April 1, 2023
Newsletter April 2023
In April 2023, standard setters maintained a slower pace to accommodate firms wrapping up busy seasons. FASB held productive meetings, redeliberating joint venture formations and software cost disclosures, directing staff to draft updates. They also discussed agenda prioritization, adding a project on induced conversion guidance to the EITF agenda. GASB discussed the classification of nonfinancial assets, tentatively deciding on criteria for assets held for sale and factors for evaluating probable sales. AICPA's Auditing Standards Board did not convene or issue drafts but scheduled a meeting for May 16-18.

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April was a slow month for the standard setters, as they were trying to be mindful of firms attempting to wrap up their busy seasons. Overall, nothing was officially issued by the FASB, GASB, or the AICPA’s Auditing Standards Board, but several meetings were conducted.

Although the FASB did not issue any exposure drafts in April, their meetings were productive. On April 5th the Board met to redeliberate both the joint venture formations and accounting for and the disclosure of software costs. During this meeting, the Board affirmed its decision that a joint venture would be required to recognize and initially measure its assets and liabilities at fair value using a new basis of accounting upon formation, and the Board directed staff to draft an Accounting Standards Update for a vote by written ballot relating to joint venture formations. The Board also discussed recent feedback from various stakeholders on potential recognition and measurement models for the accounting for software costs. As a result, the Board directed staff to continue its research on the single model and provided direction for elements of that model. The Board decided not to research the dual model further.

On April 26th, the FASB met once again to discuss agenda prioritization. They discussed an agenda request on addressing whether certain convertible debt instruments settled using terms that differ from the stated contractual conversion provisions should be accounted for as induced conversion or extinguishment. The Board decided to add a project to the Emerging Issues Task Force (EITF) agenda to improve the relevance of the existing induced conversion guidance in Subtopic 470-20.

The GASB also did not issue any exposure drafts in April, but they did meet on April 4th to discuss the classification of nonfinancial assets. During this meeting, they discussed the definition of the term held for sale. The Board tentatively decided on two criteria that must be met in order to classify a capital asset as held for sale: (1) the government has decided to sell the asset, and (2) it is probable that the sale will occur within one year of the financial statement date. The Board tentatively agreed to include two items as factors to consider in evaluating whether it is probable that the sale will occur within one year: (1) the asset is available for immediate sale in its present condition, and (2) an active program to locate a buyer has been initiated, incorporating the idea of an asset being put out for bid.

The GASB then tentatively decided that (1) market conditions for the type of asset and (2) regulatory approvals needed to sell the asset should be included as factors to consider when evaluating whether it is probable that the sale will occur. The Board also tentatively decided to develop additional factors to consider in evaluating whether it is probable that the sale will occur.

The AICPA’s Auditing Standards Board did not meet this month or issue any exposure drafts, but they have a meeting scheduled from May 16 through May 18. Stay tuned!

April 2023

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Jaclyn Veno CPA | Auditing Level Training | CPE

Melisa Galasso, CPA, CSP, CPTD

Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with nearly 20 years of experience in the accounting profession, Melisa designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting.

Her passion is providing high-quality CPE that is meaningful, creates efficiencies and improves quality, and positively impacts ROI. She also supports essential professional development, audit level training, and train the trainer efforts.

Melisa is a Certified Speaking Professional, a Certified Professional in Talent Development (CPTD), and has earned the Association for Talent Development Master Trainer™ designation. Her passion for instructional design and adult learning techniques is one of the differentiators that set her apart from other CPE providers.

She also serves on the FASB’s Not-for-Profit Advisory Committee (NAC), AICPA Council, and the AICPA’s Women’s Initiative Executive Committee (WIEC). She also serves as a Subject Matter Expert for the Center for Plain English Accounting. She previously served on the AICPA’s Technical Issues Committee (TIC), the VSCPA’s Board of Directors, and is a past Chair of the NCACPA’s A&A committee. In addition, Melisa is the author of Money Matters for Nonprofits: How Board Members Can Harness the Power of Financial Statements by Understanding Basic Accounting which is available on Amazon or anywhere you purchase books online.

Melisa received a Top 50 Women in Accounting Award in 2021 by Ignition, is a 2020 Enterprising Women of the Year Award recipient, and was honored as a “40 under 40” by CPA Practice Advisor in 2017, 2018, and 2019. She was also named the 2019 Rising Star by her regional NAWBO chapter, received the Don Farmer award for achievement in technical content instruction, and earned several other awards for public speaking and technical training.