FASB’s new standard for recording credit losses presents a huge change to accounting for financial institutions, and affects other organizations as well. A new tool helps audit committees in their oversight of this important implementation.
Accounting Compliance and Reporting (US)
A new Technical Question and Answer issued by the AICPA discusses the characteristics of expenses that would be considered “direct care of existing collections” under a new FASB standard that updates the definition of “collections.”
The change is intended to reduce confusion after a 2018 update.
An update aligns new and existing guidance.
The change is a response to the popularity of online streaming services.
The proposal addresses contract liabilities.
After leading the Financial Accounting Foundation (FAF) for 11 years, Terri Polley announced that she is stepping down.
Stakeholders have voiced concerns to FASB about various aspects of the board’s recently issued standards for credit losses, hedging, and recognition and measurement.
Public companies are finding that even though they have implemented FASB’s new lease accounting standard, their work is not nearly done. Private companies, meanwhile, are struggling with their own adoption of the standard.
Private companies implementing new lease accounting rules can expect a complex transition and a substantial financial statement impact.
New rules issued by the FASB align its definition of “collections” with that used by the American Alliance of Museums’ Code of Ethics for Museums.
FASB issued a standard that converges the accounting guidance for production costs for episodic TV series with the rules for production costs for films.
FASB addressed two lessor implementation issues and clarified an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the board’s new lease accounting standard.
A proposal issued by the Financial Accounting Standards Board would spell out how to measure share-based payments to a customer.
Finance has a pivotal role to play in facilitating a successful acquisition or merger — and in performing the challenging accounting associated with a business combination.
Tweaks and updates addressed implementation challenges.
FASB took a step forward in resolving challenges in its rules for recognizing and measuring deferred revenue in business combinations.
The challenges associated with FASB’s new revenue recognition standard have been substantial for many companies, but at least they’re gaining valuable data and process improvements as a result of the implementation.
FASB proposed providing an option to measure certain types of assets at fair value, a change aimed at making the transition to its new credit losses standard easier.
No significant effects on accounting practice are expected.