FASB Roundtable on Insurance Accounting Coming in March
A public roundtable meeting on proposed amendments to insurance accounting is scheduled for Wednesday, March 15, 2017, at the Financial Accounting Standards Board (“FASB”) offices in Norwalk, CT. The meeting will allow those who submitted a comment letter regarding the Proposed Accounting Standards Update, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , to voice their opinions with the standard-setter. The FASB hopes financial statement users, preparers and auditors participate in the roundtable. Interested participants are required to submit a comment letter on the proposal and register online before Thursday, December 15. Nonparticipating attendees can also register , but must do so by Wednesday, March 1, 2017. An audio webcast of the FASB’s March 17 roundtable meeting will also be. Read More.
Final Overtime Rule on Hold
A November 22 preliminary injunction has blocked the Final Overtime Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.
New Technical Auditing Questions and Answers Issued for Investment Companies
The following Technical Questions and Answers guidance has been added under Section 6910, Investment Companies, by the American Institute of Certified Public Accountants: Section 6910.36, Determining Whether Loan Origination Is a Substantive Activity When Assessing Whether an Entity Is an Investment Company Section 6910.37, Considering the Length of Time It Will Take an Investment Company to Liquidate Its Assets and Satisfy Its Liabilities When Determining If Liquidation Is Imminent Section 6910.38, Determining If Liquidation Is Imminent When the Only Investor in an Investment Company Redeems Its Interest, and the Investment Company Anticipates Selling All of Its Investments and Settling All. Read More.
SEC’s Bricker Discusses Credit Loss Standard
The Financial Accounting Standards Board’s (“FASB”) standard for reporting credit losses was the subject of Wesley Bricker’s speech at last week’s American Institute of Certified Public Accountants’ National Conference on Banks & Savings Institutions. Bricker, the Security and Exchange Commission’s (“SEC”) Interim Chief Accountant, addressed the importance of implementing Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326). In particular, Bricker encouraged companies to work with their audit committees and auditors to review implementation plans so the new standard meets the reporting objectives. He also noted that the implementation process requires collaboration between all stakeholders when applying the standard’s. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Credit Loss Model "CECL", FASB Financial Instruments project, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Securities and Exchange Commission "SEC"
Banks Urged to Prepare for FASB Credit Loss Standard
Banking institutions are advised to act fast on implementation plans for Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326). At the AICPA National Conference on Banks and Savings Institutions last week, Louis Thompson of the Office of the Comptroller of the Currency told depository institutions to start preparing for the Financial Accounting Standards Board’s (“FASB”) current expected credit loss (“CECL”) standard. Thompson emphasized that due to the substantial changes in writing down bad loans and securities, implementation efforts should require full commitment and cooperation to ensure the new guidance is applied in a disciplined and. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Credit Loss Model "CECL", FASB Financial Instruments project, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326)
Changes Proposed to Hedge Accounting Guidance
An Exposure Draft has been issued to improve the guidance in relation to hedging activities. The proposed Accounting Standards Update (“ASU”), Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, includes the Financial Accounting Standards Board’s (“FASB”) recommendations to help entities disclose the economic results of their risk management activities. The proposed changes also aim to simplify hedge accounting guidance while maintaining the value of the financial reporting information presented. Comments on the proposal are due Tuesday, November 22. More on the proposed changes to hedge accounting guidance is available in the FASB news release.