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2019

FAF reelects chairman and appoints vice-chairman and two new trustees

Apr 19, 2019

The Financial Accounting Foundation (FAF) has reelected Charles H. Noski as chairman of the board of trustees and has appointed Diane M. Rubin as vice-chairman.

In addition, the FAF has appointed two new trustees, Mary E. Barth and David H. Lillard.

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

FAF appoints new FASB member

Apr 18, 2019

The trustees of the Financial Accounting Foundation (FAF) have appointed Susan Cosper to the FASB for a five-year term beginning on May 1, 2019.

Ms. Cosper is currently the FASB’s technical director and chairman of the EITF. She will replace Board member Harold Monk, who resigned from the FASB in May 2018.

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

SEC updates procedure for confidential treatment extensions

Apr 16, 2019

The SEC has issued a short-form application that registrants can use to request an extension of the time they have been granted for confidential treatment of material contracts.

The application is intended to streamline the extension process for registrants that have previously obtained a confidential treatment order. Such registrants must continue to file extension applications under Rules 406 or 24b-2 if they want to protect confidential information from public release under a Freedom of Information Act request after their original extension order expires.

The short-form application may only be used for exhibits have already been the subject of an order granting confidential treatment and must be filed before the original order expires.

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

 

Highlights of the FASB’s April 10 meeting

Apr 11, 2019

At its April 10, 2019, meeting, the FASB discussed (1) simplifications to accounting for income taxes, (2) financial instruments — credit losses — targeted transition relief, (3) extending private-company accounting alternatives related to certain identifiable intangible assets and goodwill to not-for-profit entities, and (4) segment reporting.

Simplifications to accounting for income taxes

The Board decided to add to its agenda a project on simplifying the accounting for income taxes. Decisions made by the Board include those related to transition and to the removal of certain exceptions from ASC 740. 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.

Financial instruments — credit losses — targeted transition relief

The Board discussed comments received on its February 2019 proposed ASU, Targeted Transition Relief for Topic 326, Financial Instruments — Credit Losses. The FASB affirmed its decision to permit an entity to irrevocably elect the fair value option for certain instruments upon adoption of ASC 326, discussed effective date and transition, and concluded that the benefits of the proposed amendments would outweigh the costs.

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

Extending private-company accounting alternatives related to certain identifiable intangible assets and goodwill to not-for-profit entities

The Board discussed comments received on its December 2018 proposed ASU, Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, and directed its staff to begin drafting a final ASU for a vote by written ballot.

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

Segment reporting

As part of developing a study on segment disclosures, the Board discussed options to (1) expand the list of required segment disclosures in ASC 280 and (2) require that the disclosures in ASC 280 be reported in a tabular format.

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

PCC holds April 2019 meeting

Apr 11, 2019

At its April 1–2, 2019, meeting, the Private Company Council (PCC) discussed the FASB’s projects on (1) the practical expedient related to measuring the grant-date fair value of equity-classified share-based payment awards, (2) implementation topics, (3) distinguishing liabilities from equity, (4) disclosures by business entities about government assistance, (5) financial performance reporting, (6) simplifying the balance sheet classification of debt, (7) an issue related to the disaggregation of state-level income tax information, and (8) codifying SEC disclosures.

The next PCC meeting is sched­uled for June 24–25, 2019. For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

SEC opens comment period on the PCAOB’s proposals related to auditing accounting estimates and the use of specialists

Apr 05, 2019

The SEC has issued two notices of filing in which it announces that it has opened the comment periods for the PCAOB’s proposed rules on (1) auditing accounting estimates, including fair value measurements, and amendments to PCAOB auditing standards and (2) amendments to auditing standards on the auditor’s use of the work of specialists.

Comments on both releases are due 21 days after the date of their publication in the Federal Register. For more in­for­ma­tion, see the notices of filing on the PCAOB’s proposed rules on auditing accounting estimates and use of specialists on the SEC’s Web site. In addition, see Deloitte’s January 16, 2019, Audit & Assurance Update for more information about the two proposals.

CAQ updates publication on assessing external auditors

Apr 05, 2019

The Center for Audit Quality (CAQ) has released an updated version of its publication “External Auditor Assessment Tool.”

The purpose of the pub­li­ca­tion is to “assist audit com­mit­tees in car­ry­ing out their re­spon­si­bil­i­ties of ap­point­ing, over­see­ing, and de­ter­min­ing com­pen­sa­tion for the ex­ter­nal auditor.”

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

SEC makes announcement about exhibits containing immaterial, competitively harmful information

Apr 05, 2019

The SEC has posted to its Web site an announcement on the new rules and procedures in the Commission’s recently issued final rule “FAST Act Modernization and Simplification of Regulation S-K.”

The announcement addresses issues related to exhibits containing immaterial and competitively harmful information. Specific topics discussed in the announcement include (1) new rule requirements related to the identification of where information has been omitted from a filed exhibit, (2) the review process for registrant filings for compliance, and (3) transition issues.

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

President Trump nominates new SEC commissioner

Apr 05, 2019

President Donald Trump has announced the nomination of Allison Herren Lee to serve as SEC commissioner.

If con­firmed by the Senate, Ms. Lee will succeed Kara Stein.

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

Highlights of the FASB’s April 3 meeting

Apr 04, 2019

At its April 3, 2019, meeting, the FASB discussed (1) implementation issues related to credit losses and (2) distinguishing liabilities from equity (including convertible debt).

Financial instruments — implementation issues related to credit losses

The Board decided not to add a project to “explore modifying the accounting for expected credit losses by requiring that an entity bifurcate expected credit losses in net income and other comprehensive income.” In addition, the Board decided that an “entity is not required to disclose gross writeoffs and gross recoveries by vintage.”

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

Distinguishing liabilities from equity (including convertible debt)

The Board made tentative decisions related to convertible instruments, the derivatives scope exception for contracts on an entity’s own equity, other consequential amendments, and transition. In addition, the Board directed the staff to draft a proposed Accounting Standards Update for external review.

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

Correction list for hyphenation

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