The next PCC meeting is sched­uled for December 13, 2016. For more in­for­ma­tion, see the media meeting recap on the FASB’s Web site.

The proposal would amend the accounting and disclosure model for long-duration insurance contracts under U.S. GAAP. The Board believes that the proposal would improve the following aspects of the financial reporting for such contracts:

• Measurement of the liability for future policy benefits.
• Market risk benefits.
• Deferred acquisition costs.
• Disclosures.

Specifically, the proposal aims to:

• “Improve the timeliness of recognizing changes in the liability for future policy benefits by requiring that updated assumptions be used to measure the liability for future policy benefits (that is, that assumptions be ‘unlocked’) and modify the rate used to discount future cash flows.”
• “Simplify and improve the accounting for certain options or guarantees embedded in variable contracts.”
• “Simplify the amortization of deferred acquisition costs.”
• “Improve the effectiveness of the required disclosures.”

Comments on the proposed ASU are due by December 15, 2016. For more information, see the press release, proposed ASU, and FASB in Focus newsletter on the FASB’s Web site.

The final rule establishes “enhanced standards for the operation and governance” of covered clearing agencies. The final rule’s scope includes “SEC-registered securities clearing agencies that have been designated as systemically important by the Financial Stability Oversight Council . . . or that are involved in more complex transactions.” Such clearing agencies “will be subject to new requirements regarding, among other things, their financial risk management, governance, recovery planning, operations, and disclosures to market participants and the public.” The final rule will become effective 60 days after the date of its publication in the Federal Register.

Under the proposed rule, a covered clearing agency would be defined as “a registered clearing agency that provides the services of a central counterparty . . . , central securities depository . . . , or a securities settlement system . . . .” The proposal would also define various terms related to covered clearing agencies.

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

The proposed rule would “shorten the standard settlement cycle for most broker-dealer transactions from three business days after the trade date (‘T+3’) to two business days after the trade date (‘T+2’).” The purpose of the proposed amendments is “to reduce a number of risks, including credit risk, market risk, and liquidity risk and, as a result, reduce systemic risk for U.S. market participants.”

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

For more information, see Question 139.33 of the Securities Act section C&DIs and Question 126.41 of the Securities Act form C&DIs on the SEC’s Web site.

The ED’s purpose is “to address a variety of “practice issues that have been identified during implementation and application of certain GASB Statements.” Topics covered in the ED include “issues related to component unit presentation, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits . . .).”

Comments on the ED are due by November 23, 2016. For more information, see the press release and ED on the GASB’s Web site.

The restructured SBAC “is intended to serve as a standing resource for the FASB in obtaining input from smaller public companies on existing guidance, current and proposed technical agenda projects, and longer-term issues affecting those organizations.”

FASB Chairman Russell Golden explained why the SBAC was restructured:

With the Private Company Council (PCC) increasing its focus on providing the FASB with private company perspectives on the FASB’s active agenda projects, we decided to take another look at the SBAC’s purpose to eliminate the duplication of the PCC’s efforts. Consequently, the FASB concluded that SBAC should shift its focus to the needs of small public companies, thereby further expanding our ability to serve all of our stakeholders by providing this unique group a dedicated voice in the process.

For more information, including the list of SBAC members, see the press release on the FASB’s Web site.

The proposed ASU “would shorten the amortization period for callable debt securities purchased at a premium.” Specifically, the proposal “would require the premium to be amortized to the earliest call date.” However, for securities purchased at a discount, accounting changes would not be required; rather, “the discount would continue to be amortized to maturity.”

Comments on the proposed ASU are due by November 28, 2016. For more information, see the proposed ASU on the FASB’s Web site.

The Board tentatively decided that all entities would be required to provide the following disclosures in their annual financial statements:

• “Inventory disaggregated by component.”
• “Inventory disaggregated by measurement basis.”
• “Changes to the inventory balance that are not specifically related to the purchase, manufacture, or sale of inventory in the ordinary course of business.”
• “A qualitative description of the costs capitalized into inventory.”
• “The effect of last-in, first-out (LIFO) liquidations on income.”
• “The replacement cost for LIFO inventory.”

Further, public business entities would be required to disclose, “in annual and interim periods, inventory by reportable segment or by component for each reportable segment if that information is regularly provided to the chief operating decision maker.”

The Board also tentatively decided to make various amendments to the inventory guidance in ASC 330.

The Board directed its staff to begin drafting a proposed ASU for a vote by written ballot. For more information, see the meeting minutes on the FASB’s Web site.

Updates include the following:

• New submission form types.
• Updated asset data schemas.
• Minor, documentation-only corrections.
• Software updates to address previous EDGAR updates.

For more information, see the announcement and final rule on the SEC’s Web site.