Plugged In

The FASB and the IASB both issued exposure drafts on Fair Value Measurements. If adopted this proposed ASU will more closely converge US GAAP with IFRS. No proposed effective date has been set yet, but comments are due by September 7, 2010.

 The main provisions of the proposed ASU are:

The FASB and the IASB issued exposure drafts on FASC 220 – Comprehensive Income. The exposure draft proposes to eliminate two options for presenting Comprehensive Income and require a Statement of Comprehensive Income (SOCI) to replace the current income statement. EPS will still be based on net income. The exposure draft calls for retrospective application of the changes.

ASU 2010-17 updates FASC 605 – Revenue Recognition and is effective for fiscal years beginning on or after June 15, 2010. This ASU adds a subtopic to FASC 605 concerning revenue recognition related to research and development projects. It clarifies that revenue can be recognized when a milestone is achieved if the milestone meets all criteria to be considered substantive. 

ASU 2010-13 is an update to FASC 718 – Compensation – Stock Compensation and is effective for fiscal years beginning on or after December 15, 2010. The ASU would have been considered an Emerging Issues Task Force (EITF) issuance before the Codification.

ASU 2010-11 – Scope Exception Related to Embedded Credit Derivatives is an update to FASC 815 – Derivatives and Hedging and is effective for fiscal quarters beginning after June 15, 2010. This ASU clarifies that the scope exception in Paragraphs 815-15-15-8 through 15-9 only applies to the transfer of credit risk in the form of subordination of one financial instrument to another.