Financial Reporting


  

FASB issued an invitation to comment on Reducing Complexity in Reporting Financial Instruments. FASB is seeking input from constituents on whether there is a need for it to take on a project intended to simplify and improve standards for measuring financial instruments. The document describes how current measurement requirements cause complexity, discusses ways complexity might be reduced in the intermediate term and suggests how using a single measurement attribute such as fair value could reduce complexity.

FASB is also requesting feedback on the International Accounting Standards Board Discussion Paper, Reducing Complexity in Reporting Financial Instruments , which is included in the appendix of FASB’s invitation to comment. The IASB document presents approaches to the issue that FASB also is considering.

Responses to both documents are requested by Sept. 19. The invitation to comment is available at www.fasb.org/draft/ ITC_Financial_Instruments.pdf .

FASB voted to amend the derecognition model for financial assets in Statement no. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities .

The project was added to the board’s agenda to resolve practice issues related to rollovers of beneficial interests and the permitted activities of a qualifying special purpose entity (QSPE). The board voted to remove the concept of the QSPE from Statement no. 140. As a result, the scope exemption for QSPEs will be removed from the consolidation guidance in FASB Interpretation no. 46 (revised December 2003), Consolidation of Variable Interest Entities .

The planned amendments to Statement no. 140 will be exposed for public comment. For information, visit www.fasb.org .

 

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.