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News

FASB document Image

FASB issues ASUs to defer effective dates of certain major standards

Nov 15, 2019

The FASB has issued Accounting Standards Updates (ASUs) 2019-09 and 2019-10, which delay certain effective dates of four major standards.

ASU 2019-09 gives all insurance entities that issue long-duration insurance contracts (e.g., life insurance and annuities) additional time to implement ASU 2018-12 (codified in ASC 944).

ASU 2019-10 gives private companies, not-for-profit entities, and certain small public companies additional time to implement the Board’s standards on current expected credit losses (ASC 326), derivatives and hedging (ASC 815), and leases (ASC 842).

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

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Highlights of the FASB’s November 13 meeting

Nov 15, 2019

At its November 13, 2019, meeting, the FASB discussed (1) the measurement and elements phases of its conceptual framework project and (2) reference rate reform.

Conceptual framework — measurement

The Board discussed the potential issuance of an invitation to comment (ITC) on the measurement chapter of the conceptual framework. Although the Board did not make any official decisions on this matter at the meeting, it directed the staff to begin work on the ITC and indicated that it would provide its input as part of the drafting process.

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

Conceptual framework — elements

The Board made tentative decisions related to the definitions of the terms “equity” (net assets), “owner,” and “comprehensive income.” In addition, the Board tentatively decided that a future concepts statement should be consistent with the amendments in Accounting Standards Update (ASU) No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.

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

Reference rate reform — facilitation of the effects of the interbank offered rate transition on financial reporting

The Board discussed feedback on its proposed ASU Facilitation of the Effects of Reference Rate Reform on Financial Reporting and tentatively decided to provide “temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting.” The FASB directed its staff to draft a final ASU for a vote by written ballot.

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

FASB document Image

FASB proposes improvements to hedge accounting

Nov 12, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Codification Improvements to Hedge Accounting.”

The pro­posed ASU would clarify certain aspects of the Board’s new hedging standard, ASU 2017-12, including (1) changes in hedged risk in a cash flow hedge, (2) contractually specified components in cash flow hedges of nonfinancial forecasted transactions, (3) foreign-currency-denominated debt instruments designated as hedging instruments and hedged items, and (4) using the term “prepayable” under the shortcut method. According to FASB Chairman Russ Golden, the purpose of the proposed ASU is to “promote . . . better, more consistent application” of the hedging standard by better aligning certain aspects of the standard with its “stated objectives.”

Com­ments on the pro­posed ASU are due by January 13, 2020. For more in­for­ma­tion, see the press release and FASB in Focus newslet­ter on the FASB’s Web site.

On November 13, 2019, the FASB issued for comment Proposed Taxonomy Improvements for Proposed Accounting Standards Update, Derivatives and Hedging (Topic 815): Codification Improvements to Hedge Accounting. Comments on the proposed taxonomy improvements are due by January 13, 2020.
FASB document Image

FASB issues guidance on share-based payments made to customers

Nov 11, 2019

The FASB has issued Accounting Standards Update (ASU) No. 2019-08, “Codification Improvements — Share-Based Consideration Payable to a Customer.”

The ASU clarifies the accounting for share-based payments issued as consideration payable to a customer under ASC 606. Under the ASU, entities are required to apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives).

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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EITF discusses two Issues at November meeting

Nov 08, 2019

At its meeting yesterday, the EITF discussed (1) the interaction between ASC 321 and ASC 323 and (2) contract modifications of licenses of intellectual property.

Specif­i­cally, the EITF dis­cussed the fol­low­ing Issues:

  • Issue 19-A, “Fi­nan­cial In­stru­ments — Clar­i­fy­ing the In­ter­ac­tion Between Topic 321 and Topic 323.”
  • Issue 19-B, “Revenue Recog­ni­tion — Con­tract Mod­i­fi­ca­tions of Li­censes of In­tel­lec­tual Prop­erty.”

For a de­tailed summary of the meeting, see De­loitte’s November EITF Snap­shot and the meeting recap on the FASB's Web site.

FASB meeting Image

FASB discusses not-for-profit reporting of gifts-in-kind

Nov 07, 2019

At its November 6, 2019, meeting, the FASB discussed its project on not-for-profit reporting of gifts-in-kind.

The Board made tentative decisions about the project’s scope, as well as about presentation, disclosure, and transition.

The FASB di­rected its staff to begin draft­ing a proposed ASU for a vote by written ballot.

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

EITF (Emerging Issues Task Force) (mid blue) Image

FASB appoints new EITF member

Nov 07, 2019

The FASB has appointed Aleks Zabreyko as an EITF member.

Mr. Zabreyko joins the EITF from Connor Group, where he currently serves as partner and strategic markets leader.

Mr. Zabreyko’s term is effective immediately.

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

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CAQ and Audit Analytics issue report on audit committee transparency

Nov 06, 2019

The Center for Audit Quality (CAQ) and Audit Analytics have issued the 2019 edition of “Audit Committee Transparency Barometer.”

The publication an­a­lyzes “how public company audit com­mit­tees approach the public communication of their external auditor over­sight ac­tiv­i­ties.” In ad­di­tion, the report provides statistics on disclosure trends, including those related to cybersecurity, as well as examples of effective disclosures provided by S&P 1500 companies in filings between July 1, 2018, and June 30, 2019.

For more in­for­ma­tion, see the press release and report on the CAQ’s Web site.

SEC document Image

SEC proposes to modernize shareholder proposal rule

Nov 06, 2019

The SEC has issued a proposed rule, “Procedural Requirements and Resubmission Thresholds Under Exchange Act Rule 14a-8.”

The pro­posal would:

  • “[U]pdate the criteria, including the ownership requirements, that a shareholder must satisfy to be eligible to have a shareholder proposal included in a company’s proxy statement.”
  • “[U]pdate the ‘one proposal’ rule to clarify that a single person may not submit multiple proposals at the same shareholder’s meeting, whether the person submits a proposal as a shareholder or as a representative of a shareholder.”
  • “[M]odernize the levels of shareholder support a proposal must receive to be eligible for resubmission at the same company’s future shareholder meetings.”

Com­ments on the pro­posed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the following on the SEC’s Web site:

SEC document Image

SEC proposes amendments to rules related to proxy voting advice

Nov 06, 2019

The SEC has issued a proposed rule, “Amendments to Exemptions From the Proxy Rules for Proxy Voting Advice.”

The pro­posal would “enhance the quality of the disclosure about material conflicts of interest that proxy voting advice businesses provide their clients [and] provide an opportunity for a period of review and feedback through which companies and other soliciting parties would be able to identify errors in the proxy voting advice.”

Com­ments on the pro­posed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the following on the SEC’s Web site:

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