FASB Seeking 2015 Release of Financial Instruments Standards
As the Financial Accounting Standards Board (“FASB”; “the Board”) begins work on its scheduled financial instruments accounting project, the standard setter is aiming to release its first two updates during the early part of 2015. The first phase, classification and measurement of financial instruments, is projected to be finished in the next few weeks and sent back to FASB with a final draft. For its asset impairment phase, FASB is expected to make its final decisions next month and possibly give approval for preparing the last update in November. Before the final updates are approved and published next year, the. Read More.
FASB to Create Advisory Panel for Adoption of Asset Impairment Standard
Expected to issue its standard for recording loan losses next year, the Financial Accounting Standards Board (“FASB”) is creating an advisory panel to assist companies in the implementation of Proposed Accounting Standards Update No. 2012-260, Financial Instruments—Credit Losses (Subtopic 825-15). Responding to investors’ complaints about banks using the incurred-loss model for reporting losses during the global financial crisis, the standard will help disclose bad loans and securities, as well as adopt a current-expected-credit-loss (CECL) model. The new model will require banks to evaluate forthcoming losses on loans going bad and establish reserves based on such estimates. Commenting on the advisory. Read More.
Accounting for PCC Issue on Identifiable Intangible Assets Finalized
Announced by the Private Company Council (“PCC”), the accounting for identifiable intangible assets in PCC Issue No. 13-01A, “Accounting for Identifiable Intangible Assets in a Business Combination” has been finalized. In preparation for endorsement by the Financial Accounting Standards Board (“FASB”), a final Accounting Standards Update (ASU) is being prepared. The ASU will feature amendments stating an entity would not identify non-competition agreements, and customer-related intangible assets not able to be sold or licensed separately from other assets in a business combination. Once endorsed, the amendments would go into effect for business combinations agreed upon in the first annual period. Read More.
FASB and IASB to Address Revenue Recognition Standards Concerns
With worries rising over the transition to the recently issued revenue recognition standards, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) have scheduled a meeting next month to review the 2017 effective date. Set for October 31st, the Transition Resource Group meeting is expected to add the effective date as part of its agenda and include a discussion on how both standard-setters should address concerns. The standards in question are FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Considered the most notable. Read More.
The New Revenue Recognition Standard: Step 4 — Allocate the Transaction Price to the Performance Obligations
As mentioned in our previous blog , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606) and ushers in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC. Read More.