FASB Releases Final UGT Implementation Guides
Currently available on its website, the Financial Accounting Standards Board (“FASB”) has issued two final UGT Implementation Guides. The first guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Notional Amount Disclosures , gives examples for understanding the modeling for notional amount disclosures is organized within the UGT. The other guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Segment Reporting , provides examples of the modeling for disclosures associated with segment reporting. Examples published in the Implementation Guides assume that the entity meets the reporting criteria for notional amount disclosures listed under U.S. GAAP, and/or the U.S. Securities and Exchange Commission’s authoritative literature. While the Implementation Guides are not authoritative, they are considered documents detailing how the UGT is. Read More.
FASB Wants to Simplify U.S. GAAP
Announced on May 28th, the Financial Accounting Standards Board (“FASB”) is working on two projects planned to make U.S. GAAP less complicated. Called the “simplification initiative”, both proposals are aimed to remove the concept of “extraordinary items” from U.S. GAAP and simplify the ensuing inventory measurement. The proposals include Subtopic 225-20, Income Statement — Extraordinary and Unusual Items, and Topic 330, Inventory. Per Subtopic 225-20, organizations are required to categorize and disclose one-time, “extraordinary” events and transactions. An event is labeled “extraordinary” if it’s unusual and infrequent. If both conditions are met, then the organization must separate the event from. Read More.
FASB Moves Forward on Projects without IASB
Unable to agree with the International Accounting Standards Board (“IASB”), the Financial Accounting Standards Board (“FASB”) plans to move forward independently on two projects. As part of its meeting agenda this week, the FASB will address the projects by focusing on making smaller improvements to U.S. GAAP rather than entire rewrites. For its project on accounting for insurance liabilities, the upcoming meeting will pick up from the FASB’s April discussion when the decision was made to improve disclosures regarding the liabilities agreed upon by property-and-casualty insurance companies. The FASB has indicated disclosures could require information such as losses, claim reserves,. Read More.
ASU 2014-05 – Agreeing on Service Concessions Agreements
The Bottom Line Published January 23rd, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2014-05, Service Concession Arrangements (Topic 853) — a consensus of the FASB Emerging Issues Task Force, in response to an increase in public sector entities (i.e. governmental bodies) entering into service concession agreements with operating entities who follow U.S. GAAP. The overall conclusion of this ASU is that these types of arrangements should not be considered leases within the scope of ASC 840. What is a Service Concession Arrangement? A service concession arrangement (“SCA”) is an arrangement between a public sector entity (the. Read More.
IASB and FASB Announce Joint Revenue Standard
Issued today, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) have released a joint standard on revenue recognition from contracts with customers. This is a major accomplishment of the work to converge a key area of financial accounting between International Financial Reporting Standards and U.S. GAAP. Accounting Standards Update (“ASU”) 2014-09 provides enhancements to the quality and consistency of how revenue is reported. The IASB and FASB’s new standard will require the recognition of revenue as goods or services are transferred to customers in amounts that reflect payment the company expects to receive in exchange. In addition. Read More.
FAF’s Annual Report Shares Upcoming Plans
Released late last week, the Financial Accounting Foundation’s (“FAF”; “the Foundation”) 2013 Annual Report details future plans for the Foundation, the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”). Named “The Road Ahead”, the report features a thorough overview of last year’s achievements by the FAF, FASB and GASB, and talks about their plans ahead. The Foundation’s plans for the FASB and GASB consist of: Guiding the FASB forward after its current projects with the International Accounting Standards Board (“IASB”) are done; Encouraging a global standard-setting environment where the FASB continues its efforts with the IASB and. Read More.