GASB to Hold Meetings August 10-12
Beginning Wednesday, the Governmental Accounting Standards Board (“GASB”) will hold a series of meetings at its Norwalk offices. According to the GASB Notice of Meetings , the following topics will be discussed this week: The preballot draft of the proposed Exposure Draft, Certain Debt Extinguishments; The proposed Exposure Draft, Omnibus; Asset retirement obligations; Fiduciary activities; Leases; Financial reporting model; Revenue and expense recognition; and The GASB’s technical plan for the end of 2016. The GASB’s three-day meeting is expected to start Wednesday at 8:30 a.m. ET. With the exception of Thursday evening’s administrative session from 5:15 p.m. – 6:15 p.m. ET, all meeting sessions. Read More.
SEC Deputy Chief Accountant Speaks at Financial Reporting Conference
As guest speaker at the 15th Annual Baruch College Financial Reporting Conference, Securities and Exchange Commission (“SEC”) Deputy Chief Accountant Wesley Bricker expressed his views on the current transition period undertakings for the upcoming revenue recognition and leases standards, and the Financial Accounting Standards Board’s proposal for financial instruments’ credit impairment. He also cautioned companies that presenting non-generally accepted accounting principles in public filings, especially adjustments to revenue, will increase the likelihood of receiving an SEC comment letter. He also spoke about the Public Company Accounting Oversight Board’s efforts to encourage auditor attention on financial reporting risks. A transcript of Bricker’s speech is available on. Read More.
FASB Issues Lease Accounting Standard
Today, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The long-awaited guidance is intended to improve financial reporting for leasing transactions. The FASB estimates that there is over $1 trillion of off-balance sheet operating lease commitments for SEC registrants based on a 2005 Securities and Exchange Commission report. The new guidance will require lessees to recognize a right of use asset and related lease liability. Using the classification similar to Topic 840, the ASU identifies financing leases and operating leases. Financing leases would recognize amortization and interest expenses, while operating leases would. Read More.
Trade Groups Make Final Plea for Leases Standard Exemption
As the Financial Accounting Standards Board (“FASB”) prepares its lease accounting standard for publication, several trade groups made a last-minute attempt to have private companies exempt from the upcoming guidance. In a letter last month, the groups expressed concern that the final standard will increase complexity and not meet the needs of private business investors. The groups also believe that the extensive changes to lease accounting will hurt private companies, and cap their chances of borrowing or raising capital. The FASB has responded to several comment letters in relation to proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842).. Read More.
GASB to Review Ballot Drafts on Monday
Starting at 1:00 p.m. EST, Monday, the Governmental Accounting Standards Board (“GASB”) is scheduled to hold a teleconference. Per the GASB Notice of Teleconference , the GASB plans to consider for approval the ballot drafts of an exposure draft for the proposed Statement, Leases, and a final statement, Blending Requirements for Certain Component Units. Live audio of the teleconference will be provided on the GASB Web site.
FASB Announces Agenda for Board Meeting
With a board meeting set for tomorrow at 8:00 a.m. EST, the Financial Accounting Standards Board (“FASB”) has released a notice of open meetings: Insurance—targeted improvements to the accounting for long-duration contracts. FASB will discuss long-duration contracts improvements, particularly modifying assumptions and discount rate. Leases . Discussions will continue on FASB’s May 2013 Exposure Draft, specifically reviewing nonpublic business entity discount rate, related party leasing transactions, accounting for sale and leaseback transactions, and leveraged leases. Financial statements of not-for-profit entities . Ongoing discussions will continue over not-for-profit disclosures, such as cost allocations. Open discussion. If need be, FASB will discuss small issues on technical projects or. Read More.