Smaller Banks Receive Extension on Implementing Credit Loss Standard
After repeated calls for a delay of its new credit loss standard , the Financial Accounting Standards Board (“FASB”) has agreed to give smaller banks an extra year to comply with Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. FASB chairman Russell Golden said the board had always intended to provide these nonpublic business entities additional time to adopt the ASU, but the language insinuated that financial institutions like credit unions and community banks did not have as much time to prepare as was initially envisioned. Golden acknowledged the confusion smaller banks had in implementing ASU No. 2016-13, stating. Read More.
Insurers Seek Extension of Insurance Standard’s Effective Date
Principal Financial Group and the American Council of Life Insurers want the Financial Accounting Standards Board (“FASB”) to delay the effective date of its proposed insurance standard by at least one year. In separate letters to the FASB, the insurance companies argue a lack of resources and the need to overhaul existing systems will prevent them and other insurers from implementing the accounting changes before the projected 2021 effective date for public companies. The FASB is currently reviewing the delay request. In the meantime, the board is targeting an August release for its final amendments to guidance concerning insurance company-issued long duration contracts . Based on a proposed Accounting Standards. Read More.
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.