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US GAAP Plus: Year in review — 2016

Dec 29, 2016

US GAAP Plus turned three in September.

Over the past year, we expanded our collection of U.S. GAAP/IFRS comparisons, which highlight the key differences between the two sets of accounting standards, to include 23 topics (and counting!).

In addition, our overall visitor numbers grew exponentially, and our Twitter followers (@DeloitteAcctg) received regular updates about the content on US GAAP Plus and other financial reporting Web sites.

Our most popular pages remain our accounting standards summaries, but interest in our news, publications, resource pages, and project summaries continues to be high.

Our 10 most popular stories of 2016
  1. FASB issues ASU on share-based payments (March).
  2. IASB issues new leasing standard (January).
  3. FASB issues ASU on leases (February).
  4. FASB issues new standard on impairment of financial instruments (June).
  5. FASB issues ASU on principal versus agent considerations (March).
  6. FASB issues guidance on certain cash flow classification issues (August).
  7. FASB issues ASU rescinding certain SEC guidance (May).
  8. IASB amends insurance contracts standard (September).
  9. FASB clarifies guidance on licensing and identifying performance obligations (April).
  10. FASB clarifies revenue guidance on practical expedients (May).
Our 10 most popular publications of 2016
  1. Heads Up — FASB’s new standard brings most leases onto the balance sheet (March).
  2. Heads Up — FASB issues final standard on accounting for credit losses (June).
  3. Heads Up — Frequently Asked Questions about ASU 2016-09 (June).
  4. A Roadmap to applying the new revenue recognition standard (September).
  5. Heads Up — SEC urges companies to take a fresh look at their non-GAAP measures (May).
  6. A Roadmap to the preparation of the statement of cash flows (March).
  7. Financial Reporting Alert 16-1 — Financial reporting considerations related to the UK’s vote to leave the EU (June).
  8. Heads Up — Controls and non-GAAP measures (July).
  9. Heads Up — FASB amends guidance on classification and measurement of financial instruments (January).
  10. Heads Up — FASB simplifies the accounting for share-based payments (April).

We wish you a happy and safe New Year. We look forward to bringing you the latest financial reporting news in 2017.

SEC issues technical correction related to the holder of record threshold

Dec 22, 2016

The SEC has issued a final rule, “Technical Correction: Changes to Exchange Act Registration Requirements to Implement Title V and Title VI of the JOBS Act.”

The final rule revises the language in Rule 12g-1 under the Securities Exchange Act of 1934 “to more precisely reflect the holder of record threshold.”

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

FAF trustees announce new members

Dec 22, 2016

The FAF board of trustees has appointed Susan J. Carter, Anthony J. Dowd, and T. Eloise Foster to the FAF Board of Trustees. The new members will begin their terms on January 1, 2017.

In ad­di­tion, Gary H. Bruebaker has been appointed as vice-chair.

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

FASB issues technical corrections and improvements to its new revenue standard

Dec 22, 2016

The FASB has issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, ‘Revenue From Contracts With Customers,’” which would make minor changes to the Board’s new revenue guidance.

The tech­ni­cal cor­rec­tions affect the fol­low­ing narrow aspects of the new revenue stan­dard:

  • Loan guarantee fees.
  • Con­tract costs — im­pair­ment testing.
  • Con­tract costs — in­ter­ac­tion of im­pair­ment testing with guid­ance in other topics.
  • Pro­vi­sions for losses on con­struc­tion-type and pro­duc­tion-type con­tracts.
  • Scope of the new revenue stan­dard.
  • Dis­clo­sure of re­main­ing per­for­mance oblig­a­tions.
  • Disclosure of prior-period performance obligations.
  • A con­tract mod­i­fi­ca­tion example.
  • Contract asset versus receivable.
  • Refund liability.
  • Advertising costs.
  • Fixed-odds wa­ger­ing con­tracts in the casino in­dus­try.
  • Cost cap­i­tal­iza­tion for ad­vis­ers to private and public funds.

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

Highlights from the FASB’s December 14 meeting

Dec 16, 2016

At its December 14, 2016, meeting, the FASB discussed its projects on (1) clarifying the scope of ASC 610-20 and accounting for partial sales of nonfinancial assets, (2) revenue recognition of grants and contracts by not-for-profit entities, and (3) disclosure framework — entity’s decision process.

Clarifying the scope of ASC 610-20 and accounting for partial sales of nonfinancial assets

The Board (1) discussed feedback received on an external review draft of its final Accounting Standards Update (ASU) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, (2) decided to amend parts of its transition guidance, and (3) directed the staff to draft a final ASU for a vote by written ballot.

For more information, see the meeting minutes on the FASB's Web site.

Revenue recognition of grants and contracts by not-for-profit entities

The Board continued its deliberations, focusing on improving and clarifying the guidance in ASC 958 on (1) characterizing grants and contracts as reciprocal or nonreciprocal transactions and (2) distinguishing between conditional and unconditional contributions.

For more information, see the meeting minutes on the FASB's Web site.

Disclosure framework — entity’s decision process

The Board discussed comments received on its proposed ASU Assessing Whether Disclosures Are Material and its proposed concepts statement Conceptual Framework for Financial Reporting — Chapter 3: Qualitative Characteristics of Useful Financial Information.

For more information, see the meeting minutes on the FASB's Web site.

FASB releases 2017 U.S. GAAP Financial Reporting Taxonomy

Dec 15, 2016

The FASB has released the 2017 U.S. GAAP Financial Reporting Taxonomy.

The taxonomy “is a list of computer-readable tags in eXtensible Business Reporting Language (XBRL) format that allows companies to tag precisely the thousands of pieces of financial data that are included in typical long-form financial statements and related footnote disclosures.” The 2017 version of the taxonomy “contains updates for accounting standards and other improvements to the official Taxonomy previously in use by SEC issuers.”

The SEC needs to approve the taxonomy before it becomes official; the Commission is expected to do so in early 2017.

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

IFRS Foundation publishes proposed IFRS taxonomy update

Dec 15, 2016

The IFRS Foundation has published a proposed IFRS taxonomy update, “IFRS Taxonomy 2016 — Common Practice.”

The update contains additional taxonomy concepts that reflect new IFRSs and improvements to IFRSs, technical updates, and corrections. This update includes taxonomy elements for entities in agriculture, leisure, franchises, retail, and financial institutions.

Comments on the proposed update are due by February 15, 2017. For more information, see the press release and proposed update on the IASB’s Web site.

FASB makes technical corrections to the Codification

Dec 14, 2016

The FASB has issued Accounting Standards Update (ASU) No. 2016-19, “Technical Corrections and Improvements,” which makes minor changes to certain aspects of the FASB Accounting Standards Codification.

The types of changes made by the ASU can be categorized as follows:

  • Changes to resolve differences between current and pre-Codification guidance (e.g., FASB Statements, EITF Issues).
  • Updates to wording and references to avoid misapplication.
  • Textual simplifications to increase the Codification’s utility and understandability.
  • Minor amendments to guidance that “are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.”

Most changes are effective upon issuance of the ASU; certain changes, however, are effective for interim and annual reporting periods beginning after December 15, 2016.

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

SEC approves the PCAOB’s 2017 budget and accounting support fee

Dec 14, 2016

At today’s public meeting, the SEC reviewed and approved the PCAOB’s 2017 annual budget and accounting support fee, a task that the Commission is required to perform annually in accordance with the Sarbanes-Oxley Act.

The PCAOB, which approved its 2017 budget on November 17, 2016, requested funding of approximately $268.5 million, a 4 percent increase from its 2016 budget of $257.7 million. The budget will be used to support the programs and operations in the Board’s 2015−2019 strategic plan.

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

CAQ issues publication on revenue for audit committees

Dec 13, 2016

The Center for Audit Quality (CAQ) has released a publication, “Preparing for the New Revenue Recognition Standard: A Tool for Audit Committees.”

The purpose of the publication is to “provide audit committees information that may be helpful as they fulfill their oversight responsibilities and interact with management and external auditors on [revenue recognition].”

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

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