New guidance issued Thursday by FASB will reduce the number of disposals of assets that should be presented as discontinued operations in organizations’ financial reporting. Only disposals representing a strategic shift in operations that have a major effect on the organization’s operations and financial results will be required to be
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Accounting & reporting
Companies lagging in conflict minerals process
Conflict minerals reporting may be a significant challenge for executives this spring as many companies are just in the early stages of compliance exercises as the May 31 SEC filing deadline approaches, according to a report released Wednesday. The SEC’s new conflict minerals rule grew out of the Dodd-Frank Wall
TPAs address new private company accounting alternatives
Three new AICPA Technical Questions and Answers (TPAs) provide nonauthoritative guidance regarding application of some accounting alternatives FASB issued in January for private entities that are not classified as public business entities, as defined in Accounting Standards Update (ASU) No. 2013-12. AICPA Technical Questions and Answers (TPAs) 9150.32–.33 and 9160.29
IASB proposal designed to improve disclosures
Amendments proposed by the International Accounting Standards Board (IASB) on Tuesday are designed to play a role in the board’s effort to reduce disclosure overload. Proposed amendments to IAS 1, Presentation of Financial Statements, are the result of one of several short-term projects under the IASB’s broader Disclosure Initiative. The
FASB issues private company VIE alternative
A GAAP alternative issued by FASB on Thursday will allow a private company to elect—under certain circumstances—not to consolidate variable-interest entities (VIEs) in common-control leasing arrangements. The exemption, described in FASB Accounting Standards Update No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements, is the third GAAP
Boards remain split on lease expense recognition
FASB and the International Accounting Standards Board (IASB) failed to reach a consensus for new lease accounting guidance Wednesday but vowed to continue working together in pursuit of consistency. During two days of meetings at FASB’s headquarters in Norwalk, Conn., the boards failed to reach common answers on key areas
No easy answers in key leases standard debate
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
FASB to research fair value standard’s relevance for certain investors
FASB plans to research concerns about the usefulness of its fair value measurements standard for users of financial statements of employee benefit plans, not-for-profits, and private companies. The concerns arose during a post-implementation review conducted for the board’s parent body, the Financial Accounting Foundation (FAF). The review was completed last
FASB takes step forward in streamlining of disclosures
FASB took a step forward Tuesday in its effort to make disclosures in notes to financial statements more useful to investors. The board is building a framework that is intended to reduce unnecessary disclosures and highlight information that investors need most. On Tuesday, FASB issued a proposed concepts statement that
Financial reporting
FASB took what appears to be two steps back from convergence with the International Accounting Standards Board (IASB) 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 to
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.
GASB proposes new GAAP hierarchy for state and local governments
A new GASB proposal is designed to help state and local governments clearly identify the appropriate guidance to apply to their financial reporting. GASB on Thursday issued the proposal, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, as an exposure draft. The proposed statement would change
Plans bear responsibilities in multiple-employer pension reporting
Transparency is increasing in state and local government employee pension reporting, and financial statement preparers and auditors need to be ready for the changes new GASB pension standards will bring. GASB Statement No. 67, Financial Reporting for Pension Plans, and GASB Statement No. 68, Accounting and Financial Reporting for Pensions,
Fair value standard fulfills purpose, review finds
A Financial Accounting Foundation review team’s positive feedback on FASB’s fair value measurements standard was tempered by one finding: Some investors question its usefulness for financial statements of employee benefit plans, not-for-profits, and private companies. According to the review team, FASB Statement No. 157, Fair Value Measurements, generally provides investors
FASB endorses private company VIE alternative for lease arrangements
FASB voted on Wednesday to endorse a GAAP alternative initiated by the Private Company Council (PCC) that will exempt private company lessees from a requirement to consolidate variable-interest entities (VIEs) in common-control leasing arrangements. The exemption will be allowed only if: The private company lessee and the lessor entity are
FASB to focus on targeted GAAP improvements for insurance
FASB will consider targeted changes rather than a significant overhaul of U.S. GAAP’s financial reporting requirements for insurance contracts. The board voted Wednesday to consider potential targeted improvements to long-duration insurance contracts. For short-duration contracts, the board will consider targeted improvements that will be focused solely on disclosures. Board members
Five key defenses against risk
When does a company pull the trigger on an acquisition or investment? When is expanding into a new market a prudent choice? And when is the right time to hire additional personnel or change employee benefits? These are among the many questions organizations consider through a lens of strategic opportunities
Unnecessary disclosures targeted by SEC
A targeted, step-by-step approach is the best way for the SEC to review and overhaul its financial disclosure requirements under securities laws, SEC Commissioner Daniel Gallagher said Monday. In a speech at the Forum for Corporate Directors in California, Gallagher said he hopes the SEC can “make real headway” in
Crowdfunding poses benefits, risks
Financial return crowdfunding does not pose systemic risks to the world economy yet, according to a report issued Wednesday by staff researchers working for the International Organization of Securities Commissions (IOSCO). But in the marketplace, crowdfunding—which is growing in popularity—poses both benefits and risks, according to the report. Crowdfunding involves
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
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