Heads Up — FASB Provides Private Companies and Not-for-Profit Entities With an Accounting Alternative for Evaluating Goodwill Impairment Triggering Events (April 8, 2021)
This issue discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-03, Accounting Alternative for Evaluating Triggering Events, which allows private companies and not-for-profit entities (NFPs) to use an accounting alternative for performing the goodwill impairment triggering event evaluation. Specifically, the ASU gives a private company or NFP the option to perform the goodwill impairment triggering event evaluation required by ASC 350-20, as well as any resulting goodwill impairment test, as of the end of the entity’s interim or annual reporting period, as applicable.
Heads Up — SEC Requests Input on Climate-Related and Other ESG Disclosures (March 22, 2021)
This Heads Up discusses the SEC’s recently issued request for input on climate-change disclosures. Interested parties are encouraged to provide feedback to the SEC by June 13, 2021.
Heads Up — FASB Provides a Practical Expedient for Private-Company Franchisors on the Identification of Performance Obligations Under ASC 606 (January 29, 2021)
This issue discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-02, Franchisors — Revenue From Contracts With Customers (Subtopic 952-606): Practical Expedient. The ASU allows a private-company franchisor (i.e., a franchisor that is not a public business entity) to use a practical expedient when identifying performance obligations in its contracts with customers (i.e., franchisees) under ASC 606. When using the practical expedient, a private-company franchisor that has entered into a franchise agreement would treat certain preopening services provided to its franchisee as distinct from the franchise license. The practical expedient is intended to reduce the cost and complexity of applying ASC 606 to preopening services associated with initial franchise fees.
Heads Up — FASB Issues ASU to Refine the Scope of ASC 848 in Response to Reference Rate Reform (January 11, 2021)
This Heads Up discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-01, "Reference Rate Reform (Topic 848): Scope." The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets.
Heads Up — Highlights of the 2020 AICPA Conference on Current SEC and PCAOB Developments (December 13, 2020)
This Heads Up extracts key insights from this year’s three-day AICPA Conference on Current SEC and PCAOB Developments. The conference featured speeches and panel discussions by members of the SEC, PCAOB, FASB, and other professional groups on current accounting, reporting, and auditing practice issues. Although the event was fully virtual this year in light of the COVID-19 pandemic, conference participants shared important updates and reminders related to maintaining high-quality financial reporting.
Heads Up — FASB Issues Guidance on Not-for-Profit Entities’ Presentation of and Disclosures About Contributed Nonfinancial Assets (December 4, 2020)
This Heads Up discusses FASB Accounting Standards Update (ASU) No. 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. The ASU amends ASC 958-605 to require not-for-profit entities to (1) “present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash and other financial assets” and (2) disclose contributed nonfinancial assets.