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November

SEC amends Staff Accounting Bulletin series to make it consistent with current guidance

Nov 30, 2017

The SEC has issued Staff Accounting Bulletin (SAB) No. 117, which amends certain SAB Topics to make them consistent with current auditing and accounting guidance, especially the FASB’s ASC 321, "Investments — Equity Securities."

Specifically, SAB 117 amends SAB Topic 5, "Miscellaneous Accounting," to note that Topic 5.M is no longer applicable upon adoption of ASC 321. ASC 321 creates new guidance that "eliminates the ability to present changes in the fair value of investments in equity securities within other comprehensive income, which eliminates the need for Topic 5.M."

FASB releases investor podcasts on hedging and credit losses

Nov 29, 2017

The FASB has released two investor podcasts on the impacts of the hedging and credit losses financial accounting and reporting standards.

Topics discussed during these investor podcasts include the following:

  • Hedging
    • Basics of hedge accounting
    • Hedging examples
    • Changes under the new standard
    • Component hedging
    • New disclosures
    • Effective date
  • Credit losses
    • Who is affected by the new standard
    • Applying the standard and its impact
    • New disclosures
    • Implementation activities
    • Effective date

The hedging and credit losses podcasts are available on the FASB’s YouTube channel.

FASB amends certain SEC paragraphs in ASC 220, ASC 605, and ASC 606

Nov 22, 2017

The FASB has issued Accounting Standards Update (ASU) No. 2017-14, “Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403.”

The ASU amends various paragraphs in ASC 220, Income Statement — Reporting Comprehensive Income; ASC 605, Revenue Recognition; and ASC 606, Revenue From Contracts With Customers, that contain SEC guidance. The amendments include superseding ASC 605-10-S25-1 (SAB Topic 13) as a result of SEC Staff Accounting Bulletin No. 116 and adding ASC 606-10-S25-1 as a result of SEC Release No. 33-10403.

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

FASB combines ASC 220 and ASC 225

Nov 17, 2017

As part of its project on Codification improvements, the FASB has published a maintenance update that combines the guidance in ASC 220, “Comprehensive Income,” and ASC 225, “Income Statement,” into one topic.

Specifically, ASC 220 has been renamed to “Income Statement — Reporting Comprehensive Income” and the related guidance in ASC 225 has been moved to ASC 220; however, no incremental changes to the actual guidance have been made.

SEC chairman issues statement on consolidated audit trail

Nov 16, 2017

SEC Chairman Jay Clayton has issued a statement regarding the request by national securities exchanges and FINRA (the “SROs”) to extend the initial deadline for reporting related to the consolidated audit trail (CAT) by one year and other deadlines by a year or more.

Chairman Clayton indicated that he was “not in a position to support the issuance of the requested relief on the terms currently proposed” and that he has “instructed the SEC staff to make themselves available to the SROs as necessary or appropriate” to bring the CAT online. In addition, he stressed the importance of protecting the information submitted to the CAT and noted that the SEC staff is currently evaluating the need for personally identifiable information in the CAT.

For more information, see Chairman Clayton’s statement on the SEC’s Web site.

FAF announces FASB and trustee appointments

Nov 15, 2017

The FAF has announced that James L. Kroeker has been reappointed as FASB vice-chairman and that Gary R. Buesser has been appointed as a FASB board member. In addition, Kathleen L. Casey, Jeffrey L. Esser, and David C. Villa have been appointed to the FAF board of trustees.

Mr. Kroeker and Mr. Buesser will begin their terms on July 1, 2018, while the new trustees’ terms will begin on January 1, 2018.

For more in­for­ma­tion, see the press releases on the FASB and FAF appointments on the FAF’s Web site.

FASB discusses disclosure framework

Nov 10, 2017

At its November 8, 2017, meeting, the FASB discussed the entity’s decision process component of its disclosure framework project.

The Board made tentative decisions related to the definition of materiality in Chapter 3, “Qualitative Characteristics of Useful Financial Information,” of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting. In addition, the Board directed the staff to draft Chapter 3 and Chapter 8, “Notes to Financial Statements,” of Concepts Statement 8.

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

GASB proposes guidance to clarify majority equity interests

Nov 10, 2017

The GASB has issued an exposure draft (ED), “Accounting and Financial Reporting for Majority Equity Interests.”

The objective of the ED is to “clarify the accounting and financial reporting for a state or local government’s majority equity interest in an organization that remains legally separate after acquisition.”

Com­ments on the ED are due by January 19, 2018. For more in­for­ma­tion, see the press release and ED on the GASB’s Web site.

SEC staff publishes C&DI on safeguards for sensitive company information

Nov 07, 2017

The staff in the SEC’s Division of Corporation Finance has released a compliance and disclosure interpretation (C&DI) on whether companies can implement safeguards with respect to electronic access to Rule 701(e) disclosure information.

For more information, see Question 271.25 of the Securities Act rules C&DIs on the SEC’s Web site.

SEC issues staff legal bulletin on exclusion of shareholder proposals

Nov 03, 2017

The SEC’s Division of Corporation Finance has issued Staff Legal Bulletin (SLB) 14I, “Shareholder Proposals,” which provides its views on the exclusion of shareholder proposals under Rule 14a-8 of the Securities Exchange Act of 1934.

Specif­i­cally, the SLB clar­i­fies the scope and ap­pli­ca­tion of Rules 14a-8(i)(5) and 14-8(i)(7). In addition, the SLB provides information on proposals submitted on behalf of shareholders and the use of images in shareholder proposals.

The views ex­pressed in the SLB should not be con­sid­ered a rule, reg­u­la­tion, or state­ment of the SEC. For more in­for­ma­tion, see SLB 14I on the SEC’s Web site.

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