FASB and IASB Seek Lease Standards Publication Next Year
Hoping to publish final standards late next year, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) will restart discussions this fall on their lease accounting project. It is anticipated that the final standards will be based on FASB’s Proposed Accounting Standards Update No. 2013-270, Leases (Topic 842), and the IASB’s Exposure Draft No. 2013-6, Leases. Both proposals were published in 2013. Before completing work on their project, the FASB and IASB must resolve several disagreements on proposed changes to accounting in U.S. GAAP and International Financial Reporting Standards. Such disagreements include how to handle accounting for. Read More.
FASB Removes Guidance for Development Stage Entities
Issued recently by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update No. 2014-10 (“ASU No 2014-10”), Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, eliminates from U.S. GAAP all required incremental financial reporting for development stage entities. Currently, a development stage entity is defined as an entity that gives all of its efforts to creating a new business in which planned principal operations have not begun, or have started but yet to generate any significant revenue. Per current U.S. GAAP standards, a development stage. Read More.
Revenue Recognition Will Never Be the Same
It has taken over five years of debate to develop, but on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers: Topic 606, creating a new codification topic and ushering in a new era of revenue recognition. This new standard is a major achievement of the International Accounting Standards Board (“IASB”) and FASB joint project to converge U.S. GAAP and International Financial Reporting Standards (“IFRS”). With this release, the FASB has now replaced hundreds of industry specific guidance pages with a single, comprehensive standard applicable to virtually all industries that. Read More.
Topics: Accounting Standards Update "ASU", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Revenue Recognition
FASB Releases Final UGT Implementation Guides
Currently available on its website, the Financial Accounting Standards Board (“FASB”) has issued two final UGT Implementation Guides. The first guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Notional Amount Disclosures , gives examples for understanding the modeling for notional amount disclosures is organized within the UGT. The other guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Segment Reporting , provides examples of the modeling for disclosures associated with segment reporting. Examples published in the Implementation Guides assume that the entity meets the reporting criteria for notional amount disclosures listed under U.S. GAAP, and/or the U.S. Securities and Exchange Commission’s authoritative literature. While the Implementation Guides are not authoritative, they are considered documents detailing how the UGT is. Read More.
FASB Aims to Reduce Financial Statement Disclosures
Addressing complaints from companies and their auditors over the workload of financial statements, the Financial Accounting Standards Board (“FASB”) has made the decision to no longer require companies to disclose information on quarterly reports that was previously stated on annual reports. Announced at its recent meeting, the FASB’s decision is an effort to improve financial statement disclosures, eliminate information repetition and minimize the reporting burden on companies. Per the decision, footnote disclosures in annual statements would be repeated in quarterly statements only if a “reasonable investor” viewed any new details as considerably altering the “total mix” of available information. If. Read More.
FASB Wants to Simplify U.S. GAAP
Announced on May 28th, the Financial Accounting Standards Board (“FASB”) is working on two projects planned to make U.S. GAAP less complicated. Called the “simplification initiative”, both proposals are aimed to remove the concept of “extraordinary items” from U.S. GAAP and simplify the ensuing inventory measurement. The proposals include Subtopic 225-20, Income Statement — Extraordinary and Unusual Items, and Topic 330, Inventory. Per Subtopic 225-20, organizations are required to categorize and disclose one-time, “extraordinary” events and transactions. An event is labeled “extraordinary” if it’s unusual and infrequent. If both conditions are met, then the organization must separate the event from. Read More.