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.
Accounting and Financial Reporting
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.
FASAB has proposed eliminating the required supplementary stewardship information (RSSI) category and updating references to leases in multiple places in its accounting standards for federal government entities.
The elimination of the effective date for FASB’s private company GAAP alternatives means it’s never too late to take advantage of these accounting simplifications. Each alternative may offer substantial relief and cost savings for private companies as they perform their accounting.
Private company exceptions may see wider use.
Tweaks and updates addressed implementation challenges.
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.
GASB issued a proposed implementation guide that is designed to help state and local governments understand the board’s new standard on lease accounting.
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.
FASB amended its standard on accounting for credit losses, changing the transition requirements and clarifying the scope of the standard.
Tax-exempt organizations are working through the biggest change to not-for-profit financial reporting in 25 years. Smaller organizations with limited resources can smoothly implement FASB’s new rules by following some best practices.
Comments are sought on nonauthoritative guidance.
The AICPA Financial Reporting Executive Committee has published a working draft of an illustrative note to financial statements of SEC-registered broker-dealers.