In completing the comprehensive project to change the conceptual framework, the International Accounting Standards Board (IASB) confirmed the objective of IFRS financial reporting as providing financial information that is useful to investors and others when deciding whether to provide resources to a company. To read the full article in the Journal of Accountancy, click: New IFRS Conceptual Framework Revises Foundational Reporting Concepts.
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FASB and the International Accounting Standards Board designed their converged revenue recognition standard to enhance comparability across industries. But the standard has presented different implementation challenges to the various business sectors. Ken Tysiac, Journal of Accountancy editorial director, explains. To read the full article in the Journal of Accountancy, click: How Revenue Recognition Changes are Affecting Preparers Like GE, Microsoft.
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The FASB is conducting early stage research about developing an accounting standard for digital currency and the technology that underpins it. With the use of digital currency increasing, proponents say inconsistent accounting practices are becoming a problem. To read the full article in Thomson Reuters, click: Bitcoin Seeks Recognition from U.S. GAAP.
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This blog outlines some recent changes to the impairment testing regime which provides corporate finance managers with periodic updates and commentary around several topics including impairment testing. Lucas Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, provides some insight as to what impact this may have. To read the full article in Mercer Capital’s Financial Reporting Blog, click: New Rules for Goodwill Impairment? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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The International Private Equity and Venture Capital Valuation (IPEV) Guidelines were developed in 2005 to set out recommendations on best practices in the valuation of private equity investments. Karolina Calhoun, senior financial analyst with Mercer Capital, looks at the draft amendments to the existing guidelines published in October 2015. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: Updated: Valuation Best Practices for Venture Capital and Private Equity Funds. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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For some businesses, the possibility for goodwill impairment is an issue. Lucas M. Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains the FASB proposed changes and what the Board has been discussing for a couple years now. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: New Rules for Goodwill Impairment?. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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Moving from Facts to Opinion? ASC 820 under US GAAP and IFRS 13 issued by IASB provide a principal based framework for fair value measurement. Though fair value measurement guidance in US GAAP and IFRS are substantially in the same line, some minor differences exist. This article discusses the IFRS 13 and challenges in its implementation.
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A Principle-Based Model Revenue Recognition Wiley author Joanne Flood looks at how the converged revenue standard affects companies reporting under U.S. GAAP.
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More than a decade in the making, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have released a converged standard on revenue recognition. Titled, “Revenue from Contracts with Customers”, the standard is designed to enhance the process of revenue reporting and improve comparability in financial statements among corporations using IFRS and U.S. GAAP. The standard also impacts the sale of nonfinancial assets to noncustomers, such as real estate. In an in-depth interview with Accounting Today, FASB member, Marc Siegel expanded on this example, stating, “Even though you might not be a home builder and…
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Key Concern is that FASB and IASB Continue Work Towards Common Standard Frank Byrt at Accounting Web reports that The Financial Accounting Standards Board (FASB) voted March 28 to extend the comment deadline for its proposal to improve financial reporting on expected credit losses on loans and other financial assets held by banks, financial institutions, and other public and private organizations, as FASB and the International Accounting Standards Board (IASB) continue to work toward a common standard. The new comment deadline on Proposed Accounting Standards Update, Financial Instruments – Credit Losses (Subtopic 825-15) is May 31, 2013.
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The FASB and IASB Don’t Seem to Be Open to Reconsidering Basic Assumptions Behind the “Right-of-Use” Asset. Here’s Why They Should. The attempt to find a single lease accounting model based on recognition of a right-of-use asset has faltered, assert two professionals in Grant Thornton LLP’s National Professional Standards Group. In a new white paper, they suggest a control-based model as an alternative:
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U.S.-Based Multinationals Reporting Under IFRS Struggle With Classification of Equities, Liabilities The International Accounting Standards Board agreed with respondents from its public consultation (a study that reached out to industry professionals at all levels in more than 80 countries in 2011) that it needs to better clarify definitions of assets and liabilities for debt instruments, CFO.com reports. That, in turn, should help eliminate some uncertainty when accounting for assets and financial liabilities or nonfinancial liabilities (which can include land and equipment leases). More:
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IFRS News Offers Summary of Significant Developments in International Financial Reporting Standards (IFRS) Grant Thornton’s IFRS team publishes a quarterly update on developments in the international accounting arena:
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Should Losses Trigger an Immediate Charge or Later Write Down? The Financial Accounting Standards Board (FASB) is engaged in an interesting discussion with the International Accounting Standards Board (IASB) regarding how quickly bad loans need to be recognized by banks. Here’s the essence of the dispute.
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Top Vote-Getters Include Fed Honchos, Private Sector Leaders, and Association Chief Who’s the most important person in Accounting? Is it Leslie Seidman (Chairman of the FASB), Hans Hoogervorst (Chairman of the IASB), or Douglas Shulman (Commissioner, IRS)? Or instead, might it be James Doty (PCAOB Chair), Mary Shapiro (SEC), or even an as-yet-unnamed person—our next president? Or someone else entirely? Find out how respondents voted in an Accounting Today survey.
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Emily Chasan at the Wall Street Journal’s CFO Journal reports that the chairman of the International Accounting Standards Board said Wednesday that he expects the board, which sets accounting rules for over 100 countries, will focus on clarifying some of its most confusing accounting standards once it completes its key convergence projects with U.S. accounting rule makers.
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Emily Chasan is on the spot with the latest news: U.S. and international accounting rule makers finally may be ready next month to resolve a debate over corporate lease accounting, that would bring $2 trillion worth of lease obligations onto corporate balance sheets. Members of the U.S. Financial Accounting Standards Board and the International Accounting Standards Board said Thursday they were ready to vote on a method for how new lease accounting rules will impact corporate earnings in June, which means a new draft of the rules could be finished by the end of this year. The lease…
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The International Accounting Standards Board plans to establish a formal network to give standard-setting bodies a voice when their countries switch to International Financial Reporting Standards. There is conflict, however, over how the network will operate and whether it would dilute IFRS as a single set of reporting standards. Advocates of such a network say the U.S. will not commit to IFRS without it. In an article called “Long Push for Accounting Standards” sub-titled “The United States is Seen to Be Dragging its Feet in Choosing to Come on Board,” Star Publications (Malaysia)/Reuters reports: SHAREHOLDERS and regulators have long wanted the…
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FASB Proposes Changes in Investment Accounting Michael Cohen reports at Accounting Today: The Financial Accounting Standards Board has released two proposed accounting standards updates to clarify the criteria for investment company accounting and develop guidance for investment property accounting. The proposed update for investment company accounting stems from the efforts of FASB and the International Accounting Standards Board to develop consistent criteria for determining whether an entity is an investment company. Under U.S. GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company. The primary changes proposed by FASB relate to…