Featured Product

    FASB Issues Update on Meeting of Advisory Council in September 2019

    September 24, 2019

    FASB published a summary of the quarterly meeting of the Financial Accounting Standards Advisory Council. The members of the Advisory Council discussed the recent proposed update on facilitation of the effects of reference rate reform on financial reporting (Topic 848). The members provided feedback on three main areas: readiness and transition progress, proposed accounting relief, and potential qualitative and quantitative disclosures.

    Overall, the members of the Advisory Council  were very supportive of the proposed accounting relief. In terms of readiness, many companies are early in their transition process and have not begun to consider the potential impact and risks that reference rate reform may have on their financial results. The Council members from some industries, such as financial services, and larger companies generally were further along in their assessments and education about the transition when compared to other companies. Some smaller companies anticipated that they would be unaffected, given the rate structures in their contracts. The members of the Advisory Council acknowledged the temporary nature of the relief and supported the commitment of FASB to monitor and consider any future adjustments needed to the sunset provision related to the proposed relief.

    Members of the Advisory Council generally disagreed that FASB should add new disclosures related to the reference rate reform. Preparers and practitioners showed concerns about the operationality and costs that could be involved and raised questions about what information could be provided. Some investors and other users indicated that additional disclosures could provide useful information in certain industries or companies where the impact was significant. Yet other investors and certain users indicated that the current Management Discussion and Analysis (MD&A) disclosures related to risks and uncertainties could provide sufficient information about risks related to the transition and additional disclosures may be unnecessary.

     

    Related Links

    Keywords: Americas, US, Accounting, Banking, Securities, Reference Rate Reform, Reporting, Disclosures, Interest Rate Benchmarks, Topic 848, FASB

    Featured Experts
    Related Articles
    News

    HKMA Publishes Hong Kong Taxonomy for Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) published the Hong Kong Taxonomy for Sustainable Finance.

    May 21, 2024 WebPage Regulatory News
    News

    EU Taking Steps to Set Out and Enforce AI Regulations

    Many believe that the transformative power of generative artificial intelligence (GenAI) has potential to reshape the financial sector in the time to come.

    May 21, 2024 WebPage Regulatory News
    News

    ISSB Releases Digital Sustainability Disclosures Taxonomy

    The themes of the harmonization and interoperability of sustainability disclosure standards among various jurisdictions remain at the top-of-mind for international standard-setting bodies.

    May 21, 2024 WebPage Regulatory News
    News

    BCBS Report Studies Implications of Digitalization of Finance

    The Basel Committee on Banking Supervision (BCBS) published a report that examines the implications of the digitalization of finance for banks and supervisors.

    May 21, 2024 WebPage Regulatory News
    News

    BCBS Consults on Guidelines for Counterparty Credit Risk Management

    The Basel Committee on Banking Supervision (BCBS) is seeking comments, until August 28, 2024, on guidelines for counterparty credit risk management of banks.

    May 21, 2024 WebPage Regulatory News
    News

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News
    News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News
    News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8967