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FASB proposes guidance on modification accounting for share-based payment awards

Nov 17, 2016

The FASB has issued a proposed ASU, “Scope of Modification Accounting.”

The pro­posed ASU would “provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.”

Com­ments on the pro­posed ASU are due by January 6, 2017. For more in­for­ma­tion, see Deloitte's related Heads Up newsletter as well as the pro­posed ASU on the FASB’s Web site.

FASB issues ASU on restricted cash

Nov 17, 2016

The FASB has issued ASU 2016-18, “Restricted Cash,” in response to the EITF’s consensus on Issue 16-A.

The ASU requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents.”

The ASU will become effective for public business entities on December 15, 2017. For more information, see Deloitte’s Heads Up newsletter and September 2016 EITF Snapshot as well as the final ASU on the FASB’s Web site.

SEC staff publishes C&DIs on Securities Act rules

Nov 17, 2016

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to Regulations A and D of the Securities Act rules.

The C&DIs address the following questions:

  • Whether “an issuer that seeks to qualify an additional class of securities by post-qualification amendment to a previously qualified offering statement” is required to disclose “only the additional class of securities for which qualification is being sought” (Question 182.12).
  • How issuers “calculate whether the change in price in an offering exceeds 20% of the maximum aggregate offering price” (Question 182.13).
  • Whether “an issuer seeking to rely on Regulation A [may] omit financial information for historical periods if it reasonably believes that those financial statements will not be required at the time of the qualification of the Form 1-A” (Question 182.14).
  • Whether “the factors listed in the Note to Rule 502(a) [are] the sole means by which the issuer determines whether all of the offers and sales constitute a single offering.” (Question 256.34).

For more in­for­ma­tion, see the Securities Act rules C&DI page on the SEC’s Web site.

FAF trustees revamp committees

Nov 16, 2016

The FAF board of trustees has reorganized the structure of its committees to improve its effectiveness and efficiency.

As of January 1, 2017, the FAF trustee committees will consist of the following:

  • Appointments.
  • Audit and finance.
  • Human resources.
  • Standard-setting process oversight.
  • Executive.

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

FAF completes post-implementation review of GASB’s guidance on fund balance reporting

Nov 16, 2016

The FAF has released a post-implementation review (PIR) report on GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definition.”

The PIR report con­cluded that State­ment 54 has achieved its ob­jec­tives. Spe­cific find­ings noted by the PIR team in­cluded the fol­low­ing:

  • “Statement 54 resolved the primary issues underlying its stated need.”
  • “Statement 54 provides users of financial statements with decision-useful information.”
  • “Statement 54 is operational because it is understandable, can be applied as intended, and enables fund balance and governmental fund type information to be reported reliably.”
  • “The changes made to financial and operating practices as a result of Statement 54 were not significant or unexpected.”
  • “There were no significant unanticipated consequences as a result of the adoption of Statement 54.”
  • “Overall, implementation and continuing application costs associated with Statement 54 were not significant and were consistent with the GASB’s expectations.”
  • “Overall, Statement 54 achieved its expected benefits.”

For more in­for­ma­tion, see the press release and PIR report on the FAF’s Web site as well as the GASB’s re­sponse letter to the FAF on the GASB’s Web site.

SEC approves national market system plan to create a consolidated audit trail

Nov 16, 2016

The SEC has approved the national market system (NMS) plan under which a consolidated audit trail and other related data would be created, implemented, and maintained.

The NMS plan provides “methods by which SROs and broker-dealers will record and report information, including the identity of the customer, resulting in a range of data elements that together provide the complete lifecycle of all orders and transactions in the U.S. equity and options markets.”

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

FAF trustees add new members to PCC and change committee’s oversight responsibility

Nov 16, 2016

The FAF board of trustees has appointed Beth I. van Bladel, David J. Hirsch, Richard N. Reisig, and Yan Zhang to the Private Company Council (PCC). The new members will begin their three-year terms on January 1, 2017.

In addition, the FAF trustees announced that the new Standard-Setting Process Oversight Committee (SSPOC) has been charged with the oversight of the PCC. The SSPOC will be replacing the Private Company Review Committee, which will be disbanded on January 1, 2017, when the change takes effect.

For more in­for­ma­tion, see the membership and oversight transition press releases on the FAF’s Web site.

FAF trustees reappoint FASB chairman and appoint new Board members

Nov 16, 2016

The FAF board of trustees has reappointed FASB Chairman Russell G. Golden for a second term and has appointed two new members to the Board, Masha L. Hunt and Harold L. Monk Jr.

Chairman Golden’s second term will begin on July 1, 2017, and end on June 30, 2020. Ms. Hunt will succeed Lawrence W. Smith, whose term concludes on June 30, 2017. Mr. Monk will succeed Daryl E. Buck, who is retiring from his position on December 31, 2016.

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

SEC chair to end tenure

Nov 15, 2016

SEC Chair Mary Jo White has announced that she plans to leave the SEC at the end of the Obama Administration.

Chair White, who was appointed to the position in April 2013, stated that she is “very proud of our three consecutive years of record enforcement actions, dozens of fundamental reforms through our rulemakings that have strengthened investor protections and market stability, and that the job satisfaction of our phenomenal staff has climbed in each of the last three years.”

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

Highlights from the FASB’s November 9 meeting

Nov 11, 2016

At its November 9, 2016, meeting, the FASB discussed its projects on (1) clarifying the definition of a business and (2) when a not-for-profit entity (NFP) that is a general partner should consolidate a for-profit limited partnership or similar entity.

Clarifying the definition of a business

The FASB redeliberated its proposed ASU Clarifying the Definition of a Business and made tentative decisions about an entity’s ability to early adopt the forthcoming amendments to the definition of a business. The Board 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.

Not-for-profit entities: consolidation

The FASB dis­cussed feedback received on its pro­posed ASU Clarifying When a Not-for-Profit Entity That Is a General Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. The Board affirmed its previous tentative decision to maintain current practice for not-for-profit general partners and made tentative decisions on transition disclosures, effective date, and cost-benefit analysis. In addition, the Board au­tho­rized its staff to draft a final ASU.

For more in­for­ma­tion, see Deloitte's related journal entry as well as the meeting minutes on the FASB’s Web site.

Correction list for hyphenation

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