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EITF discusses three Issues at June meeting

Jun 14, 2019

At its meeting yesterday, the EITF discussed assumed liabilities in revenue contracts, the interaction between ASC 321 and ASC 323, and contract modifications of licenses of intellectual property.

Specif­i­cally, the EITF dis­cussed the fol­low­ing Issues:

  • Issue 18-A, “Recog­ni­tion Under Topic 805 for an Assumed Li­a­bil­ity in a Revenue Con­tract.”
  • 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 June EITF Snap­shot as well as the meeting recap on the FASB's Web site.

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GASB proposes guidance on public-private and public-public partnership arrangements

Jun 13, 2019

The GASB has issued an exposure draft (ED), “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.”

The objective of the proposed guidance is to “better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into [public-private and public-public partnership arrangements (PPPs) and availability payment arrangements(APAs)] and by enhancing the relevance, reliability, and consistency of information about PPPs and APAs.”

Com­ments on the ED are due by September 13, 2019. For more in­for­ma­tion, see the press release and ED on the GASB’s Web site.

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FASB appoints three new EITF members

Jun 12, 2019

The FASB has appointed Liesl Nebel, Jeremy Perler, and Matthew Schechter as EITF members.

The terms of all three new members are effective immediately.

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

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FASB updates taxonomies in response to the issuance of the SEC’s 2019 Document and Entity Information Taxonomy

Jun 11, 2019

The FASB has announced the issuance of the SEC’s Document and Entity Information (DEI) Taxonomy. The Board notes that, in response to the issuance of the DEI taxonomy, it has updated the 2019 US GAAP Financial Reporting Taxonomy and 2019 SEC Reporting Taxonomy to incorporate “additional entry points” that are intended to make the taxonomies easier to use.

For more information, see the 2019 taxonomy page on the FASB’s Web site.

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SEC amends the single issuer exemption for broker-dealers

Jun 11, 2019

The SEC has issued a final rule, “Amendment to Single Issuer Exemption for Broker-Dealers.”

The final rule clarifies the scope of an existing exemption under which a broker-dealer is not required to “engage an independent public accountant to certify the broker-dealer’s annual reports filed with the Commission if, among other things, the securities business of the broker-dealer has been limited to acting as broker (agent) for a single issuer in soliciting subscriptions for securities of that issuer.”

For more information, see the final rule on the SEC’s Web site.

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SEC updates EDGAR filer manual and technical specifications

Jun 10, 2019

The SEC has implemented Release 19.2 of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system filer manual.

The release updates volumes I and II and tech­ni­cal spec­i­fi­ca­tions for Form MA XML and Form N-PORT XML of the EDGAR Filer Manual.

For more in­for­ma­tion, see the final rule on the SEC's Web site.

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FASB discusses credit losses

Jun 07, 2019

At its June 5, 2019, meeting, the FASB discussed its project on Codification improvements related to credit losses.

The Board made tentative decisions about transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, the collateral maintenance practical expedient, and negative allowances on (1) purchased financial assets with credit deterioration and (2) available-for-sale debt securities. The Board directed the staff to draft a proposed ASU on these topics for a vote by written ballot.

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

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PCAOB staff issues guidance on communications with audit committees concerning independence

Jun 07, 2019

The PCAOB staff has issued guidance related to PCAOB Rule 3526, “Communication With Audit Committees Concerning Independence.”

The staff guidance provides (1) an overview of Rule 3526(b), including background information; (2) the reasoning behind the need for this guidance; and (3) “specific direction to registered public accounting firms on how to comply with their Rule 3526(b) obligations” under certain circumstances.

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

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FASB staff issues Q&As on the application of the limited discretion indicator and cost-sharing provisions for not-for-profit entities

Jun 07, 2019

The FASB staff has issued a Q&A document, “Subtopic 958-605: Application of the Limited Discretion Indicator and Accounting for Cost-Sharing Provisions in a Grant Agreement.”

The Q&As discuss how the limited discretion indicator should be “applied when determining whether a budget and related stipulations within a grant agreement are deemed to be a barrier to entitlement”; how an entity should “determine whether a cost-sharing provision in an agreement is a barrier to entitlement”; and whether “cost-sharing provisions in an agreement [should] be analogized to matching provisions when determining how to account for the timing and pattern of revenue recognition.”

For more information, see the staff Q&A on the FASB’s Web site.

SEC document Image

SEC issues guidance related to retail investors’ relationships with financial professionals

Jun 05, 2019

The SEC has adopted a package of rules, forms, and interpretations to improve retail investors’ relationships with broker-dealers and investment advisers.

The package includes:

  • “Regulation Best Interest” — Establishes a “new standard of conduct specifically for broker-dealers that substantially enhances the broker-dealer standard of conduct beyond existing suitability obligations.”
  • Form CRS Relationship Summary — Requires investment advisers and broker-dealers “to deliver a relationship summary to retail investors at the beginning of their relationship.”
  • Investment adviser interpretation — Reaffirms and clarifies “the Commission’s views of the fiduciary duty that investment advisers owe to their clients under the Advisers Act.”
  • “Solely incidental” interpretation — Confirms and clarifies that a “broker-dealer’s advice as to the value and characteristics of securities or as to the advisability of transacting in securities falls within the ‘solely incidental’ prong of this exclusion if the advice is provided in connection with and is reasonably related to the broker-dealer’s primary business of effecting securities transactions.”

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