Proposal to Include Credit Loss Rules in 2020 GAAP Taxonomy Published
On July 10, FASB published a proposed update of its 2020 GAAP financial reporting taxonomy to include data elements and release notes on accounting changes for credit losses on loans. The proposed update includes elements for available-for-sale debt securities, accrued interest, allowance for credit losses, held-to-maturity securities, and accrued interest receivables. The taxonomy is updated yearly to reflect new accounting and financial reporting guidance and new disclosure requirements, according to a FASB summary. As part of that effort, new accounting standards are updated into the taxonomy on an ongoing basis. Comments are due by July 29.
Comments Sought on Public Company Rules for Reporting Goodwill
Public company accountants and investors can now give insights about whether and how FASB should further revise the accounting for goodwill. The board wants to determine whether the benefits of revising the accounting rules would be worth the costs companies would incur to apply the changes. “Some have questioned whether the cost of an annual impairment test warrants the process every year,” FASB member Marsha Hunt said in a podcast. “And some have actually been disappointed that, when there have been impairments, the disclosures haven’t been as timely or as useful as they would like.” The board said it plans to hold a roundtable on the topic at a to-be-determined date. Comments are due by October 7.
GASB Issues Proposal to Improve Report Comparability
On July 9, GASB issued a proposal that will enable financial statement users to obtain more comparable reports from state and local governments on a variety of topics. The proposal is aimed at clarifying revisions to existing standards related to the following:
- The effective date of GASB Statement 87, Leases, to address concerns regarding interim financial reports
- Reporting of intra-entity transfers of assets between a primary government employer and a component unit pension plan or other postemployment benefit (OPEB) plan
- The applicability of GASB Statement 73, Accounting and Financial Reporting for Pensions and Related Assets that Are not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and GASBS 74, Financial Reporting for Postemployment Benefit Plans other than Pension Plans, as amended, to reporting assets accumulated for pensions and OPEB
- The applicability of certain requirements of GASB Statement 84, Fiduciary Activities, to pension and OPEB arrangements
- Measurement of liabilities and assets, if any, related to asset retirement obligations in a government acquisition.
Comments are due by October 4.