IASB to Adopt Single Model for Leases
Rather than move forward with the Financial Accounting Standards Board (“FASB”) on a dual model for leases, the International Accounting Standards Board (“IASB”) has decided to adopt a single model. The IASB recently updated in project documents to reflect its decision to abandon the dual model approach it proposed with the FASB in 2013. Citing feedback from analysts and investors, the IASB concluded that leases produce assets and debt-like liabilities for a lessee, making it easier for a single model to understand. As for the FASB, the standard-setter plans to keep its dual model. However, the IASB and FASB plan. Read More.
FASB’s Statement No. 123(R) Deemed Necessary
Using input from investors and various financial statement users, a Post-Implementation Review (“PIR”) team recently shared conclusions from its assessment of Financial Accounting Standards Board Statement No. 123(R), Share-Based Payment. Based on its review, the PIR team concluded not only does the standard meets its purpose and offers useful information, but Statement No. 123(R) also: tackled concerns that companies were not acknowledging the cost of employee services obtained in return for share-based payment awards; improved comparability and streamlined accounting for share-based payment transactions by removing alternative accounting methods that were previously allowed; and united accounting methods for share-based payment transactions. Read More.
FASB Releases 2014 & 2015 UGT Implementation Guides
The Financial Accounting Standards Board (“FASB”) has issued the Final 2014 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Insurance Industry: Concentration of Credit Risk Disclosures . Following the 2014 U.S. GAAP Financial Reporting Taxonomy, the guide offers examples to assist UGT users understand the reinsurance-related concentrations of credit risk disclosures. In addition, FASB has issued a Proposed 2015 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Disposal Groups and Discontinued Operations . The proposed guide features examples of how users should model disclosures disposal groups and discontinued operations, and follows the 2015 U.S. GAAP Financial Reporting Taxonomy draft. Comments on the proposal are being accepted in writing and electronically until October 6th. Not viewed as authoritative, the guides are considered as documents that explain how the UGT. Read More.
FASB Revisiting Financial Performance Reporting Project
Resembling previous efforts, the Financial Accounting Standards Board (“FASB”) is considering adding a project on financial performance reporting to its current agenda. At its June 25th meeting, the staff began research on which issues the forthcoming project should address and discussed problems faced during prior attempts to improve the presentation of financial statements. Eventually, staff members were instructed to study how the income statement could be enhanced, but recognized that most income statement changes would have to be mirrored on the balance sheet. Also at the meeting, FASB members could not agree on the degree to which a balance sheet. Read More.
Higgins Highlights Corp Fin Initiatives in Congress Testimony
Promoting his division’s current initiatives and directives, the U.S. Securities and Exchange Commission’s (“SEC”) Corp Fin (“the Division”) Director Keith Higgins testified recently in front of the U.S. House of Representatives Committee on Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises. Some of the notables from Higgins’ testimony included: Review of Registrant Filings: Higgins stated that Corp Fin is dedicated to the financial statements and disclosures of the companies that make up 98 percent of total market capitalization. Based on the work completed thus far in fiscal 2014, Higgins believes the Division’s review of 4,500 reporting companies will be in. Read More.
Topics: Audit, Capital Markets, Division of Corporation Finance "Corp Fin", Financial Accounting Standards Board "FASB", financial services, Government Sponsored Enterprises, Keith Higgins, U.S. House of Representatives, U.S. Securities and Exchange Commission "SEC"
ASU No. 2014-14 to Help Creditors with Government-Guaranteed Mortgage Loans
Issued by the Financial Accounting Standards Board, Accounting Standards Update (ASU) No. 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, impacts creditors with government-guaranteed mortgage loans, counting those guaranteed by the Federal Housing Administration and the U.S. Department of Veterans Affairs. Per the ASU’s amendments, a mortgage loan is required to be derecognized and a separate other receivable be recognized upon foreclosure if the conditions below are met: The loan includes a government guarantee that is inseparable from the loan prior to foreclosure. The creditor plans to transfer the real. Read More.
Topics: Accounting Standards Update "ASU", Creditors, Debt Restructuring, Federal Housing Administration, Financial Accounting Standards Board "FASB", Foreclosure, Government-Guaranteed Mortgage Loans, U.S. Department of Veterans Affairs