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
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Accounting & reporting
SEC proposes rules to compare pay of CEO, median employee
A rule proposed Wednesday by the SEC would require U.S. public companies to disclose the ratio between what companies pay their CEOs and their median employee. SEC commissioners voted 3–2 to propose the rule, which was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203. If
Stakeholders seek simplification, better information from FASB standards
A FASB advisory committee asked stakeholders what they thought the board’s standard-setting priorities should be. Respondents said they wanted simplicity and better information. The top three reasons improvements are needed to financial reporting standards, according to 105 respondents participating in a Financial Accounting Standards Advisory Council (FASAC) survey, are: Simplification
Big changes in store for FASB, Golden says
FASB Chairman Russell Golden on Thursday described plans to increase the efficiency and effectiveness of the board’s operations. Golden provided wide-ranging remarks about FASB’s future as he spoke at a one-day conference in New York City celebrating the board’s 40th anniversary. He said the board needs to evaluate its agenda
FASB seeks to simplify reporting for development-stage entities
FASB voted Wednesday to propose changes designed to improve the relevance and reduce the complexity of development-stage entity financial reporting. The board expects to issue an exposure draft (ED) by the end of October that would apply to public and private entities. During a July 16 meeting, the Private Company
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
FASB’s Investor Advisory Committee opposes leases proposal
The converged proposal on financial reporting for leases continues to face resistance with the deadline for comment letters little more than one week away. FASB’s Investor Advisory Committee (IAC) last week declined to support the proposal, stating that the proposal is not an improvement to current accounting. And the Equipment
New option a game changer for private companies
Main Street businesses now have a new option for non-GAAP financial reporting. The AICPA Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs) was created to answer demands of CPAs, small business owners and managers, and their bankers and other stakeholders. The accounting framework is designed to offer:
FASB releases proposed 2014 U.S. GAAP taxonomy
FASB released its proposed 2014 U.S. GAAP Financial Reporting Taxonomy on Friday. The taxonomy consists of a list of computer-readable financial reporting labels coded in XBRL. The proposal contains updates for accounting standards and other recommended improvements to the official taxonomy, which is used by public issuers registered with the
Which accounting framework should a private company use?
Multiple options for private company financial reporting have emerged this year as standard setters, the AICPA, and other organizations have sought to reduce complexity and costs for small business owners. A new tool developed by the AICPA provides guidelines to help privately held businesses determine which accounting framework best meets
Leases case study: How J&J prepared a global inventory
Creating an inventory for all leases is one of the first actions experts say companies should consider in preparation for the converged lease accounting standard proposed by FASB and the International Accounting Standards Board. Johnson & Johnson (J&J), the global health care products company, has received two distinct benefits from
FASB proposes VIE alternative for private companies
FASB on Thursday formally issued for public comment a proposal that would exempt many private companies from the requirement to apply variable-interest entity (VIE) consolidation guidance to lessor companies under common control. The proposal, which was originally advanced by the Private Company Council (PCC), would create an alternative within U.S.
How critical access hospitals might choose to recognize revenue from meaningful-use incentive payments
In the absence of authoritative GAAP on the subject, a diversity in practice has been observed with respect to how critical access hospitals (CAHs) recognize revenue from meaningful-use incentive payments. Various viewpoints exist on how to account for the economic substance of these arrangements. This article describes three of them—although
GASB risk financing standards get positive review
Accounting standards for risk financing and insurance-related activities of state and local governments, including public risk pools, achieve their purpose, according to a Financial Accounting Foundation (FAF) review report released Tuesday. GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk
Revised proposal would clarify which projects GASB can consider
The Financial Accounting Foundation (FAF) on Tuesday issued a revised proposal describing a process that would decide which information GASB could consider for its standard setting for state and local governments. Under the proposal, GASB would consult with the FAF trustees’ Standard-Setting Process Oversight Committee to determine whether particular information
Six areas where new revenue recognition standard will require judgment
The new, converged revenue recognition standard will include substantially less industry-specific, “bright-line” guidance than many U.S. companies are accustomed to. The standard that FASB and the International Accounting Standards Board are expected to issue this year will create the need for new judgments to be reached by financial statement preparers
FASB to propose relief for private companies from VIE requirements
FASB moved closer Wednesday to providing relief for private companies from variable-interest entity (VIE) consolidation requirements for common control leasing arrangements, which are considered costly and irrelevant by many small business owners. The board voted to endorse a decision by the Private Company Council (PCC) to propose an alternative for
NFPs excluded from FASB’s proposed definition of a public business entity
FASB would not consider not-for-profits (NFPs) and employee benefit plans public business entities for purposes of future standard setting, according to a new proposal the board exposed for public comment Wednesday. FASB is defining a public business entity to prevent confusion over which entities can apply the alternatives within GAAP
Gifts-in-kind: What are they worth?
A number of investigative articles have been written by the media and charity watchdog agencies questioning the valuation of gift-in-kind (GIK) contributions received by not-for-profit entities (NFPs). These articles identify various approaches to valuing GIKs, focusing on the large disparities between conclusions reached by NFPs, and questioning the application of
Proposed international standard would change auditor reports
International auditor reporting guidelines would change significantly and require more communication from auditors under standards proposed Thursday by the International Auditing and Assurance Standards Board (IAASB). The IAASB’s exposure draft includes a new proposed international auditing standard, Communicating Key Audit Matters in the Independent Auditor’s Report, which directs auditors to
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Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
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