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News

SEC (US Securities and Exchange Commission) Image

SEC issues statement on digital asset securities issuance and trading

Nov 19, 2018

The SEC’s Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets have issued a statement on the application of technological innovations in the securities market.

The statement notes that although “technological innovations that benefit investors and capital markets” are encouraged, “market participants must still adhere to our well-established and well-functioning federal securities law framework.” In addition, the statement highlights several enforcement actions involving the applications of federal securities laws and new technologies.

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

FASB meeting Image

Highlights of the FASB’s November 14 meeting

Nov 15, 2018

At its November 14, 2018, meeting, the FASB discussed its projects on (1) nonemployee share-based payments, (2) disclosures by business entities about government assistance, and (3) disclosure framework review — income taxes. In addition, the staff and Board discussed the financial reporting effects of the Tax Cuts and Jobs Act, and the Board made an agenda request.

Codification improvements — nonemployee share-based payments

The Board dis­cussed proposed modifications to ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, and made tentative decisions related to transition and its cost-benefit analysis. In addition, the Board decided to add a project to clarify the guidance on share-based payments made as consideration payable to a customer. The Board directed its staff to begin drafting a proposed ASU for a vote by written ballot.

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

Disclosures by business entities about government assistance

The Board dis­cussed its proposed ASU Disclosures by Business Entities About Government Assistance and made tentative decisions related to the scope, application, and effective date of the proposed amendments. The Board directed its staff to begin drafting a final ASU.

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

Disclosure framework: disclosure review — income taxes

The Board dis­cussed its pro­posed ASU Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes and made tentative decisions related to:

  • Potential new disclosures as a result of the Tax Cuts and Jobs Act.
  • Changes in tax law.
  • Disaggregation of pretax income (or loss) from continuing operations, income tax expense (or benefit), and income taxes paid.
  • Indefinitely reinvested foreign earnings.
  • Cash, cash equivalents, and marketable securities.
  • Unrecognized tax benefits.
  • Valuation allowances.
  • Effective tax rate reconciliation.
  • Carryforward disclosures for public business entities and entities other than public business entities.
  • Interim cash taxes paid.

The Board di­rected its staff to begin draft­ing a proposed ASU on the decisions made, other than those on disclosures.

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

Financial reporting effects of the Tax Cuts and Jobs Act

The staff gave the Board  an update on monitoring effects related to the financial reporting implications of tax reform.

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

Agenda request

The Board tentatively decided to amend ASU 2016-13 to allow entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost and that are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. An entity would make this election on an instrument-by-instrument basis. The Board di­rected its staff to begin draft­ing a proposed ASU for a vote by written ballot.

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

FASB document Image

FASB makes narrow-scope amendments to guidance on credit losses

Nov 15, 2018

The FASB has issued Accounting Standards Update (ASU) No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments — Credit Losses.”

For entities other than public business entities, ASU 2018-19 changes the effective date of the Board’s credit losses standard (ASU 2016-13) to fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Thus, the effective date for such entities’ annual financial statements is now aligned with that for their interim financial statements. Further, the ASU clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842.

For more in­for­ma­tion, see the press release and ASU on the FASB’s Web site.

SBAC meeting Image

SBAC holds November 2018 meeting

Nov 15, 2018

At its November 8, 2018, meeting, the Small Business Advisory Committee (SBAC) discussed certain identifiable intangible assets, goodwill, liabilities from equity, consolidation, and implementation of leases. The SBAC also held an open discussion on considerations related to small public companies.

For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

FASB meeting Image

FASB discusses improvements to guidance on credit losses

Nov 09, 2018

At its November 7, 2018, meeting, the FASB discussed implementation issues addressed at the November 1, 2018, meeting of its transition resource group (TRG) on credit losses.

The Board made ten­ta­tive de­ci­sions related to (1) recoveries; (2) negative allowances; (3) vintage disclosure of gross write-offs, gross recoveries, and revolving loans; (4) contractual extensions; (5) discounting cash flows when a method other than a discounted cash flow method is used; and (6) its cost-benefit analysis. In ad­di­tion, the Board di­rected its staff to begin draft­ing a proposed ASU for a vote by written ballot.

For more in­for­ma­tion, see De­loitte’s TRG Snapshot as well as the tentative Board decisions on the FASB’s Web site.

Sustainability Accounting Standards Board (SASB) lt green Image

SASB issues industry-specific sustainability accounting standards

Nov 08, 2018

The Sustainability Accounting Standards Board (SASB) has issued the world's first set of industry-specific sustainability accounting standards, which address financially material issues in 77 industries. The purpose of the standards is to provide investors with in-depth information about the impact of a company’s actions on society and the environment.

For more information, see the standards page on the SASB’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC staff updates C&DIs on Regulation S-K and Exchange Act rules and forms

Nov 07, 2018

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to various aspects of Regulation S-K and the Exchange Act rules and forms.

The updates include the following:

  • Regulation S-K C&DIs — Questions 101.01 and 133.09 of the Regulation S-K C&DIs have been withdrawn, and question 102.01, 102.02, and 202.01 have been updated.
  • Exchange Act C&DIs — Questions 130.04, 169.01, 169.02, and 169.03 of the rules C&DIs have been withdrawn, and question 104.13 of the forms C&DIs has been updated.

For more in­for­ma­tion, see the Regulation S-K, Ex­change Act rules, and Exchange Act forms C&DI pages on the SEC’s Web site.

FASB document Image

FASB proposes enhancements to the accounting for episodic television series

Nov 07, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Improvements to Accounting for Costs of Films and License Agreements for Program Materials,” in response to the EITF’s consensus-for-exposure on Issue 18-B.

The pro­posed ASU would “align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization” and would require entities to “reassess estimates of the use of a film for a film in a film group and account for any changes prospectively.”

Com­ments on the pro­posed ASU are due by December 7, 2018. For more in­for­ma­tion, see the press release and pro­posed ASU on the FASB’s Web site.

On November 8, 2018, the FASB issued for comment Proposed Taxonomy Improvements related to this proposed ASU. Comments on the proposed taxonomy improvements are due by December 7, 2018.

FASB document Image

FASB issues guidance on collaborative arrangements

Nov 05, 2018

The FASB has issued Accounting Standards Update (ASU) No. 2018-18, “Clarifying the Interaction Between Topic 808 and Topic 606.”

The ASU amends ASC 808 to:

  • Clarify that in the context of the unit of account, ASC 606 should apply in its entirety to certain transactions between collaborative arrangement participants.
  • Add “unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606.”
  • Clarify that when a transaction is not directly related to sales to third parties, presentation of the transaction as revenue would be precluded if the collaborative participant counterparty is not a customer.

For more in­for­ma­tion, see the press release and ASU on the FASB’s Web site.

FASB (US Financial Accounting Standards Board) Image

FASB issues staff paper related to implementation of the revenue recognition standard by private-company franchisors

Nov 05, 2018

The FASB has issued an educational staff paper containing examples designed to assist private-company franchisors with implementing the new revenue standard (ASC 606). One of the main topics addressed in the staff paper is the judgment a franchisor uses in identifying performance obligations.

For more information, see the press release and staff paper on the FASB’s Web site.

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