Financial Reporting & Regulatory Update, Third Quarter 2019
During the third quarter of the 2019 calendar year, the Financial Accounting Standards Board (FASB) issued one new accounting standard, which updates U.S. GAAP to incorporate various Securities and Exchange Commission (SEC) rules and disclosures.
The FASB also issued proposals during the quarter addressing the following:
- Deferral of effective dates for certain entities for credit impairment, leases, hedging and long-duration contracts guidance
- Narrow-scope improvements to the credit losses standard
- Clarification of interaction between recognition and measurement of financial instruments and equity method investments
- Improvements in distinguishing liabilities from equity
- Transitional guidance for reference rate reform
- Debt classification
In addition, the FASB issued a question-and-answer (Q&A) document addressing the development of an estimate of expected credit losses.
The SEC discussed interest-rate reform and transition, proposed to modernize Regulation S-K disclosures, updated the Division of Corporation Finance (Corp Fin) Financial Reporting Manual, amended auditor independence rules, and requested comments on changes to private securities offering exemptions.
The Public Company Accounting Oversight Board (PCAOB) released two new resources addressing critical audit matters (CAMs), issued staff guidance on its new audit requirements that were approved by the SEC during the third quarter, and published its annual broker-dealer inspection report.
The American Institute of Certified Public Accountants (AICPA) issued a practice aid for the credit losses standard as well as three working drafts addressing credit losses standard implementation issues. The AICPA also proposed a new Statement on Auditing Standards on auditing accounting estimates.
In addition to these highlights from the quarter, we have included recent developments from the Governmental Accounting Standards Board (GASB).
Checklists for the effective dates of FASB Accounting Standards Updates (ASUs) and GASB statements are provided in the appendix.