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December

U.S. Senate confirms two new Commissioners of the SEC

Dec 27, 2017

On December 22, 2017, the United States Senate confirmed Hester Peirce and Robert L. Jackson as Commissioners of the SEC.

See the statement issued by Chairman Jay Clayton and Commissioners Kara M. Stein and Michael S. Piwowar on the SEC's Web site. Also, see the U.S.GAAP Plus news items for more information on the nominations of Ms. Peirce and Mr. Jackson.

SEC issues guidance on tax reform law

Dec 22, 2017

The SEC has issued Staff Accounting Bulletin No. 118 (“SAB 118”) and Exchange Act Form 8-K Compliance and Disclosure Interpretation Question 110.02 (“C&DI Question 110.02”) in response to the passage of the Tax Cuts and Jobs Act.

As stated in the SEC’s December 22, 2017, press release, SAB 118 provides the SEC staff’s views on the “application of U.S. GAAP when preparing an initial accounting of the income tax effects of the Act.” C&DI Question 110.02 provides views on the “applicability of Item 2.06 of Form 8K with respect to reporting the impact of a change in tax rate or tax laws pursuant to the Act.”

For more information, see the press release, SAB 118, C&DI Question 110.02, and the joint statement by SEC Chairman Jay Clayton and SEC Commissioners Kara Stein and Michael Piwowar on the SEC’s Web site.

SEC proposes to amend FOIA regulations

Dec 22, 2017

The SEC has issued a proposed rule, “Amendments to the Commission’s Freedom of Information Act [FOIA] Regulations.”

The proposal would revise the SEC’s FOIA regulations to comply with the FOIA Improvement Act of 2016 and would “clarify, update, and streamline the language of several procedural provisions.”

Com­ments on the pro­posal are due 30 days after the date of its publication in the Federal Register. For more in­for­ma­tion, see the pro­posed rule on the SEC’s Web site.

FASB releases 2018 U.S. GAAP and SEC taxonomies

Dec 22, 2017

The FASB has released the 2018 U.S. GAAP Financial Reporting Taxonomy and 2018 SEC Reporting Taxonomy.

The 2018 version of the U.S. GAAP tax­on­omy “con­tains updates for ac­count­ing stan­dards and other im­prove­ments.” The 2018 SEC taxonomy “contains elements necessary to meet SEC requirements for financial schedules required by the SEC, condensed consolidating financial information for guarantors, and disclosures about oil- and gas-producing activities.”

Both tax­on­omies are subject to final SEC approval, which is expected to be granted in early 2018.

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

Tax reform bill signed into law

Dec 21, 2017

The U.S. House of Representatives and Senate have passed the Tax Cuts and Jobs Act, which will amend the current tax code by “reducing certain tax rates and modifying policies, credits, and deductions for individuals and businesses.” On December 22, 2017, President Donald J. Trump signed the tax bill into law.

For more information, see the press release on the White House Web site and the tax reform bill on Congress’s Web site. In addition, watch for Deloitte’s upcoming Financial Reporting Alert on the tax bill, including implications for year-end reporting.

FASB adds project on new benchmark interest rate to its agenda

Dec 21, 2017

At its December 20, 2017, meeting, the FASB decided to add to its technical agenda a project in which the overnight index swap rate based on the secured overnight financing rate would be included as an eligible benchmark interest rate for hedge accounting purposes under ASC 815, “Derivatives and Hedging.”

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

GASB issues implementation guide on postemployment benefits other than pensions

Dec 20, 2017

The GASB has issued Implementation Guide No. 2017-3, “Accounting and Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting).”

The im­ple­men­ta­tion guide con­sist­s of Q&As that clarify or explain “the re­quire­ments of State­ment No. 75, Ac­count­ing and Fi­nan­cial Re­port­ing for Postem­ploy­ment Ben­e­fits Other Than Pen­sions, as amended, and State­ment No. 74, Fi­nan­cial Re­port­ing for Postem­ploy­ment Benefit Plans Other Than Pension Plans, as amended.”

For more in­for­ma­tion, see the press release and implementation guide on the GASB’s Web site.

PCC holds December 2017 meeting

Dec 15, 2017

At its December 8, 2017, meeting, the Private Company Council (PCC) discussed the FASB’s projects on cloud computing and disaggregation of performance information as well as Board decisions on ITC agenda.

The next PCC meeting is sched­uled for April 20, 2018. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

Highlights of the FASB’s December 13 meeting

Dec 15, 2017

At its December 13, 2017, meeting, the FASB discussed (1) implementation of its standard on credit losses, (2) improvements to nonemployee share-based payment accounting, (3) revenue recognition of grants and contracts by not-for-profit entities, (4) distinguishing liabilities from equity, (5) segment reporting, and (6) financial performance reporting.

Financial instruments — implementation of standard on credit losses

The Board dis­cussed various implementation issues related to ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and made tentative decisions on troubled debt restructurings, variable-rate financial assets, and subsequent events.

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

Improvements to nonemployee share-based payment accounting

The Board dis­cussed feedback received on its proposed ASU Improvements to Nonemployee Share-Based Payment Accounting. The Board directed its staff to draft a final ASU for a vote by written ballot.

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

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

The Board dis­cussed feedback received on its proposed ASU Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. No decisions were made.

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

Distinguishing liabilities from equity

The Board held an educational session to discuss the project plan. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

Segment reporting

The Board held an educational session to discuss the project plan and the interaction with its project on disclosure framework: disclosure review — inventory. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

Financial performance reporting — disaggregation of performance

The Board held an educational session to discuss the project plan and the staff’s research on presentation practices of private companies. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

FAF trustees announce new and reappointed GASAC members

Dec 15, 2017

The FAF trustees have appointed five new members to the Governmental Accounting Standards Advisory Council (GASAC). The trustees have also announced the reappointments of eight GASAC members.

In ad­di­tion, Alan Skelton was ap­pointed as vice-chair­man. For more in­for­ma­tion, see the press re­lease on the FAF’s Web site.

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