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FASB (US Financial Accounting Standards Board) Image

FASB extends private-company accounting alternatives to not-for-profit entities

May 30, 2019

The FASB has issued Accounting Standards Update (ASU) No. 2019-06, “Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities.”

The ASU “enables organizations to recognize fewer items as separate intangible assets in acquisitions and to account for goodwill in a more cost-effective manner.” Under the ASU, not-for-profit entities are allowed to forgo testing goodwill for impairment annually at the reporting level and to instead use an accounting alternative in which:

  • Goodwill is amortized “over 10 years or less, on a straight-line basis.”
  • Impairment is tested “upon a triggering event.”
  • An entity has “the option to elect to test for impairment at the entity level.”

ASU 2019-06 is effective immediately. For more information, see the press release and ASU on the FASB’s Web site.

FASB meeting Image

Highlights of the FASB’s May 29 meeting

May 30, 2019

At its May 29, 2019, meeting, the FASB discussed (1) segment reporting and (2) not-for-profit implementation.

Segment reporting

The Board is developing topics for a study on segment disclosures and discussed the following options:

  • Require that entities report segment information in a financial statement format — The Board decided to exclude this alternative because of the alternative’s complexity but directed its staff to research how to improve segment reconciliation requirements.
  • Require additional general disclosures in ASC 280 — The Board directed its staff to study the effect of including additional general segment disclosure requirements.

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

Not-for-profit implementation

The Board discussed a draft of a staff Q&A related to ASU 2018-08, Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made, and directed its staff to post the final document to its Web site.

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

IASB document Image

IASB proposes IFRS 3 amendments related to the Conceptual Framework

May 30, 2019

The IASB has published an exposure draft (ED), “Reference to the Conceptual Framework.”

The ED would amend IFRS 3, Business Com­bi­na­tions, to do the following:

  • Update Conceptual Framework references to the 2018 version instead of the 1989 version.
  • Require that — for trans­ac­tions and other events within the scope of IAS 37 or IFRIC 21 — an acquirer should apply IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the li­a­bil­i­ties it has assumed in a business com­bi­na­tion.
  • Explicitly state that an acquirer should not recognize con­tin­gent assets acquired in a business com­bi­na­tion.

Comments on the ED are due by September 27, 2019. For more information, see the press release and ED on the IASB’s Web site.

GASB document Image

GASB issues guidance on conduit debt obligations

May 29, 2019

The GASB has issued Statement No. 91, “Conduit Debt Obligations.”

State­ment 91 “provide[s] a single method of reporting conduit debt obligations by issuers and eliminate[s] diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.”

State­ment 91 is ef­fec­tive for re­port­ing periods be­gin­ning after De­cem­ber 15, 2020. Early ap­pli­ca­tion is en­cour­aged.

For more in­for­ma­tion, see the press release and State­ment 91 on the GASB’s Web site.

IAC meeting Image

FASB’s Investor Advisory Committee holds May 2019 meeting

May 24, 2019

At its May 14, 2019, meeting, the FASB’s Investor Advisory Committee (IAC) discussed IAC emerging issues and trends; disclosures by business entities about government assistance; segment reporting; and financial instruments — credit losses: vintage disclosures for gross write-offs and gross recoveries.

The next IAC meeting is sched­uled for November 12, 2019. For more in­for­ma­tion, see the meeting recap on the FASB’s Web site.

FAF (US Financial Accounting Foundation)  Image

FAF issues 2018 annual report

May 23, 2019

The Financial Accounting Foundation (FAF) has released its 2018 annual report.

The report high­lights the stan­dard-set­ting ac­tiv­i­ties of the FASB and GASB in 2018 and details how the boards “develop standards that work today and for the future — and how the FAF supports that process.” For more in­for­ma­tion, see the press release and annual report on the FAF’s Web site.

PCAOB (US Public Company Accounting Oversight Board) Image

PCAOB issues staff guidance on implementing CAM requirements

May 23, 2019

The PCAOB has issued a staff guidance document, “A Deeper Dive on the Communication of CAMs,” related to the implementation of the new critical audit matter (CAM) requirements.

The staff guidance document provides answers to a number of FAQs that address “questions that may arise when the auditor is communicating CAMs under AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.”

For more in­for­ma­tion, see the staff guidance document on the PCAOB’s Web site.

FAF (old) Image

FAF appoints new GASB member

May 22, 2019

The trustees of the Financial Accounting Foundation (FAF) have appointed Carolyn Smith to the GASB for a five-year term beginning on July 1, 2019.

Ms. Smith will replace GASB member David Sundstrom, whose second term concludes on June 30, 2019.

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

GASB (Governmental Accounting Standards Board) (blue) Image

GASB proposes guidance on subscription-based technology

May 21, 2019

The GASB has issued an exposure draft (ED), “Subscription-Based Information Technology Arrangements [SBITAs].”

The ED proposes “(1) defining a SBITA; (2) establishing that a SBITA would result in a right-to-use subscription asset — an intangible asset — and a corresponding subscription liability; (3) providing the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requiring note disclosures of essential information regarding a SBITA.”

Comments on the ED are due by August 23, 2019. For more information, see the press release and ED on the GASB’s Web site.

IASB document Image

IASB proposes amendments as part of annual improvements project

May 21, 2019

The IASB has published an exposure draft (ED), “Annual Improvements to IFRS Standards 2018–2020.”

The ED, which is part of the IASB’s annual im­prove­ments process (i.e., a project to make necessary, but nonur­gent, amend­ments to IFRS Standards that will not be made as part of another major project), would make revisions to the following standards:

  • IFRS 1, First-time Adoption of International Financial Reporting Standards.
  • IFRS 9, Financial Instruments.
  • IFRS 16, Leases (just the accompanying illustrative examples).
  • IAS 41, Agriculture.

Comments on the ED are due by August 20, 2019. For more information, see Deloitte’s IFRS in Focus newsletter as well as the press release and ED on the IASB’s Web site.

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