FASB Makes Targeted Improvements to Leasing Guidance for Lessors With Leases Containing Variable Lease Payments (July 27, 2021)
This Heads Up discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-05, Lessors — Certain Leases With Variable Lease Payments. The ASU requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease on the commencement date of the lease if specified criteria are met.
Heads Up — #DeloitteESGnow — The ESG Regulatory Whirlwind: Accountability on the Horizon (June 4, 2021)
This Heads Up discusses the increasing importance of providing consistent, comparable, and transparent disclosures about environmental, social, and governance (ESG) matters. Companies should begin to prepare themselves for mandatory climate-related and other ESG disclosures, since this regulated landscape for ESG disclosures will differ significantly from the current landscape of voluntary reporting. In the forthcoming regulatory environment, it will be essential for companies to improve the completeness, accuracy, and reliability of their ESG-related disclosures by employing sound governance, oversight, and data-management processes and controls.
Heads Up — Do ESG Matters Affect Accounting and Financial Reporting Today? (May 26, 2021)
This Heads Up examines certain potential effects of environmental, social, and governance (ESG) matters on a company’s financial accounting and reporting in the context of the existing accounting guidance and the current regulatory environment. While these effects will vary depending on the company’s industry along with factors such as relevant regulatory, legal, and contractual obligations, all entities should evaluate ESG-related financial accounting and reporting implications.
Heads Up — FASB Proposes Further Improvements to Hedge Accounting Guidance (May 21, 2021)
This issue discusses the FASB’s recently issued proposed Accounting Standards Update (ASU), Fair Value Hedging — Portfolio Layer Method, which would clarify the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of prepayable financial assets. The proposal would amend the guidance in ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (released on August 28, 2017), which established a method for making such fair value hedge accounting more accessible and was issued in response to feedback and questions received from stakeholders. Comments on the proposed ASU are due by July 5, 2021.
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.