February 2018

US_AICPA Image

AICPA issues seven revenue working drafts

Feb 02, 2018

On February 2, 2018, the AICPA’s revenue recognition task forces released for public comment seven working drafts on accounting issues associated with the implementation of the new revenue standard for aerospace and defense, gaming, health care, insurance, and telecommunication entities.

The working drafts address the following topics:

  • Transfers of control with respect to non-U.S. federal government contracts (aerospace and defense)
  • Gaming entity’s cost to obtain a management contract (gaming)
  • Disclosures — contracts with customers (gaming)
  • Continuing care retirement community contracts (health care)
  • Accounting for contract costs (health care)
  • Accounting for third-party extended service warranty contracts (insurance)
  • Material renewal rights in telecommunications contracts (telecommunications)

Comments on the working drafts are due by April 2, 2018.

For more information, see the revenue recognition page on the AICPA’s website.

FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB addresses stranded income tax effects of new tax law

Feb 14, 2018

On February 14, 2018, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

Under the new FASB rules, financial statement preparers are provided an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

Review the press release and ASU on the FASB's website.

FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB Staff Issues Taxonomy Improvements and Implementation Guidance for Tax Cuts and Jobs Act

Feb 26, 2018

On February 26, 2018, the Financial Accounting Standards Board (FASB) staff issued GAAP Taxonomy improvements and implementation guidance related to the Tax Cuts and Jobs Act reporting requirements included in Accounting Standards Update (ASU) 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" and SEC Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118)".

The Release Notes include the following:

  • Taxonomy Elements for inclusion in the 2019 U.S. GAAP Taxonomy
  • Illustrative Examples tagging disclosures for both the ASU and SAB 118

Review the press release and Release Notes on the FASB's website.

IFRS - IASB Image

IASB finalizes amendments to IAS 19 regarding plan amendments, curtailments, or settlements

Feb 07, 2018

On February 7, 2018, the International Accounting Standards Board (IASB) published "Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)" thus finalizing one of two issues relating to IAS 19, submitted to the IFRS Interpretations Committee and exposed together in June 2015.

 

Background

In June 2015, the IASB published ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement/Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14) combining two issues submitted separately to the IFRS Interpretations Committee into a single package of narrow-scope amendments to IAS 19, Employee Benefits and IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

However, in April 2017 the IASB decided to pursue the amendments to IAS 19 and in September 2017 confirmed it would do so despite putting off the amendments to IFRIC 14. Although exposed together, the IAS 19 amendments are unrelated to the IFRIC 14 amendments.

 

Changes

The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are:

  • If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.
  • In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

 

Effective date and transition requirements

An entity applies the amendments to plan amendments, curtailments or settlements occurring on or after the beginning of the first annual reporting period that begins on or after January 1, 2019. Early application is permitted but must be disclosed.

Review the press release on the IASB's website.

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IASB member discusses the importance of financial reporting when investing

Feb 08, 2018

On February 8, 2018, the International Accounting Standards Board (IASB) posted the response given by IASB member Nick Anderson, at the ICAEW’s Information for Better Markets event on December 18, 2017, to Professor Baruch Lev's speech, "Financial reporting for Investors—do the financial statements give them what they need?".

Mr. Anderson’s response provided his views related to the important role analysis reports play when making investment decisions as well as arguments to Professor Lev’s comments regarding the (1) growth of intangibles, (2) impact of financial reporting, and (3) role of standard-setters.

In addition, he commented on two proposed accounting changes Professor Lev believed will "restore the income statement matching." These proposals were to capitalize selected intangibles and the treatment of "one-off" costs.

Review Mr. Anderson’s response on the IASB’s website.

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IFRS Foundation appoints Executive Director

Feb 07, 2018

On February 7, 2018, the IFRS Foundation trustees appointed Lee White as new Executive Director of the IFRS Foundation. Mr. White follows Yael Almog who departed from the position in 2017. Mr. White’s term is expected to begin in April 2018.

Most recently, Mr. White was the Chief Executive Officer of Chartered Accountants Australia and New Zealand. Previously, he worked as Chief Accountant at the Australian Securities and Investment Commission and was a member of the Australian Financial Reporting Council, the International Organization of Securities Commissions, and the International Forum of Independent Audit Regulators.

Review the press release on the IASB’s website.

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Insurance contracts transition resource group holds first technical meeting

Feb 07, 2018

On February 7, 2018, the International Accounting Standards Board (IASB) released the recording of the Transition Resource Group (TRG) for Insurance Contracts' first technical meeting held on February 6, 2018.

The purpose of the TRG is to seek feed­back on po­ten­tial issues related to im­ple­men­ta­tion of IFRS 17, Insurance Contracts. During the meeting, the TRG discussed the following:

  • Separation of insurance components of a single contract.
  • Boundary of contracts with annual repricing mechanisms.
  • Boundary of reinsurance contracts held.
  • Insurance acquisition cash flows paid on an initially written contract.
  • Determining quantity of benefits for identifying coverage units.
  • Insurance acquisition cash flows when using fair value transition.
  • Reporting on other questions submitted.

Audio recordings of each session is available on the TRG meeting page on the IASB’s website. In addition, a summary on the meeting is expected soon.

Review the press release on the IASB’s website.

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Insurance contracts transition resource group - meeting summary, podcast, IFRS in Focus

Feb 13, 2018

On February 13, 2018, the International Accounting Standards Board (IASB) released a summary and a podcast of the Transition Resource Group (TRG) for Insurance Contracts' first technical meeting held on February 6, 2018.

The complete set of information around the TRG meeting is now available:

Review the press release on the IASB's website.

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March 2018 CMAC meeting—agenda paper principles of disclosure

Feb 23, 2018

On February 23, 2018, the International Accounting Standards Board (the Board) released an agenda paper on the principles of disclosure that was presented at its March 2, 2018 meeting.

The paper includes the following:

Listen to meeting on the Board's website.

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March 2018 CMAC meeting—agenda paper goodwill and impairment

Feb 23, 2018

On February 23, 2018, the International Accounting Standards Board (the Board) released an agenda paper on goodwill and impairment that was presented at its March 2, 2018 meeting.

The paper includes the following:

Listen to meeting on the Board's website.

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