Accounting


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FASB issues Statement no. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (available for download at www.fasb.org/FAS150.shtml ), to improve the accuracy of securities issuers’ accounting for such financial instruments. Earlier guidance allowed companies to classify as equity instruments possessing debt-like attributes. But the new statement—effective for financial instruments entered into or modified after May 31—establishes standards requiring financial reports to present such items as liabilities. For earlier transactions, it takes effect at the start of the first interim period beginning after June 15. Nonpublic entities’ mandatorily redeemable financial instruments, however, are subject to the new provisions in the fiscal period beginning after December 15. Printed copies of the statement are available for $14.50 each from FASB at 800-748-0659.

The Securities and Exchange Commission releases Staff Accounting Bulletin (SAB) no. 103, Update of Codification of Staff Accounting Bulletins, after comprehensively removing obsolete material for the first time in more than 20 years ( www.sec.gov/news/press/2003-61.htm ). In doing so, the commission laid the groundwork for its plan to eventually make the entire collection of SABs available on the SEC Web site.

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

COLUMN

Deflecting clients’ requests for defense and indemnity

Client requests for defense and indemnity by the CPA firm are on the rise. Requests for such clauses are unnecessary and unfair, and, in some cases, are unenforceable.