FASB Consults on Amendments in Response to SEC Disclosure Update
FASB proposed an Accounting Standards Update (ASU) that improves disclosure requirements in terms of codification amendments in response to the Disclosure Update and Simplification Initiative of SEC. The proposed changes cover, among others, topics such as related party disclosures and derivatives and hedging. The comment period on this exposure draft ends on June 28, 2019.
In the Release No. 33-10532, titled "Disclosure Update and Simplification" and issued on August 17, 2018, SEC referred certain of its disclosure requirements that overlap with, but require incremental information to, generally accepted accounting principles (GAAP) to the FASB for potential incorporation into the Codification. The amendments in this proposed Accounting Standards Update are the result of the FASB consideration of those referred disclosures. The amendments in this proposed Accounting Standards Update would affect a variety of topics in the Codification. Certain proposed amendments represent clarifications to, or technical corrections of, the current requirements. A summary table identifying the Codification Subtopics and the nature of the proposed amendments is provided in the “Amendments to the FASB Accounting Standards Codification” section.
The proposed amendments would apply to all entities within the scope of the affected topics, unless otherwise indicated. FASB is seeking input on whether the proposed amendments should apply to private companies and not-for-profit entities. However, certain disclosures included in the amendments in the proposed Accounting Standards Update would not be required for entities other than public business entities. The proposed amendments would align the requirements in the Codification with the SEC regulations and, therefore, would make the Codification easier to apply by eliminating those redundancies and providing clarifications. The amendments in the proposed Accounting Standards Update would be applied prospectively to financial statements issued after the effective date. The effective date will be determined after FASB considers stakeholder feedback on the proposed amendments.
Related Link: Exposure Draft (PDF)
Comment Due Date: June 28, 2019
Keywords: Americas, US, Accounting, Banking, Securities, Codification, Accounting Standards Update, Disclosures, Derivatives and Hedging, Reporting, US GAAP, SEC, FASB
Featured Experts
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Related Articles
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
APRA Consults on Prudential Standard for Operational Risk
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.
EC Amends Rule on Securitizations; ESRB Updates Reciprocation Measures
The European Commission published a Delegated Regulation 2022/1301 on the information to be provided in accordance with the simple, transparent, and standardized (STS) notification requirements for on-balance-sheet synthetic securitizations.
APRA Announces Revisions to Capital Framework for Banks
The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms.
EBA Examines Remuneration Data and Use of Large Exposure Exemptions
The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).
UK Authorities Publish Discussion Paper on Critical Third Parties
The Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) published a joint discussion paper that sets out potential measures to oversee and strengthen the resilience of services provided by critical third parties to the financial sector in UK.
BoE Issues Update on Ongoing Data Transformation Program
The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.
EBA Issues Draft Methodology and Templates for 2023 Stress Tests
The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.
EBA Issues SREP Guidelines and Standards for Investment Firms
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.
