Heads Up

This Heads Up discusses the FASB’s recently released proposed Accounting Standards Update (ASU), Leases (Topic 842), Common Control Arrangements, which would amend certain provisions of ASC 842 that apply to arrangements between related parties under common control. Specifically, the proposed ASU would: (1) offer private companies, as well as not-for-profit entities that are not conduit bond obligors, a practical expedient that gives them the option of using the written terms and conditions of a common-control arrangement when determining whether a lease exists and the subsequent accounting for the lease, including the lease’s classification and (2) amend the accounting for leasehold improvements in common-control arrangements for all entities.

This issue discusses the SEC’s recently issued final rule Listing Standards for Recovery of Erroneously Awarded Compensation. The objective of the final rule is to ensure that executive officers do not receive “excess compensation” if the financial results on which previous awards of compensation were based are subsequently restated because of material noncompliance with financial reporting requirements.

This issue discusses the FASB’s proposed Accounting Standards Update (ASU) Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The proposed ASU would enhance disclosures about significant segment expenses for all public entities required to report segment information in accordance with ASC 280. Comments on the proposed ASU are due by December 20, 2022.

This issue discusses the FASB’s deliberations related to its project on the accounting for and disclosure of crypto assets at its October 12, 2022, meeting, including its tentative decision to require all public and private entities to initially measure such assets at fair value in accordance with ASC 820.

This Heads Up discusses the FASB’s newly issued Accounting Standards Update (ASU) No. 2022-04, which requires the buyer in a supplier finance program to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented.

This issue discusses the FASB’s deliberations related to its project on the accounting for and disclosure of digital assets at its August 31, 2022, meeting.