Updated Proposal on Income Tax Disclosures Coming
The Financial Accounting Standards Board (“FASB”) last week instructed staff to draft a proposed Accounting Standards Update (“ASU”) concerning its revised proposal for income tax disclosures. To be issued for public comment, the revised proposed ASU will feature every change made since the FASB released the original proposed ASU, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. Such changes include requiring disclosure of the disaggregation of income tax expense/benefit and income taxes federal or national, state, and foreign amounts pay. The FASB noted that income tax expense/benefit and income taxes paid on foreign earnings enacted. Read More.
Staff to Perform Field Testing on FASB Government Assistance Project
Members of the Financial Accounting Standards Board (“FASB”) want to perform additional outreach concerning the board’s government assistance project. During its February 27 meeting, the FASB agreed that staff members should conduct further field testing to confirm the costs and benefits of a proposal under Accounting Standards Update (“ASU”) No. 2015-340, Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance. The government assistance project aims to require businesses to disclose information on financial assistance like government grants and low-interest loans. Governments often distribute such assistance to encourage business relocation or expansion in a jurisdiction. Some investors, however, believe these. Read More.
FASB Issues Narrow Proposal for Credit Losses Standard
The Financial Accounting Standards Board (“FASB”) has released a proposal aimed to help banking institutions implement Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Narrow in scope, the proposed amendment would ease the transition to the credit losses standard by allowing the fair value measurement of certain bank assets. Proposed ASU No. 2019-100, Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses, would permit banks to irrevocably elect the fair value option on an instrument-by-instrument basis for qualified financial assets that are measured at amortized cost when they adopt ASU No.. Read More.
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.
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.
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.