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January

GASB publishes cost-benefit summary on leasing guidance

Jan 31, 2018

The GASB has issued a publication, “Understanding Costs and Benefits: Leases.”

The eight-page document describes the GASB’s process for evaluating the costs and benefits of its guidance on leases, including its latest standard on this topic, Statement 87. Specifically, the document explains how the GASB concluded that “the expected benefits of the new standards justify the costs .”

For more information, see the cost-benefit summary on the GASB’s Web site.

FASB discusses improvements to guidance on leases

Jan 25, 2018

At its January 24, 2018, meeting, the FASB discussed comments received on its September 2017 proposed ASU, “Technical Corrections and Improvements to Recently Issued Standards: II. Accounting Standards Update No. 2016-02, Leases (Topic 842).”

At this meeting, the FASB made tentative decisions related to:

  • Transition guidance related to leases acquired as part of a business combination.
  • Lessor recognition of variable payments for nonlease components.
  • Other feedback received on the proposed ASU.

The Board directed its staff to begin drafting a final ASU for a vote by written ballot.

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

FASB clarifies the application of new leasing standard to land easements

Jan 25, 2018

The FASB has issued Accounting Standards Update (ASU) No. 2018-01, “Land Easement Practical Expedient for Transition to Topic 842.”

The ASU provides “an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840.” In addition, the ASU clarifies that a “new or modified land easement should be assessed prospectively under Topic 842 to determine whether it is or contains a lease.”

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

FASB discusses improvements to guidance on financial instruments

Jan 23, 2018

At its January 19, 2018, meeting, the FASB discussed comments received on its September 2017 proposed ASU, “Technical Corrections and Improvements to Recently Issued Standards: Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.”

At this meeting, the FASB made tentative decisions related to:

  • Equity securities without a readily determinable fair value:
    • Discontinuation.
    • Adjustments.
  • Presentation requirements for certain fair value option liabilities.
  • Fair value option liabilities denominated in a foreign currency.
  • Transition guidance for equity securities without a readily determinable fair value.

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

FASB staff issues four tax reform Q&As

Jan 22, 2018

The FASB staff has issued four Q&As on certain implementation issues related to the Tax Cuts and Jobs Act.

The Q&As discuss the following topics:

  • Whether to discount the tax liability on the deemed repatriation.
  • Whether to discount alternative minimum tax credits that become refundable.
  • Accounting for the base erosion anti-abuse tax.
  • Accounting for global intangible low-taxed income.

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

EITF discusses cloud computing arrangements at January meeting

Jan 19, 2018

At its January 18, 2018, meeting, the EITF discussed Issue No. 17-A, “Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract.”

The EITF also discussed the FASB staff’s Q&As on the financial reporting effects of the Tax Cuts and Jobs Act.

For a detailed summary of the meeting, see the meeting recap on the FASB's Web site as well as Deloitte’s January 2018 EITF Snapshot.

FASB proposes income tax guidance related to new tax reform law

Jan 18, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income.”

The proposed ASU would amend ASC 220, Income Statement — Reporting Comprehensive Income, to require “financial statement preparers to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (or portion thereof) is recorded.” The reclassification amount “would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate.”

Comments on the proposed ASU are due by February 2, 2018. For more information, see the press release and proposed ASU on the FASB’s Web site.

FASB issues Q&A document on tax reform

Jan 11, 2018

The FASB has published a Q&A document, “Whether Private Companies and Not-for-Profit Entities [NFPs] Can Apply SAB 118.”

The FASB stated that it would not object if private companies and NFPs apply SEC Staff Accounting Bulletin (SAB) No. 118 related to the income tax accounting implications of the Tax Cuts and Jobs Act, as long as they apply “all relevant aspects of the SAB in its entirety.”

For more information, see the press release and Q&A document on the FASB’s Web site.

FASB discusses tax reform

Jan 11, 2018

At its January 10, 2018, meeting, the FASB discussed the financial reporting effects of the Tax Cuts and Jobs Act.

The Board decided to add the following projects to its agenda:

  • A narrow-scope project on the “reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act.”
  • A broader project on “accounting for subsequent effects of changes in deferred tax liabilities and assets that were originally charged or credited directly to equity (‘backwards tracing’).”

In addition, the Board made tentative decisions related to transition method and disclosures as well as the potential early adoption provisions and effective date of the proposed amendments. 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.

AICPA issues revenue working draft for broker-dealers

Jan 09, 2018

The AICPA’s Revenue Recognition Task Force has released for public comment a working draft on accounting issues associated with the implementation of the new revenue standard for broker-dealers.

The working draft addresses selling and distribution fee revenue.

Comments on the working draft are due by March 1, 2018. For more information, see the revenue recognition resource page on the AICPA’s Web site.

Correction list for hyphenation

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