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February

SEC updates timing requirements for Form N-PORT

Feb 28, 2019

The SEC has issued an interim final rule, “Amendments to the Timing Requirements for Filing Reports on Form N-PORT.”

The final rule changes the timing of filing nonpublic monthly reports from within 30 days after each month-end to 60 days after the end of each fiscal quarter. In addition, “non-public monthly reports on Form N-PORT for the first and second months of the fiscal quarter will remain non-public and the monthly report for the third month will become publicly available upon filing (with the exception of certain specific data items), rather than being filed non-publicly no later than 30 days after the end of the fiscal quarter and being made public 60 days after the end of the fiscal quarter.”

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

FAF trustees reappoint GASB member

Feb 28, 2019

The FAF board of trustees has reappointed Brian W. Caputo to serve his second term as a GASB member.

Mr. Caputo’s second term will begin on July 1, 2019, and end on June 30, 2025. For more in­for­ma­tion, see the press release on the FAF’s Web site.

New members appointed to FASAC and IAC

Feb 25, 2019

The FAF trustees and the FASB have appointed new members to the Financial Accounting Standards Advisory Council (FASAC) and the Investor Advisory Committee (IAC), respectively.

Specifically, the trustees have appointed Karen J. Garnett to the FASAC and the FASB has appointed Nichole Burnap and Mark Hamel to the IAC.

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

SEC proposes to expand “test-the-waters” modernization reform

Feb 19, 2019

The SEC has issued a proposed rule, “Solicitations of Interest Prior to a Registered Public Offering.”

The pro­posal would allow all potential issuers, not just emerging growth companies, “to engage in test-the-waters communications with certain institutional investors regarding a contemplated registered securities offering prior to, or following, the filing of a registration statement related to such offering.”

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 and proposed rule on the SEC’s Web site.

FASB issues proposal and invitation to comment on the recognition and measurement of deferred revenue in business combinations

Feb 14, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Business Combinations (Topic 805): Revenue From Contracts With Customers — Recognizing an Assumed Liability (a consensus of the FASB Emerging Issues Task Force),” and an Invitation to Comment (ITC), “Measurement and Other Topics Related to Revenue Contracts With Customers Under Topic 805.”

The pro­posed ASU would “require that an entity (acquirer) recognize a liability assumed in a business combination from a contract with a customer if that liability represents an unsatisfied performance obligation under Topic 606 for which the acquiree has received consideration (or the amount is due) from the customer.”

The ITC was issued to obtain feedback from stakeholders on “payment terms and their effect on the subsequent revenue recognized” and “the costs to fulfill a performance obligation in measuring the fair value of a contract liability for a revenue contract under Topic 805.”

Com­ments on the pro­posed ASU and ITC are due by April 30, 2019. For more in­for­ma­tion, see the press release, pro­posed ASU, and ITC on the FASB’s Web site.

Highlights of the FASB’s February 13 meeting

Feb 14, 2019

At its February 13, 2019, meeting, the FASB discussed its projects on (1) distinguishing liabilities from equity, (2) segment reporting, and (3) codification improvements related to leases.

Distinguishing liabilities from equity (including convertible debt)

The Board made tentative decisions related to the application of the derivatives scope exception to contracts on an entity’s own equity, earnings per share for convertible instruments, and disclosures.  

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

Segment reporting

The Board discussed “an analysis of options to potentially improve how the management approach applies to the segment disclosure requirements” and directed its staff to “study how clarifying the meaning of regularly reviewed segment information would affect the pieces of information public entities report by segment.”

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

Codification improvements related to leases

The Board completed redeliberations of its proposed ASU Codification Improvements for Lessors. It made decisions related to several issues, including (1) determining the fair value of an underlying asset if a lessor is not a manufacturer or dealer and (2) the presentation in the statement of cash flows of sales-type and direct financing leases by lessors that are within the scope of ASC 942. The Board directed its staff to draft a final ASU for a vote by written ballot.

In addition, the Board deliberated certain issues unrelated to the proposed ASU that were raised in comment letters. It decided to clarify that entities that adopt ASC 842 do not need to provide the interim-period disclosures required by ASC 250-10-50-3.

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

SEC posts drafts of EDGAR Filer Manual for upcoming EDGAR release

Feb 13, 2019

The SEC has issued drafts of Volume II and certain technical specifications related to its Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) Filer Manual for upcoming EDGAR Release 19.1.

The new release is sched­uled for im­ple­men­ta­tion on March 11, 2019. The drafts have not been ap­proved by the Com­mis­sion and are subject to change. The final version of the EDGAR Filer Manual will be posted on the SEC’s Web site once it has been ap­proved.

For more in­for­ma­tion, see the fol­low­ing on the SEC’s Web site:

FASB and ASBJ hold biannual meeting

Feb 13, 2019

On February 7–8, 2019, the FASB met with the Accounting Standards Board of Japan (ASBJ) in Tokyo, Japan. The meeting is the 25th in a series of biannual meetings the two standard setters hold to further their “cooperative efforts to develop high-quality global accounting standards.”

In ad­di­tion to giving updates on their re­spec­tive stan­dard-set­ting ac­tiv­i­ties at the meeting, the two boards ex­changed views on tech­ni­cal topics in which they both have an in­ter­est, in­clud­ing business combinations, good­will, performance reporting and disclosures, leases, and liabilities and equity.

The next meeting between the FASB and ASBJ is ex­pected to be held in the second half of 2019 in Norwalk, Connecticut. For more in­for­ma­tion about the latest meeting, see the press release on the FASB’s Web site.

SEC staff issues C&DIs related to disclosure of certain self-identified diversity characteristics

Feb 07, 2019

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to preparing certain disclosures about self-identified diversity characteristics that may be required under Regulation S-K, Item 401, or, with respect to nominees, under Regulation S-K, Item 407.

Specifically, the SEC has added Questions 116.11 and 133.13.

For more in­for­ma­tion, see the Regulation S-K C&DI page on the SEC’s Web site.

FASB proposes to ease transition to the credit losses standard

Feb 06, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Targeted Transition Relief for Topic 326, Financial Instruments — Credit Losses.”

The pro­posed ASU would “allow preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard.” Com­ments on the pro­posed ASU are due by March 8, 2019.

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

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