New Private Company Council Members Announced
Yesterday, the Financial Accounting Foundation’s (“FAF”) Board of Trustees appointed the following new members to the Private Company Council : Beth van Bladel, director of CFO for Hire LLC David Hirsch, vice president—finance at Pritzker Group Private Capital Richard Reisig, shareholder and technical director–attest services at Anderson ZurMuehlen & Company, P.C. Yan Zhang, partner at EisnerAmper LLP The newly appointed members will serve three-year terms effective January 1, 2017. Additionally, the FAF’s Board of Trustees reappointed Russell Golden as chairman of Financial Accounting Standards Board (“FASB”). Golden has been with the FASB since 2010, guiding the board in the issuance of major accounting standards regarding revenue recognition, leases, credit losses, and nonprofit financial reporting.. Read More.
Post-Implementation Reviews on Pause
Financial Accounting Standards Board (“FASB”) post-implementation reviews are currently on hiatus, according to Financial Accounting Foundation (“FAF”) President and CEO Teresa Polley. During an October 6 meeting, Polley credited the pause on such reviews since none of the remaining accounting standards meet the criteria for a review. Standards considered “significant” for a post-implementation review must either create a major financial reporting change or is a source of FAF stakeholder complaints. Additionally, a FASB standard must be adopted for at least two years to give companies appropriate time to implement them. Several long-awaited standards have been published this year, but do. Read More.
Disclosure Framework Review Necessary before Finalizing Materiality Guidance
Before the Financial Accounting Standards Board (“FASB”) finalizes proposed changes to the materiality guidance, Russell Golden says the board must complete a thorough review of its disclosure framework project. Speaking recently at the Financial Accounting Foundation’s quarterly meeting, the FASB chairman told attendees that the standard setter plans to evaluate all phases of its project to update the disclosure requirements under U.S. generally accepted accounting principles (“U.S. GAAP”) by the end of the year. The review is expected to be finished by year’s end, with final changes to the materiality guidance scheduled for a 2017 release. In September, the FASB. Read More.
PCC Slams Income Tax Disclosure Plan
At its December 4th meeting, the Private Company Council (“PCC”) criticized the Financial Accounting Standards Board’s (“FASB”) proposal to add effective disclosures to Accounting Standards Codification 740-10-50, Income Taxes. The plan would require additional details about income taxes to be disclosed in the footnotes of a company’s financial statements. Members of the FASB’s advisory group, however, said that the extra details would be a burden on private companies and worthless to most financial statement users. In particular, PCC members slammed the requirement for companies to disclose the reconciliation of its effective tax rate and statutory rate. While U.S. GAAP requires public companies to. Read More.