Latest accounting and regulatory developments
Periodic newsletters that analyze important accounting developments, such as new FASB and IASB pronouncements or exposure drafts. Concise examples and answers to frequently asked questions assist readers in understanding and implementing the critical guidance.
FASB proposes targeted improvements to hedge accounting
September 14, 2016
This Heads Up discusses the FASB’s proposed Accounting Standards Update Targeted Improvements to Accounting for Hedging Activities. The new guidance would amend the hedge accounting and recognition requirements of FASB Accounting Standards Codification Topic 815, Derivatives and Hedging, to (1) reduce their complexity and simplify their application by preparers and (2) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning those activities with the entity’s financial reporting for hedging relationships.
FASB Overhauls Guidance on Presentation of Financial Statements for Not-for-Profit Entities
September 12, 2016
This Heads Up discusses FASB Accounting Standards Update No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, which significantly changes the presentation requirements for financial statements of not-for-profit entities (NFPs). The amendments are intended to improve the guidance on net asset classification as well as the information presented in the financial statements and financial statement notes regarding liquidity, financial performance, and cash flows for NFPs. Specifically, the ASU addresses (1) the complexity and understandability of net asset classifications, (2) the lack of consistency in the type of information provided about expenses, and (3) inconsistencies in the reporting of (a) operating information in the statement of activities and (b) operating cash flows in the statement of cash flows.
FASB Issues Guidance on Cash Flow Classification
August 30, 2016
On August 26, 2016, the FASB issued ASU 2016-15, which amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASC 230 lacks consistent principles for evaluating the classification of cash payments and receipts in the statement of cash flows. This has led to diversity in practice and, in certain circumstances, financial statement restatements. Therefore, the FASB issued the ASU with the intent of reducing diversity in practice with respect to eight types of cash flows.
FASB proposes updates to income tax disclosure requirements
July 29, 2016
On July 26, 2016, the FASB issued a proposed ASU that would modify or eliminate certain disclosure requirements related to income taxes as well as establish new requirements. Comments on the proposed ASU are due by September 30, 2016.
Controls and non-GAAP measures
July 19, 2016
As part of its current focus on non-GAAP measures, the SEC has questioned whether companies and audit committees have implemented appropriate controls regarding the disclosure of such measures. This Heads Up discusses the types of controls that could be established and provides high-level examples of control issues and related responses for consideration in connection with non-GAAP measures.