Highly Inflationary Economics Low on FASB’s Priorities
Despite companies reporting issues with accounting for highly inflationary economics, the Financial Accounting Standards Advisory Council (“FASAC”) said amending the guidance is not high on the Financial Accounting Standards Board’s (“FASB”) project agenda. In response last month to an agenda request to add a project on the matter, the FASAC noted that highly inflationary economies are irrelevant to a company’s financial results. The FASAC also referenced other risk disclosures provided under the management’s discussion and analysis portion of a public company’s quarterly reports for why a project is unnecessary. FASAC members acknowledged three issues companies have faced concerning highly inflationary. Read More.
SEC Asks Public Companies to Review LIBOR Risks
The Securities and Exchange Commission (“SEC”) urges public companies to review potential risks they may face when transitioning from the London Interbank Offered Rate (“LIBOR”) and provide investors tailored information on the transition period. At the SEC Speaks Conference last week, Shelly Luisi of the SEC’s Division of Corporation Finance said companies need to evaluate the LIBOR risks they face before the United Kingdom phases out the benchmark rate in two years. A CorpFin associate director, Luisi advised public companies to identify every contract associated with LIBOR that matures past 2021. She suggested companies review any fallback language to determine. Read More.
FASB and GASB Seek Two New Chairs
A search is underway to find new chairs for the Financial Accounting Standards Board (“FASB”) and the Governmental Accounting Standards Board (“GASB”). The Financial Accounting Foundation’s (“FAF”) Board of Trustees Appointments Committee is looking for candidates to replace FASB chairman Russell Golden and GASB chairman David Vaudt, whose terms conclude June 30, 2020. FAF president and chief executive officer Teri Polley said the selected candidates will help determine the FASB and GASB’s future direction to improve financial accounting and reporting standards. Both chairs will serve one seven-year term on their respective boards.
Center for Audit Quality Appoints New Executive Director
Earlier this week, the Center for Audit Quality announced that Citigroup’s Julie Bell Lindsay will become the organization’s new executive director effective May 6, 2019. Lindsay succeeds Cindy Fornelli, who announced her retirement in September . Fornelli will stay on board with the CAQ through May to support the leadership transition. Lindsay served as managing director and deputy head for global regulatory affairs at Citigroup. She developed and executed Citigroup’s regulatory policy priorities and strategic efforts, and engaged with various parties such as regulators, trade organizations, and international standards setters.
Topics: Center for Audit Quality "CAQ"
FASB Fixes Lease Accounting Issues
On March 5, the Financial Accounting Standards Board (“FASB”) issued a new standard to clarify for lessors and lessees an exemption from an interim disclosure provision related to the board’s lease standard. Accounting Standards Update (“ASU”) No. 2019-01, Leases (Topic 842): Codification Improvements, brings into line the new guidance with current guidance concerning fair value of the underlying asset by lessors not considered manufacturers or dealers under Topic 842, Leases. The fair value of the underlying asset at the beginning of the lease agreement is its cost, and it should reflect any applicable volume or trade discounts. If there is. Read More.
FASB Aligns Accounting for TV and Film Production Costs
Aligning its accounting guidance for costs related to producing films and episodic content with the accounting for television and online streaming services, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2019-02, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The standard is in response to major production and distribution model changes the entertainment industry has faced in recent years. Specifically, the amendments under ASU No. 2019-02 updates presentation requirements, requires an organization to offer new disclosures on produced or licensed. Read More.