FASB published a summary of the June meeting of the Private Company Council. The key topics discussed at the meeting include leases, facilitation of the effects of the interbank offered rate (IBOR) transition on financial reporting, and issues related to the implementation of current expected credit losses (CECL) approach. The next meeting of the Council will be held during September 10-11, 2019 in Connecticut.
The following are the key highlights of the meeting:
- Implementation Topic: Leases—The Council members discussed private company implementation activities related to the new leasing standard. The Council members observed that many private company stakeholders are not adequately prepared for the upcoming effective date and discussed the factors that have contributed to that concern.
- Facilitation of the Effects of the IBOR Transition on Financial Reporting—The staff provided Council members with an overview of the recent Board decisions related to contract modifications. The Board and the Private Company Council members highlighted the importance of making private companies aware of the upcoming change to reference rates as well as the guidance and related accounting relief FASB is considering; they also discussed ways to ensure that the message reaches a wide range of stakeholders.
- Implementation of CECL—The staff provided the Council members with an overview of recent standard-setting activities related to CECL. The Council members discussed potential difficulties for private companies and urged the Board to continue to provide training and examples, as the effective date approaches.
Keywords: Americas, US, Accounting, Banking, Securities, IFRS 9, Leases Standard, IFRS 16, CECL, IBOR, Reporting, Reference Rates, Private Company Council, FASB
Previous ArticleIMF Publishes Reports on 2018 Article IV Consultation with Croatia
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.