Proposed Taxonomy Improvements to Impact Leases and Nonprofit Entities
Financial Accounting Standards Board (“FASB”) staff members have issued proposed Taxonomy improvements to the following Accounting Standards Updates (“ASU”): ASU No. 2018-09, Codification Improvements: Comments on the proposed amendments are due Tuesday, August 14. ASU No. 2018-10, Codification Improvements to Topic 842, Leases: Comments on the proposed amendments are due Friday, August 17. FASB staff also proposed Taxonomy improvements for the Proposed ASU, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. Comments are due Friday, August 10. All comments on the proposed Taxonomy improvements must be emailed to email@example.com .
FASB Suggests Aligning Collections Definition for Museums
Last week, the Financial Accounting Standards Board (“FASB”) announced a proposal to match the U.S. GAAP definition of a “collection” of priceless artwork and historical treasures with the description museums rely on for operability and accreditation. Issued in Proposed Accounting Standards Update No. 2018-250, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections, the amendment would change one of the criteria under the collection definition. It would also let proceeds from a sold art piece or artifact to be used to protect the rest of the collection. As a result of the amendment, museums and related entities would only have. Read More.
FASB Issues Standard for Contributions
A new Accounting Standards Update (“ASU”) by the Financial Accounting Standards Board (“FASB”) will have a significant impact on financial statements of entities who receive grants. ASU No. 2018-08, Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made , differentiates grants and similar contracts with government agencies and others as reciprocal transactions (exchanges) or nonreciprocal transactions (contributions). The new standard also establishes new indicators for when a contribution is conditional. The amendments in ASU No. 2018-08 apply to all entities that receive or distribute contributions, but they do not apply to transfers of assets from governments to companies. Public companies and nonprofits that have issues, or is a conduit bond obligor for,. Read More.
Proposed Grants and Contributions Guidance Receives Support
With the comment period ending last week for Proposed Accounting Standards Update (ASU) No. 2017-270, Not-for-Profit Entities (Topic 958) Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, nonprofit and professional groups and audit firms have expressed support for the Financial Accounting Standards Board’s (“FASB”) attempts to simplify how organizations disclose revenue from grants and contributions. Mostly impacting nonprofits like charities and foundations, the proposal revises the guidance on determining whether gifts to nonprofit groups must be presented as contributions subject to ASC 958-605, Not-for-Profit Entities—Revenue Recognition, or as reciprocal transactions (i.e., exchanges) subject to ASC 605/606. The. Read More.
Topics: FASB, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Grants & Contributions, Nonprofits, Not-for-Profit Entities (Topic 958), Proposed Accounting Standards Update
FASB Proposes Reorganizing Consolidation Guidance
To address concerns over the organization of the guidance under Topic 810, Consolidation, the Financial Accounting Standards Board (“FASB”) recently issued Proposed Accounting Standards Update, Consolidation (Topic 812): Reorganization. The proposal reorganizes certain components within the FASB’s consolidation guidance and includes for illustrative purposes the amendments under the Proposed Accounting Standards Update, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The FASB would reorganize the consolidation guidance under Topic 810 into a new Topic featuring the following two Subtopics for variable interest entities and voting interest entities: Subtopic 812-20, Consolidation—Variable Interest Entities Subtopic 812-30, Consolidation—Voting. Read More.
FASB Consolidation Guidance Could Be Split Up
In a unanimous decision last week, Financial Accounting Standards Board (“FASB”) members agreed to propose splitting its consolidation guidance in two. The FASB wants to remove the guidance regarding voting interest entities and variable interest entities under Topic 810, Consolidation, and add it to a new standard called Topic 812. FASB members noted that the separation would make consolidation guidance easier for companies to follow and would conform to how Big Four firms produce their own manuals for accountants to consult. The March 8 decision was part of the board’s work to simplify certain aspects of Topic 810, which defines. Read More.