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News

IAC meeting Image

FASB’s Investor Advisory Committee holds May 2019 meeting

May 24, 2019

At its May 14, 2019, meeting, the FASB’s Investor Advisory Committee (IAC) discussed IAC emerging issues and trends; disclosures by business entities about government assistance; segment reporting; and financial instruments — credit losses: vintage disclosures for gross write-offs and gross recoveries.

The next IAC meeting is sched­uled for November 12, 2019. For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

FAF (US Financial Accounting Foundation)  Image

FAF issues 2018 annual report

May 23, 2019

The Financial Accounting Foundation (FAF) has released its 2018 annual report.

The report high­lights the stan­dard-set­ting ac­tiv­i­ties of the FASB and GASB in 2018 and details how the boards “develop standards that work today and for the future — and how the FAF supports that process.” For more in­for­ma­tion, see the press release and annual report on the FAF’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB issues staff guidance on implementing CAM requirements

May 23, 2019

The PCAOB has issued a staff guidance document, “A Deeper Dive on the Communication of CAMs,” related to the implementation of the new critical audit matter (CAM) requirements.

The staff guidance document provides answers to a number of FAQs that address “questions that may arise when the auditor is communicating CAMs under AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.”

For more in­for­ma­tion, see the staff guidance document on the PCAOB’s Web site.

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FAF appoints new GASB member

May 22, 2019

The trustees of the Financial Accounting Foundation (FAF) have appointed Carolyn Smith to the GASB for a five-year term beginning on July 1, 2019.

Ms. Smith will replace GASB member David Sundstrom, whose second term concludes on June 30, 2019.

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

GASB (Governmental Accounting Standards Board) (blue) Image

GASB proposes guidance on subscription-based technology

May 21, 2019

The GASB has issued an exposure draft (ED), “Subscription-Based Information Technology Arrangements [SBITAs].”

The ED proposes “(1) defining a SBITA; (2) establishing that a SBITA would result in a right-to-use subscription asset — an intangible asset — and a corresponding subscription liability; (3) providing the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requiring note disclosures of essential information regarding a SBITA.”

Comments on the ED are due by August 23, 2019. For more information, see the press release and ED on the GASB’s Web site.

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IASB proposes amendments as part of annual improvements project

May 21, 2019

The IASB has published an exposure draft (ED), “Annual Improvements to IFRS Standards 2018–2020.”

The ED, which is part of the IASB’s annual im­prove­ments process (i.e., a project to make necessary, but nonur­gent, amend­ments to IFRS Standards that will not be made as part of another major project), would make revisions to the following standards:

  • IFRS 1, First-time Adoption of International Financial Reporting Standards.
  • IFRS 9, Financial Instruments.
  • IFRS 16, Leases (just the accompanying illustrative examples).
  • IAS 41,

Comments on the ED are due by August 20, 2019. For more information, see Deloitte’s IFRS in Focus newsletter as well as the press release and ED on the IASB’s Web site.

CAQ (US Center for Audit Quality) Image

CAQ releases highlights of March 2019 joint meeting with the SEC staff

May 17, 2019

The Center for Audit Quality (CAQ) has published highlights of the March 20, 2019, CAQ SEC Regulations Committee joint meeting with the SEC staff.

Topics discussed at the meeting included:

  • Individually tailored non-GAAP financial measures.
  • Emerging growth company (EGC) transition requirements for new accounting standards.
  • Presentation of the contractual obligations table upon adoption of the new leasing standard, ASC 842.
  • Presentation of earnings before interest, tax, depreciation, and amortization (EBITDA) after the adoption of ASC 842.
  • Regulation S-X, Rule 3-05, requirements for EGCs submitting a draft registration statement for an IPO.
  • Impact of ASC 842 on significance tests under Rule 3-05.
  • Financial statement schedules for an investee under Regulation S-X, Rule 3-09.
  • The requirement to file a Form 8-K under Item 2.01 when a waiver for Rule 3-05 financial statements has been obtained.

For more information, see the meeting highlights on the CAQ’s Web site.

CAQ document Image

CAQ issues publication on emerging technology

May 17, 2019

The Center for Audit Quality (CAQ) has released a publication, “Emerging Technologies, Risk, and the Auditor’s Focus — A Resource for Auditors, Audit Committees, and Management.”

This publication “explores financial reporting implications of the evolving use of technology such as artificial intelligence, the internet of things, and smart contracts.”

For more information, see the publication on the CAQ’s Web site.

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FASB issues ASU to ease transition to the credit losses standard

May 15, 2019

The FASB has issued an Accounting Standards Update (ASU), “Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief.”

The ASU  “allows an option for preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard.” The overall purpose of the new guidance is to enhance “the comparability of financial statement information provided by institutions that otherwise would have reported similar financial instruments using different measurement methodologies, potentially decreasing costs for financial statement preparers while providing more useful information to investors and other users.”

For entities that have not yet adopted the credit losses standard, the ASU will be effective when the credit losses standard is implemented. For entities that have adopted the credit losses standard, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

For more information, see Deloitte's related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.

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FASB proposes simplifications to accounting for income taxes

May 14, 2019

The FASB has issued a proposed ASU, “Simplifying the Accounting for Income Taxes.”

The proposal, which is part of the Board’s simplification initiative, is aimed at reducing the complexity and costs of income tax accounting. Specifically, the proposed ASU would (1) remove certain exceptions to the general principles in ASC 740 and (2) simplify certain aspects of income-tax-related GAAP for financial statement preparers. The proposal would not create new accounting requirements in ASC 740.

Comments on the proposed ASU are due by June 28, 2019. For more information, see the press release and proposed ASU on the FASB’s Web site.

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