IASB and FASB Announce Joint Revenue Standard
Issued today, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) have released a joint standard on revenue recognition from contracts with customers. This is a major accomplishment of the work to converge a key area of financial accounting between International Financial Reporting Standards and U.S. GAAP. Accounting Standards Update (“ASU”) 2014-09 provides enhancements to the quality and consistency of how revenue is reported. The IASB and FASB’s new standard will require the recognition of revenue as goods or services are transferred to customers in amounts that reflect payment the company expects to receive in exchange. In addition. Read More.
SEC’s White Speaks at Trustees Dinner
At the May 20th Financial Accounting Foundation Trustees Dinner, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White reflected on global accounting standards matters concerning the SEC. During the event in Washington, D.C., she hinted that the SEC is still considering the addition of International Financial Reporting Standards (“IFRS”) for domestic registrants. Although no timetable was given for when the issue would be addressed, White noted that the interests of U.S. investors would be front and center during the IFRS consideration process. White also supported the opinions expressed by other SEC members. Such views included the country’s role in. Read More.
FAF’s Annual Report Shares Upcoming Plans
Released late last week, the Financial Accounting Foundation’s (“FAF”; “the Foundation”) 2013 Annual Report details future plans for the Foundation, the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). Named “The Road Ahead”, the report features a thorough overview of last year’s achievements by the FAF, FASB and GASB, and talks about their plans ahead. The Foundation’s plans for the FASB and GASB consist of: Guiding the FASB forward after its current projects with the International Accounting Standards Board (“IASB”) are done; Encouraging a global standard-setting environment where the FASB continues its efforts with the IASB and. Read More.
Next FAF Quarterly Meeting Set for May 21st
Providing updates to the Foundation’s trustees, the Financial Accounting Foundation (“FAF”; “the Foundation”) will hold its quarterly meeting on May 21st. Taking place in Washington D.C., the meeting will discuss recent accounting standard-setting happenings by the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). FAF Chairman Jeffrey Diermeier, and President and CEO Teresa Polley, FASB Chairman Russell Golden and GASB Chairman David Vaudt are scheduled to share their reports, as well as the FAF’s Standard-Setting Process Oversight Committee Chairman and treasurer. Along with the updates, the Foundation plans to review concerns over its estimated $3 million donation. Read More.
Financial Instruments Proposal Concerns NCBA Members
As external auditors for the North Carolina Bankers Association (“NCBA”), Cherry Bekaert’s Financial Services Group responded to the Reference 2012-260: Financial Instruments – Credit Losses proposal on May 7, 2014. Submitted by the NCBA on behalf of its membership, the letter expresses concern over the proposed accounting standard from several perspectives. The Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board proposals are not converged standards, which result in different accounting models. The proposed standard appears to be a departure from the FASB’s conceptual framework for assets reported at amortized cost. There are also concerns around the complexity of implementation, as well as the reliability. Read More.