FASB, GASB Trustee Meetings Set for Later This Month

The trustee body and the oversight committee of the FASB and the GASB will hold their first quarterly meetings for the year later this month—sessions that will provide the most current insight about the boards’ core focus for 2024. The Financial Accounting Foundation’s (FAF) Standard-Setting Process Oversight Committee will meet on February 23 to hold open discussions from 8:40 a.m. to 10:00 a.m., the organization announced. The committee will hear reports from FASB, GASB, and FASB’s Private Company Council (PCC), according to the announcement. Typically, the boards’ chairs and technical directors provide an overview of current project developments and oversight committee members ask questions. Furthermore, if the committee has received questions or concerns from the public or organizations about the boards, the meeting is likely where the public might hear of it. Last year, no concerns were mentioned. For FASB, this year is somewhat pivotal as it includes several changes: a new website; a new PCC chair; the changing role of the Emerging Issues Task Force (EITF), and plans to issue a new agenda consultation document. For GASB, the board could talk of plans to issue two new standards and three public consultation documents; its coming new website; efforts to develop a data taxonomy; and its podcast. The meeting will be streamed live from http://www.accountingfoundation.org/info/webcast

IASB to Vote on Whether to Take Further Action on Revenue Accounting

The International Accounting Standards Board (IASB) has scheduled meetings for February 19–22, 2024, to discuss 10 topics, including revenue recognitions rules, which have been under review. The revenue discussion is about the post-implementation review (PIR) of International Financial Reporting Standards (IFRS) 15, Revenue from Contracts with Customers, which was developed jointly with FASB, which has a similar review in process. The mostly converged revenue standards replaced industry-specific rules with a principle-based five-step model for reporting earnings—one of the most substantial changes made to accounting rules in decades. IASB members will be asked to weigh in on whether to take further action on application matters related to: identifying performance obligations; principal versus agent considerations; and licensing, according to meeting papers, posted on February 9. The topic has generated interest from accountants at multinational companies, including many in the United States, who have said that if further changes are made to the standards, the IASB and FASB should align their efforts so that the rules are not uncoupled in key areas that would matter.

IRS News

CPAs Submit Tweaks to Proposed Donor Advised Fund Regulations

The AICPA sent a letter to leaders in the IRS Office of Chief Counsel suggesting improvements to proposed regulations on taxable distributions from donor advised funds (DAF), including examples of certain situations that should not count towards the definition of a DAF or donor-advisor. IRC section 4966 provides for excise taxes imposed on taxable distributions made by a DAF’s sponsoring organization and, in some cases, on the individual advisors or donors who recommended the distribution. Examples of such taxable distributions include grants to individuals, grants for non-charitable purposes, and grants that result in more than incidental benefits to donors, advisors, or related parties. IRC section 4966 works in conjunction with other sections of the Tax Code, like IRC section 4958, which addresses excess benefit transactions and can impose additional taxes on transactions that provide undue benefits to disqualified persons associated with the DAF. In November, the IRS issued proposed regulations on the excise taxes under sections 4966 and 4958. Recently, the agency extended the public comment period from January 16 to February 15.