Featured Product

    FASB Issues Summary of Tentative Board Decisions at October Meeting

    FASB published a summary of the tentative decisions taken at its Board meeting in October 2019. The Board discussed comments received on its August 2019 proposed Accounting Standards Update and affirmed its decisions on amendments to the effective dates for Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). Additionally, FASB approved its proposal to delay effective dates of its long-duration insurance standard for all insurance companies that issue long-duration contracts, such as life insurance and annuities. As a next step, FASB expects to issue two final Accounting Standards Updates containing these decisions in mid-November.

    The Board decided that Credit Losses standard will be effective for public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies as currently defined by SEC, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For calendar-year-end companies, this will be January 01, 2020. The Board affirmed that the one-time determination of whether an entity is eligible to be a smaller reporting company will be based on an entity’s most recent assessment in accordance with SEC regulations as of the date that a final Update on effective dates is issued. For all other entities, the Board decided that Credit Losses standard will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be allowed; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 01, 2019, for calendar-year-end companies).     

    The Board decided to retain the existing effective date for Hedging for public business entities as well as the existing effective date for Leases for all public business entities, not-for-profit conduit bond obligors, and employee benefit plans that file or furnish financial statements with SEC. That date is for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (effective January 01, 2019, for calendar-year-end companies). The Board decided to defer the mandatory effective date for Hedging and Leases for all other entities by an additional year. Hedging will be effective for entities other than public business entities for fiscal years beginning after December 15, 2020 (effective January 01, 2021, for calendar-year-end companies), and interim periods within fiscal years beginning after December 15, 2021 (January 01, 2022, for calendar-year-end companies). Leases will be effective for all other entities beginning after December 15, 2020 (January 01, 2021, for calendar-year-end companies), and interim periods within fiscal years beginning after December 15, 2021 (January 01, 2022 for calendar-year-end companies). Early adoption will continue to be allowed.

    Finally, the Board affirmed its previous decisions on the effective date of Update 2018-12 on accounting for long-duration insurance contracts:

    • For public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies, the amendments in Update 2018-12 should be effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years.
    • For all other entities, the amendments in Update 2018-12 should be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

     

    Related Links

    Keywords: Americas, US, Banking, Accounting, Insurance, Accounting Standards Update, CECL, Derivatives and Hedging, Leases, IFRS 16, Reporting, IFRS 9, IFRS 17, SEC, FASB

    Featured Experts
    Related Articles
    News

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol

    HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.

    October 16, 2020 WebPage Regulatory News
    News

    FSB Sets Out Roadmap for Transition to Alternative Reference Rates

    FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).

    October 16, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on BRRD2 Transposition

    HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).

    October 15, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on CRD5 Transposition

    HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.

    October 15, 2020 WebPage Regulatory News
    News

    BoE Publishes Reporting Schedule for Statistical Returns

    In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.

    October 15, 2020 WebPage Regulatory News
    News

    EC Welcomes Declaration by Member States on EU Cloud Federation

    EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.

    October 15, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Issuance of Covered Bonds by Banks in Singapore

    MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore.

    October 15, 2020 WebPage Regulatory News
    News

    FDIC Selects Technology Companies for Rapid Prototyping Competition

    FDIC has selected 14 technology companies—including Accenture Federal Services, LLC, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the next phase of the rapid prototyping competition.

    October 15, 2020 WebPage Regulatory News
    News

    GLEIF Defines New Validation Agent Role for Financial Institutions

    GLEIF announced that financial institutions worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new “validation agent” role within the Global Legal Entity Identifier (LEI) System.

    October 15, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5980