Trade Group Calls for Digital Currency Accounting Guidance
A project to create accounting guidance for digital currency could be added to the Financial Accounting Standards Board’s (“FASB”) standard-setting agenda. In response to a request from the Digital Chamber of Commerce, the FASB plans to hold a public meeting to review whether a digital currency project is necessary. A date for the meeting has yet to be announced. In its June 8 letter, the Digital Chamber of Commerce asked for the FASB to establish guidance regarding when and how to measure digital currency. The letter calls for the FASB to develop an accounting model allowing companies to acknowledge digital. Read More.
Topics: Cash and Cash Equivalents (Topic 305), digital currency, FASB, FASB standard-setting agenda, Financial Accounting Standards Board "FASB", Financial Instruments (Topic 825), Intangible Assets (Topic 350), Inventory (Topic 330)
FASB Seeks More Information on Inventory Disclosures
Businesses using the Retail Inventory Method (“RIM”) could be facing additional disclosure requirements in the future. The Financial Accounting Standards Board (“FASB”) has agreed to a proposal that would require public companies to disclose qualitative and quantitative details on: the cost-to-retail ratio; the retail worth of the inventory at the reporting period’s end; losses; markups or markdowns; and any key accounting policies used to compute the inventory’s value. Companies also would have to disclose their inventory by segment, and then provide further details if that information helps determine how their business operates. Analysts and investors have called for additional disclosures. Read More.
FASB Reaches Decisions on Inventory Disclosures
During a September 19 discussion on inventory disclosures as part of its Disclosure Framework project, the Financial Accounting Standards Board (“FASB”) agreed that companies must disclose the following in annual financial statements: Inventory separated by component Inventory separated by measurement basis Inventory balance changes that are not particularly associated with the purchase, manufacture, or sale of inventory in the regular course of business A qualitative explanation of the costs capitalized into inventory The impact of last-in, first-out (“LIFO”) liquidations on income The replacement cost for LIFO inventory Inventory, by reportable segment or component for each reportable segment, if the information. Read More.