FASB is working to reduce complexity in its liabilities and equity guidance in the final months of board Chairman Russell Golden’s term.
U.S. compliance and reporting
The AICPA issued working drafts on accounting issues for insurance entities. When completed, the drafts will be included in AICPA Accounting and Auditing Guides.
Labeling multiple goods and services provided to a customer as a “solution” does not eliminate a company’s responsibility to identify and report separate performance obligations under FASB’s new revenue recognition standard.
A separate standard for insurance contract accounting also was delayed.
Delays in effective dates for three key accounting standards provide preparers an opportunity for a more thorough implementation.
FASB proposed minor changes as part of its annual effort to clarify and correct unintended application of its Accounting Standards Codification.
An Accounting Standards Update makes improvements to certain technical and other aspects of implementing FASB’s new accounting standard for credit losses.
FASB issued two Accounting Standards Updates that finalize delays to various effective dates for new standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.
FASB approved guidance to assist companies in their transition from interbank-offered rates to new reference rates.
FASB is attempting to enable a better, more consistent application of its new hedge accounting standard with proposed clarifications to certain sections of the guidance.
Share-based payments made to customers will be accounted for under FASB ASC Topic 718 as a result of new rules.
The board put forward a new philosophy on effective dates.
The reproposal addresses unused long-term financing arrangements.
Reference rates are seen as less susceptible to manipulation.
Revised financial instruments standards that impact all industries and apply to a broad range of financial assets have begun to take effect. The effective date for SEC filers is years beginning after Dec. 15, 2019.
FASB’s attempts to simplify the classification of debt in a classified balance sheet may have unintended consequences, according to a comment letter sent by the AICPA Technical Issues Committee.
Despite FASB’s delay in the lease accounting effective date for private companies and certain other entities, there’s not a lot of time for companies to handle a complicated implementation.
Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses, and hedging after a unanimous vote by FASB.
A FASB proposal could render obsolete a valuable financing option for health care entities known as variable-rate debt obligations (VRDOs).
FASB has expanded the election not to consolidate for private companies with variable-interest entities. Users of private company financial statements told FASB that consolidation does not help them analyze financial statements.