Public Comment Sought on Proposed Taxonomy Guides on Leases, Investment Companies
FASB staff are seeking the public’s input about two proposed taxonomy implementation guides on leases and investment companies, including business development companies, the board announced on January 19. Those who submit comments should weigh in on six questions for each guide, including whether the proposed modeling structure “facilitates data consumption and improves comparability,” according to the guides’ release notes. The guides are based on the 2024 GAAP Financial Reporting Taxonomy, which is pending SEC approval. The guides are intended to provide financial statement preparers with additional insight and supplemental guidance for using the taxonomy as they create their Extensible Business Reporting Language (XBRL) documents, a board summary explains. The comment period ends on February 19.
Board Not Seeking to Unravel Convergence of Revenue Accounting Rules with U.S. GAAP.
The IASB and FASB plan to have a joint discussion this year about their respective post-implementation review (PIR) of revenue accounting rules, according to the IASB’s January 23 discussions. The boards jointly developed IFRS 15, Revenue from Contracts with Customers, and Topic 606, Revenue from Contracts with Customers, about a decade ago. The planned discussion “will be your opportunity to share the findings in your respective PIRs and also what you’re planning to do with it,” an IASB staff member told the meeting. “And once you’ve had a chance to talk to the FASB we will have our final discussions on this project and then issue the project summary and feedback statement.” The staff’s remarks were part of discussions that were focused on feedback the board received to a request-for-information that was issued last year to solicit public comment about the application of IFRS 15. No decisions were made. In general, IASB members said they would not favor changing the IFRS version of revenue rules in a way that would remove the current convergence with U.S. GAAP. Board members stressed that there should be a “very high hurdle” for change that would unravel convergence. It was noted that the standards—also close—are not fully converged and thus that should be factored in.
AICPA Board to Decide Whether to Pause Project on Quality Management Attestation Standards.
The AICPA’s Auditing Standards Board (ASB) is largely getting support from accounting firms on an exposure draft aimed at aligning certain concepts in attestation standards with quality management standards issued in June 2022. But there is concern over the timing of the projects because of international efforts underway that may affect attestation standards. The board’s goal is to converge its standards as much as possible with those issued by the International Auditing and Assurance Standards Board (IAASB). The IAASB is drafting International Standards on sustainability assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, and the international board might update its International Standards on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, to align with proposed ISSA 5000. “We believe the ASB’s time is better spent considering how best to support the performance of quality sustainability engagements as, in our view, it is the area where practitioners will benefit most from additional guidance,” PricewaterhouseCoopers wrote. “We are concerned that the lack of a stable platform with respect to the US attestation standards can negatively impact quality by diverting practitioner resources to changes to methodology that may ultimately not be meaningful.”