Lease Accounting Proposal to Help Companies with Land Easements
Utility and oil and gas companies could receive new guidance from the Financial Accounting Standards Board (“FASB”) to help account for land easements. In Proposed Accounting Standards Update (“ASU”) No. 2017-290, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, the FASB gives companies with land easements what it calls a transition break. The transition break allows companies to forgo reviewing dated contract files to determine whether the transactions must be identified as leases and should be accounted for under ASU No. 2016-02, Leases (Topic 842). When the lease standard goes into effect, new easements must be reviewed. Read More.
FASB Moves Forward with Simplifying Debt Classification Guidance
At its September 13 meeting, the Financial Accounting Standards Board (“FASB”) wrapped up talks on the Proposed Accounting Standards Update, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). As part of the discussion, the FASB reached the decisions on the following topics: Classification Principle: Debt and other instruments that are part of the final Accounting Standards Update must be categorized as noncurrent liabilities in a classified balance sheet if: The liability is contractually due to be settled over one year (or operating cycle, if longer) after the balance sheet date; or The. Read More.
FASB to Delay Amended Income Tax Guidance
The Financial Accounting Standards Board (“FASB”) is taking a wait-and-see approach before finalizing its income tax disclosure guidance. An FASB spokesperson said the board wants to await the outcome of Congress and the Trump administration’s income tax reform legislation prior to approving Proposed Accounting Standards Update No. 2016-270, Income Taxes (Topic 740): Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes. The move is to ensure the FASB’s proposed amendments to income tax disclosures stay relevant. The FASB also plans to hold off on making additional changes to the guidance under Topic 740, Income Taxes. The FASB spokesperson. Read More.
FASB Grant Accounting Proposal Issued
The Financial Accounting Standards Board (“FASB”) is proposing new guidance for contributions made or received by organizations, especially nonprofits. The proposed Accounting Standards Update (“ASU”) will help decide whether an organization’s transactions are treated as either a contribution or an exchange. This would be achieved by clarifying guidance on assessing whether a resource provider receives value in exchange for the transferred resources. The proposal also provides an improved framework that helps organizations decide whether a contribution is conditional or unconditional. In addition, the proposed amendments help distinguish between a donor-imposed condition and a donor-imposed restriction. Transfers of assets from a. Read More.
FASB Aims to Eliminate Guidance for Bad Debt Reserves Regarding Savings and Loans
A new Financial Accounting Standards Board (“FASB”) proposal seeks to replace out-of-date deferred tax guidance regarding bad debt reserves for savings and loans that began after December 31, 1987, as well as guidance concerning the Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges (Circular 202). The amendments under the Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 942, Financial Services—Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans, are similar to the technical corrections and improvements being made to clarify the FASB Accounting Standards Codification. As a. Read More.
Eliminating Steamship Entities Guidance Proposed
The Financial Accounting Standards Board (“FASB”) has issued a proposal that would replace Topic 995, U.S. Steamship Entities. The Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 995, US Steamship Entities: Elimination of Topic 995, was created because the guidance in Topic 995 has become irrelevant. FASB Statement No. 109, Accounting for Income Taxes, allows steamship entities that made statutory reserve deposits prior to December 15, 1992, to voluntarily disclose their deferred taxes. The board believes steamship entities with statutory reserve funds should report all deferred taxes according to Topic 740, Income Taxes. In addition, the FASB deems. Read More.