Featured Product

    FASB Publishes Summary of FASAC Meeting in June 2019

    FASB published a summary of the quarterly meeting of the Financial Accounting Standards Advisory Council (FASAC). The key topics discussed at the meeting include implementation of leases and segment reporting. FASAC members also provided their views on the FASB’s research project, focusing on the recent major standards including those on leases, hedging, and credit losses. Overall, the Council members expressed diverse views on the philosophy for effective dates for major projects. Council members encouraged FASB to consider the need for (and time lag associated with) staggered effective dates on a standard-by-standard basis, rather than establishing an inflexible time lag for private companies and others.

    FASAC members participated in the first of a series of discussions on the FASB’s post-effective date assessment of costs and benefits of the leasing standard. This session focused on public companies’ initial and recurring costs of transitioning. Some Council members noted that, although adoption of the standard had an insignificant overall impact on some companies’ financial statements, the initial level of effort and cost to apply the standard was somewhat higher than originally anticipated, primarily because of needed systems changes or new systems.

    Some members also commented on some of the benefits of adoption to their companies. These include better centralized processes to manage their leases, improved internal consistency of leases, and increased ability to manage an organization’s asset base and lease obligations. Expected recurring costs include costs to capture the required data, sustain internal controls, and preserve systems. Other members, particularly investors and users, are beginning to consider the resulting changes in companies’ financial statements and how those changes impact their analysis or models. Those members indicated that additional time is needed to assess the benefits of change in the leases standard. FASAC members also discussed implementation issues related to the incremental borrowing rate, certain disclosures, and related parties. 

    Finally, FASAC members discussed potential improvements to segment reporting disclosures, centering on the approach to requiring additional disclosure by reportable segment. Overall, FASAC members preferred a principles-based approach to requiring additional disclosure by reportable segment, due to the wide variety of industries. FASAC members, particularly investors and users, expressed support for that approach and explained that having consistency over time for an organization could be more useful than comparability between organizations.

     

    Related Links

    Keywords: Americas, US, Accounting, Banking, Securities, IFRS 9, Hedging, Leases Standard, IFRS 16, Reporting, FASAC, FASB

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153