FASB Chairman Comments on Possible International Accounting Group
In an effort to boost the organization’s outreach to foreign standard-setters, Financial Accounting Standards Board (“FASB”) chairman Russell Golden has announced plans to create an informal network of accounting bodies. At the American Institute of Certified Public Accountants’ National Conference on Banks and Savings Institutions last week, Golden said the international group would acknowledge the International Accounting Standards Board’s (“IASB”) one size fits all approach is not conducive to ongoing U.S. GAAP and International Financial Reporting Standards (IFRS) convergence efforts, and differences among accounting standards will continue to occur. Hoping to hold the first meeting by year’s end, the network. Read More.
IFRS 10 and IAS 28 Amendments Released
Effective for annual periods starting on or after January 1, 2016, amendments to International Financial Reporting Standards (IFRS) 10, Consolidated Financial Statements, and International Accounting Standards (IAS) 28, Investments in Associates and Joint Ventures (2011) have been released by the International Accounting Standards Board (“IASB”). Issued as “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture,” the amendments address inconsistencies concerning requirements in both IFRS 10 and IAS 28 (2011), related to the sale or contribution of assets among an investor, and its associate or joint venture. The significance of these amendments is that a. Read More.
FASB’s Statement No. 123(R) Deemed Necessary
Using input from investors and various financial statement users, a Post-Implementation Review (“PIR”) team recently shared conclusions from its assessment of Financial Accounting Standards Board Statement No. 123(R), Share-Based Payment. Based on its review, the PIR team concluded not only does the standard meets its purpose and offers useful information, but Statement No. 123(R) also: tackled concerns that companies were not acknowledging the cost of employee services obtained in return for share-based payment awards; improved comparability and streamlined accounting for share-based payment transactions by removing alternative accounting methods that were previously allowed; and united accounting methods for share-based payment transactions. Read More.
European Commission Wants Feedback on IFRS
Available to interested groups or individuals, a public consultation on international financial reporting standards’ (IFRS) effect within the European Union (“EU”) has been released by the European Commission (“the Commission”). Hoping to receive input from capital market participants and companies that apply IFRS, the Commission wants to know if the international standards have improved efficiency by simplifying financial statements. Also, the Commission wants feedback on the provisions in which future IFRS should meet to become EU law, and the costs and benefits that are usually related to the standards. With comments by October 31st, the European Commission plans to present. Read More.
Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"
FASB’s Going Concern Amendment to Affect PCAOB Standards
In the coming weeks, the Financial Accounting Standards Board (“FASB”) plans to release an amendment that requires struggling companies to inform investors regarding their chances of surviving. Entitled proposed Accounting Standards Update No. 2013-300, Presentation of Financial Statements (Topic 205)—Disclosure of Uncertainties about an Entity’s Going Concern Presumption, the update is in response to investors and regulators who believed auditors issued going concern reviews of companies after the stock price mirrored the market’s knowledge of their pending demise. Per the FASB’s final update to U.S. GAAP, a company will be required to add in its financial statement footnotes when “substantial. Read More.
Topics: Accounting Standards Update, American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Bruce Webb, disclosure, Financial Accounting Standards Board "FASB", Financial Statements, Going Concern, International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. GAAP, U.S. Securities and Exchange Commission "SEC"