1 / 15

FASB Update December 2013

FASB Update December 2013. What is going on?. Interesting last few years 2010 29 ASUs issued 2011-2013 30 ASUs issued Changes have gotten bottled up Big three projects Getting closer to the jam being removed. 2013 ASUs. 01 – Offsetting Assets & Liabilities

vern
Télécharger la présentation

FASB Update December 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. FASB Update December 2013

  2. What is going on? • Interesting last few years • 2010 29 ASUs issued • 2011-2013 30 ASUs issued • Changes have gotten bottled up • Big three projects • Getting closer to the jam being removed

  3. 2013 ASUs • 01 – Offsetting Assets & Liabilities • 02 – Reclassifications out of Other Comprehensive Income • 03 – Nonpublic disclosures for financial instruments • 04 – Joint and several liability arrangements (EITF) • 05 – Foreign currency issue (EITF)

  4. 2013 ASUs • 06 – NFP services received issue (EITF) • 07 – Liquidation basis • 08 – Financial services – investment company issues • 09 – Deferral of certain disclosure requirements of ASU 2011-04 • 10 – Derivative and Hedging issue (EITF) • 11 – Unrecognized tax benefit reporting (EITF)

  5. Revenue Recognition • Final Draft expected for Board consideration this month • Expected to pass • Effective years beginning after 12/15/16 • Five step process • Identify contracts with customers • Identify separate performance obligations • Determine transaction price • Allocate price to obligations • Recognize revenue as obligations satisfied

  6. Costs of Implementation • FASB staff identified specific anticipated cost increases associated with: • Construction & production type contracts • Time value adjustments to transaction prices • Bundled telecommunication contracts • The revenue constraint • Licenses of intellectual property • Transition requirements

  7. Areas Requiring Judgment • Who is a customer • Collectibility issues • Separating performance obligations • Significant revenue reversal • Time value of money • Recognition over time vs. point in time

  8. Leases • Who knows? • Type A vs. Type B dilemma • Seemingly no support • Is doing nothing an option

  9. Financial Instruments • Three stage project • Classification & Measurement • Impairment • Hedging • Classification & Measurement ASU and Impairment ASU expected in first half of 2014

  10. Classification & Measurement • Classification of financial asset will be based on its cash flow characteristics and the entity’s business model for managing the asset • Three possible classifications • Amortized cost • Fair value – net income • Fair value – other comprehensive income • Changes to fair value option

  11. Impairment • Proposes a current expected credit loss model that would apply to all impairments of financial instruments • Model would reflect management’s current estimate of the contractual cash flows the entity does not expect to collect

  12. Discontinued Operations • Big change is to the definition of “component of the entity” • Expanded disclosures for discontinued operations • Balance sheet effects • Expected to be completed in early 2014 and implemented for public companies in 2015 and non-public companies in 2016

  13. Going Concern Disclosures • Provides guidance on when and how entities should disclose going concern uncertainties in financial statements • Must assess ability to meet obligations due within 24 months to determine if disclosures are necessary • Plan calls for review of comments in first quarter and proceed from there

  14. PCC Proposals • Accounting for identifiable intangible assets acquired in a business combination • Accounting for goodwill • Accounting for receive-variable, pay-fixed interest rate swaps

  15. Other Projects • Definition of NonPublic entity • Disclosure Framework • Development Stage Enterprises • NFP Financial Statements

More Related