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September

GASB issues two preliminary views documents

Sep 28, 2018

The GASB has issued for public comment preliminary views documents on (1) improvements to the financial reporting model and (2) recognition of elements in financial statements.

Preliminary views on improvements to the financial reporting model

This document would improve the effectiveness of the financial reporting model by “providing information essential to decision making and assessing a government’s accountability.” The Board plans to issue a subsequent proposal that would enhance other aspects of the financial reporting model.

Preliminary views on recognition of elements in financial statements

This document proposes (1) “that an item being considered for recognition in financial statements would be evaluated using a hierarchy for recognition of elements” and (2) “a recognition framework for both short-term financial resources measurement focus . . . and the economic resources measurement focus.”

Next steps

Comments on both preliminary views documents are due by February 15, 2019. In addition, the GASB will hold public hearings and user forums on the preliminary views in March 2019. See the press release on the GASB’s Web site for more information.

EITF discusses two Issues at September meeting

Sep 28, 2018

At its meeting yesterday, the EITF discussed assumed liabilities in revenue contracts and accounting for episodic television series.

Specifically, the EITF discussed the following Issues:

  • Issue 18-A, “Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract.”
  • Issue 18-B, “Improvements to Accounting for Episodic Television Series.”

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

 

Highlights of the FASB’s September 26 meeting

Sep 27, 2018

At its September 26, 2018, meeting, the FASB discussed its project on updating the definition of collections and announced that it would be conducting preagenda research on hedging.

The Board discussed feedback received on its proposed ASU, Updating the Definition of Collections, and began redeliberations. The FASB directed its staff to conduct further research on direct care.

During the open discussion, Chairman Russ Golden asked the staff to conduct preagenda research on potential hedge accounting issues that are broader than the amendments made in ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. 

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

SEC proposes amendments to NRSRO rules

Sep 27, 2018

The SEC has issued a proposed rule, “Amendments to Rules for Nationally Recognized Statistical Rating Organizations” (NRSROs), which would codify an existing temporary exemption for credit rating agencies registered with the SEC as NRSROs.

Specifically, the rule “would provide an exemption from a rule for NRSROs with respect to credit ratings if the issuer of the security or money market instrument referred to in the rule is not a U.S. person, and the NRSRO has a reasonable basis to conclude that all offers and sales of such security or money market instrument by any issuer, sponsor, or underwriter linked to such security or money market instrument will occur outside the United States.”

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

SEC staff publishes C&DI clarifying compliance date of recently issued rule

Sep 26, 2018

The staff in the SEC’s Division of Corporation Finance has released a compliance and disclosure interpretation (C&DI) related to the effective date of the SEC’s recently issued final rule, “Disclosure Update and Simplification.”

The SEC’s final rule was issued in August 2018 and is effective for all filings made 30 days after the date of its publication in the Federal Register. The C&DI states:

In light of the anticipated timing of effectiveness of the amendments and expected proximity of effectiveness to the filing date for most filers’ quarterly reports, the staff would not object if the filer’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments.

For more information, see Question 105.09 of the Exchange Act Forms C&DIs on the SEC’s Web site.

SEC issues guide on EDGAR filings for issuers of asset-backed securities

Sep 24, 2018

The SEC’s Division of Corporation Finance has issued “Staff Guidance for EDGAR Filings for Asset-Backed Securities Issuers.”

The guide includes Q&As related to certain programming changes to the EDGAR system to support revisions to Regulation AB and Exchange Act Rule 15Ga-2.

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

Highlights of the September 2018 Not-for-Profit Advisory Committee meeting

Sep 21, 2018

At its September 13–14, 2018, meeting, the FASB’s Not-for-Profit Advisory Committee (NAC) discussed (1) contributions received and contributions made, (2) implementation issues related to certain FASB ASUs, (3) updating the definition of “collections,” and (4) other recently issued ASUs and ongoing FASB projects.

Contributions received and contributions made

The NAC discussed feedback on ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.

Im­ple­men­ta­tion issues related to certain FASB ASUs

Committee members discussed implementation issues related to the following guidance:

  • ASU 2014-09, Revenue From Contracts With Customers.
  • ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.
  • ASU 2016-02, Leases.
  • ASU 2016-13, Measurement of Credit Losses on Financial Instruments.

Updating the definition of “collections”

The NAC discussed feedback on its proposed ASU Updating the Definition of Collections.

Other recently issued ASUs and ongoing FASB projects

Committee members discussed recent FASB activity, including:

  • Accounting for goodwill and certain intangibles.
  • Disclosure framework projects (both the entity’s decision process and the Board’s decision process).
  • Financial performance reporting.
  • Balance sheet classification of debt.
  • Cloud computing.
  • Collaborative arrangements.
  • Consolidation reorganization.

Other topics discussed

The NAC also discussed (1) the FASB’s response to the Tax Cuts and Jobs Act; (2) international not-for-profit activities; and (3) recent trends, concerns, and observations related to the NFPs.

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

SEC proposes rule on single issuer exemption for broker-dealers

Sep 21, 2018

The SEC has issued a proposed rule, “Amendment to Single Issuer Exemption for Broker-Dealers,” which would amend the exemption provisions in the broker-dealer annual reporting rule under the Securities Exchange Act of 1934.

Specifically, the rule would “provide that a broker-dealer is not required to engage an independent public accountant to certify the broker-dealer’s annual reports if, among other things, the securities business of the broker-dealer has been limited to acting as broker (agent) for a single issuer in soliciting subscriptions for securities of that issuer.”

Comments on the proposed rule 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.

CAQ releases highlights of July 2018 meeting with SEC staff

Sep 19, 2018

The Center for Audit Quality (CAQ) has released the highlights of the July 12, 2018, CAQ SEC Regulations Committee joint meeting with the SEC staff.

Topics dis­cussed at the meeting in­cluded:

  • Disclosures required by ASC 606, Revenue From Contracts With Customers.
  • Letters about serious deficiencies.
  • Smaller reporting companies.
  • SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”
  • Audit requirements for transactions involving special-purpose acquisition companies.
  • Transition from emerging growth company status.
  • Critical audit matters.
  • Non-GAAP measures.

For more in­for­ma­tion, see our related journal entry as well as the press release on the CAQ’s Web site.

FASB staff proposes taxonomy improvements

Sep 17, 2018

The FASB staff has proposed taxonomy enhancements — including technical and other conforming improvements — related to the 2019 draft versions of the U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy.

Com­ments on the proposed taxonomy improvements are due by October 13, 2018. For more information, see the release notes for the U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy.

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.