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FASB Announces Itinerary for Wednesday’s Meeting

Scheduled for Wednesday, the Financial Accounting Standards Board (“FASB”) meeting will cover four topics essential to the standard-setter’s ongoing efforts: 1.  Agenda prioritization. FASB plans to review staff research and analysis from a number of prospective projects and which ones will be added to its agenda. 2.  Financial instruments— impairment . Discussions will continue on FASB’s Proposed Accounting Standards Update, Financial Instruments-Credit Losses. In particular, the conversation will focus on impairment guidance for debt securities and clarifying the measurement principle in the Current Expected Credit Losses model. 3.  Insurance— disclosures concerning short-duration contracts . Talks will continue on disclosures on short duration contracts, including disclosures. Read More.

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FASB Issues Guidance on Consolidated Collateralized Financing Entities

Issued by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update (ASU) No. 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, applies to any reporting entity required to consolidate a collateralized financing entity under the Variable Interest Entities guidance when: (1) the reporting entity measures all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements; and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. As defined under. Read More.

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Standard Setters Still at Odds over Lease Project

At their July 23rd joint meeting, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) resumed efforts to converge U.S. GAAP and IFRS. In particular, the top focus was FASB’s Proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842), and IASB’s Exposure Draft (ED) No. 2013-6, Leases. Conflicted on recognizing the gains for sale-leaseback transactions, the boards continue to have opposing attitudes toward their lease accounting project. During the meeting, FASB agreed to allow sellers of assets to recognize the full gain from the time of the transaction. On the conflicting end, IASB agreed to let. Read More.

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Updated Conceptual Framework Proposal Comment Letter Approved

During its July 15th teleconference, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) approved an updated draft comment letter related to the Financial Accounting Standards Board’s (“FASB”) Proposed Statement of Financial Accounting Concepts (CON) No. 2014-200, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. Despite not providing official guidance to users of financial statements, the proposal offers guidelines for writing U.S. GAAP disclosure requirements. Signed by FinREC’s Richard Paul and Rick Day, the seven-page letter orders FASB to review current disclosure requirements, and remove repetitive disclosures and insufficient information. Per the letter, the simplification of disclosures will. Read More.

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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.

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FASB Backs Task Force’s Recent Meeting Decisions

Reflecting decisions from its Emerging Issues Task Force’s June meeting, the Financial Accounting Standards Board (“FASB”) approved two Accounting Standards Updates. Per its meeting yesterday, the FASB will release Issue No. 12-G, “Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity”, and Issue No. 13-F, “Accounting for the Effect of a Federal Housing Administration Guarantee.”

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