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
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TOPICS / ACCOUNTING & REPORTING
FASB financial accounting & reporting
FASB, IASB creating team to aid revenue recognition transition
FASB and the International Accounting Standards Board (IASB) plan to create a joint transition resource group to aid in implementation of the upcoming, converged standard on revenue recognition. The standard will have wide-ranging implications for many businesses, and the transition group will be tasked with keeping the boards up to
Leases: What should companies do now?
When important new accounting standards are under development, forward-thinking companies often look ahead to anticipate possible changes and work ahead so they don’t have to scramble when the standard takes effect. Some companies already are doing some of that work with leases, experts say. But the lease accounting proposal—a joint
Former SEC chief accountant Kroeker joins FASB as vice chairman
Former SEC Chief Accountant Jim Kroeker is joining FASB in a new vice chairman position designed to reduce the burden on board Chairman Russell Golden. Kroeker fills a vacancy on the board created by the June 30 retirement of Leslie Seidman, who was FASB’s chairman. FASB had a vice chairman
Managing change, people and transparency
Robert Herz, CPA, was FASB chairman from 2002 through 2010. Before joining FASB, he worked 28 years in public accounting with PwC and Coopers & Lybrand. His memoir, Accounting Changes: Chronicles of Convergence, Crisis, and Complexity in Financial Reporting, was published this spring. He also is co-author of The Value
FASB changes leadership, not direction
Russell Golden, whose technical expertise as a FASB staff member led him to a spot on the standard-setting board in 2010, was scheduled to succeed Leslie Seidman as FASB’s chairman on July 1. Golden said the board’s immediate priorities include completing international convergence projects and ensuring that accounting standards for
FASB proposes updated GAAP standard for insurance contracts
In an effort to improve guidance, FASB on Thursday proposed an updated standard for the financial reporting of all insurance contracts, not just those written by insurance companies, and asked stakeholders to comment on it by Oct. 25. The proposal aims to bring consistency to the existing standards under U.S.
FASB issues proposal on going-concern disclosures
FASB on Wednesday issued a proposal designed to improve disclosures of uncertainties related to an organization’s ability to continue as a going concern. Under U.S. GAAP, financial statements are prepared under the inherent presumption that the reporting organization will be able to continue as a going concern. FASB explained in
AICPA committee disagrees with FASB credit impairment proposal
The AICPA Financial Reporting Executive Committee (FinREC) expressed significant objections to FASB’s financial instruments impairment proposal. The high-profile project is designed to address some of the causes of the recent financial crisis and calls for measurement and reporting of expected losses rather than incurred losses. Although the project began as
FASB nonpublic EBP vote meant to guard private companies’ proprietary information
FASB on Wednesday voted to indefinitely defer certain disclosures about investments held by a nonpublic employee benefit plan (EBP) in the plan sponsor’s own equity securities. Stakeholders have expressed concerns to FASB that certain disclosure requirements for nonpublic EBPs would reveal sensitive proprietary information of private companies. FASB in the
FASB agrees to advance three private company alternatives for public comment
The march toward possible exceptions and modifications to U.S. GAAP for private companies continued Monday when FASB voted to issue three Private Company Council (PCC) initiatives for public exposure. FASB expects to issue the exposure drafts later this month. After the exposure period, the PCC will review comments of stakeholders
FASB clarifies characteristics of investment companies
A FASB standard released Friday identifies characteristics a company must assess to determine whether it is considered an investment company for financial reporting purposes. Accounting Standards Update No. 2013-08, Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, takes effect for fiscal years beginning after Dec.
CPAs expect modest difficulty applying revenue recognition standard
Finance executives in the United States expect modest difficulty implementing the sweeping, global changes in revenue recognition that are coming their way, according to a new survey. In the second-quarter AICPA Business and Industry Economic Outlook Survey, released Thursday, CPA executives explained their expectations for the assimilation of the new
FASB to consider business combination concerns
FASB has promised to give consideration to various stakeholder concerns that arose during a recent post-implementation review (PIR) of its business combinations standard. The review report, released last week, described concerns about FASB Statement No. 141 (revised 2007), Business Combinations, also known as Statement 141(R). In a response released Thursday,
Revenue recognition’s effect on gift card accounting: Are you prepared?
Prepaid cards and several other payable-based consumer products are popular retail items and marketing tools. Portions of the proposed revenue recognition standard that FASB is working on will affect gift card programs. Companies with gift card programs need to be prepared as the proposed standard will require the recognition of
New members named by FAF trustees, IASB
Two prominent standard-setting positions were filled when the International Accounting Standards Board (IASB) and Financial Accounting Foundation (FAF) announced additions Thursday. Terry Warfield, Ph.D., chair of the University of Wisconsin-Madison’s Accounting & Information Systems department, was named to the Financial Accounting Foundation (FAF) board of trustees. Warfield served as the
Mixed results in FAF review of FASB business combinations standard
A Financial Accounting Foundation (FAF) team gave FASB’s standard on business combinations a mixed review, according to information provided by FAF on Wednesday. The FAF post-implementation review team performed an in-depth analysis of FASB Statement No. 141 (revised 2007), Business Combinations (Statement 141R), which is codified in ASC Topic 805,
IASB chair: Lease changes unpopular, but necessary
International Accounting Standards Board (IASB) Chairman Hans Hoogervorst on Thursday acknowledged the converged lease accounting proposal is bound to be unpopular with many companies. Indeed, less than four hours after FASB and the IASB formally announced the revised proposal, the U.S. trade organization ELFA (the Equipment Leasing and Finance Association)
Much-awaited leases proposal includes dual-recognition approach
One of the most challenging international convergence projects attempted by FASB and the International Accounting Standards Board (IASB) cleared an important hurdle Thursday with the proposal of a revised financial reporting standard for leases. FASB and the IASB released nearly identical, revised exposure drafts that call for a dual-recognition approach
Survey issued to guide FASB’s future priorities
FASB’s primary advisory group issued a survey Wednesday to solicit stakeholder views about the board’s future agenda. The Financial Accounting Standards Advisory Council (FASAC) advises FASB on priorities for the future and possible new agenda items. Responses to the survey are requested by May 30. FASAC periodically surveys stakeholders 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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