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
Next ArticleFED Publishes Financial Stability Report in May 2019
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.