AccountingLink

    FASB

    Summary
    The Financial Accounting Standards Board (FASB) is the organization in the private sector for establishing standards of financial accounting that governs the preparation of financial reports by nongovernmental entities.

    Proposed rules
    EY comment letters
    Tentative Board Decisions and In Focus updates
    Selected news releases

    Proposed rules

    26 June 2018

    Not-for-profit entities (Topic 958): Updating the definition of collections
    The amendment in this proposed Update would modify the definition of the term collections. Current generally accepted accounting principles (GAAP) state that an entity need not recognize contributions of works of art, historical treasures, and similar assets if the donated items are added to collections and meet three conditions. The proposed amendment would eliminate the diversity in practice that exists today between the application of the definition in GAAP compared with the definition that many entities use for operability and accreditation purposes. Comments are due by 10 August 2018.

    27 April 2018

    Revenue from Contracts with Customers (including remodeling of revenue and cost of revenue presentation in the Statement of Income)
    The FASB issued this proposed GAAP Financial Reporting Taxonomy Implementation Guide to provide examples to help users of the Taxonomy understand the modeling for revenue from contracts with customers under FASB ASC Topic 606 and the remodeling of revenue and cost of revenue presentation in the statement of income. The examples within the guide are provided to help users of the Taxonomy understand how the modeling for disclosures of revenue from contracts with customers and revenue and cost of revenue in the statement of income is structured within the Taxonomy. Comments are due by 30 May 2018.

    26 April 2018

    Collaborative arrangements (Topic 808): Targeted improvements
    The FASB issued a proposed ASU that would provide guidance on whether certain transactions between collaborative participants should be accounted for as revenue in accordance with the guidance in Topic 606. In addition, the proposed amendments would provide more comparability in the presentation of revenue for certain transactions between collaborative participants. Comments are due by 11 June 2018.

    1 March 2018

    Improvements to accounting for costs of implementation activities performed in certain cloud computing arrangements
    The FASB issued a proposed ASU that would clarify the accounting for implementation costs related to a cloud computing arrangement that is a service contract. The proposed ASU also would enhance disclosures around implementation costs for internal-use software and cloud computing arrangements. Comments are due by 30 April 2018.

    20 February 2018

    Derivatives and hedging (Topic 815): Inclusion of the overnight index swap (OIS) rate based on the secured overnight financing rate (SOFR) as a benchmark interest rate for hedge accounting purposes
    The FASB issued a proposed ASU that would expand the list of U.S. benchmark interest rates permitted in the application of hedge accounting. The proposed ASU would add the OIS rate based on SOFR as a fifth U.S. benchmark interest rate to help companies and other organizations avoid the potential cost and complexity associated with using different cash flows and discount rates to measure the hedged item and the hedging instrument. Comments are due by 30 March 2018.

    18 January 2018

    Income statement - Reporting comprehensive income (Topic 220): Reclassification of certain tax effects from accumulated other comprehensive income
    The FASB issued a proposed ASU intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017. The proposed ASU requires financial statement preparers to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (or portion thereof) is recorded. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. Comments are due by 2 February 2018.

    5 January 2018

    Leases (Topic 842): Targeted improvements
    The FASB issued a proposed ASU intended to reduce costs and ease implementation of the Leases standard for financial statement preparers. The proposed ASU would simplify transition requirements and, for lessors, provide a practical expedient for the separation of nonlease components from lease components. Comment are due by 5 February 2018.

    3 October 2017

    Codification improvements
    The proposed Update clarifies and removes inconsistencies in key areas of U.S. GAAP. The Board decided that the types of issues considered through this project are changes to clarify the Codification or correct unintended application of guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this proposed Update include items raised for Board consideration through the Codification’s feedback system that met the scope of this project rather than that of a maintenance update, making due process necessary. Comments are due by 4 December 2017.

    27 September 2017

    Technical corrections and improvements to recently issued standards: I. Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, and II. Accounting Standards Update No. 2016-02, Leases (Topic 842)
    The Board has an ongoing project on its agenda about technical corrections and improvements to clarify the Codification or to correct unintended application of guidance. The proposed amendments clarify certain aspects of the guidance issued in Update 2016-01 and narrow aspects of the guidance issued in Update 2016-02. Comments are due by 13 November 2017.

    25 September 2017

    Leases (Topic 842): Land easement practical expedient for transition to Topic 842
    The FASB issued this proposed ASU intended to clarify the application of the new leases guidance to land easements. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. To address the diversity in practice that exists in how organizations currently account for land easements, this proposed ASU would clarify that land easements should be evaluated under the new leases guidance. Comments are due by 25 October 2017.

    20 September 2017

    Consolidation (Topic 812): Reorganization
    The Board is issuing this proposed Update in response to stakeholders’ concerns that the consolidation guidance in Topic 810 as currently organized is difficult to understand and navigate. To address those concerns, the amendments in this proposed Update would reorganize and clarify certain items within the consolidation guidance. The amendments in this proposed Update to reorganize the consolidation guidance include the amendments in proposed Accounting Standards Update, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, for illustrative purposes only. That proposed Update has been exposed for public comment separately. Comment are due by 4 December 2017.

    3 August 2017

    Clarifying the scope and the accounting guidance for contributions received and contributions made
    The FASB is issuing this proposed Update to clarify and improve the scope and the accounting guidance for contributions received and contributions made. The amendments in this proposed Update would assist entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) within the scope of Topic 958, Not-for-Profit Entities, or as exchange (reciprocal) transactions subject to other guidance and (2) distinguishing between conditional contributions and unconditional contributions. Comments are due by 1 November 2017.

    27 June 2017

    Technical corrections and improvements to Topic 942, Financial services - Depository and lending: Elimination of certain guidance for bad debt reserves of savings and loans
    The FASB issued this proposed Update to supersede outdated deferred tax guidance on bad debt reserves of savings and loans that arose after 31 December 1987, and guidance related to the Comptroller of the Currency’s Banking Circular 202. The amendments in this proposed Update would affect stock and mutual savings and loan associations, mutual savings banks, or other financial institutions that may have acquired a bad debt reserve that is the subject of the proposed amendments. Comments are due by 28 August 2017.

    27 June 2017

    Technical corrections and improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995
    The FASB is issuing this proposed Update to supersede Topic 995, U.S. Steamship Entities, because its guidance is no longer relevant. FASB Statement No. 109, Accounting for Income Taxes, provided an option in the reporting of deferred taxes for steamship entities that had statutory reserve deposits that were made before 15 December 1992. The amendments in this proposed Update would affect all entities that have unrecognized deferred taxes related to statutory reserve deposits that were made on or before 15 December 1992. Comments are due by 28 August 2017.

    22 June 2017

    Consolidation (Topic 810): Targeted improvements to related party guidance for variable interest entities
    The FASB issued this proposed ASU intended to reduce the cost and complexity of financial reporting associated with consolidation of variable interest entities (VIEs). It would address private company concerns around the difficulty of navigating and applying current VIE guidance to common control arrangements. The proposed ASU is based on recommendations from the Private Company Council. Comment are due by 5 September 2017.

    10 May 2017

    U.S. GAAP Financial Reporting Taxonomy - Efficiency and effectiveness review
    The FASB issued this invitation to comment to help it assess the efficiency and effectiveness of the US GAAP Financial Reporting Taxonomy used by public companies to report financial information in a digital format called XBRL. The FASB is seeking input on possible improvements to the usability of the taxonomy (i.e., taxonomy design, references to the Accounting Standards Codification and implementation resources for registrants) and the processes that support it (i.e., integration with the FASB’s standard-setting process). The FASB is conducting this assessment in response to the SEC’s request in January 2017. Comments are due by 15 June 2017. The FASB plans to discuss the feedback it receives at a public roundtable meeting on 18 July 2017.

    10 January 2017

    Changes to the disclosure requirements for inventory
    The proposal is part of the FASB’s broader Disclosure Framework project to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of a reporting organization’s financial statements. The proposed ASU would increase inventory disclosure requirements for all reporting organizations. Comments are due by 13 March 2017.

    10 January 2017

    Simplifying the classification of debt in a classified balance sheet (current versus noncurrent)
    The proposal is intended to improve financial reporting by simplifying guidance used to determine whether debt should be classified as current or noncurrent in a classified balance sheet. It would replace the existing, fact-specific guidance with an overarching, cohesive principle for debt classification that focuses on a borrower’s contractual rights and obligations that exist as of the reporting date. Under the proposed ASU, a borrower would continue to classify its debt as noncurrent when a violation of a debt covenant has been waived, if a borrower receives a waiver before the financial statements are issued (or are available to be issued) and the waiver meets certain conditions. Comments are due by 5 May 2017.

    7 December 2016

    Distinguishing liabilities from equity
    The amendments in Part I of this proposed Update would change the accounting for certain equity-linked financial instruments (or embedded features) with down round features. The proposed amendments would require that when determining whether certain financial instruments should be classified as liabilities or equity instruments, an entity would not consider the down round feature when assessing whether the instrument is indexed to its own stock. The amendments in Part II of this proposed Update are a recharacterization of the indefinite deferral of certain provisions of Subtopic 480-10, that are currently presented as pending content in the Codification, to a scope exception. These amendments will not have an accounting effect. Comments are due 6 February 2017.

    17 November 2016

    Stock compensation (Topic 718): Scope of modification accounting
    The amendments in this proposed Update would provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Comments are due by 6 January 2017.

    4 November 2016

    Determining the customer of the operation services
    Stakeholders have observed that there is diversity in practice in how an operating entity determines the customer of the operation services for transactions within the scope of Topic 853, Service Concession Arrangements. This proposed Update would address that diversity. The amendments in this proposed Update would clarify that the grantor, rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853. The amendments would eliminate the diversity in practice that has been observed regarding the customer determination for the operation services. The amendments would also reduce complexity and enable more consistent application of other aspects of the revenue guidance, which are affected by this customer determination. Comments are due by 6 January 2017.

    4 November 2016

    Taxonomy implementation guide, Retirement benefits
    The purpose of this Taxonomy Implementation Guide is to demonstrate the modeling of disclosures related to retirement benefits. The examples are not intended to encompass all of the potential modeling configurations or to dictate the appearance and structure of an entity’s extension taxonomy. The examples are provided to help users of the Taxonomy understand how the modeling for disclosures related to retirement benefits is structured within the Taxonomy. Comments are due by 2 December 2016.

    2 November 2016

    Taxonomy implementation guide, Dimensional modeling for disclosures of consolidated and nonconsolidated entities
    The purpose of this Taxonomy Implementation Guide is to demonstrate the modeling for disclosures related to dimensional modeling for disclosures of consolidated and nonconsolidated entities. These examples are not intended to encompass all of the potential modeling configurations or to dictate the appearance and structure of an entity’s extension taxonomy. The examples are provided to help users of the Taxonomy understand how the dimensional modeling for disclosures of consolidated and nonconsolidated entities is structured within the Taxonomy. Comments are due by 2 December 2016.

    2 November 2016

    Taxonomy implementation guide, Leases under Topic 842
    The purpose of this Taxonomy Implementation Guide is to demonstrate the modeling for disclosures related to leases under Topic 842. These examples are not intended to encompass all of the potential modeling configurations or to dictate the appearance and structure of an entity’s extension taxonomy. The examples are provided to help users of the Taxonomy understand how the modeling for disclosures of leases under Topic 842 is structured within the Taxonomy. Comments are due by 2 December 2016.

    2 November 2016

    Taxonomy implementation guide, Revenue from contracts with customers
    The purpose of this proposed Taxonomy Implementation Guide is to demonstrate the modeling for disclosures related to revenue from contracts with customers under ASC Topic 606. These examples are not intended to encompass all of the potential modeling configurations or to dictate the appearance and structure of an entity’s extension taxonomy or disclosures in its financial statements. The examples are provided to help users of the Taxonomy understand how the modeling for disclosures of revenue from contracts with customers is structured within the Taxonomy. Comments are due by 2 December 2016.

    27 October 2016

    Endowment reporting
    The Board is issuing this proposed Update to clarify the minimum requirements for the reconciliation that a not-for-profit entity (NFP) is required to disclose if it has endowment funds. Comments are due by 11 November 2016.

    29 September 2016

    Targeted improvements to the accounting for long-duration contracts
    The FASB issued a proposed ASU intended to improve financial reporting for insurance companies that issue long-duration contracts, such as life insurance, disability income, long-term care, and annuities. Comments are due by 15 December 2016.

    22 September 2016

    Premium amortization on purchased callable debt securities
    The FASB issued a proposed ASU that would amend the amortization period for callable debt securities purchased at a premium. The Board is proposing to shorten the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. Comments are due by 28 November 2016.

    19 September 2016

    Additional corrections: Technical corrections and improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606)
    The amendments in this proposed Update affect narrow aspects of the guidance issued in Update 2014-09. The proposed Update issued on 18 May 2016 included nine technical corrections and improvements, which the Board is in the process of redeliberating. The amendments in this proposed Update include four additional items that were brought to the Board’s attention after the initial deliberations of the May 2016 proposed Update. Comments are due by 4 October 2016.

    8 September 2016

    Derivatives and hedging: Targeted improvements to accounting for hedging activities
    The FASB issued a proposed ASU that would make targeted improvements to the accounting guidance for hedging activities. The objective of the proposal is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition to that main objective, the amendments in this proposed Update would make certain targeted improvements to simplify the application of the hedge accounting guidance in current. Comments are due by 22 November 2016.

    11 August 2016

    Conceptual framework for financial reporting: Chapter 7: Presentation
    The FASB issued for public comment an Exposure Draft related to its conceptual framework presentation project. The Exposure Draft describes proposed concepts related to how recognized items should be presented in a financial statement. This chapter will become a basis for the Board when creating presentation requirements in future standards. Comment are due by 9 November 2016.

    4 August 2016

    Agenda consultation
    The FASB issued an Invitation to Comment to solicit feedback about potential financial accounting and reporting topics that the FASB should consider adding to its agenda. The Invitation to Comment covers financial reporting areas of concern identified by stakeholders in the recent survey of the FASB’s advisory groups. The document includes potential issues and possible solutions. Comment are due by 17 October 2016.

    3 August 2016

    Clarifying when a not-for-profit entity that is a general partner should consolidate a for-profit limited partnership or similar entity
    The FASB issued this proposal to amend the consolidation guidance to clarify when a not-for-profit entity (NFP) that is a general partner should consolidate a for-profit limited partnership or similar legal entity once the amendments in ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, become effective. Comments are due by 3 October 2016.

    28 July 2016

    Plan accounting - Employee benefit plan master trust reporting
    The FASB issued this proposal to improve the usefulness of the information reported to users of employee benefit plan financial statements. This proposed Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust. Comments are due by 26 September 2016.

    26 July 2016

    Disclosure framework - changes to the disclosure requirements for income taxes
    The FASB issued a proposed ASU that is intended to enhance disclosure requirements on income taxes. The proposed ASU is part of the FASB’s broader disclosure framework project to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of a reporting organization’s financial statements. The proposed ASU would both modify existing disclosure requirements and provide additional disclosure requirements for income taxes. Comments are due by 30 September 2016.

    23 June 2016

    Consolidation: Interests held through related parties that are under common control
    The FASB proposed this Update to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) would treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Comments are due by 25 July 2016.

    6 June 2016

    Clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets
    The amendments in this proposed Update would clarify the scope of the nonfinancial asset guidance in Subtopic 610-20. Under the clarified scope, entities would apply the guidance to the derecognition of all nonfinancial assets and in substance nonfinancial assets unless other specific guidance applies. The amendments in this proposed Update would affect any entity that enters into a contract to transfer a nonfinancial asset, a group of nonfinancial assets, or an ownership interest in a consolidated subsidiary that does not meet the definition of a business or a nonprofit activity. In addition, the proposed amendments would affect any entity that has historically had transactions within the scope of the real-estate-specific derecognition guidance. The scope of the proposed amendments also includes contributions of nonfinancial assets that are not a business or nonprofit activity to a joint venture or another noncontrolled investee. Comments are due by 5 August 2016.

    EY comment letters

    11 June 2018

    Comment Letter - FASB proposal to clarify the guidance on collaborative arrangements
    In our comment letter, we support the FASB’s proposal to clarify the scoping guidance in ASC 808, Collaborative Arrangements, and ASC 606, Revenue from Contracts with Customers, and believe the amendments would remove doubt about whether a counterparty in a collaborative arrangement also could be a customer for one or more transactions. However, we do not believe the FASB should preclude the presentation of amounts recorded for collaborative arrangements as revenue when the amounts are not received from a customer or directly related to third-party sales.

    30 March 2018

    Comment Letter - FASB proposal to add new benchmark interest rate for hedge accounting
    In our comment letter, we supported the FASB’s proposal to add the overnight index swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) to the list of US benchmark interest rates in ASC 815 that are eligible to be hedged. However, instead of limiting final guidance to the SOFR OIS rate, we suggested the Board add a broader swap rate based on SOFR that would also include tenors greater than overnight. We also recommended that the Board provide relief to help entities address the accounting implications associated with the transition from LIBOR to SOFR, noting that without this relief many existing hedging relationships would likely need to be discontinued.

    5 February 2018

    Comment letter - FASB proposal to add a transition option and practical expedient for lessors to the new leases standard
    In our comment letter, we supported the FASB’s efforts to reduce the cost and complexity of applying the guidance in ASC 842, Leases. However, we believe the Board could provide additional relief by giving entities the option to use an alternative transition method that would allow them to apply the recognition and subsequent measurement guidance in ASC 842 to existing leases at the date of initial application. In addition, we expressed concern that the proposed criteria for use of the lessor practical expedient would inadvertently limit the population of leases to which the practical expedient could be applied.

    2 February 2018

    Comment letter - Reclassification of stranded tax effects
    In our comment letter, we said the FASB’s proposed guidance appropriately addresses the concerns raised by stakeholders regarding the effects of US tax reform on financial reporting. However, we questioned whether the proposed guidance would be beneficial or operational for all entities and recommended that the Board give companies the option to apply the guidance and/or exclude certain tax effects recorded in other comprehensive income from the scope of any final standard. We also supported the addition of a broader project on backwards tracing to the FASB’s standard-setting agenda.

    4 December 2017

    Comment Letter - Codification improvements
    In our comment letter, we agree that, for the most part, the proposed changes would clarify the guidance, correct errors and make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities. However, we express concerns about some of the proposed amendments.

    30 November 2017

    Comment Letter - FASB’s proposed consolidation reorganization
    In our comment letter, we support the FASB’s objective of making the consolidation guidance easier to navigate and apply but continue to recommend that the Board pursue the development of a single comprehensive consolidation model. If the FASB moves forward with the proposed ASU, it should provide a concordance, mapping the changes from ASC 810 to ASC 812 and any changes to the original wording. This would make it less costly for companies to implement the proposed changes. Further, we recommend that the Board allow for prospective adoption and that the guidance be effective after all companies adopt ASU 2015-02, ASU 2016-17 and ASU 2017-02.

    13 November 2017

    Comment Letter - FASB’s proposed amendments to the new recognition and measurement guidance
    In our comment letter, we support the FASB’s efforts to clarify certain aspects of the new guidance on recognizing and measuring financial instruments. However, we believe the Board should define “same type” of equity securities to help entities apply the guidance on changing from the measurement alternative to a fair value method. In addition, we recommend that the Board clarify the acceptability of the cost method with amortization to account for investments in qualified affordable housing projects and provide guidance on the transition approach for certain insurers that measure their equity securities without readily determinable fair values at fair value with changes in fair value recognized in other comprehensive income.

    13 November 2017

    Comment Letter - Proposed technical corrections and improvements to new leases standard
    In our comment letter, we support the FASB’s effort to address feedback from stakeholders about how to apply certain aspects of ASC 842, Leases. We agree that the proposed changes would clarify the new leases standard and correct guidance that could be misinterpreted or does not represent the intention of the FASB. We also recommend additional clarifications.

    1 November 2017

    Comment Letter - FASB’s proposal to clarify the scope and accounting guidance for contributions
    In our comment letter, we support the FASB’s proposal to clarify the scope and accounting guidance for contributions received and contributions made. We agree that the proposed amendments would help entities evaluate whether a transfer of assets should be accounted for as an exchange transaction or a contribution and distinguish between a conditional and an unconditional contribution. However, we recommend that the FASB make certain clarifications in the proposed table of indicators that would help entities determine whether an agreement includes a barrier. Further, we are concerned that the proposed effective date could create implementation challenges for certain calendar year-end entities.

    25 October 2017

    Comment letter - FASB proposal to add transition practical expedient for land easements and clarify how to apply ASC 842
    In our comment letter, we support the FASB’s objective to reduce the cost and complexity of applying the transition guidance in ASC 842, Leases. We believe the proposal could contribute to that objective by helping to clarify which land easements should be evaluated under ASC 842. However, we recommend that the Board clarify that the practical expedient would not apply to land easements previously accounted for as leases. In addition, we suggest that the Board consider additional clarifications on how to evaluate land easement contracts after the effective date of the new leases standard.

    31 August 2017

    Comment Letter - FASB proposal for targeted improvements to related party guidance for Variable Interest Entities (VIE)
    In our comment letter, we support the FASB’s objective of reducing complexity when applying the variable interest entity (VIE) guidance, but recommend they pursue development of a single comprehensive consolidation model. To the extent they move forward with the targeted improvements, we believe the FASB should provide additional guidance to clarify the current model, which would reduce the cost and complexity for all companies. Further, we support the proposed changes in the determination of whether fees paid to decision makers or service providers are a variable interest.

    1 June 2017

    Comment letter - FASB proposal to simplify the accounting for share-based payments to nonemployees
    In our comment letter, we support the FASB’s efforts to reduce the cost and complexity of accounting for share-based payments to nonemployees by aligning it, with certain exceptions, with the accounting for share-based payments to employees. In addition, we recommend that the Board broaden the definition of an employee, simplify the proposed transition and permit the use of the expected term when valuing certain nonemployee awards.

    5 May 2017

    Comment Letter - FASB proposal to simplify the balance sheet classification of debt
    In our comment letter, we support the FASB’s efforts to reduce the cost and complexity of determining whether debt should be classified as current or noncurrent on a classified balance sheet by replacing today’s rules-based guidance with a principles-based approach. While we also support the FASB’s proposed exception for certain waivers of covenant violations received after the balance sheet date but before the financial statements are issued, we recommend that the FASB clarify the proposed principle by requiring classification to be based on whether current assets are needed to settle the liability.

    27 March 2017

    Comment Letter - FASB proposed changes to disclosure requirement for inventory
    In our comment letter, we supported the FASB’s disclosure framework project and its objective to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP that is most important to users of each entity’s financial statements. However, we asked the FASB to provide more details about the input received from users, particularly users of other than public business entities’ financial statements, and how any expanded disclosures would affect their behavior.

    7 February 2017

    Comment Letter - FASB proposal on accounting for instruments with down round features
    In our comment letter, we support the FASB’s objective to reduce the cost and complexity of accounting for certain financial instruments with down round features, and we believe the proposal would meet that objective by requiring fewer equity-linked financial instruments (or embedded features) with down round features that have to be accounted for at fair value. However, we believe the proposed guidance could cause confusion about whether a convertible instrument with an adjustment provision that could result in the recognition of a contingent beneficial conversion feature (BCF) would be in the scope of the proposed recognition and measurement guidance for down round features (i.e., ASC 480-20). Therefore, we recommend that the FASB clarify the proposed guidance on convertible instruments with down round features that are also subject to the contingent BCF guidance in ASC 470-20. We do not believe these instruments should be in the scope of ASC 480-20, because applying both the guidance in ASC 480-20 and the contingent BCF guidance in ASC 470-20 would be too complex.

    6 January 2017

    Comment Letter - FASB proposal on the scope of modification accounting in the stock compensation guidance
    In our comment letter, we support the Board’s objective to reduce the cost and complexity of applying modification accounting and believe many of the proposed amendments would meet that objective. However, we believe the FASB should include additional guidance about how the amendments would be operationalized.

    14 December 2016

    Comment Letter - FASB’s long-duration contracts proposal for insurers
    In our comment letter, we support the Board’s objective to simplify and enhance the financial reporting requirements for long-duration contracts issued by insurers and believe many of the proposed amendments would meet that objective. However, we believe the FASB should reconsider certain aspects of the proposal and provide additional guidance or clarification in some places.

    17 November 2016

    Comment Letter - FASB proposal on premium amortization on purchased callable debt securities
    In our comment letter, we supported the FASB’s proposal to shorten the amortization period for callable debt securities purchased at a premium. However, we recommended that the FASB clarify whether the proposed guidance would apply to callable instruments that do not have definitive call dates.

    3 November 2016

    Comment Letter - FASB’s hedge accounting proposal
    In our comment letter, we applaud the FASB for addressing many of the concerns raised by preparers, users and other stakeholders about the complexity of today’s hedge accounting model and the restrictions it imposes. Overall, we agree that the proposed amendments would better portray the economics of an entity’s risk management activities in its financial statements and simplify the application of hedge accounting in certain situations. However, we believe the FASB should reconsider certain aspects of the proposal and provide additional guidance or clarification in some places.

    24 October 2016

    Comment Letter - FASB’s invitation to comment, Agenda consultation
    In our comment letter, we commend the FASB for its thorough and thoughtful approach to deciding which financial reporting issues to add to its future agenda. We agree that now that the Board has completed many of its major projects, it has an opportunity to consider its direction for the next few years. However, we do not believe that now is the time for the FASB to begin actively working on any new major projects, other than continuing to conduct research for future ones. We are concerned that, given the volume of major new standards entities will have to implement over the next few years, it would be difficult for preparers, users, auditors and regulators to continue monitoring new standard-setting initiatives while effectively managing changes resulting from the major new standards.

    13 October 2016

    Comment Letter - ASB’s proposal on auditor involvement with exempt offerings
    In our comment letter, we support the issuance of the Proposed Statement on Auditing Standards, Auditor Involvement With Exempt Offering Documents, which would require the auditor to perform certain procedures when the auditor is involved with an exempt offering document. Under the proposal, an auditor would be considered involved when (1) the auditor’s report on the financial statements or the auditor’s review report on interim financial information is included or incorporated by reference in the exempt offering document and (2) the auditor performs one or more specified activities (e.g., issues a comfort letter) with respect to the exempt offering document.

    4 October 2016

    Comment letter - FASB’s proposed additional technical corrections and improvements to the new revenue standard
    In our comment letter, we support the FASB’s objective to address additional feedback received from stakeholders and to make other improvements to its new revenue standard. Overall, we believe that the proposed amendments would address the additional concerns raised by constituents, provide more clarity and improve consistency in application. We also recommend additional clarifications.

    3 October 2016

    Comment Letter - FASB’s proposal to retain the consolidation guidance for NFP general partners in for-profit limited partnerships
    In our comment letter, we supported the FASB’s proposal to retain the consolidation guidance in ASC 810-20 requiring a not-for-profit entity that is a general partner in a for-profit limited partnership or similar entity to presume that it controls the entity, unless that presumption can be overcome. We also supported the FASB’s proposed clarification that not-for-profit entities (other than business-oriented health care entities) with investments in certain for-profit entities may continue to elect to measure those investments at fair value, and we offered suggestions on how the FASB could further clarify its intent.

    30 September 2016

    Comment Letter - FASB proposed changes to disclosure requirement for income taxes
    In our comment letter, we supported the FASB’s effort to improve the effectiveness of income tax disclosures, particularly incorporating disclosures required by the Securities and Exchange Commission into US GAAP. However, we asked the FASB to provide more details about the input received from users on expanding the disclosure requirements as we believe that would help other constituents understand how the proposal meets user needs. In addition, we expressed concerns about the proposed requirements to disclose agreements with a government and the future effects of tax law changes, and we recommended that the Board clarify certain aspects of the proposed requirements to promote consistency and make the disclosures as useful as possible.

    5 August 2016

    Comment letter - FASB proposal on clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets
    In our comment letter, we supported the FASB’s objective to clarify the guidance on how to account for derecognition of nonfinancial assets and in substance nonfinancial assets. We believe the proposed ASU would reduce the cost and complexity of accounting for the derecognition of nonfinancial assets by aligning it further with the accounting for the derecognition of a business. Further, the proposed ASU would result in the remeasurement of any retained noncontrolling interest to fair value, which may lead to a higher risk of future impairment and may raise further questions regarding the technical merits of recording gains on retained interests.

    25 July 2016

    Comment Letter - FASB proposal on evaluating interests held under common control in the Variable Interest Entity (VIE) Model
    In our comment letter, we supported the FASB’s objective of changing how a single decision maker or service provider considers indirect interests when applying the consolidation guidance on determining whether it is the primary beneficiary of a VIE under the VIE model. However, we raised concerns about the clarity of the VIE model, particularly the primary beneficiary guidance, when the evaluation includes entities under common control.

    30 June 2016

    Comment letter - FASB proposal on goodwill impairment
    In our comment letter, we supported the FASB’s objective of simplifying the accounting for goodwill impairment and said we believe the proposed amendments would reduce the complexity of applying the goodwill impairment assessment. However, we recommended that the Board consider certain changes in the proposal. We also said that we believe the Board should continue to simplify the subsequent accounting for goodwill in the next phase of its project and that any future amendments should be practical in nature.

    29 June 2016

    Comment Letter - FASB proposal on technical corrections and improvements
    In our comment letter on the Proposed Accounting Standards Update, Technical Corrections and Improvements, we agree that for the most part, the proposed changes would clarify the Accounting Standards Codification, correct unintended application of guidance or make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities. However, we express concerns about certain of the proposed amendments

    29 June 2016

    Comment letter - FASB proposal on technical corrections and improvements to its revenue standard
    In our comment letter, we support the FASB’s proposal to address feedback received from stakeholders and to make other improvements to its new revenue standard. Overall, we believe that the proposed amendments would address many of the concerns raised by constituents, provide additional clarity and improve consistency in application. We also recommend additional clarifications.

    Tentative Board Decisions and In Focus updates

    21 May 2018

    In Focus: FASB Update for Private Companies and Not-for-Profit Organizations
    The FASB announced its next semiannual webcast providing an update on the FASB’s standard-setting activities pertaining to private companies and not-for-profit (NFP) organizations. It will take place on Friday 15 June 2018, from 1 to 2:40 p.m. EDT.

    21 March 2018

    In Focus: 2018 GAAP and SEC reporting taxonomies improvements, including new revenue modeling, and SEC update
    The FASB announced an upcoming webcast that will discuss improvements to the 2018 GAAP Financial Reporting Taxonomy for recently issued FASB ASUs and revenue modeling, as well as the new 2018 SEC Reporting Taxonomy. It will take place on Tuesday, 3 April 2018, from 1 to 2:30 p.m. EDT.

    14 March 2018

    14 March 2018 FASB Board Meeting
    The FASB discussed its projects on Disclosures by business entities about government assistance and Disclosure framework: disclosure review – defined benefit plans.

    28 November 2017

    In Focus: The new not-for-profit financial reporting standard: Get ready for it!
    The FASB announced an upcoming webcast that will discuss the requirements of Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, including related implementation ideas. It will take place on Tuesday, 19 December 2017, from 1 to 2:15 p.m. EST.

    27 November 2017

    In Focus: FASB update for private companies and nNot-for-profit organizations
    The FASB announced its next semiannual webcast providing an update on the FASB’s standard-setting activities pertaining to private companies and not-for-profit (NFP) organizations. It will take place on Friday, 15 December 2017, from 1 to 2:40 p.m. EST.

    20 September 2017

    20 September 2017 FASB meeting
    The FASB decided to add projects to its agenda on Distinguishing liabilities from equity (including convertible debt), Improving disaggregation of financial performance reporting and Segment reporting. The FASB also decided not to add to its agenda projects on pensions and other postretirement employee benefit plans and intangible assets and made other changes to its research agenda.

    12 September 2017

    In Focus: FASB Accounting Standards Update on hedging
    The FASB announced an upcoming webcast that will provide an overview of the recently issued AS) on hedge accounting. It will take place on Monday, 25 September 2017, from 1 to 2:00 p.m. EDT.

    16 August 2017

    In Focus: Proposed improvements to not-for-profit grant and contribution accounting
    The FASB announced an upcoming webcast that will discuss the 2017 proposed Accounting Standards Update, Not-for-Profit Entities (Topic 958): Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. It will take place on Monday, 11 September 2017, from 1 to 2:00 p.m. EDT.

    2 August 2017

    2 August 2017 FASB meeting
    The Board directed the staff to draft a proposed Accounting Standards Update to provide a transition practical expedient in the new leases standard to allow entities that do not account for their existing land easements as leases today to continue applying their current accounting for such arrangements that exist before the standard’s effective date. The Board also began redeliberating its proposal and tentatively decided that the liability for future policy benefits for nonparticipating traditional and limited payment insurance contracts should be discounted at an upper-medium grade fixed-income instrument yield, rather than the high-quality fixed-income instrument yield previously proposed.

    19 July 2017

    19 July 2017 FASB meeting
    The FASB discussed its Disclosure framework project.

    14 June 2017

    14 June 2017 FASB meeting
    The FASB held an educational discussion on staff outreach on a possible project on distinguishing liabilities from equity.

    12 June 2017

    In Focus: FASB update for private companies and not-for-profit organizations
    The FASB announced an upcoming webcast that provides an update on the FASB’s standard-setting activities pertaining to private companies and not-for-profit organizations. It will take place on Monday, 26 June 2017, from 1 to 2:40 p.m. EDT.

    7 June 2017

    7 June 2017 FASB meeting
    The Board concluded on a number of sweep issues and voted to proceed with its new hedge accounting standard, which it expects to issue in August. The new standard will be effective for public business entities in fiscal years beginning after 15 December 2018, including interim periods within those years. For all other entities, it will be effective in fiscal years beginning after 15 December 2019 and interim periods in fiscal years beginning after 15 December 2020. Early adoption will be permitted in any interim period or fiscal year before the effective date of the standard. The FASB also discussed its project on Revenue recognition of grants and contracts by not-for-profit entities.

    24 May 2017

    24 May 2017 FASB meeting
    The FASB held an educational discussion on the staff research on the subtopics related to reporting performance and cash flows in its Invitation to Comment, Agenda Consultation, including potential new projects on those subtopics.

    18 May 2017

    18 May 2017 FASB meeting
    The Board discussed its project on Consolidation targeted improvements to related party guidance for variable interest entities.

    22 March 2017

    22 March 2017 FASB meeting
    The Board discussed its projects on accounting for financial instruments: hedging and liabilities and equity: targeted improvements.

    8 March 2017

    8 March 2017 FASB meeting
    The Board tentatively decided to provide a simplified approach for fair value hedges of interest rate risk in prepayable financial assets. This approach is intended to increase the ability of financial institutions to hedge portfolios of prepayable financial assets, including fixed-rate mortgage loans. The Board also discussed its project on Consolidation reorganization and targeted improvements.

    19 August 2016

    In Focus - FASB accounting standards update on not-for-profit financial statements
    The FASB announced its webcast providing an overview of the recently issued ASU on not-for-profit financial statements. It will take place on Tuesday, 13 September 2016, from 1 p.m. to 2:15 p.m. EDT.

    15 August 2016

    In Focus - Implementation update on revenue from contracts with customers
    Registration is open for an upcoming FASB joint webcast with the IASB that looks at implementation of the requirements in Revenue from Contracts with Customers. It will take place on Thursday, 15 September 2016, from 11 a.m. to 12 p.m. EDT.

    19 July 2016

    19 July 2016 PCC meeting
    Members of the PCC and the FASB discussed the FASB’s projects on Liabilities and equity short-term improvements, Balance sheet classification of debt and Disclosures by business entities about government assistance. They also discussed the FASB’s research project on Financial performance reporting and other matters.

    13 July 2016

    13 July 2016 FASB meeting
    The FASB tentatively agreed to allow entities to apply the critical terms match method to a group of forecasted transactions that occur within 31 days of when the hedging derivative matures, without performing a de minimis test. The FASB also discussed its project on Disclosure framework: disclosure review – defined benefit plans.

    6 July 2016

    In Focus: FASB Accounting Standards Update on credit losses
    The FASB announced an upcoming webcast providing an overview of the recently issued ASU on credit losses. It will take place on Thursday, 21 July 2016, from 1 to 2 p.m. EDT.

    29 June 2016

    29 June 2016 FASB meeting
    The FASB ratified the EITF’s final consensus on Statement of cash flows: classification of certain cash receipts and cash payments (Issue 15-F) and consensus-for-exposure on Employee benefit plan master trust reporting (Issue 16-B).

    20 June 2016

    20 June 2016 FASB/IASB joint videoconference meeting
    The FASB and the IASB discussed the status of their projects on: (1) accounting for goodwill impairment, (2) subsequent accounting for goodwill and (3) accounting for identifiable intangible assets in a business combination. No decisions were made.

    15 June 2016

    15 June 2016 FASB meeting
    The FASB discussed its projects on Accounting for income taxes – intra-entity asset transfers, Nonemployee share-based payment accounting improvements and Revenue recognition of grants and contracts by not-for-profit entities.

    8 June 2016

    8 June 2016 FASB meeting
    The FASB tentatively decided that the project on Disclosures by business entities about government assistance would continue to focus only on disclosures about government assistance, despite feedback from some constituents that the project should also focus on recognition and measurement. The FASB completed its initial deliberations on Disclosure framework: disclosure review – income taxes and said it expects to issue a proposal.

    1 June 2016

    1 June 2016 FASB meeting
    The Board discussed its projects on (1) Conceptual framework: presentation, (2) Disclosure framework: disclosure review – fair value measurement and (3) Financial statements of not-for-profit entities.

    1 June 2016

    1 June 2016 FASB meeting
    The FASB discussed its projects on (1) Conceptual framework: presentation, (2) Disclosure framework: disclosure review – fair value measurement and (3) Financial statements of not-for-profit entities.

    25 November 2015

    In Focus: FASB update for private companies and not-for-profit organizations
    The FASB announced its next semiannual webcast providing an update on the FASB’s standard-setting activities pertaining to private companies and not-for-profit organizations. It will take place on Monday, 14 December 2015, from 1:00 to 2:40 p.m. EST.

    29 July 2015

    29 July 2015 FASB meeting
    The Board discussed conceptual framework: presentation, conceptual framework: measurement, disclosure framework: entity’s decision process, disclosures about hybrid financial instruments that contain bifurcated embedded derivatives, revenue recognition: principal versus agent (reporting revenue gross versus net) and simplifying the balance sheet classification of debt.

    24 July 2015

    24 July 2015 FASB meeting
    The Board discussed the method for determining the liability for future policy benefits for traditional long-duration and limited-payment contracts. The staff presented its research into different ways the Board could use the concept of a remeasurement to distinguish between earnings components to provide additional disaggregation of the performance statement. The Board also continued its deliberations discussing scope, disclosures, transition, and next steps for disclosures by business entities about government assistance.

    9 July 2015

    9 July 2015 FASB meeting
    The Board directed the staff to proceed with drafting a proposed Accounting Standards Update on clarifying the definition of a business. The Board defered the effective date of the revenue recognition guidance. The Board also discussed potential changes to the disclosure requirements for fair value measurement and for defined benefit plans.

    29 June 2015

    29 June 2015 FASB meeting
    The Board continued deliberations on the accounting for hedging activities, specifically discussing the qualifying threshold, component hedging for nonfinancial items, benchmark interest rates, application issues related to fair value hedges of interest rate risk, the shortcut method, and presentation and disclosure. The Board also discussed potential changes to the disclosure requirements for defined benefit plans in employers’ financial statements.

    9 May 2013

    In Focus - FASB update for nonpublic entities
    Registration is now open for the upcoming FASB webcast, In Focus: FASB Update for Nonpublic Entities, on 5 June 2013, from 1:00 to 2:40 p.m. Eastern Daylight Time. Participants in the live broadcast will be eligible for up to 2 hours of CPE credit. The webcast will provide an update on recent PCC meetings, including upcoming proposals on potential alternatives within U.S. GAAP. It will also give an overview of the Private Company Decision-Making Framework Project and the work of the FASB’s Not-for-Profit Advisory Committee.

    Selected news releases

    20 March 2018

    FASB Staff issues Taxonomy improvements and implementation guidance for technical corrections
    The FASB staff issued GAAP Taxonomy improvements and implementation guidance related to three final Accounting Standards Updates.

    19 March 2018

    SEC accepts 2018 GAAP Financial Reporting Taxonomy
    The FASB announced that the SEC has accepted the 2018 GAAP Financial Reporting Taxonomy. The FASB also announced that the SEC has accepted the 2018 SEC Reporting Taxonomy, which is new this year. The 2018 GAAP Financial Reporting Taxonomy contains updates for accounting standards and other recommended improvements.

    28 August 2017

    FASB issues improvements to hedge accounting
    The FASB issued a final ASU that will improve and simplify accounting rules around hedge accounting. The ASU is effective for public companies in 2019 and private companies in 2020. Early adoption is permitted.

    13 June 2017

    FASB to host roundtable meeting on U.S. GAAP Taxonomy Invitation to Comment
    The FASB will host a public roundtable meeting to discuss the Invitation to Comment , U.S. GAAP Financial Reporting Taxonomy - Efficiency and Effectiveness Review. The meeting will be held from 9 a.m. to 12 p.m. EDT on Tuesday, 18 July 2017, at the FASB offices.

    12 January 2017

    Public roundtable meetings on the board's decision process under the disclosure framework and materiality
    The FASB will host two public roundtable meetings to discuss proposals related to its Disclosure Framework project. The meetings will be held on Friday, 17 March 2017, at the FASB offices. The purpose of the roundtable meetings is to obtain feedback on whether the proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements (Chapter 8) , is useful in identifying relevant disclosures.

    9 November 2016

    FASB to host roundtable meeting on consolidation reorganization and targeted improvements
    The FASB will host a public roundtable meeting on Friday, 16 December, on its consolidation reorganization and targeted improvements project. The purpose of the roundtable is to provide an opportunity for stakeholders to provide FASB Board members with feedback on whether the reorganization of the consolidation guidance and possible direction over potential amendments to common control arrangements under the variable interest entity consolidation guidance would decrease cost and complexity in financial reporting, while continuing to provide useful information to users of the financial statements.

    24 February 2016

    Post-implementation review concludes FASB’s earnings per share standard achieves purpose
    A Post-Implementation Review of FASB Statement No. 128, Earnings Per Share, (issued in 1997) concluded that Statement 128 accomplished its objectives of simplifying the computation of earnings per share and achieving greater compatibility with international accounting standards. It also concluded that Statement 128 provides useful information to users of financial statements.

    22 January 2015

    FASB and PCC to host private company town hall
    The FASB and the PCC will host their fourth Private Company Town Hall Meeting on 28 April 2015, at Southern Methodist University in Dallas, Texas. The town hall meetings are intended to provide private company stakeholders across a wide variety of industries the opportunity to discuss private company accounting issues and share input on current and future agenda topics of both the FASB and the PCC.

    21 January 2014

    FAF releases updated print edition of FASB Accounting Standards Codification®
    The FAF released an updated print edition of the FASB Accounting Standards Codification®, the single, authoritative source of U.S. GAAP for public and private companies and not-for-profit organizations. The new four-volume bound edition of the FASB Codification contains all of the content of the online Codification as of 31 October 2013. The annual bound edition of the Codification is intended to be used as a reference tool in conjunction with the always-current online Codification.