FASB Publishes Summary of Private Company Council Meeting in June 2019
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.
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Keywords: Americas, US, Accounting, Banking, Securities, IFRS 9, Leases Standard, IFRS 16, CECL, IBOR, Reporting, Reference Rates, Private Company Council, FASB
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