FASB News
Proposal for Variable Interest Entities Deals Seeks to Simplify Tricky Guidance
FASB has proposed narrow changes to the way companies determine the “accounting acquirer” in complex business transactions involving Variable Interest Entities (VIE). The provisions, outlined in proposed Accounting Standards Update (ASU) 2024-ED500, would require companies to examine specific factors when determining who is in charge in certain business deals involving VIEs wherein the main transaction is essentially a swap of ownership stakes. The move is aimed at enhancing the comparability of financial statements across economically similar transactions, providing investors and analysts with better financial reporting information. The board is seeking public comments by December 16 on whether the proposed changes are clear and operable.
FASB, GASB Trustees to Discuss New Proposals and Rules
The Financial Accounting Foundation (FAF), the governing body responsible for overseeing the development of U.S. Generally Accepted Accounting Principles (GAAP), has announced that it will hold standards-setting oversight and trustee meetings in mid-November. The meetings come at a key time, as the profession struggles to come to grips with the accounting for complex products in the capital markets arena; ongoing staffing shortages; and a raft of new issues, including sustainability reporting and the integration of artificial intelligence, that are reshaping the industry. The FAF’s meetings are particularly noteworthy, as FASB and the GASB are poised to release several key proposals and updates by the end of the year. FASB is expected to release six proposals to solicit public comment, plus two new ASUs on induced conversions of convertible debt and the disaggregation of income statement expenses. GASB, meanwhile, recently issued its preliminary views on infrastructure assets and new Statement 104, Disclosure of Certain Capital Assets, with plans to release two proposals and a preliminary views document by year-end. According to notices released by the FAF on October 21, 2024, the foundation’s Standard-Setting Process Oversight Committee will convene on November 18, with a public session scheduled to be livestreamed.
IASB News
IFRS Foundation Announces New Composition of Accounting Standards Advisory Forum
The IFRS Foundation has appointed a new composition to the Accounting Standards Advisory Forum (ASAF), a key advisory body that supports the International Accounting Standards Board (IASB). Effective January 1, 2025, the new appointments will serve a three-year term, the organization announced on October 28. The forum, which convenes four times a year, brings together board members from various standards setters worldwide to provide strategic guidance to the IASB on its efforts. The first meeting of the new ASAF is scheduled to take place on March 24–25, 2025. The primary objective of ASAF is to foster a collaborative environment where members can contribute to the development of accounting standards that serve the public interest and inform economic decisions. The new composition of ASAF includes representatives from:
- Africa—Pan African Federation of Accountants;
- Americas—Canadian Accounting Standards Board; U.S. Financial Accounting Standards Board; and Group of Latin American Accounting Standard Setters;
- Asia-Oceania (including two at large)—Accounting Regulatory Department, Ministry of Finance, China; Accounting Standards Board of Japan; Australian Accounting Standards Board and External Reporting Board, New Zealand; Saudi Organization for Chartered and Professional Accountants; and Asian-Oceanian Standard-Setters Group;
- Europe (including two at large)—Accounting Standards Committee of Germany; Autorité des Normes Comptables, France; Organismo Italiano di Contabilità, Italy; UK Endorsement Board; and the European Financial Reporting Advisory Group (EFRAG).
