Second Quarter — 2019
Welcome to Quarterly Accounting Roundup: Second Quarter —
2019. In the second quarter of 2019, the FASB issued:
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Final Accounting Standards Updates (ASUs) that (1) provide targeted transition relief for entities adopting the FASB’s new credit losses standard, ASU 2016-13;1 (2) clarify certain aspects of the accounting for credit losses, hedging activities, and financial instruments; and (3) extend private-company alternatives on goodwill and certain identifiable intangible assets to not-for-profit (NFP) entities.
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Proposed ASUs that would (1) align certain FASB Codification guidance with SEC disclosure requirements, (2) simplify the accounting for income taxes, and (3) amend certain aspects of the FASB’s guidance on credit losses.
Further, in May, the SEC released proposed rules that would amend:
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The financial statement requirements for acquisitions and dispositions of businesses, including real estate operations, and related pro forma financial information. The proposed rule would, for example, (1) modify certain significance tests, (2) allow registrants to present fewer acquiree financial statement periods, and (3) simplify the criteria for pro forma adjustments.
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The definitions of “accelerated filer” and “large accelerated filer” to exclude any issuer with both annual revenues of less than $100 million and public float of less than $700 million. If finalized, this proposed rule would expand the number of issuers that qualify as nonaccelerated filers and are thus eligible to take advantage of certain reporting accommodations offered to such issuers. For instance, under the proposal, certain registrants would not be subject to the requirement related to auditor attestation on the effectiveness of ICFR.
On the international front, the IASB® released exposure drafts (EDs) of
proposals that would amend (1) the IASB’s insurance contracts standard, IFRS 17,2 to address implementation concerns and challenges; (2) certain guidance in
IFRS 33 to bring it up to date with the 2018 version of the IASB’s Conceptual
Framework; (3) certain IFRS® Standards as part of the IASB’s annual improvements
process; and (4) guidance on financial instruments in response to interest rate
benchmark reforms.