Heads Up Newsletter

This Heads Up discusses the SEC’s recently issued final rule Update of Statistical Disclosures for Bank and Savings and Loan Registrants, which updates and expands the statistical disclosure requirements for bank and savings and loan registrants. The newsletter provides a table that compares the existing disclosure requirements under Industry Guide 3, “Statistical Disclosure by Bank Holding Companies,” with the new disclosure requirements under the final rule.

This Heads Up discusses the FASB’s recent public roundtables addressing challenges with implementing ASC 842. These roundtables are part of the FASB’s broader effort to solicit feedback from stakeholders on difficulties with applying or interpreting the new leasing guidance. Roundtable participants covered five topics identified by the FASB staff through its outreach efforts.

This Heads Up discusses market developments related to a company’s environmental, social, and governance (ESG) disclosures and steps companies can take to enhance the quality of their ESG reporting.

This Heads Up discusses the FASB’s proposed Accounting Standards Update (ASU) Franchisors — Revenue From Contracts With Customers (Subtopic 952-606): Practical Expedient. The proposed ASU would allow 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. Under the practical expedient, a private-company franchisor that enters into a franchise agreement would be able to account for certain preopening services provided to a franchisee as a single performance obligation. The practical expedient is intended to reduce the cost and complexity of applying ASC 606 to preopening services associated with initial franchise fees. Comments on the proposed ASU are due by November 5, 2020.

This Heads Up discusses key aspects of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides $2.2 trillion of economy-wide financial stimulus in the form of financial aid to individuals, businesses, nonprofits, states, and municipalities. The issue focuses on provisions of the CARES Act related to financial instrument and income taxes as well as on determining the appropriate accounting models for government assistance. This issue has been updated to add disclosure considerations related to the effects of the COVID-19 pandemic and certain provisions of the CARES Act on an entity’s financial reporting.

This Heads Up discusses the SEC’s recently issued Final Rule Release No. 33-10825, which modernizes the disclosure requirements in Regulation S-K, Item 101, “Description of Business”; Item 103, “Legal Proceedings”; and Item 105, “Risk Factors.”