Corp Fin’s Higgins Responds to Lawmakers’ IFRS Questions
With tension mounting among lawmakers requesting the U.S. Securities and Exchange Commission (“SEC”) propose a rule on IFRS adoption, Keith Higgins addressed the agency’s consideration of the international standards. At the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises on July 24th, the director of SEC’s Corporation Finance Division referenced Mary Jo White’s May speech by reiterating her expectations to use IFRS more aggressively and have a clear strategy on the standards by year’s end. Higgins, however, did not mention whether U.S. companies would have the option to adopt IFRS. Reflecting a letter sent by members of. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Corporate Finance Division, House Financial Services Subcmmittee on Capital Markets and Government Sponsored Enterprises, IFRS, International Standards, U.S. Securities and Exchange Commission "SEC"
IASB Releases IFRS 9 Financial Instruments
Announced on Thursday , the International Accounting Standards Board issued IFRS 9 Financial Instruments, the final component of its response to the financial crisis. Effective January 1, 2018, IFRS 9 features a logical model for classification and measurement, an “expected loss” impairment model and a reformed method to hedge accounting. Originally planned to be a convergence project with the FASB, Financial Instruments was one project where the Financial Accounting Standards Board (“FASB”) and IASB were unable to come to agreement. The FASB is currently working to finish its project on classification & measurement as well as impairment. Early application of IFRS 9 will. Read More.
FASB and IASB Merging Utilities Industry Standards Not Likely
After attempts to merge utilities industry standards with the International Accounting Standards Board (“IASB”), Financial Accounting Standards Board (“FASB”) member Thomas Linsmeier recently announced that U.S. GAAP and IFRS differences have created challenges that make potential future convergence projects unlikely. At an accounting conference last month, Linsmeier referenced the FASB and IASB’s heavy investment in utilities financial reporting, and their preference in the U.S. GAAP’s cost-of-service model. However, the IASB is considering other models that differ from Topic 980, Regulated Operations, a decades-long model which offers standards for utilities that recognize regulated assets and liabilities within the industry. Further, the. Read More.
FinREC to Create Accounting Guide for Revenue Recognition Standards
Planned for a mid-2016 release, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) is working on an accounting guide for the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board’s (“IASB”) recently issued revenue recognition standards. The guide will assist accountants’ implementation of FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Additionally, the guide will offer insightful tips, examples and what high impact industries should consider when implementing the standards. There will also be sessions in all AICPA conferences and. Read More.
Topics: Accounting Standards Update "ASU", American Board of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", IFRS, Russell Golden