agreeing in January 2015 to amend Topic 270, Interim Reporting. Continuing the quarterly disclosure project is part of the FASB’s overarching goal of improving U.S. GAAP disclosure requirements and determining how it establishes disclosure requirements in accounting standards. Meanwhile, the FASB is close to publishing its disclosure framework that will be used as a reference guide. Read More.
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.
FASB Suggests Aligning Collections Definition for Museums
Last week, the Financial Accounting Standards Board (“FASB”) announced a proposal to match the U.S. GAAP definition of a “collection” of priceless artwork and historical treasures with the description museums rely on for operability and accreditation. Issued in Proposed Accounting Standards Update No. 2018-250, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections, the amendment would change one of the criteria under the collection definition. It would also let proceeds from a sold art piece or artifact to be used to protect the rest of the collection. As a result of the amendment, museums and related entities would only have. Read More.
Arrival of PCAOB Guidance on Credit Loss Model Unknown
The Public Company Accounting Oversight Board’s (“PCAOB”) interpretive guidance for the Financial Accounting Standards Board’s (“FASB”) new current expected credit losses (“CECL”) model is unlikely to be published before the audit regulator’s proposal on auditing accounting estimates is finalized. Release No. 2017-002, Proposed Auditing Standard—Auditing Accounting Estimates, Including Fair Value Measurements, was issued by the PCAOB to enhance the requirements for auditors examining hard-to-value assets and liabilities such as oil company reserves. Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, is effective in 2020, and will require companies,. Read More.
FASB Progresses on Segment Reporting Project
At a June 13 meeting on the Financial Accounting Standards Board’s (“FASB”) segment reporting project, the board gave staff members permission to proceed with their upcoming extended outreach. The extended outreach would address two alternatives: Reorganize the process for determining reportable segments and shift the quantitative thresholds earlier in the process; and Eliminate the aggregation criteria, making each operating segment reportable until a practical limit is achieved. The decision to perform extended outreach focus on both alternatives occurred after board members agreed that feedback on each alternative would benefit future discussions. Board members had also considered solely focusing on the. Read More.