IFRS Foundation Issues Draft Guidance for SMEs
The International Financial Reporting Standards (“IFRS”) Foundation is requesting feedback related to its draft guidance regarding the IFRS for SMEs (small and medium-sized enterprises) Standard. Announced in a June 26 press release , the draft guidance is in a question-and-answer format and was authored by the SME Implementation Group. The draft guidance includes answers on how a parent company should disclose a financial guarantee in its financial statements. Comments on the draft guidance are due Friday, September 1.
The New Revenue Recognition World
By: Michael Brown, Senior Manager The effective date for the new revenue recognition standard is fast approaching and will be here before we know it. By now, you have probably heard speculation about the impact of the standard to your company. Speculation has been from no impact at all to the world is going to be entirely different post implementation. As always, the reality is somewhere in the middle. Generally speaking, for the government contracting industry, the end result of when and how much revenue is recognized will be similar as in the past or at least should not significantly. Read More.
IASB Proposes Change to Financial Instrument Standard
A slight change could be coming to the International Accounting Standards Board’s (“IASB”) financial instruments standard. On Wednesday, the IASB announced a proposed amendment to International Financial Reporting Standards (“IFRS”) 9, Financial Instruments, which would require assets to be calculated either at amortized cost or at fair value with changes disclosed under other comprehensive income. The proposed amendment is intended to determine interest in permitting a measurement change for certain financial assets with prepayment options. IASB research staff members plan to move quickly to issue the proposal for public comment by the end of April. If approved, a final amendment. Read More.
SEC Chief Accountant Pushes for IFRS Use
Fresh off his formal succession to Securities and Exchange Commission (“SEC”) Chief Accountant, Wesley Bricker wants the market regulator to resume consideration of International Financial Reporting Standards (“IFRS”). At a December 5 conference in Washington, D.C., Bricker said he believes the SEC should consider a proposal that would allow U.S. companies to supplement GAAP financial statements with IFRS information. James Schnurr, Bricker’s predecessor, had originally introduced the proposal prior to leaving the SEC. No immediate changes are expected due to the SEC’s slow regulatory process and the limited progress made in the U.S. market’s application of international standards. In addition, the SEC is currently dealing with an influx of leadership changes, with. Read More.
Topics: Financial Accounting Standards Board "FASB", Financial Statements, GAAP, International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Securities and Exchange Commission "SEC"
Guidance for Intra-Entity Transfers of Assets Amended
Providing relief for reporting the income tax consequences of an intra-entity transfer, the Financial Accounting Standards Board (“FASB”) just issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Per the Update, a company must disclose in its financial reporting the income tax consequences of an intra-entity transfer of an asset when the transfer occurs. This is a change from existing GAAP, which does not allow the recognition of current and deferred income taxes for such transfers until the asset is sold to an outside party. The standard does not introduce new disclosure. Read More.
Results from April 18th Revenue Recognition TRG Meeting
Earlier this week, the Revenue Recognition Transition Resource Group (“TRG”) held a meeting to discuss the issues regarding the implementation of Topic 606, Revenue from Contracts with Customers, and International Financial Reporting Standards 15, Revenue from Contracts with Customers. Staff members and the TRG agreed on the following matters: Memo No. 50, Scoping Considerations for Incentive-based Capital Allocations. Incentive-based capital allocations are within the scope of Topic 606. Memo No. 51, Contract Asset Treatment in Contract Modifications. A contract asset is sustained in the new modified contract and recognized under the new modified contract similar to receivables, resulting in prospective accounting.. Read More.