This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

2019

FASB issues guidance on share-based payments made to customers

Nov 11, 2019

The FASB has issued Accounting Standards Update (ASU) No. 2019-08, “Codification Improvements — Share-Based Consideration Payable to a Customer.”

The ASU clarifies the accounting for share-based payments issued as consideration payable to a customer under ASC 606. Under the ASU, entities are required to apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives).

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

EITF discusses two Issues at November meeting

Nov 08, 2019

At its meeting yesterday, the EITF discussed (1) the interaction between ASC 321 and ASC 323 and (2) contract modifications of licenses of intellectual property.

Specif­i­cally, the EITF dis­cussed the fol­low­ing Issues:

  • 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 November EITF Snap­shot.

FASB discusses not-for-profit reporting of gifts-in-kind

Nov 07, 2019

At its November 6, 2019, meeting, the FASB discussed its project on not-for-profit reporting of gifts-in-kind.

The Board made tentative decisions about the project’s scope, as well as about presentation, disclosure, and transition.

The FASB di­rected its staff to begin draft­ing a proposed ASU for a vote by written ballot.

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

FASB appoints new EITF member

Nov 07, 2019

The FASB has appointed Aleks Zabreyko as an EITF member.

Mr. Zabreyko joins the EITF from Connor Group, where he currently serves as partner and strategic markets leader.

Mr. Zabreyko’s term is effective immediately.

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

CAQ and Audit Analytics issue report on audit committee transparency

Nov 06, 2019

The Center for Audit Quality (CAQ) and Audit Analytics have issued the 2019 edition of “Audit Committee Transparency Barometer.”

The publication an­a­lyzes “how public company audit com­mit­tees approach the public communication of their external auditor over­sight ac­tiv­i­ties.” In ad­di­tion, the report provides statistics on disclosure trends, including those related to cybersecurity, as well as examples of effective disclosures provided by S&P 1500 companies in filings between July 1, 2018, and June 30, 2019.

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

SEC proposes to modernize shareholder proposal rule

Nov 06, 2019

The SEC has issued a proposed rule, “Procedural Requirements and Resubmission Thresholds Under Exchange Act Rule 14a-8.”

The pro­posal would:

  • “[U]pdate the criteria, including the ownership requirements, that a shareholder must satisfy to be eligible to have a shareholder proposal included in a company’s proxy statement.”
  • “[U]pdate the ‘one proposal’ rule to clarify that a single person may not submit multiple proposals at the same shareholder’s meeting, whether the person submits a proposal as a shareholder or as a representative of a shareholder.”
  • “[M]odernize the levels of shareholder support a proposal must receive to be eligible for resubmission at the same company’s future shareholder meetings.”

Com­ments on the pro­posed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the following on the SEC’s Web site:

SEC proposes amendments to rules related to proxy voting advice

Nov 06, 2019

The SEC has issued a proposed rule, “Amendments to Exemptions From the Proxy Rules for Proxy Voting Advice.”

The pro­posal would “enhance the quality of the disclosure about material conflicts of interest that proxy voting advice businesses provide their clients [and] provide an opportunity for a period of review and feedback through which companies and other soliciting parties would be able to identify errors in the proxy voting advice.”

Com­ments on the pro­posed rule are due 60 days after the date of its pub­li­ca­tion in the Federal Reg­is­ter. For more in­for­ma­tion, see the following on the SEC’s Web site:

SEC staff extends temporary measure related to cross-border implementation of the European Union’s MiFID II research provisions

Nov 05, 2019

The staff of the SEC’s Division of Investment Management has announced that it has extended the expiration date — from July 3, 2020, to July 3, 2023 — of a temporary no-action letter related to complying with research provisions of the European Union’s Markets in Financial Instruments Directive II (MiFID II).

The staff notes that before this expiration date, the SEC staff would “not recommend enforcement action to the Commission under the Investment Advisers Act of 1940 against broker-dealers receiving payments in hard dollars or through research payments from clients subject to MiFID II.”

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

SEC proposes changes to advertising and cash solicitation rules for investment advisers

Nov 05, 2019

The SEC has issued a proposed rule, “Investment Adviser Advertisements; Compensation for Solicitations.”

The pro­posal would amend rules under the Investment Advisers Act of 1940 that “prohibit certain investment adviser advertisements and payments to solicitors.” The proposed amendments would “reflect changes in technology, the expectations of investors seeking advisory services, and the evolution of industry practices.”

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 on the SEC’s Web site.

FASB discusses Codification improvements

Nov 01, 2019

At its October 30, 2019, meeting, the FASB discussed proposed technical corrections to and minor clarifications of the Codification.

The Board made decisions related to the following terms in the ASC master glossary:

  • Expected losses and expected residual returns.
  • Financial instrument.
  • Transaction.
  • Cash balance plan.

The Board considered the effective date and transition requirements of ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, and ASU 2016-13, Measurement of Credit Losses on Financial Instruments, before directing its staff to begin drafting a proposed ASU for a vote by written ballot.

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