Exposure Draft Issued for Presenting Items in Financial Statements
Moving forward on its conceptual framework project, the Financial Accounting Standards Board (“FASB”) has issued the Exposure Draft, Conceptual Framework for Financial Reporting: Chapter 7: Presentation. The proposal is intended to help financial statement users better evaluate future cash flows by addressing how to group individual items, and clarify the relationships between assets, liabilities, and equity and the impact of related changes of such assets and liabilities on income and cash flows. Comments on the Exposure Draft are due Wednesday, November 9. More details can be found in the FASB press release.
FASB Proposes Changes to Employee Benefit Plan Reporting
The Financial Accounting Standards board (“FASB”) has proposed amendments that would impact how entities disclose employee benefit plan master trusts. Issued as proposed Accounting Standards Update (“ASU”), Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting, the proposal would help clarify the presentation of a plan’s interest in a master trust while also requiring additional disclosures of the plan’s interest. The proposal would also eliminate redundancy of the Sec. 401(h) disclosure requirements. Comments on the proposed ASU are due Monday, September 26.. Read More.
FASB Seeks Feedback on Agenda Considerations
The Financial Accounting Standards Board (“FASB”) has released an Invitation to Comment regarding possible financial accounting and reporting topics to add to its agenda. The Invitation to Comment features potential issues and solutions on intangible assets, pensions and other post-retirement benefit plans, distinguishing liabilities from equity, and reporting performance and cash flows. In particular, the FASB is seeking feedback on whether improvement opportunities exist for the financial reporting issues raised in the Invitation to Comment, the priority and approach the board should take in addressing each issue, and if any other financial reporting areas not listed in the document should. Read More.
Guidance for Contributions to Nonprofits to be Revisited
Unable to reach conclusions last month on its guidance for nonprofits regarding contributions and exchange transactions, the Financial Accounting Standards Board (“FASB”) is expected to continue to discuss the issue at future meetings. The FASB’s Not-for-Profit Advisory Committee previously said that nonprofit organizations needed better guidance to comply with ASC 958-605 for contributions and the forthcoming requirements under Topic 606, Revenue From Contracts With Customers, for exchange transactions. Panel members said that accounting practices are usually inconsistent among nonprofits when determining if funds received should be treated as contributions or exchange transactions. Many organizations have had difficulty interpreting the guidance. Read More.