FASB and the International Accounting Standards Board (IASB) are struggling to find common ground in their efforts to create a converged standard for financial reporting on leases. While meeting together Tuesday at FASB’s headquarters in Norwalk, Conn., the two boards came to different conclusions in preliminary votes on financial reporting
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TOPICS / ACCOUNTING & REPORTING
International Financial Reporting Standards
Seven revenue recognition considerations
Companies need to be aware of many possible changes as FASB and the International Accounting Standards Board put the finishing touches on the new revenue recognition standard.
How the lease accounting proposal may change
Acknowledging that the converged leases project poses difficulties for standard setters, International Accounting Standards Board (IASB) Chairman Hans Hoogervorst described some possible solutions Wednesday during a speech in Tokyo. The IASB and FASB are involved in new deliberations on their converged leases project after receiving feedback from financial statement preparers
SEC plans to consider whether global standards are achievable
The SEC plans to consider whether a single set of high-quality global accounting standards is achievable, according to one initiative described in a draft of the commission’s strategic plan for 2014 to 2018. An initiative described on page 8 of the 39-page document, which was released Monday, says the SEC
IASB gives rate-regulated activities guidance, reviews business combinations rules
The International Accounting Standards Board (IASB) on Thursday issued an interim standard on rate-regulated activities for use by first-time IFRS adopters while the board works to develop a permanent standard. Previously, IFRS did not contain any guidance for rate-regulated activities. The IASB has a plan to consider the broad issue
FAF to pay up to $3 million to help IASB’s convergence work
The IFRS Foundation will receive assistance for work on international convergence projects from its U.S. counterpart, the Financial Accounting Foundation (FAF). FAF announced Tuesday that it will make a nonrecurring contribution of up to $3 million in 2014 to the IFRS Foundation to support the work by the International Accounting
Seven changes new revenue standard may bring
The prospect of preparing for a historic, game-changing revenue recognition standard at a huge, global public company is a bit daunting for GE Technical Controller Russell Hodge, CPA. “I’ll admit to it being a little bit overwhelming to us,” Hodge said. “We have $150 billion of revenue and so many
Financial instruments convergence in doubt after FASB decisions
FASB took what appears to be two steps back from convergence with the International Accounting Standards Board (IASB) last week with a pair of major tentative decisions in its project on accounting for financial instruments. In the classification and measurement portion of the project, the board decided not to continue
Beswick: Rule-making preventing SEC from deciding on IFRS
Rule-making duties related to federal legislation have prevented the SEC from devoting time to deciding on the future of IFRS in the United States, SEC Chief Accountant Paul Beswick said Monday. “I think from my perspective, everyone in the commission thinks about the decision on IFRS and what the next
IIRC releases International Integrated Reporting Framework
The International Integrated Reporting Council (IIRC) on Sunday made public an approved framework for integrated reporting. The group intends for the framework to guide companies on how to best communicate with their stakeholders. The release represents a key step forward for integrated reporting (IR). The aim of IR is to
IASB proposes amendments to IAS 27 to allow equity method
Narrow-scope amendments to IAS 27 proposed Monday by the International Accounting Standards Board (IASB) would allow entities to use the equity method to account for investments in subsidiaries, joint ventures, and associates in their separate (parent-only) financial statements. The proposed changes are designed to reduce compliance costs while providing information
IASB makes change to defined benefit contribution accounting
Small-scale changes to financial reporting rules for employee benefit plans were published Thursday by the International Accounting Standards Board (IASB). Contributions from employees or third parties to defined benefit plans are affected by the amendments to IAS No. 19, Employee Benefits. The changes were made to simplify the accounting for
Final IASB approval of rev rec standard imminent
Progress toward a converged financial reporting standard for revenue recognition continued Wednesday when the International Accounting Standards Board (IASB) indicated its intention to approve the standard. The board’s staff now will prepare a ballot draft for a final vote. FASB also voted earlier this month to proceed to a ballot
IASB releases new rules to better reflect hedge accounting
New rules released Tuesday by the International Accounting Standards Board (IASB) are designed to improve how hedge accounting activities are reflected in financial statements. The IASB changed the rules to address preparers’ concerns about the challenges of appropriately representing their risk management activities in financial statements. The most significant changes
Prepare for new revenue guidance with six key actions
There may be some false comfort in the faraway implementation date of the proposed, converged financial reporting standard FASB and the International Accounting Standards Board (IASB) are in the final stages of developing. The standard, scheduled to be released in the first quarter of 2014, would take effect for reporting
AICPA committee calls for different dividing line on leases
An AICPA committee has suggested that FASB and the International Accounting Standards Board (IASB) create a dividing line between Type A and Type B leases that is different from the line the boards proposed. In a letter submitted to the boards Monday, the AICPA Financial Reporting Executive Committee (FinREC) supported
Survey shows division over FASB, IASB credit loss proposals
Investment professionals are hungry for international convergence of financial reporting standards for estimating credit losses, but they are divided on the best method for reporting, according to a new global survey. Despite numerous calls for a converged standard following the financial crisis, FASB and the International Accounting Standards Board (IASB)
Transfer pricing and its effect on financial reporting
This article examines the relationship between transfer pricing and an entity’s tax and financial reporting. Due to increased IRS audit procedures, transfer pricing has become one of the riskiest areas for multinational corporations from both a compliance and tax planning perspective. Amazon, AOL, Adobe, Hewlett-Packard, Microsoft, and other multinationals have
Businesses voice stiff opposition to lease proposal
The converged proposal on financial reporting for leases faces significant opposition from businesses from around the globe. Friday was the final day for the public to submit comment letters on the reproposal to FASB and the International Accounting Standards Board (IASB). An analysis of comment letters on the proposed standard
IASB chair states case for leases on balance sheets
With the comment deadline on the converged lease accounting proposal just days away, International Accounting Standards Board (IASB) Chairman Hans Hoogervorst reiterated his support for the proposal that would put leases on company balance sheets. Friday is the deadline for public comment on a proposal by the IASB and FASB
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