FASB Announces Top Priorities for 2017
After issuing several key Accounting Standards Updates and announcing new board members last year, the Financial Accounting Standards Board (“FASB”) is preparing for a busy 2017. In a five-minute video, FASB Technical Director Sue Cosper outlines the FASB’s top priorities for this year. The FASB’s top priorities for 2017 include: Finalizing the hedging and long-duration insurance standards; Supporting the implementation of its revenue recognition, leases, and credit losses standards; Potential improvements to nonprofit financial reporting, particularly distinguishing between exchanges and contributions; and Redeliberating feedback on the Invitation to Comment and continuing to focus on its Conceptual Framework. Click here to watch the video.
Topics: Accounting Standards Update "ASU", Conceptual Framework Project, FASB Nonprofit Standard, Financial Accounting Standards Board "FASB", Hedging, Invitation to Comment, leases, Leases (Topic 842), Long-Duration Insurance, Revenue from Contracts with Customers (Topic 606), Revenue Recognition
FASB Lease Standard Meets its First Test
Defining what qualifies as a lease could be the first obstacle for the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update No. 2016-02, Leases (Topic 842). During a discussion at the AICPA Conference on Current SEC and PCAOB Developments last month, panelists debated how varying arrangements are disclosed under the updated lease definition. One Big Four firm partner said some lease arrangements aren’t clearly stated, making it difficult for those receiving or providing a service. Xcel Energy’s Richard Briggs also seeks clarity in the lease definition, saying his company will have to determine whether some arrangements with farmers to install. Read More.
Summary of FASB’s November 30 Meeting
In addition to approving a simplified goodwill impairment test , the Financial Accounting Standards Board (“FASB”) discussed the following topics at its November 30 meeting: Nonemployee share-based payment accounting. The FASB reached decisions based on feedback from external reviewers, and instructed staff members to develop a proposed Accounting Standards Update (“ASU”) with a 90-day comment period. Conceptual framework—measurement. The FASB reached decisions on guidance for the initial carrying amount of an asset, and instructed staff members to create an updated project plan regarding the elements of financial statements alongside the presentation and measurement concepts. Issue No. 16-B, “Employee Benefit Plan Master Trust Reporting.” The FASB ratified. Read More.
FASB Nonprofit Council to Discuss Standard-Setting Projects
A web conference is scheduled today involving the Financial Accounting Standards Board (“FASB”) and its Not-for-Profit Advisory Committee (the “Committee”). The meeting will provide the Committee an opportunity to discuss recent accounting issues impacting nonprofit organizations. Committee members will also have a chance to offer feedback on the FASB’s latest projects. In particular, the FASB wants the Committee’s input on projects such as the revenue recognition of grants and contracts, nonprofit limited partnerships consolidation, and the proposed amendments to the disclosure of net periodic pension costs and net periodic postretirement benefit costs. The board is also interested in how nonprofit. Read More.
Topics: FASB, Financial Instruments - Credit Losses (Topic 326), Financial Instruments—Overall (Subtopic 825-10), Leases (Topic 842), Limited Partnerships Consolidation, Net Periodic Pension Costs, Net Periodic Postretirement Benefit Costs, Revenue from Contracts with Customers (Topic 606)
FASB Releases Updates on Accounting for Leases
By: Sara Crabtree , Senior Manager Previous lease accounting practices have been criticized for failing to provide accurate financial statements. Those practices did not require the recognition of the assets and liabilities resulting from operating leases to be on the balance sheet. On February 25, 2016, the Financial Accounting Standards Board (“FASB”) released Topic 842, Leases. The purpose of this update is to increase the transparency and comparability of entities which engage in leasing activities who previously kept their leasing obligations off the balance sheet. The Board’s intention is to require enough information on an organization’s financial statements so users may have. Read More.