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.
FASB to Hold Meeting with Not-for-Profit Advisory Committee
As the first of two discussions this week, the Financial Accounting Standards Board (“Board”) will meet with the Not-for-Profit Advisory Committee (“the Advisory Committee”) today. Beginning at 8:30 a.m. EST, Board members plan to discuss with the Advisory Committee how to implement in the nonprofit sector Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the Board’s current project on financial statements of nonprofit entities. For additional information on the meeting agenda, visit the FASB website . Also visit our Nonprofits industry page for information on Cherry Bekaert’s services.
Users Mixed on Need for GASB Statement No. 42
Collecting information from Governmental Accounting Standards Board (“GASB”) stakeholders, and financial statement users and academics, an independent Financial Accounting Foundation (“FAF”) team recently performed a Post-Implementation Review (PIR) of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. Through its review, the team concluded that GASB No. 42 completely fixed some but not all issues essential to its need. Specifically, users have differing opinions on whether the standard establishes recognition criteria for impairments and requirements that properly assess the effects of impairments, both of which deemed necessary for capital asset impairments. Also,. Read More.
Second FAF Payment Sent to IFRS Foundation
As part of the convergence process between the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”), the Financial Accounting Foundation (“FAF”) has sent the second $1 million payments to the IFRS Foundation. The second installment occurred in June and a final payment is expected later this year. FAF trustees have not recently discussed the third payment and do not plan to anytime soon, and the subject was not mentioned during the public portion of the August 19th quarterly meeting. Due to previous complaints, the lack of discussion is surprising to some. Before being announced, Securities and Exchange. Read More.
Topics: Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", IFRS Foundation, International Accounting Standards Board "IASB", Mary Jo White, National Association of State Boards of Accountancy "NASBA", U.S. Securities and Exchange Commission "SEC"
FAF Prepares for Quarterly Board of Trustees Meeting
Set for August 19th, the Financial Accounting Foundation (“FAF”) will hold its quarterly Board of Trustees meeting. Held in New York City, the meeting will feature presentations by FAF Chairman Jeffrey Diermeier, Financial Accounting Standards Board Chairman Russell Golden and Governmental Accounting Standards Board Chairman David Vaudt. While FAF meetings are usually open to the public, next week’s event will start with a closed portion for the Board of Trustees at 8:00 a.m. EST. Interested parties, however, will be able to live stream the meeting’s open portion from 10:20 a.m. to 11:20 a.m. EST. The FAF’s Notice of Meeting is available online.
Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"