fasb update for private companies n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
FASB UPDATE FOR PRIVATE COMPANIES PowerPoint Presentation
Download Presentation
FASB UPDATE FOR PRIVATE COMPANIES

Loading in 2 Seconds...

play fullscreen
1 / 33
oliver

FASB UPDATE FOR PRIVATE COMPANIES - PowerPoint PPT Presentation

0 Views
Download Presentation
FASB UPDATE FOR PRIVATE COMPANIES
An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. FASB UPDATE FOR PRIVATE COMPANIES Timothy Pike, CPA, CFE Howard & Co, LLP

  2. Agenda RECENTLY ISSUED OR EFFECTIVE STANDARDS FASB UPDATE & UPCOMING ACCOUNTING UPDATES

  3. Recent Issued or Effective Accounting Standard Updates

  4. 2011-04 Fair Value Measurement • Amendments to Achieve Common Fair Value Disclosure Requirements in US GAAP and IFRS (Topic 820) • Effective for annual periods beginning after 12/15/11 (prospectively) • Primarily to converge wording

  5. 2011-03 Transfers & Servicing • Reconsideration of Effective Control for Repurchase Agreements (Topic 860) • Agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity • Adjusts rules to determine when these are financings instead of sales

  6. 2011-03 Continued Current Rules: Maintaining effective control over a financial asset New Rules: The transferor has the ability to repurchase or redeem financial asset Effective for the first interim or annual period beginning on or after 12/15/11 (no early adoption)

  7. 2011-02 Receivables • A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring (Topic 310) • Effects all creditors that restructure receivables • Effective annual periods ending on or after December 15, 2012 (early adoption permitted)

  8. 2011-02 Continued Troubled Debt Evaluation must Conclude: • The restructuring constitutes a concession • The debtor is experiencing financial difficulties • Certain items excluded (e.g. changes in lease agreements or pension plans)

  9. 2011-01 Receivables • Deferral of the effective date related to disclosures about troubled debt restructurings • ASU 2010-20

  10. 2010-29 Business Combinations • Disclosure of Supplementary Pro Forma Information for Business Combinations (Topic 805) • Pro Forma information should be reflected retrospectively (all periods presented) • Effective for Periods Beginning After 12/15/10

  11. 2010-28 Intangibles, Goodwill… • When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (Topic 350) • Effective periods beginning after 12/15/11, but may early adopt one year earlier

  12. 2010-28 Continued • If the reporting unit value is zero or negative and Step 1 is passed, you must perform Step 2 • Effective for years (& interim periods) beginning after 12/15/11, but may early implement up to 12/15/10

  13. 2010-27 Other Expenses • Fees Paid to the Federal Government by Pharmaceutical Manufacturers (Topic 720) • Effective calendar years beginning after 12/31/10, when the fee becomes effective

  14. 2010-26 Financial Services - Insurance • Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (Topic 944) • Effective for periods beginning after 12/15/11 • Details expenses that can/should be capitalized and those expensed as incurred

  15. 2010-25 Plan Accounting • Reporting Loans to Participants by Defined Contribution Pension Plans (Topic 962) • Carried at Fair Value? • Notes Receivable • Effective years ending after 12/15/10, early adoption allowed

  16. 2010-24 Health Care Entities • Presentation of Insurance Claims and Related Insurance Recoveries (Topic 954) • Accounting for medical malpractice claims and similar contingent liabilities and the related anticipated insurance recoveries • Effective years beginning after 12/15/10, early application permitted (cumulative effect adjustment to opening retained earnings)

  17. 2010-23 Health Care Entities • Measuring Charity Care for Disclosure (Topic 954) • Requires the use of cost (not revenue) to be used to measure and disclose charity care • Effective for fiscal years beginning after 12/15/10. Apply retrospectively, early adoption permitted

  18. 2010-22 Accounting for Various Topics SEC Update SEC Update 2010-21 Technical Amendments

  19. 2010-20 Receivables • Disclosures about the Credit Quality of Financing Receivables and the Allowances for Credit Losses (Topic 310) • Clarity to evaluate an entity’s credit risk exposure and adequacy of credit loss allowances • Effective periods ending after 12/15/11

  20. 2010-19 Foreign Currency • Multiple Foreign Currency Exchange Rates (Topic 830) • SEC UPDATE

  21. 2010-18 Receivable • Effect of a Loan Modification When the Loan is Part of a Pool That is Accounted for as a Single Asset (Topic 310) • Maintain loan pools • Effective prospectively; first period ending on or after 7/15/10. (Early application permitted)

  22. 2010-17 Milestone Method • Milestone Method of Revenue Recognition (Topic 605) • Research and Development Transactions • Periods beginning on or after June 15, 2010

  23. 2010-16 Entertainment - Casinos • Accruals for Casino Jackpot Liabilities (Topic 924) • Jackpots not required to be paid are not accrued • Effective periods beginning on or after 12/15/10

  24. FASB UPDATE &Upcoming Accounting updates

  25. Upcoming Considerations • New FASB Chair Leslie Seidman • Board member since 2003 • Managed her own firm

  26. Private & Nonprofit Standards • Blue ribbon panel recommendations • Currently in phase 2 • Supported by FASB Chair*

  27. 2 Significant Projects • Revenue Recognition • Leases

  28. Revenue Recognition • Provide one source/location for revenue recognition • Improve definitions and industry variations • Many questions still remain

  29. Leases • Eliminate off-balance sheet accounting • Provide for a single method of accounting • Eliminates “technicalities” of the bright- line tests • Reflect an exposure to risk and benefit with the use of leased assets

  30. Leases, Continued • More timely information • Simplified approach for short-term leases • Does not change current definition of a lease contract

  31. Leases, continued • Accounting: • Change the timing and location of expenses (in the financials) • Lease assets & liabilities recognized at present value of payments to be made over the contract term and carried at amortized cost • Continual reassessment

  32. FASB Projects