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June

Highlights of the FASB’s June 27 meeting

Jun 29, 2018

At its June 27, 2018, meeting, the FASB discussed its projects on (1) consolidation reorganization and targeted improvements and (2) the conceptual framework. In addition, the Board ratified two EITF Issues.

Consolidation reorganization and targeted improvements

The Board discussed feedback received on its proposed ASU, Consolidation (Topic 812): Reorganization, and tentatively decided to continue with the consolidation reorganization project.

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

Conceptual framework — elements

The Board dis­cussed application issues related to the tentative definition of a liability.

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

Ratification of EITF consensus and consensus-for-exposure

The FASB ratified the EITF’s:

  • Consensus on 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.”
  • Consensus-for-exposure on Issue No. 18-A, “Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract.”

The FASB directed its staff to draft an ASU and a proposed ASU on the consensus and consensus-for-exposure, respectively, for votes by written ballot.

For more information, see Deloitte’s June 2018 EITF Snapshot as well as the meeting minutes on the FASB’s Web site.

SEC proposes amendments to whistleblower rules

Jun 28, 2018

The SEC has issued a proposed rule that would amend existing rules related to its whistleblower program.

The pro­posal provides additional tools to assist with award determinations; establishes a uniform definition of “whistleblower”; increases the efficiency of processing whistleblower award applications; and clarifies and enhances certain policies, practices, and procedures related to implementing the program.

Com­ments on the proposed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the press release on the SEC’s Web site.

SEC amends certain disclosure requirements for registered open-end funds

Jun 28, 2018

The SEC has approved a new rule that amends the “public liquidity-related disclosure requirements for certain open-end funds.”

Specifically, such funds would be required to “discuss in their annual or semi-annual shareholder report the operation and effectiveness of their liquidity risk management programs.”

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

SEC proposes modernization of ETF regulatory framework

Jun 28, 2018

The SEC has issued a proposed rule that would “modernize the regulatory framework for exchange-traded funds (ETFs).”

The pro­posal “would permit ETFs that satisfy certain conditions to operate within the scope of the Investment Company Act of 1940 . . . and come directly to market without the cost and delay of obtaining an exemptive order.”

Com­ments on the proposed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the press release on the SEC’s Web site.

SEC issues amendments related to inline XBRL filing of tagged data

Jun 28, 2018

The SEC has approved a new rule that requires registrants to use the inline XBRL (iXBRL) format for operating companies and funds when submitting financial statement information and fund risk/return summary information. In addition, the rule removes the requirement for operating companies and funds to post XBRL data on their Web sites.

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

SEC and CFTC enter into memorandum of understanding

Jun 28, 2018

The SEC and the Commodity Futures Trading Commission (CFTC) have announced that they have entered into a memorandum of understanding (MoU) that is intended to “help ensure continued coordination and information sharing between the two agencies.”

Specifically, the MOU “updates and enhances a 2008 MOU to make it more relevant in the current market environment and promote efficiency in rulemaking, regulatory oversight, and enforcement.”

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

SEC amends the definition of smaller reporting company

Jun 28, 2018

The SEC has approved a new rule that amends the definition of a “smaller reporting company” to expand the number of companies that qualify for this classification and are therefore able to take advantage of the scaled disclosures in Regulation S-X and Regulation S-K that apply to such companies.

Under the final rule, smaller reporting companies “include registrants with a public float of less than $250 million, as well as registrants with annual revenues of less than $100 million for the previous year and either no public float or a public float of less than $700 million.” In view of this new definition of smaller reporting company, the final rule also revises other definitions, such as those for “accelerated filer” and “large accelerated filer,” in an effort to “preserve the existing thresholds in those definitions.”

For more in­for­ma­tion, see the press release and final rule on the SEC’s Web site. Also, watch for our upcoming Heads Up newsletter on these amendments.

IASB publishes discussion paper on financial instruments with characteristics of equity

Jun 28, 2018

The IASB has published a discussion paper (DP), “Financial Instruments With Characteristics of Equity.”

The DP requests feedback on “how companies issuing financial instruments should classify them in their financial statements.” The approach proposed in the DP would “provide a clear rationale for why a financial instrument would be classified as either a liability or equity without fundamentally changing the existing classification outcomes of IAS 32.”

Comments on the DP are due by January 7, 2019. For more information, see the press release, DP, Snapshot, and video on the IASB’s Web site.

FASB proposes amendment to the definition of collections

Jun 27, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Updating the Definition of Collections.”

The proposed ASU would amend the definition of the term “collections” in U.S. GAAP to modify one of the three conditions under which an entity is not required to “recognize contributions of works of art, historical treasures, and similar assets if the donated items are added to collections.” Specifically, under the proposal, an entity would be permitted to “use the proceeds from sales of collection items . . . to support the direct care of existing collections in addition to the current requirement that proceeds from sales of collection items be used to acquire other items for collections.”

Com­ments on the pro­posed ASU are due by August 10, 2018. For more in­for­ma­tion, see the pro­posed ASU on the FASB’s Web site.

SEC issues final rule to amend FOIA regulations

Jun 26, 2018

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

The final rule amends existing regulations under the Freedom of Information Act (FOIA) to reflect changes required by the FOIA Improvement Act of 2016. In addition, the final rule revises certain procedural and fee provisions and eliminates certain provisions that are repeated in the FOIA statute and do not need to be in the SEC’s regulations.

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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.