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Codification Improvements to FASB Leases Standard Proposed

The Financial Accounting Standards Board has announced proposed amendments to its leases standard concerning possible lessor implementation issues related to Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The proposed changes would align the FASB’s guidance for fair value of the underlying asset by lessors not considered manufacturers or dealers under Topic 842, with existing guidance. Thus, the fair value of the underlying asset at the start of the lease is its cost, and it would incorporate any applicable volume or trade discounts. If significant time has lapsed since the acquisition of the underlying asset and when the lease starts, however,. Read More.

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FASB Proposes Extending Goodwill and Identifiable Intangibles Alternatives to Nonprofits

A recently proposed Accounting Standards Update (“ASU”) aims to help nonprofits account for goodwill and calculate certain identifiable intangible assets. Proposed ASU No. 2018-320, Intangibles-Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, extends an accounting alternative from the Private Company Council that allows nonprofits to amortize goodwill over 10 years or less on a straight-line basis. Nonprofits could also use the accounting alternative to test for impairment upon a triggering event, opt for an impairment test at the. Read More.

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SEC Chairman Says FASB Should Decide on Credit Loss Standard Delay

With pressure mounting for the Financial Accounting Standards Board (“FASB”) to postpone implementation of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Securities and Exchange Commission (“SEC”) chairman Jay Clayton is tiptoeing around the prospects of a delay. Talking to reporters at a recent conference, Clayton said while his agency oversees standard-setting organizations, it is ultimately up to the FASB to decide whether delaying the credit loss standard is necessary. His remarks come as banks and trade groups have asked for more time to implement ASU No. 2016-13 . Banking groups like the Mortgage Bankers Association and the Bank Policy Institute are concerned over the costs to comply with the standard.. Read More.

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Mortgage Bankers Association Wants a Delay in Credit Losses Standard

Another banking group wants the Financial Stability Oversight Council (“FSOC”) to postpone the effective date of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In a letter last month, the Mortgage Bankers Association (“MBA”) urged the FSOC to complete a quantitative impact study to examine the effects of the Financial Accounting Standards Board’s (“FASB”) credit losses standard. The MBA considers the study critical to helping banking agencies, banks, and others understand the standard’s full impact and any unanticipated effects. Echoing concerns from the Bank Policy Institute , the MBA says the credit losses standard. Read More.

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FASB Proposes Slight Updates to Three Major Accounting Standards

Multiple clarifications are in the works for three of the Financial Accounting Standards Board’s (“FASB”) top accounting standards. On November 19, the FASB issued a proposal featuring changes to the following Accounting Standards Updates (“ASU”): ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The proposal features 11 changes to the credit loss standard. The proposed clarifications include how companies calculate the allowance for credit losses on accrued interest receivable balances and accounting for the allowance when moving debt securities between measurement categories. Also proposed are clarifications regarding when a company must. Read More.

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FASB Issues Narrow Improvements to Leases Standard

To cut costs lessors have when implementing its leases standard, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-20, Leases (Topic 842)-Narrow-Scope Improvements for Lessors. The standard addresses three issues lessors face when applying ASU No. 2016-02, Leases (Topic 842): Taxes collected from lessees:ASU No. 2018-20 gives lessors the option to review whether particular sales taxes and other taxes are lessor or lessee expenses. Lessors can now account for such expenses as lessee costs and omit the costs as lease revenue with a related expense. Certain lessor costs lessees directly pay: ASU No. 2018-20 requires. Read More.

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