Conference to Focus on Future Accounting Rules
This year’s World Standard-setters Conference—the meeting of accounting rulemakers from various nations that use IFRS—will hold focused panels on the IASB’s forthcoming proposals, including revisions to the primary financial statements, goodwill, and impairment and rate-regulated activities, according to an agenda released by the IASB. An IASB panel will provide an overview of the board’s potential improvements to the structure and content of primary financial statements, especially in the income statement, the agenda states. The aim of the session is to update attendees on the revisions and offer an opportunity for questions and answers. The presenters will be IASB member Nick Anderson and IASB technical staff Rachel Knubley and Aida Vatrenjak. The IASB has said it plans to issue a public comment document by year-end with a 180-day comment period. The conference will take place in London from September 30 to October 1, 2019.
Morrow Appointed New FASAC Chair
Michael Morrow, a director of Cabot Corp., has been tapped to replace Andrew McMaster Jr. as chairman of the Financial Accounting Standards Advisory Council (FASAC), a key group that advises FASB on its standards setting work. The Financial Accounting Foundation (FAF), which made the announcement at an August 20 meeting in New York, also named two new members and reappointed two current members to the Private Company Council, the body that advises the FASB about private company GAAP. “We are pleased that Michael Morrow will bring such broad accounting and financial reporting experience to his role as FASAC chair,” FAF Chairman Charles Noski said. “He is a proven leader and will be an effective advisor as the FASAC fulfills its mission to bring diverse perspectives and insights to the standard-setting process.” The 34-member FASAC advises FASB on issues related to its current projects, their priorities, procedural matters, and other requests. FASAC meetings provide FASB with an opportunity to obtain and discuss the views of a diverse group of individuals drawn from the ranks of CEOs, CFOs, senior partners of public accounting firms, executive directors of professional organizations, and senior members of the academic and analyst communities. All terms will begin on January 1, 2020.
Draft Implementation Guidance for Credit Losses Published for Comment
On August 15, the AICPA’s Financial Reporting Executive Committee (FinREC) published working drafts of three accounting issues related to the implementation of FASB’s new guidance on accounting for credit losses. Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued in June 2016, requires banks and other lenders to more quickly recognize losses, aimed to fix issues that emerged during the 2008 financial crisis. The standard is set to go into effect starting in 2020 for SEC registrants. “Current expected credit loss is one of the most significant changes to financial institution accounting in 40 years,” the AICPA said. “It affects reserves for losses over loans booked and allows for more forward-looking information to be considered when developing a best estimate.” FinREC wants informal feedback on its issue paper, “Reasonable and Supportable Forecasting,” by October 15.