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.

News

FASB meeting Image

FASB ratifies EITF consensus

Nov 22, 2019

At its November 20, 2019, meeting, the FASB ratified the Emerging Issues Task Force (EITF) consensus on Issue 19-A, “Financial Instruments — Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815,” and directed its staff to draft a final Accounting Standards Update (ASU) for a vote by written ballot.

For more in­for­ma­tion, see De­loitte’s EITF Snap­shot as well as the tentative Board decisions on the FASB’s Web site.

SEC document Image

SEC aligns Staff Accounting Bulletin series with ASC 326

Nov 22, 2019

The SEC has issued Staff Accounting Bulletin (SAB) No. 119, which aligns certain portions of its interpretive guidance with FASB Accounting Standards Codification (ASC) Topic 326, “Financial Instruments — Credit Losses.”

Specifically, SAB 119 adds Section M, “Financial Reporting Release No. 28 — Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC Topic 326,” to SAB Topic 6, “Interpretations of Accounting Series Releases and Financial Reporting Releases.”

For more in­for­ma­tion, see the SAB 119 page on the SEC’s Web site.

IFRS Foundation badge (dk green) Image

IFRS Foundation issues guide on accounting policies

Nov 21, 2019

The IFRS Foundation has issued “Guide to Selecting and Applying Accounting Policies — IAS 8.”

This guide outlines the following three-step process companies can use to “determine their accounting policies when preparing IFRS financial statements”:

  • Step 1 — “Consider whether an IFRS Standard specifically applies to the transaction, other event or condition.”
  • Step 2 — “Consider whether IFRS Standards deal with similar and related issues.”
  • Step 3 — “Refer to and consider the applicability of the ‘Conceptual Framework for Financial Reporting.’”

The steps are accompanied by examples illustrating how they are applied.

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

IAC meeting Image

FASB’s Investor Advisory Committee holds November 2019 meeting

Nov 20, 2019

The FASB’s Investor Advisory Committee (IAC) met on November 12, 2019.

Topics dis­cussed at the meeting include IAC emerg­ing issues and trends, accounting for revenue contracts in a business combination, contract modifications of licenses of intellectual property, disclosure framework — interim reporting, reference rate reform, and financial performance reporting — disaggregation.

The next IAC meeting is sched­uled for May 14, 2020. For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB approves its 2020 budget and 2019–2023 strategic plan

Nov 20, 2019

The PCAOB has approved its budget for fiscal year 2020 and strategic plan for 2019–2023.

The budget includes funding for “investments in personnel, processes, and technology, and will provide the Board with the resources necessary to continue to make progress toward implementing its strategic plan.”

The five-year strategic plan “guides the PCAOB’s programs and operations and serves as the foundation for the budget.” Spe­cific ob­jec­tives of the plan include:

  • Im­prov­ing “the quality of audit ser­vices through a com­bi­na­tion of pre­ven­tion, de­tec­tion, de­ter­rence, and re­me­di­a­tion.”
  • An­tic­i­pat­ing and re­spond­ing to “the chang­ing en­vi­ron­ment, in­clud­ing emerg­ing tech­nolo­gies and related risks and op­por­tu­ni­ties.”
  • En­hanc­ing “trans­parency and ac­ces­si­bil­ity through proac­tive stake­holder en­gage­ment.”
  • Pur­su­ing “op­er­a­tional ex­cel­lence through ef­fi­cient and ef­fec­tive use of . . . re­sources, in­for­ma­tion, and tech­nol­ogy.”

The budget is subject to approval by the SEC at its December 18, 2019, meeting.

For more in­for­ma­tion, see the press release and 2019–2023 strate­gic plan on the PCAOB’s Web site.

FASB document Image

FASB issues ASUs to defer effective dates of certain major standards

Nov 15, 2019

The FASB has issued Accounting Standards Updates (ASUs) 2019-09 and 2019-10, which delay certain effective dates of four major standards.

ASU 2019-09 gives all insurance entities that issue long-duration insurance contracts (e.g., life insurance and annuities) additional time to implement ASU 2018-12 (codified in ASC 944).

ASU 2019-10 gives private companies, not-for-profit entities, and certain small public companies additional time to implement the Board’s standards on current expected credit losses (ASC 326), derivatives and hedging (ASC 815), and leases (ASC 842).

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

FASB meeting Image

Highlights of the FASB’s November 13 meeting

Nov 15, 2019

At its November 13, 2019, meeting, the FASB discussed (1) the measurement and elements phases of its conceptual framework project and (2) reference rate reform.

Conceptual framework — measurement

The Board discussed the potential issuance of an invitation to comment (ITC) on the measurement chapter of the conceptual framework. Although the Board did not make any official decisions on this matter at the meeting, it directed the staff to begin work on the ITC and indicated that it would provide its input as part of the drafting process.

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

Conceptual framework — elements

The Board made tentative decisions related to the definitions of the terms “equity” (net assets), “owner,” and “comprehensive income.” In addition, the Board tentatively decided that a future concepts statement should be consistent with the amendments in Accounting Standards Update (ASU) No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.

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

Reference rate reform — facilitation of the effects of the interbank offered rate transition on financial reporting

The Board discussed feedback on its proposed ASU Facilitation of the Effects of Reference Rate Reform on Financial Reporting and tentatively decided to provide “temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting.” The FASB directed its staff to draft a final ASU for a vote by written ballot.

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

FASB document Image

FASB proposes improvements to hedge accounting

Nov 12, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Codification Improvements to Hedge Accounting.”

The pro­posed ASU would clarify certain aspects of the Board’s new hedging standard, ASU 2017-12, including (1) changes in hedged risk in a cash flow hedge, (2) contractually specified components in cash flow hedges of nonfinancial forecasted transactions, (3) foreign-currency-denominated debt instruments designated as hedging instruments and hedged items, and (4) using the term “prepayable” under the shortcut method. According to FASB Chairman Russ Golden, the purpose of the proposed ASU is to “promote . . . better, more consistent application” of the hedging standard by better aligning certain aspects of the standard with its “stated objectives.”

Com­ments on the pro­posed ASU are due by January 13, 2020. For more in­for­ma­tion, see the press release and FASB in Focus newslet­ter on the FASB’s Web site.

On November 13, 2019, the FASB issued for comment Proposed Taxonomy Improvements for Proposed Accounting Standards Update, Derivatives and Hedging (Topic 815): Codification Improvements to Hedge Accounting. Comments on the proposed taxonomy improvements are due by January 13, 2020.
FASB document Image

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 Deloitte's related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.

EITF meeting Image

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 and the meeting recap 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.