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April

FAF president to step down

Apr 26, 2019

FAF president and CEO Teresa S. Polley has announced that she will resign from the organization.

Ms. Polley joined the FAF in 1987 and became president in 2008 and CEO in 2010. She will remain with the FAF until details of a leadership transition are finalized. John W. Auchincloss will serve as acting president until a replacement is made.

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

FASB makes narrow-scope amendments to financial instruments standards

Apr 25, 2019

The FASB has issued an Accounting Standards Update (ASU), “Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.”

The ASU is intended to clarify and improve “areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement.”

For more information, see our related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.

FASB discusses financial performance reporting

Apr 25, 2019

At its April 24, 2019, meeting, the FASB discussed its project on financial performance reporting, specifically the portion of the project dedicated to disaggregation of performance information.

The Board discussed an “internal view approach” in which the objective is “to disaggregate income statement expense information based on how management internally views consolidated expenses.” No decisions were made, but the Board directed its staff to begin outreach efforts related to this topic.

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

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 meeting minutes 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 minutes 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.

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