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News

FASB meeting Image

Highlights from the FASB’s March 22 meeting

Mar 23, 2017

At its March 22, 2017, meeting, the FASB discussed its projects on (1) hedging and (2) liabilities and equity.

Accounting for financial instruments — hedging

The Board made decisions related to its September 2016 proposed ASU, Targeted Improvements to Accounting for Hedging Activities, on (1) cross currency basis spreads and (2) recognition related to excluded components.

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

Liabilities and equity — targeted improvements

The Board discussed comment-letter feedback received on its December 2016 proposed ASU, I. Accounting for Certain Financial Instruments With Down Round Features, and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception. The feedback concerned (1) accounting for instruments with down-round features, (2) the indefinite deferral in ASC 480 related to mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests, and (3) navigation of the Codification.

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

SEC document Image

SEC amends settlement cycle for broker-dealer securities transactions

Mar 23, 2017

The SEC has issued a final rule, “Amendment to Securities Transaction Settlement Cycle.”

The objective of the amendment is to “enhance efficiency, reduce risk, and ensure a coordinated and expeditious transition by market participants to a shortened standard settlement cycle.”

The amendment will become effective on September 5, 2017.

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

GASB document Image

GASB issues omnibus statement

Mar 21, 2017

The GASB has issued Statement No. 85, “Omnibus 2017.”

Statement 85 addresses “practice issues that have been identified during implementation and application of certain GASB Statements.” Topics covered in the Statement include “issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits . . . ).”

Statement 85 is effective for reporting periods beginning after June 15, 2017. Early application is encouraged.

For more information, see Statement 85 on the GASB’s Web site.

EITF meeting Image

EITF discusses service concession arrangements at March meeting

Mar 17, 2017

At its March 16, 2017, meeting, the EITF reached a final consensus on Issue No. 16-C, “Determining the Customer of the Operation Services in a Service Concession Arrangement.”

For a de­tailed summary of the meeting, see De­loitte’s March 2017 EITF Snap­shot.

CAQ document Image

CAQ publishes report on fraud and enhancing financial reporting

Mar 17, 2017

The CAQ has issued a report, “Addressing Challenges for Highly Subjective and Complex Accounting Areas.”

The report summarizes discussions held during two 2016 workshops that explored “issues that were identified in an analysis of enforcement actions in which the SEC (1) took an action against an issuer or individual because of a securities violation and (2) asserted that there were issues with the company’s ICFR.” In addition, the report contains key recommendations related to accounting policies, internal controls, and staffing challenges.

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

SEC XBRL Image

SEC updates EDGAR filer manual and technical specifications

Mar 13, 2017

The SEC has implemented Release 17.1 of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system filer manual. The release updates volume I and II of EDGAR and various technical specifications.

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

FASB document Image

FASB issues guidance on presentation of net periodic benefit cost

Mar 10, 2017

The FASB has issued Accounting Standards Update (ASU) No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”

The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines.

The ASU’s amendments are effective for public business entities for interim and annual periods beginning after December 15, 2017. For other entities, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods thereafter.

For more in­for­ma­tion, see Deloitte's Heads Up newsletter as well as the ASU on the FASB’s Web site.

FASB meeting Image

Highlights from the FASB’s March 8 meeting

Mar 10, 2017

At its March 8, 2017, meeting, the FASB discussed its projects on (1) hedging, (2) consolidation reorganization and target improvements, and (3) related-party guidance for variable interest entities (VIEs).

Accounting for financial instruments — hedging

The Board tentatively decided to simplify certain aspects of the application of hedge accounting to (1) “sub-benchmark” interest rate risk hedges and (2) fair value hedges of interest rate risk of prepayable financial assets.

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

Consolidation reorganization and targeted improvements

The Board tentatively decided to draft a proposed ASU that would reorganize the consolidation guidance in ASC 810 and clarify the application of the concept “expected” for external review.

For more in­for­ma­tion, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Consolidation: targeted improvements to related-party guidance for VIEs

The Board tentatively decided to (1) provide a private-company alternative that exempts private companies under common control from applying the VIE guidance in ASC 810, (2) remove the private-company alternative for leasing arrangements under common control from the VIE guidance, and (3) make certain amendments to the guidance for related parties under common control. The FASB directed its staff to draft a proposed ASU for external review.

For more information, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

SEC (US Securities and Exchange Commission) Image

SEC approves the 2017 U.S. GAAP Financial Reporting Taxonomy

Mar 10, 2017

The FASB has announced that the SEC has approved the 2017 U.S. GAAP Financial Reporting Taxonomy and has updated its EDGAR system to support the new version.

The 2017 tax­on­omy re­flects ac­count­ing stan­dards issued during the past year as well as other cor­rec­tions and im­prove­ments to the 2016 tax­on­omy. In ad­di­tion, the FASB’s tax­on­omy staff has issued 2016 XBRL im­ple­men­ta­tion guides on the fol­low­ing topics:

  • Dis­posal groups and dis­con­tin­ued op­er­a­tions.
  • In­sur­ance: con­cen­tra­tion of credit risk dis­clo­sures.
  • Liq­ui­da­tion basis of ac­count­ing.
  • Leases under ASC 842.
  • Mea­sure­ment-date prac­ti­cal ex­pe­di­ent for defined benefit plans.
  • No­tional amount dis­clo­sures.
  • Other com­pre­hen­sive income.
  • Re­pur­chase-to-ma­tu­rity trans­ac­tions and re­pur­chase fi­nanc­ings.
  • Retirement benefits — phase 1.
  • Revenue from contracts with customers.
  • Segment reporting.
  • Short-du­ra­tion in­sur­ance con­tracts.
  • Sub­se­quent events.

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

SEC (US Securities and Exchange Commission) Image

SEC issues notice on recent EDGAR phishing scam

Mar 09, 2017

The SEC has issued a notice related to a phishing campaign in which fraudulent e-mails have been sent to certain EDGAR filers.

The e-mails falsely indicate that the SEC has recently made changes to Form 10-K and may contain malicious attachments that are designed to gain access to the user’s computer or network. The SEC has confirmed that it has sent no such e-mails to EDGAR filers and that recipients should delete the e-mails.

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

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