PROFESSIONAL NEWS


Latest News From the FASB

Closing out 2011: On Tuesday, Dec. 20, 2011, the Financial Accounting Standards Board (FASB) offered its second webcast focusing on financial reporting by nonpublic entities. The webcast covered several important topics:

  • The Financial Accounting Foundation's (FAF) proposal to create a Private Company Standards Improvement Council (PCSIC);
  • Progress on a decision-making framework for granting exceptions and modifications to GAAP for private companies;
  • Recently-added projects to improve financial reporting for not-for-profit organizations;
  • Progress on the FASB-IASB convergence program, and other active projects or recently issued standards of interest to nonpublic entities.

Upon completion, participants had a better understanding of several important issues, including:

  • How the proposed PCSIC and decision-making framework would help ensure that accounting standards are appropriate for private companies;
  • Why and how the board plans to improve the financial reporting model for not-for-profit organizations;
  • FASB and IASB’s plans for completing the major joint projects on revenue recognition, leasing, and financial instruments;
  • How other recently issued standards or active projects will affect financial reporting by nonpublic entities.

FASB will be offering virtual courses throughout the coming year. For more details, check out www.fasb.org.

Underway in 2012:

The start of a new year is traditionally a busy time at the FASB and 2012 is no exception.

  • On Jan. 18, FASB made available through its web site the 2012 U.S. GAAP Financial Reporting Taxonomy. Pending final acceptance by the U.S. Securities and Exchange Commission (SEC), this document contains updates for accounting standards and other improvements to the 2011 taxonomy currently used by SEC issuers.
  • The U.S. roundtable on the joint FASB/IASB project to improve and converge financial reporting for investment companies has been rescheduled for Friday, March 16. This meeting will also address the FASB’s proposal on investment property entities. The FASB and the International Accounting Standards Board (IASB) will host a series of public roundtable meetings -- including one in the United States on March 20, in the organization’s main office in Norwalk, Connecticut. The meetings will offer an opportunity to discuss proposals to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company.
  • The IASB and FASB in late 2011 issued common disclosure requirements intended to help investors and other financial users better assess the potential effects of offsetting arrangements on a company’s financial position. The eligibility criteria for offsetting is different in International Financial Reporting Standards (IFRSs) compared with U.S. Generally Accepted Accounting Principles (US GAAP).