July Audit & Assurance Newsletter

FASB proposes changes to consolidation guidance
The Financial Accounting Standards Board (FASB) has proposed an accounting standards update to reduce the cost and complexity of financial reporting related to the consolidation of variable interest entities, based on recommendations from FASB’s sister organization, the Private Company Council.

The proposal aims to address some of the concerns of private companies that have difficulty navigating and applying FASB’s current variable interest entity guidance to common control arrangements. Under the proposed changes, a private company (reporting entity) wouldn’t have to apply the VIE guidance to legal entities that are under common control (including common control leasing arrangements) if both the parent and legal entity that are being evaluated for consolidation aren’t public business entities. read more    – Accounting Today

AICPA proposes framework for financial instruments valuation
The American Institute of CPAs (AICPA) has unveiled an exposure draft of a new framework to help CPAs and other financial professionals perform valuations of financial instruments such as derivatives, along with their underlying components. read more    – Accounting Today

FASB proposes superseding guidance for S&L bad debt reserves, steamship entities
The Financial Accounting Standards Board (FASB) recently issued two proposals designed to make technical corrections to its Accounting Standards Codification. read more    – Journal of Accountancy

GASB establishes new approach for reporting leases
The Governmental Accounting Standards Board (GASB) established a single approach to accounting for and reporting leases by local and state governments in a new statement recently issued. read more    – Journal of Accountancy

FinREC unveils 4 more revenue recognition working drafts
The American Institute of CPAs (AICPA) Financial Reporting Executive Committee (FinREC) recently issued another batch of working drafts of accounting issues related to the implementation of the Financial Accounting Standards Board’s (FASB) new revenue recognition standard. read more    – Journal of Accountancy

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