FASB Financial Instruments Standard Issued
After spending the past decade working to simplify the accounting for financial instruments, the Financial Accounting Standards Board (“FASB”) has issued its long-anticipated guidance, Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. FASB Chairman Russell Golden said the new standard will provide more useful information to financial statement users, and improves the accounting model to better address economic complexities. When the project initially started, the FASB attempted to overhaul the accounting for financial instruments. Things took a turn after the 2008 financial crisis, and the final standard. Read More.
FASB and IASB Discuss Changes to Principal versus Agent Considerations
During its joint meeting on December 16th, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) redeliberated proposed amendments to the principal versus agent guidance. The meeting was in response to feedback received on the boards’ exposure drafts, FASB Proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), and IASB Exposure Draft, Clarifications to IFRS 15. During redeliberations, the FASB and IASB reached tentative decisions in regard to the following: Principle for determining whether an entity is a principal or an agent; Unit of account for. Read More.
SEC Chair Supports Idea for Supplemental IFRS Information
One year after Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr suggested allowing public companies to voluntarily supplement International Financial Reporting Standards (IFRS) information with their U.S. GAAP financial statements, the SEC’s Mary Jo White endorsed the plan during a speech in December. At the American Institute of Certified Public Accountants’ Conference on Current SEC and Public Company Accounting Oversight Board Developments, the agency chair said Schnurr’s idea could potentially be helpful as the next step in U.S. companies increasing their use of global accounting standards. Also at the conference, White mentioned that staff members have developed a recommendation. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
Staff Audit Practice Alert Issued for Going Concern
Reminding auditors to continue abiding by its current standards in spite of recent U.S. GAAP changes related to recognizing a company’s ability to continue as a going concern, the Public Company Accounting Oversight Board (“PCAOB”) has issued Staff Audit Practice Alert No. 13 , Matters Related to the Auditor’s Consideration of a Company’s Ability to Continue as a Going Concern. The alert informs auditors to reference the appropriate financial reporting framework, U.S. GAAP or International Financial Reporting Standards (IFRS), to review management’s going concern evaluation and its related financial statement disclosures. Staff Audit Practice Alert No. 13 also advises auditors to continue using PCAOB AU sec.. Read More.
SEC Nearing Decision on IFRS Adoption
As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant. Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance,. Read More.
FASB and IASB to Address Revenue Recognition Standards Concerns
With worries rising over the transition to the recently issued revenue recognition standards, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) have scheduled a meeting next month to review the 2017 effective date. Set for October 31st, the Transition Resource Group meeting is expected to add the effective date as part of its agenda and include a discussion on how both standard-setters should address concerns. The standards in question are 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. Considered the most notable. Read More.