Recap of Private Company Council’s December Meeting
At its December 8 meeting, the Private Company Council provided feedback on the following topics: Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract: Council members declared that implementation costs are to be capitalized in such arrangements, except fees for a cloud computing arrangement that are considered a service contract. Financial Performance Reporting: Council members examined the results of Financial Accounting Standards Board (“FASB”) staff’s research on private company financial statements, and the possible impact disaggregation of performance information may have on the private company sector.. Read More.
FASB Chairman Wants to Improve Financial Performance Reporting
In a letter this month to constituents, the Financial Accounting Standards Board’s (“FASB”) Russell Golden said the board is considering a project that would improve financial performance reporting to potentially restrict non-GAAP measures. The project, which is in the research stage, gives attention to companies possibly disclosing more descriptive information in their income statements or requiring additional subtotals. The FASB chairman’s letter reflected his opinion that an improved performance or income statement can reduce the amount of nonstandard numbers reported by companies. Golden stressed the importance of studying commonly used non-GAAP measures, commenting that the FASB’s mission is to create. Read More.
FASB to Release Discussion Paper on Future Projects
With work on several major accounting standards near completion, the Financial Accounting Standards Board (“FASB”) is looking to add four more projects to its agenda. The accounting board agreed on February 3rd to issue for public comment a discussion paper on standard-setting projects concerning pensions, intangible assets, liabilities and equity, and performance reporting. Each project would require a substantial undertaking, as they address heavily criticized areas of accounting. The discussion paper is expected to be released by mid-year. In regard to the issuance of the paper, FASB Chairman Russell Golden said the FASB must consider the possible impact on its. Read More.