FASB Receives Support for Proposed Tax Reform Guidance
Numerous banking institutions, insurers, and financial trade organizations support the Financial Accounting Standards Board’s (“FASB”) proposed response to the Tax Cuts and Jobs Act. In comment letters on Proposed Accounting Standards Update (“ASU”) No. 2018-210, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, groups like the American Bankers Association urged the FASB to approve its proposed amendment. Proposed ASU No. 2018-210 aims to reduce the accounting effects of complying with the new tax law and simplify financial statements for investors. The FASB released the proposal after banks and insurance companies raised concerns over certain requirements introduced by the Tax Cuts and Jobs Act. Under. Read More.
Topics: corporate income tax rate, Deferred Taxes, FASB, Financial Accounting Standards Board "FASB", Other Comprehensive Income, Proposed Accounting Standards Update, Tax Cuts and Jobs Act, Tax Reform
FASB Proposes Tax Cuts and Jobs Act Guidance
A proposed Accounting Standards Update has been issued reflecting provisions resulting from the Tax Cuts and Jobs Act. The Financial Accounting Standards Board’s (“FASB”) proposal addresses concerns over present Generally Accepted Accounting Principles requiring companies to amend deferred tax liabilities and assets after changes to tax laws or rates. The proposed amendments are expected to reduce the stranded tax effects related to the corporate income tax rate change and improve the helpfulness of information shared with financial statement users. According to Proposed Accounting Standards Update No. 2018-210, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects. Read More.
FASB to Release Standard and Propose Transition Guidance on Leases
A final Accounting Standards Update (“ASU”) and a proposed standard by the Financial Accounting Standards Board (“FASB”) aim to lower costs and make it easier for preparers to implement its leases guidance. The FASB will issue a final standard that gives organizations an optional transition practical expedient to reconsider their accounting for current land easements that are not presently accounted for in Topic Accounting Standards Codification (“ASC”) 840, Leases. The standard also affirms that once the guidance is active, new or modified land easements must be reviewed under ASC Topic 842, Leases. Separately, FASB staffers were ordered to draft a. Read More.
FASB Drops Materiality Project
After two years of controversy, the Financial Accounting Standards Board (“FASB”) is scrapping plans to continue work on its proposal to amend the definition of materiality. The project, which commenced in September 2015, set out to align U.S. GAAP’s meaning of materiality with the legal interpretation regulators and courts use so companies can carefully decide their disclosures in financial statement footnotes. Work on the materiality amendments ended Wednesday, November 8. Board members did not expect to receive criticism for Proposed Accounting Standards Update No. 2015-310, Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material. Wall Street investors led the. 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 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