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2019

Highlights of the FASB’s June 19 meeting

Jun 20, 2019

At its June 19, 2019, meeting, the FASB discussed (1) reference rate reform, (2) distinguishing liabilities from equity, and (3) the conceptual framework (elements and measurement).

Reference rate reform

The FASB discussed accounting relief for companies required to modify contracts as a result of new global reference rates. The Board tentatively decided that “for a contract that meets certain criteria, a change in that contract’s reference interest rate would be accounted for as a continuation of that contract rather than the creation of a new contract.” 

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

Distinguishing liabilities from equity (including convertible debt)

The Board made tentative decisions related to the scope of the guidance in ASC 815-40-50, disclosure frequency, calculation of the diluted earnings per share denominator, classification of the detachable stock purchase warrant, the remote threshold, and penalty payments. The FASB directed its staff to begin drafting a proposed ASU for a vote by written ballot.

For more in­for­ma­tion, see the tentative Board discussions on the FASB’s Web site.

Conceptual framework — elements

The Board made tentative decisions related to the definition of an asset.

For more in­for­ma­tion, see the tentative Board discussions on the FASB’s Web site.

Conceptual framework — measurement

The Board dis­cussed an approach to its project on developing a chapter on measurement in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting.

For more in­for­ma­tion, see the tentative Board discussions on the FASB’s Web site.

AICPA proposes amendments to converge concepts in SSARS with global standards

Jun 20, 2019

The AICPA’s Accounting and Review Services Committee has issued a proposed Statement on Standards for Accounting and Review Services (SSARS), “Materiality in a Review of Financial Statements, Adverse Conclusions, and Special Purpose Frameworks.”

The proposed amendments are intended to more closely align SSARS with International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements, and thereby “facilitate the accountant’s ability to perform and report on engagements in accordance with both sets of standards.”

Comments on the proposed SSARS are due by September 20, 2019. For more information, see the proposed SSARS on the AICPA’s Web site.

SEC amends auditor independence rules related to loan provision

Jun 18, 2019

The SEC has issued a final rule, “Auditor Independence With Respect to Certain Loans or Debtor-Creditor Relationships.”

The final rule amends the auditor independence rules by refocusing “the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client at any time during an audit or professional engagement period.”

The final rule is effective 90 days after its publication in the Federal Register. For more information, see the press release and final rule on the SEC’s Web site.

SEC issues concept release on harmonizing securities offering exemptions

Jun 18, 2019

The SEC has issued “Concept Release on Harmonization of Securities Offering Exemptions.”

The concept release seeks public comment on “several exemptions from registration under the Securities Act of 1933 that facilitate capital raising.” As a result of significant changes over the years to the overall framework for exempt offerings, the SEC is asking for feedback on “possible ways to simplify, harmonize, and improve [that] framework to promote capital formation and expand investment opportunities while maintaining appropriate investor protections.”

Comments on the concept release should be submitted no later than 90 days after the document’s publication in the Federal Register. For more information, see the press release and concept release on the SEC’s Web site.

GASB issues implementation guide on fiduciary activities

Jun 17, 2019

The GASB has issued Implementation Guide No. 2019-02, “Fiduciary Activities,” which contains questions and answers on the application of GASB Statement No. 84, “Fiduciary Activities.”

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

EITF discusses three Issues at June meeting

Jun 14, 2019

At its meeting yesterday, the EITF discussed assumed liabilities in revenue contracts, the interaction between ASC 321 and ASC 323, and contract modifications of licenses of intellectual property.

Specif­i­cally, the EITF dis­cussed the fol­low­ing Issues:

  • Issue 18-A, “Recog­ni­tion Under Topic 805 for an Assumed Li­a­bil­ity in a Revenue Con­tract.”
  • Issue 19-A, “Financial Instruments — Clarifying the Interaction between Topic 321 and Topic 323.”
  • Issue 19-B, “Revenue Recognition — Contract Modifications of Licenses of Intellectual Property.”

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

GASB proposes guidance on public-private and public-public partnership arrangements

Jun 13, 2019

The GASB has issued an exposure draft (ED), “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.”

The objective of the proposed guidance is to “better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into [public-private and public-public partnership arrangements (PPPs) and availability payment arrangements(APAs)] and by enhancing the relevance, reliability, and consistency of information about PPPs and APAs.”

Com­ments on the ED are due by September 13, 2019. For more in­for­ma­tion, see the press release and ED on the GASB’s Web site.

FASB appoints three new EITF members

Jun 12, 2019

The FASB has appointed Liesl Nebel, Jeremy Perler, and Matthew Schechter as EITF members.

The terms of all three new members are effective immediately.

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

FASB updates taxonomies in response to the issuance of the SEC’s 2019 Document and Entity Information Taxonomy

Jun 11, 2019

The FASB has announced the issuance of the SEC’s Document and Entity Information (DEI) Taxonomy. The Board notes that, in response to the issuance of the DEI taxonomy, it has updated the 2019 US GAAP Financial Reporting Taxonomy and 2019 SEC Reporting Taxonomy to incorporate “additional entry points” that are intended to make the taxonomies easier to use.

For more information, see the 2019 taxonomy page on the FASB’s Web site.

SEC amends the single issuer exemption for broker-dealers

Jun 11, 2019

The SEC has issued a final rule, “Amendment to Single Issuer Exemption for Broker-Dealers.”

The final rule clarifies the scope of an existing exemption under which a broker-dealer is not required to “engage an independent public accountant to certify the broker-dealer’s annual reports filed with the Commission 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.”

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.