Basel Committee Issues Lease Accounting Guidance
Last week, the Basel Committee on Banking Supervision issued interpretative guidance for the Financial Accounting Standards Board and International Accounting Standards Board’s upcoming lease accounting changes. Presented as frequently asked questions, the guidance relates to Accounting Standards Update No. 2016-02, Leases (Topic 842), and International Financial Reporting Standards 16, Leases. Specifically, the three questions cover how new assets and liabilities are disclosed on bank balance sheets due to the FASB and IASB’s changes to accounting for a company’s rented office space and equipment. The first question says that a leased intangible asset should be exempt from the regulatory capital calculation.. Read More.
IASB Proposes Change to Financial Instrument Standard
A slight change could be coming to the International Accounting Standards Board’s (“IASB”) financial instruments standard. On Wednesday, the IASB announced a proposed amendment to International Financial Reporting Standards (“IFRS”) 9, Financial Instruments, which would require assets to be calculated either at amortized cost or at fair value with changes disclosed under other comprehensive income. The proposed amendment is intended to determine interest in permitting a measurement change for certain financial assets with prepayment options. IASB research staff members plan to move quickly to issue the proposal for public comment by the end of April. If approved, a final amendment. Read More.
SEC Chief Accountant Pushes for IFRS Use
Fresh off his formal succession to Securities and Exchange Commission (“SEC”) Chief Accountant, Wesley Bricker wants the market regulator to resume consideration of International Financial Reporting Standards (“IFRS”). At a December 5 conference in Washington, D.C., Bricker said he believes the SEC should consider a proposal that would allow U.S. companies to supplement GAAP financial statements with IFRS information. James Schnurr, Bricker’s predecessor, had originally introduced the proposal prior to leaving the SEC. No immediate changes are expected due to the SEC’s slow regulatory process and the limited progress made in the U.S. market’s application of international standards. In addition, the SEC is currently dealing with an influx of leadership changes, with. Read More.
Topics: Financial Accounting Standards Board "FASB", Financial Statements, GAAP, International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Securities and Exchange Commission "SEC"
AICPA Publishes Revenue Recognition Audit and Accounting Guide
Offering guidance for applying the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers, the American Institute of Certified Public Accountants (“AICPA”) has issued Audit and Accounting Guide (AAG): Revenue Recognition. The publication addresses issues to consider when auditors examine the revenue disclosed in financial statements, internal controls, fraud risks, and the assessment auditors must make on the accuracy of management’s estimates. The AICPA’s revenue recognition guide is based on the efforts of the task forces that worked under their Financial Reporting Executive Committee since the FASB issued its landmark standard and the International Accounting. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition
Sue Lloyd Named IASB Vice Chair
The International Financial Reporting Standards Foundation today announced that Sue Lloyd will become the International Accounting Standards Board (“IASB”) vice chair. Effective November 1, Lloyd will fill a position that has been vacant since the end of Ian Mackintosh’s term in June. Lloyd will serve as vice chair through December 31, 2018, but an IASB spokesperson said she could be reappointed to another term lasting three to five years. Lloyd has been an IASB member for the last two years. She was also an IASB staffer for five years, serving as capital markets director and senior director of technical activities.
Companies Urged to Speed up Revenue Standard Implementation Plans
Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) officials are asking companies to hasten implementation plans for the boards’ revenue recognition standards. The FASB and IASB are close to wrapping up revisions to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers, and International Financial Reporting Standards 15, Revenue From Contracts With Customers, and want companies to prepare for implementation with the mindset that no further changes are coming. Public entities must implement the new standards in 2018; public entities and nonprofit organizations will have comply in 2019.