A Financial Accounting Foundation (FAF) review released Monday has affirmed the general effectiveness of a FASB statement that establishes standards for the way public companies report information about operating segments in annual and interim financial statements. But the report on the post-implementation review also revealed room for improvement in Statement
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TOPICS / ACCOUNTING & REPORTING
FASB financial accounting & reporting
New mechanisms eyed by FASB, IASB in long march toward global comparability
The mechanisms for continuing to facilitate global comparability in accounting standards will change over the next few years. But the leaders of two major standard-setting boards said Thursday during a meeting in New York City that the commitment to global comparability remains. With their joint board meetings and convergence projects
FASB working on fair value disclosure exemption for nonpublic entities
FASB is moving quickly to clarify the applicability of a certain fair value disclosure requirement to nonpublic entities. In a Proposed Accounting Standards Update (ASU), FASB asks for public comment on a clarification that is intended to reduce confusion among stakeholders. The proposal would amend Accounting Standards Update No. 2011-04,
FAF names 3 new trustees
Charles Cox, John Dugan, and Teri List-Stoll have been appointed to the Financial Accounting Foundation (FAF) Board of Trustees, the foundation announced Friday. Their five-year terms begin Jan. 1. The three new trustees replace Frank Brod, Edward Harrington and John Perrell, whose terms end Dec. 31. Another trustee, Mary Stone,
Seidman hopeful for converged expected loss approach despite differing FASB, IASB proposals
FASB released Thursday an expected credit loss proposal that is likely to differ from the approach to be recommended by the International Accounting Standards Board (IASB). But FASB Chairman Leslie Seidman said she has not given up on the idea of convergence in the project, which involves impairment of financial
Streamlining disclosures a tricky job for FASB
There is considerable agreement that more disclosures often do not lead to more useful financial statements. The question FASB faces now is: How to decide the best way to instruct preparers on which footnote disclosures to omit? Stakeholders at round-table discussions held this fall by FASB and the Center for
FASB, IASB union fragile amid SEC indecision on IFRS
The difficulties the world’s most prominent accounting standard setters face in convergence were unmistakable as FASB Chairman Leslie Seidman and International Accounting Standards Board Chairman Hans Hoogervorst spoke on the same stage Tuesday. During a speech at the AICPA Conference on Current SEC and PCAOB Developments in Washington, Hoogervorst pushed
SEC to study what information should be required in broader financial reporting
The SEC plans to study the issue of what information should be required in the financial reporting package outside the financial statements—an examination aimed at providing investors the right information in the right places while preventing overlap in demands on preparers. “We intend to initially focus on whether the issue
News highlights for December 2012
The first item of business for the Private Company Council (PCC), which will be chaired by Billy Atkinson, will be working with FASB to continue developing a framework for making decisions about whether and when U.S. GAAP should be modified for private companies. The PCC—created by the Financial Accounting Foundation
Financial reporting
Adjustments for the time value of money, which have generated some opposition from stakeholders, are likely to remain a part of the converged revenue recognition standard that is being jointly developed by FASB and the International Accounting Standards Board (IASB). The boards tentatively affirmed a proposal in the 2011
Impairment testing: Effectively using the qualitative assessment
Historically, many organizations have conducted goodwill and indefinite-lived intangible asset impairment testing by collaborating with valuation professionals and other advisers to measure fair value of their reporting units and indefinite-lived intangible assets. With recent changes to impairment testing and, specifically, the introduction of optional qualitative assessments to potentially avoid the
FASB proposes narrowing scope of offsetting disclosures
A new proposal would narrow the definition of financial instruments in FASB’s recently implemented standard on disclosures about offsetting assets and liabilities. FASB on Monday issued a Proposed Accounting Standards Update (ASU), Balance Sheet (Topic 210): Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. Comments from stakeholders are
FASB, IASB tentatively change revenue recognition constraint
The cumulative amount of revenue entities recognize under a new converged standard should not be subject to a significant revenue reversal or downward adjustment under guidance tentatively approved this week by FASB and the International Accounting Standards Board (IASB). The boards met Monday by videoconference to discuss elements of the
FASB to draft ASU on presenting items reclassified out of accumulated OCI
FASB has directed its staff to prepare an exposure draft of an Accounting Standards Update (ASU) on presentation of items reclassified out of accumulated other comprehensive income (OCI), according to the board’s website. During a meeting Wednesday, the board discussed feedback from stakeholders on the exposure draft issued in August,
FASB’s developing model “totally” changes impairment concept
The new concept of recognizing impairment of financial instruments based on expected credit losses, which FASB is developing, will represent a substantial change in industry philosophy and practice, according to board member Lawrence Smith. “I think we’ve changed the concept totally,” Smith said Friday during a webcast devoted to explaining
New financial reporting proposal for going concern gaining steam
Going-concern financial reporting in the United States appears headed for new requirements after FASB decided to adopt a new model this week in a project that still has several issues to be decided before the scheduled release of an exposure draft in the first half of next year. The model
FASB extends comment deadline for disclosure framework
In recognition of the damage caused by Hurricane Sandy, FASB has extended the comment deadline for its disclosure framework project to Nov. 30. The deadline for comments on its Invitation to Comment on a disclosure framework had been Nov. 16. The objective of the project is to improve effectiveness of
IASB creating forum; FASB extends private company comment deadline
The International Accounting Standards Board (IASB) is proposing the creation of a 12-member forum of national standard setters and regional bodies. In an Invitation to Comment (ITC) issued Thursday, the IASB proposed that the Americas, Asia-Oceania and Europe each should get three automatic seats on the forum, which will provide
Financial reporting
The SEC approved disclosure rules designed to increase transparency around companies’ use of so-called “conflict minerals” and payments to governments for access to natural resources for extraction purposes. The rules, advocated by certain human rights groups, will implement two sections of the Dodd-Frank Wall Street Reform and Consumer Protection
Private Company Council chair favors holistic approach over differential standards for public, private companies
The chairman of the new Private Company Council envisions trying to change FASB standards for all users before attempting to create exceptions or modifications to standards for private companies. The chairman, Billy Atkinson, said during an AICPA fall Council presentation Monday that he would favor differential standards for private companies
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