Mar 26, 2020 | Accounting, Auditing, Genuine Learning, Government, Non-Profit
This week found our regulatory agencies working hard to address COVID-19. OMB expanded its administrative relief to entities impacted operationally by current conditions. The AICPA provided guidance on how to audit inventory when you can’t be on site. The SEC provided disclosure guidance to address COVID. GASB has indicated potential delays of two major standards in response to operational issues. FASB has worked with the federal agencies to address loan modifications and TDRs in light of banks helping customers dealing with COVID fallout. Standard setting may be on hold while they all take the time to address the current situation.
Dec 19, 2019 | Accounting, Genuine Learning
FASB has issued a new set of Codification Improvements, File Reference No. 2019-800. The proposal was issued on November 26, 2019 and comments are due December 26, 2019. Codification improvements are a standard project that is always on the FASB’s agenda to fix minor issues with Codification. There are three sections in the proposal – Section A which removes references to Concepts Statements; Section B which includes all disclosure guidance in Section 50 and Section C that contains various minor edits. Most of these changes should not have a material impact on entities.
Nov 14, 2019 | Accounting
FASB has issued a proposal addressing implementation issues for its new hedge accounting rule. This technical correction addresses issues related to documentation, dual hedges and provides clarifications that forecasted transaction and hedged risk are distinct. Comments are due January 13, 2020.
Sep 12, 2019 | Accounting
This week’s blog covers two big proposals from FASB that just came out. The first proposal relates to the movement away from LIBOR. As LIBOR has come under scrutiny there has been a movement to replace LIBOR as a reference rate. However, changing the reference rate can cause significant issues for hedging and other relationships. As a result, FASB is proposing a gentler approach to reference rate reform that will help those impacted by LIBOR’s replacement. The second proposal addresses the never-ending drama related to balance sheet classification of debt. While it sounds like an easy area, the movement to a principles-based approach has identified some impacts that may be unexpected. As such, FASB is reproposing the standard to gather feedback. Both standards will impact many entities so we wanted to get them out there in a timely manner!
Aug 29, 2019 | Accounting
This blog addresses two proposed ASUs that will delay effective dates for private companies. Now that private companies have started to implement revenue recognition, we know that it takes more effort for private companies to go through the adoption process. In addition, private companies struggle with the back to back nature of these major changes and have to triage each standard. As a result, the FASB is proposing delaying the CECL, hedging and leases standard for private companies. During this process, the Board also updated its framework for effective dates for private companies. In addition, to the three standards, FASB issued a separate exposure draft delaying the effective date of long-duration contracts for all entities.
