Business Combinations (Topic 805), Revenue from Contracts with Customers: Recognizing an Assumed Liability
This blog covers the first installment of Financial Accounting Standards Board (FASB)’s Valentines Day gift- a proposed Accounting Standard Update (ASU) related to deferred revenue in business combinations. Addressing diversity in practice, the proposal provides guidance on when deferred revenue should be booked in a business combination. The standard would help companies apply Topic 606 in a business combination. Comments are due April 30, 2019.
Trio of International Audit Quality Proposals
The International Auditing and Assurance Standards Board has issued a trio of international audit quality proposals. The proposals address risk assessment for firms to address quality objectives, new guidance on selection of quality reviewers and an update to ISA 220. Comments are due July 1, 2019.
Targeted Transition Relief for Topic 326, Financial Instruments – Credit Losses
FASB has issued a Proposed ASU, Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses, to address an implementation issue related to the adoption of the fair value option for financial instruments that would otherwise be reported at amortized cost. The proposal would allow businesses electing the fair value measurement option for newly originated or purchased loans to also measure at transition their existing loans at fair value. Comments are due March 8, 2019.
State and Local Government Affiliates
The AICPA is re-proposing changes to the independence standards for governmental entities. As a follow up to their 2017 proposal, PEEC is proposing modifications to their original drafts. Comments are due March 11, 2019.
Statement on Standards for Forensic Services No. 1
The AICPA has issued its first proposed standard relating to CPAs who perform forensic work. After working with multiple committees including The Forensic and Valuation Services Executive Committee (FVSEC), Forensic and Litigation Services Committee, Business Valuation Services Committee, Certified in Financial Forensics Credential Committee and Accredited in Business Valuation Credential Committee, they issued their first proposed Statements on Standards for Forensic Services. The proposed standard would be followed by CPAs who perform work in the areas of litigation and investigation. Comments are due February 28, 2019.
Implementation Guide: Fiduciary Activities
This blog addresses the proposed Implementation Guide issued by Governmental Accounting Standards Board that contains questions and answers about GASB 84 on fiduciary activities. The guide includes 53 new questions and updated 5 existing clients. Comments are due by February 28, 2019.
2018 in Review
This blog provides a high-level of overview of the final standards issued in 2018 by the FASB, GASB and AICPA. The FASB was quite busy issuing 20 Accounting Standard Updates (ASUs) while not a record definitely kept us busy this year. GASB issued 3 Statements as well as their annual Implementation Guide. The AICPA’s only issued one standard but we expect a flurry of standards in 2019! We will have a webinar on January XX, to cover the 20 ASUs issued by the FASB. Spots are still available.
Goodwill Amortization for Not-For-Profits
FASB has proposed extending the PCC alternatives related to goodwill and identifiable intangibles to NFP entities as a short term solutions for NFPs. Long term, the FASB is expected to issue an ITC to look at goodwill overall in a holistic fashion for all entities. Comments are due February 18th.
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