Tax & Accounting Update is provided by Thomson Reuters and based on material published on Checkpoint, its online news and research platform. The Update is a quick-reference guide to the most pressing issues coming down the regulatory and administrative pipeline. Visit https://tax.thomsonreuters.com/checkpoint-news/ for further information and daily updates.
FASB News
Insurance sector presses FASB for another narrow reporting date change.
The insurance sector wants FASB to grant special accommodations to large rein-surers that would give them the flexibility to adopt new insurance accounting rules at an effective date that works best for them. The American Council of Life Insurers (ACLI) said on January 6 that the differences in the effective dates under the rules create costly hurdles for large reinsurers that do business with smaller reinsurance companies because those companies will not have the needed data in time for the earlier reporting cycle of large SEC filers. “This standard is an improvement, and it’s a major overhaul of how companies report their business, so these smaller reporting companies—reinsurers—are going to need that extra time to retool their resources,” said Mike Monahan, ACLI’s senior director of accounting policy. “And so when you have a large SEC filer doing business with a smaller reporting company, that information is not yet available in the new format.” While this type of workaround might be tricky to develop, a FASB spokesperson stated, “As with all agenda requests, the FASB will review and consider it as part of our process.”
AICPA News
AICPA proposes changes to CPA exam.
The AICPA has published an exposure draft and invitation to comment that, if adopted, would update the Uniform CPA Examination. To develop the exposure draft, the institute said it conducted a review of the exam, focusing on the effect of data analytics and technology on the role of newly licensed CPAs. The AICPA also reexamined the core knowledge and skills for CPAs entering the accounting profession and solicited feedback from 80 volunteer subject matter experts, as well as input from more than 130 CPAs who directly supervise new CPAs. The 16-hour, 4-section structure will remain the same. The exposure draft proposes 46 changes to the CPA Exam Blueprints. “The last practice analysis laid a solid foundation with the creation of the CPA Exam Blueprints and the existing exam structure,” Michael Decker, AICPA vice president of examinations, said in a statement. “During this year’s multiphased research, we used a targeted approach that included working with firms of all sizes, and their insights into technology, data analytics, and core competencies will help us ensure the exam remains current and relevant.” Comments are due on both documents by April 30, 2020. The organization said that it wants the updates to appear in the CPA Exam Blueprints no later than December 31, 2020.
IASB News
IASB plans to roll out nine major consultation documents in 2020.
The IASB plans to issue nine major documents this year for public feedback, six in the first half of the year and three in the second, as part of its efforts to collect early views on significant standards-setting initiatives, the IFRS Foundation, the board’s parent organization, said on January 7. Companies will be able to weigh in on the board’s tentative decisions on goodwill and impairment, business combinations under common control, rate reform, and its future standards-setting priorities, among other matters. Comments will also be solicited for narrowly drawn proposed amendments, proposed updates to the IFRS Taxonomy, and the IFRS Interpretations Committee’s tentative agenda decisions, the announcement states.
GASB News
Former KPMG auditor appointed chairman.
The Financial Accounting Foundation (FAF) has announced that Joel Black, a former KPMG partner and current partner at Mauldin and Jenkins in Atlanta, has been appointed GASB chairman. Black replaces David Vaudt, who vacates the post at the end of June due to term limits. Black will take up the post July 1, but will join the organization earlier in the year to enable a smooth leadership transition, the FAF said. “I am very excited to take on this new professional challenge,” Black said in a statement. “I have been immersed my entire adult life in the important, complex world of governmental accounting. I am eager to join my new colleagues in the mission to establish and improve accounting standards, and to engage with the remarkably diverse groups of stakeholders who care so much about public sector financial reporting.”
