All FASB articles – Page 22
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Blog
FASB May Offer Deferral, Early Adoption on Revenue Rule
The Financial Accounting Standards Board is considering both a deferral of its sweeping new revenue recognition rule and early adoption for companies ready to proceed, a FASB spokesman said Monday. FASB will decide later this spring on those ideas, after hearing more input from companies preparing for the current 2017 ...
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Blog
FASB Proposes Simplifications to Income Tax Accounting
The Financial Accounting Standards Board has issued two proposed accounting standard updates to simplify the accounting for income taxes. One would simplify accounting for the tax effects of intra-entity asset transfers, while the other focuses on the classification of deferred tax assets and liabilities that are carried on the balance ...
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Blog
FASB Wants Comment on Financial Instruments
Image: FASB wants public comment on one final aspect of its standard for financial instrument classification and measurement, focused on how entities should disclose hybrid financial instruments containing embedded derivatives that are separately recognized. FASB plans to get a proposal out soon so the comment period can be wrapped up ...
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Blog
Poll Finds Uncertainty on COSO, Revenue Recognition
Up to one-third of companies may not be implementing the new COSO framework for their 2014 financial reporting, and one-fourth don’t know when they will implement the framework.
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Blog
FASB Jettisons Extraordinary Items From Financial Statements
In its quest to simplify accounting standards, the Financial Accounting Standards Board has adopted a new provision in Generally Accepted Accounting Principles that spares companies the requirement to display extraordinary and unusual items in financial statements. FASB said stakeholders had expressed concerns that companies often faced uncertainty over when to ...
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Article
XBRL Filing Frustrations Tilting Toward Resolution
Image: Good news for companies weary of the unfulfilled promises around publishing financial data using XBRL: Events are looming that promise either to halt the march toward XBRL compliance or finally shove its usage forward. “XBRL is not working,” says Hudson Hollister of the Data Transparency Coalition. “Instead of getting ...
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Blog
Public Companies Could Win Same Exception Given to Privates on Intangible Assets
FASB is taking a fresh look at a method to account for intangible assets it just permitted for private companies, to see whether the rule should be granted to public companies as well. The new method allows private companies to bypass the current GAAP requirement to recognize separately from goodwill ...
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Article
Recognize the Big Standards’ Changes
The auditing and financial reporting world will spend lots of 2015 preparing for the new revenue recognition standard going into effect by 2017—but from leasing to going concern warnings to IFRS adoption in the United States, plenty of other major changes may arrive as well. “Folks have come to see ...
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Blog
SEC Staffers Try to Untangle Business Unit Accounting Issues
Image: Title: RogersAt a recent national accounting conference on regulatory issues, staff members at the Securities and Exchange Commission, including professional accounting fellow Chris Rogers (left), offered lots of advice on how companies can better explain to investors the intricacies of joint ventures, spinoffs, pushdown accounting, and segment reporting in ...
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Article
SEC Nudges Companies on Cash Flows
The SEC is urging companies to tighten accounting procedures around the statement of cash flows, amid a steady rise in restatements associated with it. Speaking at the national AICPA conference earlier this month, SEC staffer Kirk Crews said the majority of errors were “due to relatively less complex applications” of ...
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SEC Cautions Companies on Consolidation Analyses
Image: The Securities and Exchange Commission is looking closely at who consolidates a variable interest entity, noticing variations in how companies apply existing guidance. Professional Accounting Fellow Christopher Rogers said at a recent conference that staff is looking into issues surrounding the application of shared power, determining when a decision ...
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Blog
FASB Studies Three Revenue Issues for Possible New Guidance
Image: Financial Accounting Standards Board Chairman Russ Golden has authorized FASB staff to conduct research on (1) how to apply the new revenue recognition standard to licensing agreements; (2) when revenue should be recognized on a gross versus net basis; and (3) how to determine performance obligations. The research should ...
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Blog
CAQ Reminds Auditors of Hot-Button Audit Issues
Image: A new Center for Audit Quality alert highlights issues that auditors will need to pay special attention to in the year-end review, such as revenue recognition, related-party transactions, and more. “This alert summarizes potential areas of risk and can be a useful resource for our auditing firm members as ...
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Article
Hidden Complexity in the New Rules for Revenue Recognition
Financial reporting and auditing experts are warning companies of surprises they may encounter as they continue to work their way through 700 pages of new accounting rules on how to recognize revenue in their financial statements beginning in 2017. The accounting standard update requires several new disclosures, for example. “There ...
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Blog
Golden Answers Early Political Pressure on Revenue Recognition
To answer early political pressure over the new accounting standard on revenue recognition, the Financial Accounting Standards Board is pledging its readiness to work through implementation issues as they are identified and brought to the board for action.
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Blog
Companies Still Sorting Through Revenue Recognition Rule, Survey Shows
Image: PwC and the Financial Executives Research Foundation are offering fresh evidence that companies are behind on FASB’s new revenue recognition standard. In their joint survey of 174 companies, 54 percent said they are familiar with the standard, but only 29 percent said they would be prepared to adopt it ...
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Blog
FASB, SEC Give New Options on Pushdown Accounting
FASB has issued a new Accounting Standards Update to provide an option for the application of “pushdown accounting,” which occurs when an acquired business adopts the new parent company’s basis of accounting to prepare its financial statements. The update gives acquired companies some choices on the timing and extent of ...
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Article
Companies Fall Behind on Preparing for Revenue Recognition Rules
Image: Title: Mirando-GouldAccounting experts say that most companies will not be prepared to follow new revenue recognition accounting rules at the start of next year, the ideal date for those that want to be ready for a full retrospective adoption. Meanwhile, officials at the Financial Accounting Standards Board say they ...
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Blog
FASB Kicks Consolidation Standard Out to 2015
Image: Title: GoldenCompanies will not have a final new accounting standard on consolidation by the end of 2014, despite earlier indications from the Financial Accounting Standards Board that the standard would be completed by year’s end. According to FASB, numerous issues remain to be analyzed, a handful of which could ...
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Blog
FASB Studies Possible Deferral for Revenue Recognition
Image: Title: KroekerFASB plans to consider in early 2015 whether to give companies more time to adopt the new revenue recognition standard. Although the board has received numerous requests for more time, at a recent meeting FASB Vice Chairman Jim Kroeker indicated little sympathy for delayed action. “To those who ...