FAF Trustees Request Private Company Council Nominations
Financial Accounting Foundation trustees (“FAF”) recently issued a Request for Nominations regarding the Private Company Council’s impending member vacancies. The FAF trustees seek nominations for a CPA practitioner, financial statement preparer, and financial statement user to join the Council. Specifically, nominees must have a background handling private company financial statements from various industries and company sizes, and have experience with CPA practitioners from national, regional, and local firms. Each new member will begin their initial term on January 1, 2018. Nomination forms must be submitted by Monday, April 24.
FASB Could Take Up Cloud Computing Project
A cloud computing project could be in the works for the Financial Accounting Standards Board (“FASB”). During the April 4 Private Company Council meeting , most council members said they want implementation accounting for cloud computing software to be similar to the accounting for constructing on-site systems. Lining up the accounting for both would allow companies to potentially capitalize set-up costs, allowing them to postpone disclosing the expense as a long-term asset. David Hirsch, a council member, remarked that the current cloud computing guidance is confusing. In his opinion, cloud- and on-premises software implementation expenses must be recorded similarly.
Frequently Asked Questions on ASU 2014-02
Since posting our alert , we’ve started to receive some questions about Accounting Standards Update (ASU) 2014-02. In response, we’ve taken the most popular questions and turned them into a FAQ. We hope you enjoy. Q: So what does ASU 2014-02 do? A: If a private company, as defined, makes an accounting policy election to adopt the goodwill alternative allowed by this ASU, existing goodwill (on a prospective basis) and all newly created goodwill will no longer be subjected to annual impairment testing. Instead, goodwill will be amortized over 10 years or a shorter life if that is more representative. In. Read More.