FASB Issues ASU No. 2014-15 to Help Reporting of Going Concern
Helping to disclose substantial doubt concerning a company’s ability to move forward as a going concern, the Financial Accounting Standards Board (“FASB”) has released Accounting Standards Update (ASU) No. 2014-15 , Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Announced on Wednesday, the ASU provides principles and definitions to an organization’s management for decreasing diversity in disclosures that are currently made available in financial statement footnotes. Presently, U.S. GAAP does not provide an organization’s management guidance regarding its responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern. Read More.
The New Revenue Recognition Standard: Step 1 – Identify the Contract with a Customer (Part I)
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 2014-09 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.
Second FAF Payment Sent to IFRS Foundation
As part of the convergence process between the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”), the Financial Accounting Foundation (“FAF”) has sent the second $1 million payments to the IFRS Foundation. The second installment occurred in June and a final payment is expected later this year. FAF trustees have not recently discussed the third payment and do not plan to anytime soon, and the subject was not mentioned during the public portion of the August 19th quarterly meeting. Due to previous complaints, the lack of discussion is surprising to some. Before being announced, Securities and Exchange. Read More.
Topics: Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", IFRS Foundation, International Accounting Standards Board "IASB", Mary Jo White, National Association of State Boards of Accountancy "NASBA", U.S. Securities and Exchange Commission "SEC"
FASB Proposes Additional Guidance to Cloud Service Providers on Customer Fees
Expected to simplify accounting for a customer’s fees paid in a cloud computing arrangement, Accounting Standards Update (ASU), Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement has been issued by the Financial Accounting Standards Board (“FASB”). The proposal is in response to the lack of accounting guidance for cloud service providers regarding the fees paid by a customer. Stakeholders claim this has resulted in confusion and unnecessary cost when accounting for such fees. The proposed guidance would help customers decide whether a cloud computing arrangement contains a software. Read More.
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.