By Kay Filler, Principal
More specifically, FASB issued the final guidance on February 25, 2016, but it’s not required for private companies until 2020 for calendar year companies (although earlier adoption-starting now-is permitted). Sounds like a long way off, but not really when considering potential impacts of the dramatically different accounting model for everyday lease agreements.
New Lease Accounting Rules
But first, here’s a summary of key accounting and disclosure components of the new rules: (more…)
FASB Simplifies Reporting for Share Based Payments
Yet another simplification initiative from the Financial Accounting Standards Board (FASB), especially for nonpublic companies, arrives in the form of ASU 2016-09 Improvements to Employee Share-Based Payment Accounting and quite likely offers welcome relief for technology companies around the Silicon Valley. Some of the key simplification measures under this guidance that is effective for annual periods beginning after December 15, 2017 for nonpublic companies and annual periods beginning after December 15, 2016 for public companies are: (more…)
Continuing along on its accounting and reporting simplification efforts (see April 15, 2015 post), on March 30, 2016, the FASB issued ASU No. 2016-09 (ASU) Improvements to Employee Share-Based Payment Accounting. This ASU changes certain accounting requirements, as well as simplifies some of the underlying assumptions and calculations for the accounting measures. Certain provisions apply to all companies, with additional reliefs available only to nonpublic companies. (more…)
Being an auditor for so long has instilled in me the importance of looking at issues, even the non-work related ones and then asking myself, “is this material relevant to the issues that I care about?” And I find that this approach helps me tremendously in deciding where to expend my energies. Along similar lines, not too long ago, FASB issued two proposals on the concept of materiality to help organizations decide the appropriateness of financial statement disclosures. (more…)
The updated guidance, issued in April 2015, covers fees paid by a customer in a cloud computing arrangement. Guidance for cloud computingvendors (or providers) already existed before this “Simplification Initiative” clarification. For more on the “Simplification Initiative”, see my previous post. This guidance for customers is applicable to private companies beginning with calendar year 2016, although earlier application is allowed. (more…)
Now a year later, it seems the inertia of IFRS adoption in the U.S. is about to play out in a more formal way. See my post of April 9, 2014 for a brief historical context leading us to today.
If “adoption” means embracing the full scope of IFRS (International Financial Reporting Standards) and relinquishing U.S. GAAP (Generally Accepted Accounting Standards), then the answer is probably “YES”, at least for the foreseeable future.
Over the past several weeks, I have talked about activities surrounding financial reporting for private (or non-public) companies. While the topic is certainly not new (see “Part 1”), efforts to-date have had difficulty gaining enough traction to achieve any substantive changes in areas of concern for advocates, except for perhaps the FASB being more willing to allow for extended implementation dates for private companies for certain new standards. Both the FASB and the AICPA have put forth notable efforts in recent months toward the end of ensuring that private company financial reporting needs are addressed, while many feel that…
In May 2012, the FASB’s governing body, the Financial Accounting Foundation (FAF), established the Private Company Council (PCC) that is charged with improving the process of setting accounting standards for private companies, after hearing loud and clear the frustrations with the practicality and questionable usefulness of many of the more recent accounting standards as they apply to private companies. The PCC includes 10 members from the preparer, user and CPA communities. The PCC was charged with initially…