Eliminating Steamship Entities Guidance Proposed
The Financial Accounting Standards Board (“FASB”) has issued a proposal that would replace Topic 995, U.S. Steamship Entities. The Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 995, US Steamship Entities: Elimination of Topic 995, was created because the guidance in Topic 995 has become irrelevant. FASB Statement No. 109, Accounting for Income Taxes, allows steamship entities that made statutory reserve deposits prior to December 15, 1992, to voluntarily disclose their deferred taxes. The board believes steamship entities with statutory reserve funds should report all deferred taxes according to Topic 740, Income Taxes. In addition, the FASB deems. Read More.
Minor Changes Proposed to Top Accounting Standards
In the next few months, the Financial Accounting Standards Board (“FASB”) plans to issue proposed updates with several limited revisions to its leases and classification and measurement standards. Announced during the FASB’s June 21 meeting, the proposed amendments will be released separately from the usual group of technical corrections the board issues each year due to the importance of the affected Accounting Standards Updates (“ASU”). The changes involve 16 amendments to ASU No. 2016-02, Leases (Topic 842), including fixing cross references, aligning terminology with other aspects of U.S. GAAP, and clarifying the categorization of leases if the terms and conditions. Read More.
Topics: FASB, FASB Technical Corrections, Financial Accounting Standards Board "FASB", Financial Instruments—Overall (Subtopic 825-10), Leases (Topic 842), Proposed Accounting Standards Update, U.S. GAAP
FASB Member Says No Major Accounting Changes Coming
In the last 18 months, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Updates (“ASU”) for leases, credit losses, and revenue recognition. FASB member Christine Botosan, however, stated last week that the board has no immediate plans to publish additional major accounting changes. During the American Institute of Certified Public Accountants’ Not-for-Profit Conference in Maryland, Botosan assured attendees by announcing the board’s plans to pause on adding major accounting standards to its agenda. Botosan said the FASB is considering undertaking other significant accounting projects, but is also aware of how much effort goes into complying with ASU No.. Read More.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Leases (Topic 842), Revenue From Contracts With Customers, Revenue Recognition
FASB Proposes Simplified Standard for Consolidated Reporting
A proposal to streamline guidance for voting interest entities and variable interest entities is coming this summer. At their June 21 meeting, Financial Accounting Standards Board (“FASB”) members unanimously approved the proposal that would put the aforementioned guidance in Topic 810, Consolidation, in a separate accounting standard. Designated as Topic 812, the new accounting standard would eliminate Topic 810 and organize voting interest entities and variable interest entities into subtopics. The reorganization assumes that once a company decides to follow the voting interest entities or variable interest entities accounting guidance, the company could go directly to the needed category. The. Read More.
Consolidation Amendments Proposed to Help Private Companies
Giving private companies an easier way to apply its guidance for consolidation reporting, the Financial Accounting Standards Board (“FASB”) has issued Proposed Accounting Standards Update No. 2017-240, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The proposed changes to Accounting Standards Codification 810, Consolidation, exempts private companies from using guidance on variable interest entities for certain common control lease arrangements and related legal structures. Instead, private companies must use an accounting policy alternative for other businesses under common control that follow the same criteria. Only some common control arrangements, however, would qualify for the alternative. The. Read More.
Treasury Report Questions FASB’s Credit Loss Standard
A June 12 report by Department of Treasury has recommended overhauling the U.S. financial regulatory system. While most of the overhaul focuses on easing bank requirements such as those from the Dodd-Frank Act, it also questions the need for the Financial Accounting Standards Board’s (“FASB”) credit loss standard. In response to the 2008 global financial crisis, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard addresses delayed disclosure of problematic loans that appeared healthy on banks’ balance sheets, but their loan portfolios became more troubling.. Read More.
Topics: 2008 Financial Crisis, Accounting Standards Update "ASU", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Financial Regulatory System, U.S. Department of Treasury