New high-profile accounting standards for revenue recognition, leases and expected credit losses have companies facing a heavy implementation burden. Here are tips that could ease the stress and make implementation smoother.
Accounting compliance and reporting (IFRS)
His first term brought significant new standards.
New lease accounting standards issued by FASB and the International Accounting Standards Board will result in substantial changes in recognition and presentation on the balance sheet for lessees.
The board responded to questions about changes in debt.
More situations arise that call for CPAs to be fluent in IFRS and U.S. GAAP.
Convergence project puts more leases on books.
Hans Hoogervorst will serve a second five-year term as chairman of the International Accounting Standards Board.
Full convergence is a goal.
The board considers annual improvements and its investment property standard.
The option would permit U.S. issuers to provide information in addition to U.S. GAAP.
Investors had requested more information about changes in companies’ debt.
The International Accounting Standards Board issued a new accounting standard that will bring all lease assets and liabilities onto the balance sheet.
FASB also is working to clarify the concept for preparers.
FASB and the IASB have agreed to clarify principal vs. agent guidance contained in the converged revenue recognition standard.
The SEC is considering regulatory changes that would make it possible for U.S. public companies to provide IFRS-based information as a supplement to U.S. GAAP financial statements.
A joint working group is exploring ways to expand the use of IFRS within China, especially for Chinese companies that are internationally oriented.
In two separate exposure drafts, the IASB proposed changes to its investment property standard and proposed narrow-scope amendments to three other standards.
The AICPA FinREC released nine working drafts for informal comment containing industry-specific considerations and illustrative examples related to implementation of the new revenue recognition standard.
The IASB published a draft to help preparers determine which information is material and should be included in financial statements.
An upcoming, broader review may include more substantial simplifications.