FASB marches on, issues six new ASUs
Although perhaps not reaching the level of March Madness, the folks at the Financial Accounting Standards Board (FASB) have issued six new Accounting Standards Updates (ASUs) so far this month. The ASUs cover a variety of topics of interest to CPA's, CFO's and others, including a clarification of the principal vs. agent provisions of its new revenue recognition standard, three ASUs reflecting FASB's endorsement of consensuses of the Emerging Issues Task Force, an ASU simplifying adoption of Private Company Council - led standards by private companies, and an ASU simplifying transition to the equity method of accounting.
The six new ASU's issued so far this month, listed further below, follow FASB's release of one of the 'big kahuna' standards - the new standard on leasing - at the end of last month. The MACPA has scheduled a new event, Implementing FASB's New Leases Standard: Examples and Practical Approaches, taking place on April 27, offering 4.0 CPE, which you can attend in-person or via webcast. Find more programs on the events calendar, and check out the MACPA's upcoming Town Halls / Professional Issues Updates. Led by MACPA CEO Tom Hood, the Town Halls are free to members and offer 4.0 CPE. There will also be a 'not so typical accounting update - everything you did, and did not, want to know,' by Jennifer Elder at the MACPA's 2016 Business and Industry Conference on May 13.
5 ASUs applicable to all entities:
ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reportingn Revenue Gross versus Net)
ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting
ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the Emerging Issues Task Force)
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force)
ASU 2016-04, Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force)
1 ASU Easing implementation of PCC-led standards for private companies
ASU 2016-03, Intangibles-Goodwill and Other (Topic 350), Business Combinations (Topic 805), Consolidation (Topic 810), Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance (PCC 15-01). As summarized in ASU 2016-03 (emphasis added):
The amendments in this Update make the guidance in Updates 2014-02, 2014-03, 2014-07, and 2014-18 effective immediately by removing their effective dates. The amendments also include transition provisions that provide that private companies are able to forgo a preferability assessment the first time they elect the accounting alternatives within the scope of this Update. Any subsequent change to an accounting policy election requires justification that the change is preferable under Topic 250, Accounting Changes and Error Corrections. 2 The amendments in this Update also extend the transition guidance in Updates 2014-02, 2014-03, 2014-07, and 2014-18 indefinitely. While this Update extends transition guidance for Updates 2014-07 and 2014-18, there is no intention to change how transition is applied for those two Updates.
In other actions this month, the FASB announced that the SEC has accepted the 2016 GAAP Financial Reporting Taxonomy for eXtensible Business Reporting Language (XBRL) tags used in SEC and other regulatory filings.