Accounting & reporting

Revenue recognition: Tips for challenging circumstances

Certain issues related to revenue recognition are causing enough application problems that the Financial Accounting Standards Board may choose to adjust the standard. But in the meantime, financial statement preparers need to apply the current rules correctly.

Digital assets: Auditing, accounting, and what’s next

A CPA leader shares talks about auditing and accounting related to digital assets — the challenges, the role of skill development, and what’s next in the evolving space.

SEC increases scrutiny of issuers whose auditors aren’t PCAOB-inspected

The SEC issued rules that create new disclosure requirements for companies that issue public securities in the US but are audited by firms that are not subject to inspection by the PCAOB.

Revenue, SPACs, and LIBOR pose year-end accounting challenges

Some new and complex accounting issues are facing financial statement preparers as 2021 draws to a close.

FASAB clarifies federal accounting rules for debt cancellation

Debt cancellation is a nonexchange activity that should be reported by federal entities on the statement of changes in net position, according to an interpretation issued by FASAB.

Spring-loaded awards merit accounting scrutiny, SEC staff says

“Spring-loaded” awards are share-based compensation that companies award to executives shortly before announcing market-moving information. The SEC staff says that when measuring compensation, companies must consider the impact that the information will have upon release.

FASB reconsiders accounting for troubled debt restructuring by creditors

FASB’s accounting guidance for troubled debt restructuring by creditors would be eliminated for organizations that have adopted its credit losses standard, under a proposal the board issued Tuesday.

New FASB standard requires businesses to disclose government aid

Businesses that receive certain forms of government assistance will be required to disclose that aid in the notes to their annual financial statements under a standard the Financial Accounting Standards Board issued Wednesday.

Credit losses: 4 things you need to know

Here’s what private company finance personnel need to know about CECL as the time for implementation approaches.

FASB issues risk-free rate rule to cut costs for nonpublic lessees

Nonpublic lessees such as private companies, not-for-profits, and employee benefit plans will be permitted to elect risk-free rates for lease accounting by class of underlying asset rather than at the entitywide level under a new rule issued Thursday by FASB.

FASB declines to extend nonpublic lease accounting effective date

Private companies and not-for-profits will not see further relief from the effective date of FASB’s new lease accounting standard after the board voted Wednesday to reject a request for a two-year extension.

FASAB amends lease accounting requirements

Lease accounting requirements for federal agencies were amended and clarified Thursday when FASAB issued new guidance.

Quality management: ARSC pursues consistency with proposed ASB standards

The quality management standard for accounting and review services would achieve consistency, where appropriate, with that proposed for audit services under a proposal issued by the AICPA Accounting and Review Services Committee.

FASB proposal would amend interim disclosure requirements

Interim disclosure requirements would be changed and clarified under a proposal issued by the Financial Accounting Standards Board.

FASB addresses contract assets, liabilities acquired in a business combination

Acquiring entities are required to measure contract assets and liabilities acquired in a business combination in accordance with FASB’s Topic 606 revenue recognition guidance, according to a new FASB standard.

FASB provides new private company practical expedient

Private companies that issue equity-classified share-based awards will be able to elect a practical expedient and use the reasonable application of a reasonable valuation method to determine the current price input of these awards offered as compensation, according to a new standard issued by FASB.

Creating the right visuals for your data

Two leading figures in the field of data visualization explain how CPAs can best use visual depictions of numbers and how history’s “heroes of visual thinking” transformed numbers into images that carry ideas and meaning.

FASB proposal addresses fair value and equity security sale restrictions

A new FASB proposal intends to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and therefore is not considered in measuring fair value.

Lease accounting: Private companies on the clock after delay

Following a pandemic-related delay, the new standard takes effect for entities within the “all other entities” category for fiscal years starting after Dec. 15, 2021, and for interim periods within fiscal years beginning after Dec. 15, 2022.

Marie Brilmyer, CPA

Successful leaders know how to listen and help others make the most of their abilities, according to Marie Brilmyer, CPA, a partner with Cohen & Company in Akron, Ohio.