Perspectives

Heads Up

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.

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FASB proposes simplifications to the issuer’s accounting for convertible instruments and contracts on an entity’s own equity

August 8, 2019

This issue discusses the FASB’s recently issued proposed Accounting Standards Update (ASU) that would simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The proposed ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. 

Learn more on simplifying the accounting for certain financial instruments.

SEC staff issues statement on LIBOR transition

August 6, 2019

This issue discusses the SEC staff’s recently issued statement on the expected discontinuation of the use of the London Interbank Offered Rate (LIBOR) as a benchmark or reference rate in contracts such as derivatives and how the transition from LIBOR may significantly affect financial markets and market participants (including public companies, investment companies and advisers, and broker-dealers).

Learn more on the SEC staff’s statement on LIBOR transition.

FASB tentatively changes effective dates for new accounting standards

July 18, 2019

This issue discusses the FASB’s recent tentative decisions to change the manner in which it staggers effective dates for major standards and to amend the effective dates in some of its recently issued or amended major accounting standards to give implementation relief to certain types of entities.

Learn about the FASB's tentative decisions to change to change effective dates.

No free passes: How the new current expected credit loss standard affects nonbanks

July 1, 2019

This issue discusses key considerations for nonbanks as they contemplate adoption of FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Although the new CECL standard has a greater impact on banks, most nonbanks have financial instruments that are subject to it, and many of those nonbanks may not have started evaluating its effect even though its effective date is quickly approaching.

Learn how new CECL standard affects nonbanks.

Reasonably certain of your lease disclosures? Observations on first-quarter filings

July 1, 2019

This issue summarizes the presentation and disclosure trends we have observed in our review of lessee and lessor financial statements, as well as select lessee and lessor disclosures, provided in the public filings of a sample of companies that adopted the FASB’s new leasing standard (ASC 842) as of the first quarter of 2019.

Learn about the trends observed regarding lease disclosures.
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