Accounting


FASB issued Staff Position (FSP) FAS 123(R)-1, Classification and Measurement of Freestanding Financial Instruments Originally Issued in Exchange for Employee Services under FASB Statement No. 123(R) ( www.fasb.org/fasb_staff_positions/fsp_fas123r-1.pdf ). The board, which continues to believe freestanding financial instruments should be accounted for consistently, plans to consider broadly the distinction between liabilities and equity—a project that could significantly change other applicable GAAP. The FSP therefore defers the requirement in the statement, Share-Based Payment , that a freestanding financial instrument originally subject to the statement becomes subject to the recognition and measurement requirements of other applicable GAAP when the rights conveyed by the instrument to the holder no longer depend on his or her being an employee of the entity. The guidance is effective upon the entity’s initial adoption of the statement.

The AICPA issued three accounting technical practice aids. TPAs 6930.09 and 6930.10 pertain, respectively, to single-employer and multiemployer benefit plans. Each TPA contains a question and answer on accounting and disclosure requirements related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003. TPA 5400.05 identifies issues and relevant literature nongovernment entities should consider in their accounting and disclosures related to losses from natural disasters. All three TPAs are available at www.aicpa.org/members/div/acctstd/general/recent_tpas.asp .

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.