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Accounting Roundup — November 2015

Published on: Dec 03, 2015

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Welcome to the November 2015 edition of Accounting Roundup. Highlights of this issue include the following:

  • The FASB’s (1) ASU simplifying the balance sheet presentation of deferred taxes and (2) proposed ASUs on fair value measurement disclosures, disclosures about government assistance, and clarifying the definition of a business.
  • The FASB’s completion of its lease redeliberations.
  • The IASB’s proposal to clarify its guidance on investment property.
  • The completion of the FAF’s three-year review of the PCC.
  • The GAO’s report on a sample of SEC registrants’ disclosures under the conflict minerals rule.

Be sure to monitor upcoming issues of Accounting Roundup for new developments. We value your feedback and would appreciate any comments you may have on this publication. Take a moment to tell us what you think by sending us an e-mail at accountingstandards@deloitte.com.

Business Combinations

FASB Proposes to Clarify the Definition of a Business

Affects: All entities.

Summary: On November 23, 2015, the FASB issued a proposed ASU that would clarify the definition of a business in ASC 805 and provide a framework that an entity would use to determine whether a set of activities and assets constitutes a business. Under the proposal, “a set of assets and activities must include, at a minimum, an input and a substantive process that together contribute to the ability to create outputs“ to qualify as a business. One indicator that an acquired process is substantive may be the presence of more than an insignificant amount of goodwill. “If substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset,“ however, the set is not a business.

Editor’s Note: The FASB issued the proposed ASU in response to feedback indicating that the definition of a business in ASC 805 is too broad, thereby causing transactions that may more closely resemble asset acquisitions to be treated as business combinations. Concerns about the definition of a business were among the primary issues raised in connection with the FAF’s post-implementation review report on FASB Statement 141(R) (codified in ASC 805).

Next Steps: Comments on the proposed ASU are due by January 22, 2016.

Other Resources: For more information, see the press release and FASB in Focus newsletter on the FASB’s Web site.

Fair Value Measurement

FASB Proposes Amendments to the Disclosure Requirements for Fair Value Measurements

Affects: All entities.

Summary: On December 3, 2015, the FASB issued for public comment a proposed ASU that would amend the requirements in ASC 820 for disclosing fair value measurements. The proposal is part of the FASB’s disclosure framework project, which the Board launched in March 2014 to improve the effectiveness of disclosures in the notes to the financial statements. Among other changes, the proposed ASU would introduce a potentially significant new requirement for public business entities to disclose information about unrealized gains and losses arising during the reporting period separately for Level 1, Level 2, and Level 3 fair value measurements (currently, this information is only required for Level 3 fair value measurements).

Editor’s Note: Statement 157 (codified in ASC 820) indicated that disclosures about unrealized gains and losses related to recurring Level 3 fair value measurements could inform financial statement users about the “quality of earnings“ given the subjectivity inherent in Level 3 fair value measurements.

The proposed ASU indicates that financial statement users want disclosures about all unrealized gains and losses from fair value measurements that occur during a reporting period because such information can provide insight into the volatility of fair value measurements.

Next Steps: Comments on the proposed ASU are due by February 29, 2016.

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

Government Assistance

FASB Proposes ASU to Increase Transparency of Accounting for Government Assistance Arrangements

Affects: All entities.

Summary: On November 12, 2015, the FASB issued for public comment a proposed ASU that would require entities to provide specific disclosures about government assistance arrangements (e.g., grants, loan guarantees, tax incentives). The objective of the proposed disclosure requirements is to allow financial statement users to better assess (1) the nature of the government assistance, (2) the accounting policies for the government assistance, (3) the impact of the government assistance on the financial statements, and (4) the significant terms and conditions of the government assistance arrangements.

Next Steps: Comments on the proposed ASU are due by February 10, 2016.

Other Resources: Deloitte’s November 20, 2015, Heads Up. Also see the press release on the FASB’s Web site.

Income Taxes

FASB Issues ASU Simplifying Balance Sheet Classification of Deferred Taxes

Affects: All entities.

Summary: On November 20, 2015, the FASB issued ASU 2015-17 as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of certain aspects of U.S. GAAP). The ASU requires entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. It thus simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or noncurrent in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance.

Editor’s Note: The ASU is aligned with the current guidance in IAS 12, which requires entities to present DTAs and DTLs as noncurrent in a classified balance sheet.

Next Steps: For public business entities, the ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for all entities.

Other Resources: Deloitte’s November 30, 2015, Heads Up. Also see the press release on the FASB’s Web site.

International

IASB Proposes Amendments to Guidance on Investment Property

Affects: Entities reporting under IFRSs.

Summary: On November 20, 2015, the IASB published an ED that would amend IAS 40 to clarify its guidance on transfers of investment property.

Editor’s Note: The IASB received a request to clarify whether properties under construction or development that are classified as inventory could be transferred to investment property when there is an evident change in use that is not specifically described in IAS 40.

The proposed amendments would revise the requirements in IAS 40 addressing when a transfer to or from investment property has occurred by (1) indicating that a property should be transferred when there is evidence of a change in use that would cause the property to meet, or cease to meet, the definition of investment property and (2) recharacterizing the standard’s list of related evidence “as a non-exhaustive list of examples of evidence that a change in use has occurred instead of an exhaustive list.“

Although the ED does not propose an effective date, it indicates that the amendments would be applied retrospectively and that early application would be permitted.

Next Steps: Comments on the ED are due by March 18, 2016.

Other Resources: For more information, see the press release on the IASB’s Web site. In addition, see Deloitte’s November 19, 2015, IFRS in Focus and the IAS Plus project page on transfers of investment property under IAS 40.

IASB Proposes Amendments to IFRSs as Part of Annual Improvements Project

Affects: Entities reporting under IFRSs.

Summary: On November 20, 2015, the IASB published an ED that would amend three IFRSs as part of the IASB’s annual improvements project (i.e., a project to make necessary, but nonurgent, amendments to IFRSs that will not be made in another major project). The proposed amendments include the following:

  • IFRS 1 — Certain short-term exemptions for first-time adopters of IFRSs would be deleted “because they have now served their intended purpose.“
  • IFRS 12 — The proposal would clarify that the disclosure requirements in IFRS 12 related to interests in other entities — with a few specified exceptions — apply to an entity’s interests in subsidiaries, joint arrangements, associates, or unconsolidated structured entities even if those interests are classified as held for sale, as held for distribution to owners, or as discontinued operations in accordance with IFRS 5.
  • IAS 28 — The proposal would clarify that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that is held by a venture capital organization or another qualifying entity “is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition.“

Next Steps: Comments on the ED are due by February 17, 2016.

Other Resources: For more information, see the press release on the IASB’s Web site. Also see Deloitte’s November 20, 2015, IFRS in Focus and the IAS Plus project page on the 2014–2016 annual improvements cycle.

Accounting — Other Key Developments

Leases

FASB Completes Lease Redeliberations

Affects: All entities.

Summary: At its November 11, 2015, meeting, the FASB finished redeliberations related to its upcoming leases standard. The Board tentatively decided that the new leases standard would be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the standard would be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption would be permitted for all entities. Further, an entity’s ability to early adopt the leases standard would not be linked to its adoption of any of the FASB’s other standards.

The FASB also tentatively decided to exempt leases that begin near the end of the underlying asset’s economic life from the finance lease classification criterion under which the lease term must be for the major part of the remaining economic life of the underlying asset.

Editor’s Note: The FASB received feedback indicating that the absence of such an exception could cause leases to be classified as finance leases if they (1) begin near the end of an asset’s useful life and (2) otherwise would be classified as operating leases.

Next Steps: The Board has directed the staff to finish drafting a final ASU for a vote by written ballot. The final standard is expected to be issued in early 2016.

Other Resources: Deloitte’s November 12, 2015, journal entry.

Private Companies

FAF Completes Review of PCC

Affects: Private companies.

Summary: On November 18, 2015, the FAF released (1) a final report on its three-year assessment of the PCC and (2) a document outlining the revisions it is making to the PCC’s responsibilities and operating procedures. The primary focus of the amendments is on how the PCC provides the FASB with “private company perspectives on the FASB’s active agenda projects, and on how the PCC communicates those perspectives to its stakeholders.“ Specifically, the amendments would:

  • Enable the PCC to continue to propose private-company alternatives.
  • Make the PCC’s advisory role more effective.
  • Create a technical agenda consultation group that discusses “whether it is more efficient and effective for the PCC or the FASB to take the lead on a potential project and add the project to its technical agenda.“
  • Allow the PCC to retain its current size and composition.
  • Transition the PCC’s oversight responsibilities from the Private Company Review Committee to the Standard-Setting Process Oversight Committee.

Next Steps: The amendments to the PCC’s responsibilities and operating procedures will become effective on January 1, 2016.

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

Revenue Recognition

FASB and IASB Joint Revenue Transition Resource Group Holds November Meeting

Affects: All entities.

Summary: At its November 9, 2015, meeting, the FASB and IASB joint revenue TRG discussed the following four topics:

  • Customer options for additional goods and services.
  • Preproduction activities.
  • Specific application issues related to license applications and renewals.
  • Whether fixed-odds wagering contracts are revenue or derivative transactions.

Editor’s Note: Currently, no TRG meetings are scheduled for 2016 or thereafter; however, we understand that the FASB remains committed to addressing issues raised by stakeholders regarding the implementation of the new revenue standard.

Other Resources: Deloitte’s November 2015 TRG Snapshot.

SASB

SASB Issues Implementation Guide on Using Its Standards

Affects: Entities within the scope of SASB standards.

Summary: On December 1, 2015, the SASB released an implementation guide “for issuers who are in the process of integrating SASB standards into their existing 10-K or 20-F disclosure processes.“ Specifically, the guide “provides structure and key considerations for companies seeking to implement sustainability accounting standards within their existing business functions and processes.“

SEC

SEC Commissioner Discusses Option of Using IFRSs in the United States

Affects: All entities.

Summary: In a speech at the 34th Annual Current Financial Reporting Issues Conference in New York on November 16, 2015, SEC Commissioner Michael S. Piwowar commented on the potential option of allowing domestic issuers in the United States to provide IFRS-based information as a supplement to U.S. GAAP financial statements without requiring reconciliation. The option was first suggested by SEC Chief Accountant Jim Schnurr at a financial reporting conference in early December 2014. Mr. Schnurr and SEC Deputy Chief Accountant Julie Erhardt further discussed it at the annual AICPA Conference on Current SEC and PCAOB Developments a week later.

In his speech, Commissioner Piwowar described the option as follows:

Our chief accountant has raised an interesting and incremental approach that should provide further insight as to whether there is investor demand for IFRS reporting [by U.S. domestic issuers]. His idea — to allow, but not mandate, IFRS financial reporting as a supplement without reconciliation to GAAP — is worthy of serious consideration. . . . Of course, the specific details would still need to be worked out, but I think — eleven months after the idea was first broached — that the Commission should take this additional step forward.

XBRL

XBRL US Releases Validation Rules for Public Companies

Affects: Public companies.

Summary: On November 18, 2015, XBRL US released a series of validation rules that are designed “to help public companies detect inconsistencies or errors in their XBRL-formatted financial data.“ Potential errors addressed by the rules include “incorrect negative values, improper relationships between elements, and incorrect dates associated with certain data.“

Next Steps: The rules will become effective on January 1, 2016.

Other Resources: For more information, see the press release on XBRL US’s Web site.

FASB Releases Taxonomy Implementation Guides

Affects: All entities.

Summary: In October 2015, the FASB released five final 2015 U.S. GAAP Financial Reporting Taxonomy implementation guides, a proposed taxonomy implementation guide, and a proposed taxonomy style guide. The purpose of the FASB’s taxonomy implementation guides “is to provide preparers with additional insight and supplemental guidance for utilizing the Taxonomy as they create their XBRL documents.“ The guides are as follows:

Next Steps: Comments on the proposed guides are due by December 26, 2015.

International

IFRS Foundation Requests Comments on Proposed Amendments to IFRS Taxonomy Due Process

Affects: Entities reporting under IFRSs.

Summary: On November 4, 2015, the IFRS Foundation trustees published an invitation to comment that requests feedback on proposed amendments to the due process for the development and maintenance of the IFRS taxonomy, which would give the IASB greater involvement and responsibility. The main proposed amendments would require:

  • The IASB to approve IFRS content that reflects new or amended standards.
  • Three to five IASB members to review content that reflects common practice.
  • Formalization of the enhancements that were implemented in January 2014 (creation of the IFRS taxonomy consultative group and establishment of a process in which public consultation is sought on IFRS taxonomy updates that are released during the year).
  • Inclusion of enhancements that reflect current practices and processes but are not documented in the Due Process Handbook for XBRL Activities.

Next Steps: Comments are due by February 3, 2016.

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

World Federation of Exchanges Issues Sustainability Guidelines

Affects: WFE member exchanges and entities that are listed on those exchanges.

Summary: On November 4, 2015, the Sustainability Working Group of the WFE issued sustainability disclosure guidelines that identify key environmental, social, and governance metrics that member exchanges (e.g., the New York Stock Exchange and Nasdaq) are encouraged to consider including in disclosure guidance for listed companies. Specifically, the guidelines highlight “34 key performance indicators, including energy consumption, water management, CEO pay ratio, gender diversity, human rights, child and forced labour, temporary worker rate, corruption and anti-bribery, tax transparency in addition to other corporate policies.“

Other Resources: For more information, see the press release on the WFE’s Web site.

IFAC Publishes Thought Paper on Integrated Thinking

Affects: Professional accountants.

Summary: On November 3, 2015, IFAC released a thought paper that explores the role of professional accountants in facilitating integrated thinking at their organizations. Specifically, the paper “sets out a vision for integrated thinking and explores what professional accountants working in the public and private sectors can do in practical terms to facilitate it in their organization, regardless of whether their organization is planning to publish an integrated report.“

Other Resources: For more information, see the press release on IFAC’s Web site.

IFAC and IIRC Issue Guidance on Materiality in Integrated Reports

Affects: Entities preparing integrated reports.

Summary: On November 10, 2015, IFAC and the IIRC released a publication that provides guidance on “materiality, and the corresponding materiality determination process, in the context of integrated reporting“ and “outlines expectations for materiality-related disclosures.“

Auditing Developments

AICPA

AICPA Issues Omnibus Proposal

Affects: All entities.

Summary: On November 25, 2015, the PEEC of the AICPA issued an ED of an omnibus proposal that contains the following proposed and revised interpretations:

  • Proposed Interpretation, “Transfer of Files and Return of Client Records in Sale, Transfer or Discontinuance of Member’s Practice.“
  • Revised Interpretation, “Disclosing Client Information in Connection With a Review or Acquisition of the Member’s Practice.“
  • Proposed Interpretation, “Disclosure of a Commission and Referral Fee.“

Next Steps: Comments on the ED are due by May 16, 2016.

AICPA Proposes Changes to Peer Review Standards

Affects: Entities subject to the AICPA’s peer review standards.

Summary: On November 10, 2015, the AICPA issued an ED that would revise its standards related to “performing and reporting on peer reviews.“ Specifically, the proposal would (1) “enhance the focus of reviewed firms on the proper design and operating effectiveness of their systems of quality control“ and (2) “reinforce the need for adequate planning and preparation for a peer review by firms and peer reviewers alike to allow sufficient time for proper identification of systemic causes and appropriate remediation, when necessary.“

Next Steps: Comments on the ED are due by January 31, 2016.

Other Resources: For more information, see the press release on the AICPA’s Web site.

CAQ

CAQ and Audit Analytics Issue Report on Audit Committee Transparency

Affects: Public-company audit committees.

Summary: On November 3, 2015, the CAQ and Audit Analytics issued the 2015 edition of their report analyzing how audit committees of public companies publicly communicate their oversight activities. This analysis is performed “by measuring the robustness of proxy disclosures among companies in the S&P Composite 1500.“ The report compares the 2014 and 2015 data and concludes that “audit committees are responding to an increasing interest by investors, regulators, and other stakeholders in the roles and responsibilities of audit committees by providing the marketplace with meaningful information about their role in external auditor oversight.“ In addition, the report cites examples of audit committees’ “leading disclosure practices“ indicating that the committees have been tailoring disclosures to their companies rather than “using a one-size-fits-all approach.“

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

PCAOB

PCAOB Posts Reorganized Auditing Standards to Its Web Site

Affects: Auditors of public companies.

Summary: On November 11, 2015, the PCAOB announced that it has posted its reorganized auditing standards and interpretations manual to its Web site. The manual uses a single integrated numbering system and is divided into the following topical categories:

  • General auditing standards.
  • Audit procedures.
  • Auditor reporting.
  • Matters related to filings under federal securities laws.
  • Other matters associated with audits.

Next Steps: The manual will become effective on December 31, 2016; however, auditors can use it before that date.

International

IOSCO Reports on Transparency of Firms That Audit Public Companies

Affects: Auditors of public companies.

Summary: On November 6, 2015, IOSCO published a report that discusses “audit firm transparency reporting,“ which is a practice “employed by audit firms to be transparent in their own reporting to investors and other stakeholders about the firm itself, notably, with respect to firm governance and elements of their system of quality control for their financial statement audits.“

Other Resources: For more information, see the press release on IOSCO’s Web site.

Governmental Accounting and Auditing Developments

FASAB

FASAB Releases Annual Report and Three-Year Plan

Affects: Entities applying federal financial accounting standards.

Summary: On November 16, 2015, the FASAB released a document containing its annual report for fiscal year 2015 as well as its plan for fiscal years 2016–2018. Specifically, the publication describes the FASAB’s accomplishments over the past fiscal year and details the three-year plan for projects on its technical agenda.

Next Steps: Comments on the publication are due by January 29, 2016.

Other Resources: For more information, see the press release on the FASAB’s Web site.

GASB

FAF Completes Post-Implementation Review of GASB’s Guidance on Nonexchange Transactions

Affects: Entities reporting under financial accounting and reporting standards for state and local governments.

Summary: On November 17, 2015, the FAF released a post-implementation review (PIR) report on GASB Statements 33 and 36, which provide guidance on nonexchange transactions (i.e., “transactions in which there is no equal exchange of resources“). The PIR report concluded that Statements 33 and 36 had achieved their objectives. Specific findings noted by the PIR team included the following:

  • Creditors and other financial statement users had received helpful information about nonexchange transactions as a result of the application of the two standards.
  • The standards contain information that is generally comprehensible and reliable and that “can be applied as intended.“
  • The standards have “achieved their expected benefits“ without resulting in significant “implementation and ongoing application costs.“

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

Banking

FDIC, OCC, and Federal Reserve Issue Guidance on Capital Treatment of Certain Investments in Covered Funds

Affects: Banking entities.

Summary: On November 6, 2015, the FDIC, OCC, and Federal Reserve issued supervisory guidance that clarifies “the interaction between the agencies’ regulatory capital rule and the Volcker Rule with respect to the appropriate capital treatment for investments in certain private equity funds and hedge funds (covered funds).“ Specifically, the guidance “clarifies supervisory expectations on how a banking organization’s regulatory capital deductions of investments in covered funds made pursuant to section 13 of the Bank Holding Company Act (also referred to as the Volcker Rule) and implementing regulations relate to deductions of these investments pursuant to the regulatory capital rule.“

Other Resources: For more information, see the press release on the FDIC’s Web site.

Federal Reserve Proposes Public Disclosure Requirements Related to Banks’ Liquidity Profiles

Affects: Banking entities.

Summary: On November 24, 2015, the Federal Reserve issued a proposed rule that would require large banks (i.e., those with $50 billion or more of consolidated assets) to provide public disclosures about “several measures of their liquidity profile.“ Specifically, the proposal would require such banks to disclose (1) “their consolidated [liquidity coverage ratios] each quarter based on averages over the prior quarter“; (2) “their consolidated [high-quality liquid asset (HQLA)] amounts, broken down by HQLA category“; and (3) “their projected net cash outflow amounts, including retail inflows and outflows, derivatives inflows and outflows, and several other measures.“

Next Steps: Comments on the proposed rule are due by February 2, 2016.

Other Resources: For more information, see the press release on the Federal Reserve’s Web site.

FDIC Proposes Increase in Deposit Insurance Fund Reserve Ratio Requirement

Affects: FDIC-insured institutions.

Summary: On November 17, 2015, the FDIC issued a proposed rule that would “impose a surcharge on the quarterly assessments of insured depository institutions with total consolidated assets of $10 billion or more.“ Specific provisions of the proposal — which is being released in response to a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act — include the following:

  • The deposit insurance fund’s minimum reserve ratio would increase from 1.15 percent to 1.35 percent.
  • The date by which the ratio must reach 1.35 percent would be September 30, 2020.
  • The FDIC would “offset the effect of the increase in the minimum reserve ratio on insured depository institutions with total consolidated assets of less than $10 billion (small banks).“

Next Steps: Comments on the proposed rule are due by January 5, 2016.

Other Resources: For more information, see the press release on the FDIC’s Web site.

SEC

SEC Proposes Enhancements to Disclosure Requirements for Alternative Trading Systems

Affects: SEC registrants.

Summary: On November 18, 2015, the SEC issued a proposed rule that would amend the requirements for alternative trading systems (ATSs) under the Securities Exchange Act of 1934. Specifically, the proposal would require ATSs that “trade stocks listed on a national securities exchange (NMS stocks), including ’dark pools,’ to publicly disclose detailed information about the operations and activities of a broker-dealer operator and its affiliates.“

Next Steps: Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register.

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

GAO Issues Report on Disclosures Under SEC’s Conflict Minerals Rule

Affects: SEC registrants.

Summary: On November 17, 2015, the GAO issued a report on its review of disclosures that a sample of SEC registrants provided under the Commission’s conflict minerals rule “for the first time in 2014.“ Of the companies in the sample, most (87 percent) were U.S.-based and “most (67 percent) were unable to determine whether those minerals came from the DRC or adjoining countries (Covered Countries), and none could determine whether the minerals financed or benefited armed groups in those countries.“

Other Resources: For more information, see the report highlights on the GAO’s Web site.

International

Basel Committee Issues Proposal Related to Capital Treatment of Simple, Transparent, and Comparable Securitizations

Affects: Banking entities.

Summary: On November 10, 2015, the Basel Committee issued a consultative document that requests comments on proposed amendments to its July 2015 criteria for identifying simple, transparent, and comparable securitizations. The proposed amendments would “reduce minimum capital requirements for such . . . securitisations by reducing the risk weight floor for senior exposures, and by rescaling risk weights for other exposures.“

Next Steps: Comments on the consultative document are due by February 5, 2016.

Other Resources: For more information, see the press release on the BIS’s Web site.

Basel Committee Proposes Changes to Haircut Floors for Non-Centrally-Cleared Securities Financing Transactions

Affects: Banking entities.

Summary: On November 5, 2015, the Basel Committee issued a consultative document that requests comments on its proposal to incorporate into the Basel III framework the FSB’s policy framework related to haircut floors for non-centrally-cleared securities financing transactions. The proposal’s purpose is to “create incentives for banks to set their collateral haircuts above the floors rather than hold more capital.“

Next Steps: Comments on the consultative document are due by January 5, 2016.

Other Resources: For more information, see the press release on the BIS’s Web site.

FSB Updates Lists of Global Systemically Important Entities

Affects: Global systemically important banks (G-SIBs) and global systemically important insurers (G-SIIs).

Summary: On November 3, 2015, the FSB published updates to its lists of G-SIBs and G-SIIs. The updated lists add one bank and one insurer and remove one bank and one insurer. In total, there are 30 G-SIBs and 9 G-SIIs.

Other Resources: For more information, see the press releases related to the updates to the list of G-SIBs and G-SIIs on the FSB’s Web site.

FSB Issues Total Loss-Absorbing Capacity Standard for G-SIBs

Affects: G-SIBs.

Summary: On November 9, 2015, the FSB issued a standard that “defines a minimum requirement for the instruments and liabilities that should be readily available for bail-in within resolution at G-SIBs.“ The purpose of the standard is to ensure that G-SIBs “have sufficient loss-absorbing and recapitalisation capacity available in resolution for authorities to implement an orderly resolution that minimises impacts on financial stability, maintains the continuity of critical functions, and avoids exposing public funds to loss.“

Other Resources: For more information, see the press release on the FSB’s Web site.

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Deloitte Publications

Publication Title Affects
November 30, 2015, Heads Up FASB Issues ASU on Balance Sheet Classification of Deferred Taxes All entities.
November 20, 2015, Heads Up FASB Proposes ASU to Increase Transparency of Accounting for Government Assistance Arrangements All entities.
November 2015 Power & Utilities Spotlight Risk at the Core of Key Strategic Decision Making Power and utilities entities.
November 2015 Banking & Securities — Accounting and Financial Reporting Update Banking and securities entities.
November 2015 EITF Snapshot All entities.
November 2015 TRG Snapshot Joint Meeting on Revenue: November 2015 All entities.

Leadership Changes

FASAC: On November 20, 2015, the FAF board of trustees announced that it has appointed 16 new members to the FASAC. In addition, Andrew G. McMaster Jr., retired deputy chief executive officer and vice chairman of Deloitte & Touche LLP, has been appointed FASAC chairman. His term, along with the terms of the 15 other new members, will begin on January 1, 2016.

GASAC: On November 19, 2015, the FAF board of trustees announced that it has appointed three new members to the GASAC for two-year terms beginning on January 1, 2016.

Appendix A: Current Status of FASB Projects

Please see Appendix A in the attached PDF.

Appendix B: Significant Adoption Dates and Deadlines

Please see Appendix B in the attached PDF.

Appendix C: Glossary of Standards and Other Literature

Please see Appendix C in the attached PDF.

Appendix D: Abbreviations

Please see Appendix D in the attached PDF.

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