Month: November 2019

Financial Reporting Developments – Income taxes

Go to Source Author: Our FRD publication on income taxes has been updated to include further clarifications and enhancements to our interpretive guidance in several areas. It also includes additional guidance related to accounting for provisions of the Tax Cut and Jobs...

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To the Point – FASB proposes amendments to clarify and improve its hedge accounting guidance

Go to Source Author: The FASB proposed amendments to clarify and improve certain aspects of the new hedge accounting guidance provided by ASU 2017-12. The proposal would clarify the new guidance on an entity’s ability to (1) change the hedged risk in a cash flow hedge and (2) designate contractually specified components in cash flow hedges of nonfinancial forecasted transactions. The proposal would also address issues associated with “dual” fair value and net investment hedges, and replace the term “prepayable” in the guidance on the shortcut method with the words “early settlement features.” Comments are due by 13 January...

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To the Point – FASB requires the ASC 718 measurement approach for all share-based payments to customers

Go to Source Author: The FASB issued final guidance that requires share-based payments that are granted to a customer in a revenue arrangement and are not in exchange for a distinct good or service to be measured and classified in accordance with ASC 718. The new guidance applies to both equity-classified and liability-classified share-based payment awards and requires their grant-date fair value to be recorded as a reduction of the transaction...

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To the Point – FASB defers certain effective dates for major standards

Go to Source Author: The FASB deferred certain effective dates for its new standards on credit losses, hedging and leases and all of the effective dates for its new standard on long-duration insurance contracts. The credit losses standard is now effective for all entities except SEC filers that are not smaller reporting companies for fiscal years beginning after 15 December 2022, including interim periods within those fiscal years. The Board also decided to align the effective dates of ASU 2017-04 on goodwill impairment with the amended credit losses effective dates. The hedging and leases standards are effective for entities that are not public business entities (and for the leases standard, for entities that are not NFP entities that have issued, or are conduit bond obligors for, certain securities and not EBPs that file or furnish financial statements with or to the SEC) for fiscal years beginning after 15 December 2020 and interim periods in the following fiscal year. The insurance standard is effective for SEC filers that are not smaller reporting companies for fiscal years beginning after 15 December 2021, including interim periods within those fiscal years, and for all other entities for fiscal years beginning after 15 December 2023 and interim periods a year...

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Technical Line – Year-end accounting and disclosure reminders for reporting under the new leases standard

Go to Source Author: As they prepare for year-end reporting, entities that adopted the new leases standard should carefully review their accounting and disclosures in areas that require significant judgment, estimates and changes in practice. These areas include determining whether a contract is a lease or contains a lease, determining the discount rate to use for new or modified leases and identifying lease modifications and reassessment events. Entities should be mindful of changes to their processes and controls over these areas, especially if they implemented a new IT system or modified their IT system during the year. Our Technical Line provides key reminders about these topics and other challenging aspects of the...

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