Heads Up Newsletter

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.

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.

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.

This Heads Up discusses the SEC’s recently issued final rule, "Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information," which modernizes and simplifies MD&A and certain financial disclosure requirements in SEC Regulation S-K.

This Heads Up discusses the FASB’s recently issued proposed Accounting Standards Update Reference Rate Reform (Topic 848): Scope Refinement, which would permit 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 underway in global financial markets.

This Heads Up discusses the growing market movement toward enhanced human capital management disclosure, both as a result of the SEC’s final rule that amended Regulation S-K and of gathering momentum in the marketplace toward more standardized and relevant ESG disclosures, including human capital metrics. The Heads Up also provides considerations related to identifying and evaluating human capital disclosures in light of the amendments to Regulation S-K.