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FASB Makes Updates to Technical Agenda

At its September 20 public meeting, the Financial Accounting Standards Board (“FASB”) agreed to add the following three projects to its technical agenda: A project on differentiating liabilities and equity, with a emphasis on indexation and settlement, convertible debt, disclosures, and earnings per share A section of the FASB’s Financial Performance Reporting Research project aimed at the disaggregation of performance reporting by function and nature A narrow-scoped project on segment reporting aimed at improving the aggregation criteria and segment disclosures The addition of these projects completes the last stage of the FASB’s agenda consultation project. Also at the meeting, the. Read More.

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Accounting for Intangible Assets Continues to Be Major FASB Issue

Several Financial Accounting Standards Board (“FASB”) members want to proceed cautiously on overhauling the accounting for intangible assets. During the FASB’s May 11 meeting, outgoing FASB member Lawrence Smith said he is reluctant to move forward on a project without determining what problem must be solved. Fellow board member Harold Schroeder shared similar concerns, remarking that proper research must be conducted to avoid wasting time and resources. For most of the FASB’s 44-year existence, questions have mounted over accounting for intangible assets. Some of those questions involve how intangible assets should be disclosed on balance sheets, as well as how. Read More.

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Decisions from FASB’s January 25 Meeting

In addition to making progress on its hedge accounting project , the Financial Accounting Standards Board (“FASB”) made decisions at its January 25 meeting on the following projects: Agenda Consultation. After reviewing feedback on its Invitation to Comment, Agenda Consultation, and discussing research to conduct on intangible assets, pensions and other postretirement benefit plans, and distinguishing liabilities from equity, the FASB made no technical decisions. The FASB plans to discuss feedback on reporting performance and cash flows at a later meeting. Disclosure Framework: Disclosure Review—Income Taxes. No technical decisions were made concerning the summary of comments the FASB received regarding the proposed Accounting Standards Update, Income Taxes. Read More.

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Feedback Leads to Uncertainty of FASB’s Standard-Setting Priorities

Opposing views have complicated the Financial Accounting Standards Board’s (“FASB”) prioritization of future standard-setting projects. During a December 16 public roundtable on the FASB’s Invitation to Comment, Agenda Consultation, several financial professionals asked the board to end confusion on the difference between an asset and liability. Some participants suggested the FASB focus on overhauling income and cash flow statements, while others pushed for a project on accounting for intangible assets. Out of the many projects discussed, clarifying differences between liabilities and equity and amending financial statement performance drew the most support from roundtable participants. A Big Four partner told the. Read More.

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FASB Seeks Feedback on Agenda Considerations

The Financial Accounting Standards Board (“FASB”) has released an Invitation to Comment regarding possible financial accounting and reporting topics to add to its agenda. The Invitation to Comment features potential issues and solutions on intangible assets, pensions and other post-retirement benefit plans, distinguishing liabilities from equity, and reporting performance and cash flows. In particular, the FASB is seeking feedback on whether improvement opportunities exist for the financial reporting issues raised in the Invitation to Comment, the priority and approach the board should take in addressing each issue, and if any other financial reporting areas not listed in the document should. Read More.

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FASB Recommends Financial Reporting Topics for Discussion Paper

At its board meeting earlier this month, the Financial Accounting Standards Board (“FASB”) reviewed its agenda Discussion Paper scheduled for release later this year. In particular, the FASB recommended the inclusion of the following financial reporting topics: Financial Performance Reporting (including the Performance Statement, Other Comprehensive Income, Cash Flow Statement, and Segment Reporting); Distinguishing Liabilities from Equity; Intangible Assets; and Pensions and Other Postretirement Employee Benefit Plans. Also at the meeting, the FASB decided not to add a project on the Simplifying the Measurement of Asset Retirement Obligations project and also removed Phase 2 of the Liabilities and Equity—Targeted Improvements. Read More.

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