CPAs, CFOs and audit committee members looking for engaging summer reading and movies (webcasts) need look no further than the Financial Accounting Standards Board, which pushed out this year’s summer blockbuster: accounting for credit losses, last week.
With summer upon us, companies are still entrenched in implementing prior year blockbusters. Recent survey results from Deloitte and KPMG raise concern about implementation efforts falling behind schedule, as reported in, Companies Slow to Comply with New Lease Standard (AccountingWeb), and Most U.S. Companies Lagging on New FASB Revenue Recognition Standard (CPA Practice Advisor). Adding this summer’s new standard on credit losses – nicknamed CECL for its Current Expected Credit Loss model, replacing the previous ‘incurred loss’ model – to the implementation queue could raise temps on what already looks like it could be a long, hot summer for many accounting and finance professionals.
To help you plan ahead for what to pack into your beach bags or download onto your mobile devices, we list further below the latest New Releases, Coming Attractions, and items Leaving Theatres Soon, from FASB studios.
Sun, Surf and CPE: MACPA’s Beach Retreat
With all this summer reading and implementation work going on, together with ongoing reporting requirements, how can you stay on top of new developments and maintain some semblance of work-life balance? Join us at MACPA’s Beach Retreat! What better way to combine Sun, Surf and CPE – than at this popular MACPA conference, taking place this year from July 6-8 at the Clarion Resort Fontainebleu Hotel in Ocean City, MD. With sessions ranging from accounting and auditing to fraud, strategy, tax and risk management, MACPA’s Beach Retreat provides engaging presentations on hot topics, and networking opportunities with cool people. Earn up to 20 CPE if you attend the whole 3-day program, or register a la carte for individual sessions.
Jumpstart your summer reading/viewing list and advance your career by joining your accounting and finance peers at MACPA’s Beach Retreat! Learn more at: https://www.macpa.org/events/beach-retreat-2016.
New releases
Here are proposed and final standards recently released by the FASB.
ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The CECL standard is sure to be THE summer blockbuster. Released on June 16, reviews are already coming in, including: Change in accounting for loan losses a ‘punch in the gut,’ banker says (Pittsburgh Business Times), and If past is prologue, regulators hear small-bank CECL concerns (American Banker). See the related feature film issued by FASB: FASB ASU – Credit Losses: Why a New Credit Losses Standard?, starring FASB Chairman Russell Golden, and FASB Board Members Hal Schroeder and Marc Siegel.
Proposed ASU: Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. This proposed ASU was released on June 23, with a July 25 comment deadline.
Coming attractions
The first item listed below, the second of a pair of final standards on Consolidation, is slated to be issued by the end of June. The remaining items in this section are slated for third quarter release, but are currently at or near the ‘ballot draft’ stage (in which FASB board members vote to approve release of a final or proposed ASU, having completed all discussion of substantive issues); as such, the standard listed below could potentially see a release by the end of the summer.
- Consolidation (Topic 810), Amendments to the Consolidation Analysis: Clarifying When a Not-for-Profit That Is a General Partner Should Consolidate a For-Profit Limited Partnership (or Similar Entity).
- A final standard on Not-for-Profit accounting is expected to be issued this summer. More formally to be entitled, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements for Not-for-Profit Entities
- An upcoming Proposed ASU on income tax disclosures, more formally, Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes
- An upcoming proposed ASU on hedging, on: Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities—Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815) is nearing the ballot draft stage. The most recent edition of FASB Outlook (Q2’16, published in May) said the hedging proposal is due out “in the coming months,” and we understand it is slated for an August or September release.
- An upcoming proposal on presentation of financial statements that would add a new chapter to FASB’s Conceptual Framework – more formally, a proposal on: FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting: Conceptual Framework: Presentation is currently in the ballot draft stage, and will carry a 90-day comment period.
There are additional FASB releases slated for 3Q’16 which have not yet gone to ballot draft stage, which we have not included in our list above; for further information, see FASB’s Technical Agenda.
Leaving theatres soon
Listed below are proposals on which the comment deadline closes (closing date shown below):
June 27: Proposed ASU: Statement of Cash Flows (Topic 230): Restricted Cash (A Consensus of the FASB Emerging Task Force).
July 5: Proposed ASU: Technical Corrections and Improvements
Speedreaders looking for more? Check out:
Summer reading for accountants (AccountingToday)
Summer reading can change your life! (Gail Perry, Editor-in-Chief, CPA Practice Advisor)