CPAs and Advisors with Your Growth in Mind

FASB Continues Discussions on Disclosure Framework Project

During a discussion at last Wednesday’s meeting, the Financial Accounting Standards Board (“FASB”) made the following decisions on proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8, Notes to Financial Statements: Nonprofits and private companies must be retained on the notes to financial statements. A discussion on the possible negative consequences of disclosures will be included. The disclosure of changes in line items not easily understood will be considered. The disclosure of alternative measures clearly useful in reviewing prospects for future cash flows will be considered. No disclosure objectives were established without giving specific requirements on how those objectives. Read More.

Topics: , , , , , ,

AICPA Advises Nonprofits on Financial Reporting Model Changes

In the first of a two-part blog series on its website, the American Institute of Certified Public Accountants (“AICPA”) discusses the upcoming changes to the nonprofit financial reporting model. The changes are part of the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, which affects certain line items on nonprofits’ financial statements. The blog series’ first installment features suggestions on an organization’s chart of account modifications in five areas: liquidity, net assets, investment return, statement of cash flows and expense reporting. To read part one of the blog series, visit AICPA.org.

Topics: , , , , ,

FASB Rejects Pleas for More Implementation Guidance on Credit Loss Standard

As concerns mount regarding implementation of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the American Institute of Certified Public Accountants’ Private Companies Practice Section Technical Issues Committee (“the Committee”) wants the Financial Accounting Standards Board (“FASB”) to provide more guidance on the standard. FASB members, however, have no plans to offer additional implementation guidance. Addressing the matter this week with Committee representatives, FASB members said that the board’s credit loss standard for writing down losses on bad loans contains sufficient accounting guidance and examples. FASB Vice Chairman. Read More.

Topics: , , , , ,

FASB Issues Update on Certain Financial Instruments with Liabilities and Equity Characteristics

Following recommendations from the Private Company Council, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update No. 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part 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. Part I simplifies accounting for select financial instruments with down round features, a rule in an equity-linked financial instrument or embedded feature that offers a downward adjustment. Read More.

Topics: , , , , , , , ,

Recap of Private Company Council’s July 11 Meeting

Private Company Council (“PCC”) and Financial Accounting Standards Board (“FASB”) members met Tuesday to discuss stakeholder feedback from the June 13 private company town hall meeting. In addition, the PCC offered input on the following FASB projects: Consolidation Targeted Improvements to Related Party Guidance for Variable Interest Entities Liabilities and Equity—Targeted Improvements Cloud Computing (EITF Issue No. 17-A) Nonemployee Share-Based Payment Accounting Improvements Invitation to Comment on Agenda Consultation Balance Sheet Classification of Debt Updates on these FASB projects and a full meeting recap are available on the PCC website.

Topics: , , , , , , , , , ,

Trade Group Calls for Digital Currency Accounting Guidance

A project to create accounting guidance for digital currency could be added to the Financial Accounting Standards Board’s (“FASB”) standard-setting agenda. In response to a request from the Digital Chamber of Commerce, the FASB plans to hold a public meeting to review whether a digital currency project is necessary. A date for the meeting has yet to be announced. In its June 8 letter, the Digital Chamber of Commerce asked for the FASB to establish guidance regarding when and how to measure digital currency. The letter calls for the FASB to develop an accounting model allowing companies to acknowledge digital. Read More.

Topics: , , , , , , ,