FASB Working to Fix Inconsistencies of U.S. GAAP
The Financial Accounting Standards Board (“FASB”) has released a proposed Accounting Standards Update to eliminate inconsistencies in parts of the U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). Impacting various areas in the FASB Accounting Standards Codification, the proposed changes will apply to all reporting entities within the scope of the related accounting guidance. Some of the amendments under Proposed Accounting Standards Update No. 2017-320 Codification Improvements, impact: Subtopic 718-740, Compensation—Stock Compensation—Income Taxes: The FASB proposes clarifying that an entity must disclose excess tax benefits (or tax deficiencies) in the reporting period when the tax deduction for compensation expense is taken on its. Read More.
Topics: Business Combinations (Topic 805), Fair Value Measurement (Topic 820), FASB, FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", Income Taxes, Proposed Accounting Standards Update, Stock Compensation (Topic 718), U.S. GAAP
FASB Proposes Amendments to Financial Instruments and Leases
Last week, the Financial Accounting Standards Board (“FASB”) issued a proposed Accounting Standards Update (“ASU”), Technical Corrections and Improvements to Recently Issued Standards: I. Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and II. Accounting Standards Update No. 2016-02, Leases (Topic 842). The proposed changes address the following areas: Equity Securities without a Readily Determinable Fair Value—Discontinuation. The proposed amendment allows a company measuring an equity security using the measurement alternative to change to a fair value method in agreement with Topic 820, Fair Value Measurement. Equity Securities without a. Read More.
Topics: Equity Securities, Fair Value Measurement (Topic 820), FASB, Financial Accounting Standards Board "FASB", Financial Instruments—Overall (Subtopic 825-10), Forward Contracts, lease accounting, Proposed Accounting Standards Update, Purchased Options, Readily Determinable Fair Value
Lease Accounting Proposal to Help Companies with Land Easements
Utility and oil and gas companies could receive new guidance from the Financial Accounting Standards Board (“FASB”) to help account for land easements. In Proposed Accounting Standards Update (“ASU”) No. 2017-290, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, the FASB gives companies with land easements what it calls a transition break. The transition break allows companies to forgo reviewing dated contract files to determine whether the transactions must be identified as leases and should be accounted for under ASU No. 2016-02, Leases (Topic 842). When the lease standard goes into effect, new easements must be reviewed. Read More.
FASB Moves Forward with Simplifying Debt Classification Guidance
At its September 13 meeting, the Financial Accounting Standards Board (“FASB”) wrapped up talks on the Proposed Accounting Standards Update, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). As part of the discussion, the FASB reached the decisions on the following topics: Classification Principle: Debt and other instruments that are part of the final Accounting Standards Update must be categorized as noncurrent liabilities in a classified balance sheet if: The liability is contractually due to be settled over one year (or operating cycle, if longer) after the balance sheet date; or The. Read More.
FASB to Delay Amended Income Tax Guidance
The Financial Accounting Standards Board (“FASB”) is taking a wait-and-see approach before finalizing its income tax disclosure guidance. An FASB spokesperson said the board wants to await the outcome of Congress and the Trump administration’s income tax reform legislation prior to approving Proposed Accounting Standards Update No. 2016-270, Income Taxes (Topic 740): Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes. The move is to ensure the FASB’s proposed amendments to income tax disclosures stay relevant. The FASB also plans to hold off on making additional changes to the guidance under Topic 740, Income Taxes. The FASB spokesperson. Read More.
FASB Grant Accounting Proposal Issued
The Financial Accounting Standards Board (“FASB”) is proposing new guidance for contributions made or received by organizations, especially nonprofits. The proposed Accounting Standards Update (“ASU”) will help decide whether an organization’s transactions are treated as either a contribution or an exchange. This would be achieved by clarifying guidance on assessing whether a resource provider receives value in exchange for the transferred resources. The proposal also provides an improved framework that helps organizations decide whether a contribution is conditional or unconditional. In addition, the proposed amendments help distinguish between a donor-imposed condition and a donor-imposed restriction. Transfers of assets from a. Read More.