by Magnus Orrell and Joseph Renouf, Deloitte & Touche LLP
Welcome to Quarterly Accounting Roundup: Year in Review — 2020.
Dominating the accounting and financial reporting headlines in 2020 was the pandemic
caused by coronavirus disease 2019, which has significantly affected the U.S. and global
economies and financial markets and created unprecedented challenges for many
In other accounting and financial reporting news, the FASB released a number of
Accounting Standards Updates (ASUs) during 2020, including those that:
Address issues related to reference rate reform.
Simplify the accounting for certain financial instruments with characteristics
of liabilities and equity, including convertible instruments and contracts on an
entity’s own equity.
Clarify the interactions between the accounting for investments in equity
securities, equity method investments, and certain equity securities.
Defer the effective dates of the Board’s revenue and leasing standards for
Delay the effective date of the guidance on long-duration insurance
Require not-for-profit (NFP) entities to (1) “present contributed nonfinancial
assets as a separate line item in the statement of activities, apart from
contributions of cash or other financial assets,” and (2) disclose contributed
Make certain Codification improvements.
In addition, the SEC issued various final rules this year, including those that (1)
modernize certain financial disclosure requirements in Regulation S-K, (2) amend the
shareholder proposal rule, (3) update the disclosure requirements for banking
registrants, (4) improve financial disclosure requirements related to acquisitions and
dispositions of businesses, (5) expand qualifications for nonaccelerated filer status,
and (6) simplify the disclosure requirements related to guarantors and
collateralizations of securities.