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.”
Topics: Accounting Standards Update "ASU", Consolidated Collateralized Financing Entitiy, Emerging issues Task Force, Federal Housing Administration Guarantee., Financial Accounting Standards Board "FASB", Financial Assets, Financial Liabilities
PCC Orders FASB to Conduct Further Pre-Agenda Research
After reviewing various projects the Financial Accounting Standards Board’s (“FASB”) has been working on, the Private Company Council (“PCC”) recently ordered the FASB staff to perform additional research to be discussed at a later meeting. At its Tuesday meeting, the PCC continued talks on an alternative accounting for recognizable intangible assets in a business combination however, no decisions were made. In addition, the group discussed the accounting for certain partnership transactions, and shared stakeholder involvement with the FASB regarding stock-based compensation. Other topics covered from the meeting included FASB’s financial instruments impairment accounting efforts, Emerging Issues Task Force Issue No.. Read More.
FASB Continues U.S. GAAP Simplification Initiative
Hoping to streamline inventory measurement and remove the requirements for extraordinary items, the Financial Accounting Standards Board recently released two proposed Accounting Standards Updates. The proposals, which are part of FASB’s efforts to simplify U.S. GAAP , include: — Inventory (Topic 330): Simplifying the Measurement of Inventory. This proposal is in response to stakeholder concerns about the current guidance on measuring inventory. Currently, reporting entities are required to measure inventory at the lower of cost or market. The new guidance would require inventory to be measured at the lower of cost and net realizable value. Thus, it would eliminate existing requirements to consider the replacement cost. Read More.
Joint Transition Resource Group Preps Agenda for Initial Meeting
Following the creation of its Joint Transition Resource Group for Revenue Recognition (“the Group”) last month, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) are preparing for the advisory panel’s first meeting. Scheduled for July 18th, the meeting’s agenda will cover four issues identified by the boards. Based on feedback from companies, auditors, investors and regulators, the issues addressed during the meeting include: Calculating intangible goods and services revenue; Modifying revenue for additional fees and charges; Including royalties and intellectual property licenses into a revenue amount; and Incorporating amortization or write-down expenses into a revenue amount. Read More.
Topics: Accounting Standards Update, Advisory, Audit, Financial Accounting Standards Board "FASB", intangible goods, Intellectual Property, International Accounting Standards Board "IASB", investors, Joint Transition Resource Group for Revenue Recognition
AICPA Releases Updates to AAG Standards and Audit Risk Alert
Published on June 26th, the American Institute of Certified Public Accountants (“AICPA”) issued updates to five Audit and Accounting Guides (“AAG”). The AAG updates include the following: Compilation and Review Engagements now offers interpretive guidance on recent adjustments to the Statements on Standards for Accounting and Review Services for compilation and review engagements. The Construction Contractors update includes simplified versions of the Auditing Standards Board’s audit standards and Professional Ethics Executive Committee’s Ethics Code of Professional Conduct. Investment Companies reflects modifications to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (ASU) No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the. Read More.
Topics: AAG Standards, Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Audit, Audit and Accoutning Guide "AAG", Audit Risk, Balance Sheet, disclosure, Ethics, Financial Accounting Standards Board "FASB", Investment Companies, Investment Company Act, Professional Ethics Executive Committee "PEEC", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
FASB’s Going Concern Amendment to Affect PCAOB Standards
In the coming weeks, the Financial Accounting Standards Board (“FASB”) plans to release an amendment that requires struggling companies to inform investors regarding their chances of surviving. Entitled proposed Accounting Standards Update No. 2013-300, Presentation of Financial Statements (Topic 205)—Disclosure of Uncertainties about an Entity’s Going Concern Presumption, the update is in response to investors and regulators who believed auditors issued going concern reviews of companies after the stock price mirrored the market’s knowledge of their pending demise. Per the FASB’s final update to U.S. GAAP, a company will be required to add in its financial statement footnotes when “substantial. Read More.
Topics: Accounting Standards Update, American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Bruce Webb, disclosure, Financial Accounting Standards Board "FASB", Financial Statements, Going Concern, International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. GAAP, U.S. Securities and Exchange Commission "SEC"