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News

FASB (US Financial Accounting Standards Board) Image

FASB combines ASC 220 and ASC 225

Nov 17, 2017

As part of its project on Codification improvements, the FASB has published a maintenance update that combines the guidance in ASC 220, “Comprehensive Income,” and ASC 225, “Income Statement,” into one topic.

Specifically, ASC 220 has been renamed to “Income Statement — Reporting Comprehensive Income” and the related guidance in ASC 225 has been moved to ASC 220; however, no incremental changes to the actual guidance have been made.

SEC (US Securities and Exchange Commission) Image

SEC chairman issues statement on consolidated audit trail

Nov 16, 2017

SEC Chairman Jay Clayton has issued a statement regarding the request by national securities exchanges and FINRA (the “SROs”) to extend the initial deadline for reporting related to the consolidated audit trail (CAT) by one year and other deadlines by a year or more.

Chairman Clayton indicated that he was “not in a position to support the issuance of the requested relief on the terms currently proposed” and that he has “instructed the SEC staff to make themselves available to the SROs as necessary or appropriate” to bring the CAT online. In addition, he stressed the importance of protecting the information submitted to the CAT and noted that the SEC staff is currently evaluating the need for personally identifiable information in the CAT.

For more information, see Chairman Clayton’s statement on the SEC’s Web site.

FAF (US Financial Accounting Foundation)  Image

FAF announces FASB and trustee appointments

Nov 15, 2017

The FAF has announced that James L. Kroeker has been reappointed as FASB vice-chairman and that Gary R. Buesser has been appointed as a FASB board member. In addition, Kathleen L. Casey, Jeffrey L. Esser, and David C. Villa have been appointed to the FAF board of trustees.

Mr. Kroeker and Mr. Buesser will begin their terms on July 1, 2018, while the new trustees’ terms will begin on January 1, 2018.

For more in­for­ma­tion, see the press releases on the FASB and FAF appointments on the FAF’s Web site.

FASB document Image

FASB discusses disclosure framework

Nov 10, 2017

At its November 8, 2017, meeting, the FASB discussed the entity’s decision process component of its disclosure framework project.

The Board made tentative decisions related to the definition of materiality in Chapter 3, “Qualitative Characteristics of Useful Financial Information,” of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting. In addition, the Board directed the staff to draft Chapter 3 and Chapter 8, “Notes to Financial Statements,” of Concepts Statement 8.

For more in­for­ma­tion, see the tentative Board decisions on the FASB’s Web site.

GASB document Image

GASB proposes guidance to clarify majority equity interests

Nov 10, 2017

The GASB has issued an exposure draft (ED), “Accounting and Financial Reporting for Majority Equity Interests.”

The objective of the ED is to “clarify the accounting and financial reporting for a state or local government’s majority equity interest in an organization that remains legally separate after acquisition.”

Com­ments on the ED are due by January 19, 2018. For more in­for­ma­tion, see the press release and ED on the GASB’s Web site.

SEC document Image

SEC staff publishes C&DI on safeguards for sensitive company information

Nov 07, 2017

The staff in the SEC’s Division of Corporation Finance has released a compliance and disclosure interpretation (C&DI) on whether companies can implement safeguards with respect to electronic access to Rule 701(e) disclosure information.

For more information, see Question 271.25 of the Securities Act rules C&DIs on the SEC’s Web site.

SEC document Image

SEC issues staff legal bulletin on exclusion of shareholder proposals

Nov 03, 2017

The SEC’s Division of Corporation Finance has issued Staff Legal Bulletin (SLB) 14I, “Shareholder Proposals,” which provides its views on the exclusion of shareholder proposals under Rule 14a-8 of the Securities Exchange Act of 1934.

Specif­i­cally, the SLB clar­i­fies the scope and ap­pli­ca­tion of Rules 14a-8(i)(5) and 14-8(i)(7). In addition, the SLB provides information on proposals submitted on behalf of shareholders and the use of images in shareholder proposals.

The views ex­pressed in the SLB should not be con­sid­ered a rule, reg­u­la­tion, or state­ment of the SEC. For more in­for­ma­tion, see SLB 14I on the SEC’s Web site.

FASB meeting Image

Highlights from the FASB’s November 1 meeting

Nov 02, 2017

At its November 1, 2017, meeting, the FASB discussed its projects on (1) long-duration insurance contracts, (2) the disclosure framework, and (3) Codification improvements.

Insurance — targeted improvements to the accounting for long-duration contracts

The Board continued deliberating the amendments in its proposed ASU, Targeted Improvements to the Accounting for Long-Duration Contracts, and made tentative decisions on market risk benefits, presentation, and disclosure requirements.

For more in­for­ma­tion, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Disclosure framework — Board’s decision process

The Board made tentative decisions related to issues in its proposed Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8, Notes to Financial Statements, and directed the staff to draft the chapter for external review.

For more in­for­ma­tion, see the tentative Board decisions on the FASB’s Web site.

Codification improvements — elimination of guidance on U.S. steamship entities

The Board discussed comments received on its proposed ASU, Technical Corrections and Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995, and affirmed its decision to supersede ASC 995. The Board directed the staff to draft a final ASU for a vote by written ballot.

For more in­for­ma­tion, see the tentative Board decisions on the FASB’s Web site.

AICPA (American Institute of CPAs) Image

AICPA issues revenue working drafts for broker-dealers and telecommunications entities

Nov 02, 2017

The AICPA’s Revenue Recognition Task Force has released for public comment two working drafts on accounting issues associated with the implementation of the new revenue standard for broker-dealers and telecommunications entities.

The broker-dealer working draft ad­dresses underwriting revenues, while the telecommunications working draft covers the determination of transaction prices.

Com­ments on the working drafts are due by January 2, 2018. For more in­for­ma­tion, see the revenue recog­ni­tion resource page on the AICPA’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC announces relief related to certain conditions of the EU’s MiFID II’s research provisions

Oct 26, 2017

The SEC has announced that it will provide temporary no-action relief for market participants that are complying with the research requirements of the EU’s Markets in Financial Instruments Directive (MiFID II).

The relief includes the following: “(1) broker-dealers, on a temporary basis, may receive research payments from money managers in hard dollars or from advisory clients’ research payment accounts; (2) money managers may continue to aggregate orders for mutual funds and other clients; and (3) money managers may continue to rely on an existing safe harbor when paying broker-dealers for research and brokerage.” The SEC staff will monitor business implementation of the MiFID II during the temporary relief period and determine whether additional steps are needed.

For more information, see the press release on the SEC’s Web site.

 

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