FASB

A&A

FASB and IASB work together on reporting issues in financial crisis

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have announced further details on their joint approach to dealing with reporting issues arising from the global financial crisis. The boards reiterated the importance of working cooperatively and in an internationally coordinated manner to consider accounting issues emerging from the global crisis.
A&A

Bankers ask SEC to override FASB’s new fair value guidance

The American Bankers Association has asked the Securities and Exchange Commission (SEC) to use its authority to override the Financial Accounting Board's (FASB) additional guidance on fair value, FAS 157-3. In a strongly worded letter to SEC Chairman Christopher Cox, Edward L. Yingling, President and CEO of the bankers' group said that the guidance, "basically ignores what we believe to be the intent of the SEC's release of September 30, 2008."
A&A

SEC, FASB issue clarifications on fair value accounting

The current environment has made questions surrounding the determination of fair value particularly challenging for preparers, auditors, and users of financial information. The SEC's Office of the Chief Accountant and the staff of the FASB have been engaged in extensive consultations with participants in the capital markets, including investors, preparers, and auditors, on the application of fair value measurements in the current market environment.
A&A

FASB looking for feedback on proposed earnings per share revision

The Financial Accounting Standards Board has issued a revised Exposure Draft (ED) of a proposed Statement of Financial Accounting Standards, Earnings per Share — an amendment of FASB Statement No. 128. The proposed Statement seeks to improve financial reporting by clarifying and simplifying the method of calculating earnings per share (EPS), while promoting the international convergence of accounting standards by eliminating major differences that currently exist between FASB Statement No. 128, Earnings per Share, and International Accounting Standard (IAS) 33, Earnings per Share.
A&A

FASB issues Exposure Draft on Accounting for Hedging Activities

The Financial Accounting Standards Board (FASB) has issued an Exposure Draft (ED) of a proposed Statement of Financial Accounting Standards, Accounting for Hedging Activities — an amendment of FASB Statement No. 133.
A&A

FASB will add disclosure requirements to Statement 140

The Financial Accounting Standards Board (FASB) continued its review of Statement 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, (SFAS 140) and FASB Interpretation No.
A&A

FASB issues Statement No. 163, Accounting for Financial Guarantee Insurance Contracts

Last week The Financial Accounting Standards Board (FASB) issued FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts. The new standard clarifies how FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, applies to financial guarantee insurance contracts issued by insurance enterprises, including the recognition and measurement of premium revenue and claim liabilities. It also requires expanded disclosures about financial guarantee insurance contracts.
A&A

Teresa S. Polley named president of Financial Accounting Foundation

Robert E. Denham, chairman of the Financial Accounting Foundation (FAF) Board of Trustees, has announced that Teresa S. Polley has been named President and Chief Operating Officer of the FAF, effective immediately. Polley had been serving as Chief Operating Officer on an interim basis for several months."We are delighted to recognize Terri's impressive leadership in naming her as President and COO of the FAF," said Chairman Denham. "For 20 years Terri has served the organization in a variety of roles, adding value to everything she has touched.
A&A

FASB releases GAAP Hierarchy Statement 162

The Financial Accounting Standards Board (FASB) has issued FASB Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles. The new standard is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements that are presented in conformity with U.S.
A&A

FASB forum to consider use of global accounting standards by U.S. companies

The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) announced Friday that they will host a forum entitled High-Quality Global Accounting Standards: Issues and Implications for U.S. Financial Reporting. The purpose of the forum is for the FAF and the FASB to open a dialogue with constituents about whether and how to continue to move the U.S. toward high-quality global accounting standards, the FAF and FASB's press release says. The forum will take place Monday, June 16, 2008, from 9 a.m. to 4 p.m., at Baruch College, in New York, NY.
A&A

Financial Accounting Foundation announces major changes to FAF, FASB, and GASB

On February 28, 2008, the Board of Trustees of the Financial Accounting Foundation (FAF) announced that, following a public due process period in which 59 comments were received from accounting and financial organizations and others interested in standard setting, it has voted to approve major changes to the oversight, structure, and operations of the FAF and its two standard-setting Boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
A&A

FASB issues FAS 117-a regarding endowments held by not-for-profits

The Financial Accounting Standards Board (FASB) has issued proposed FASB Staff Position (FSP) FAS 117-a, Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act, and Enhanced Disclosures.
A&A

FIN 48-2: FASB upholds FIN 48 for public companies; non-public entities may defer

The Financial Accounting Standards Board (FASB) has decided to allow nonpublic entities to defer implementation of FIN 48 to fiscal years beginning after December 15, 2007. To address this issue, the Financial Accounting Standards Board has issued FASB Staff Position (FSP) FIN 48-2, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises.
A&A

PCAOB approves Auditing Standard No. 6 in response to FASB 154

The Public Company Accounting Oversight Board has voted to adopt Auditing Standard No. 6, Evaluating Consistency of Financial Statements, and an accompanying set of amendments to the Board's interim auditing standards. The Board adopted the standard and amendments in light of the Financial Accounting Standards Board's (FASB) issuance of Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections, and impending issuance of Statement of Financial Accounting Standards, The Hierarchy of Generally Accepted Accounting Principles.
A&A

FASB launches verification phase for Accounting Standards Codification for GAAP

The Financial Accounting Standards Board has officially launched the one-year verification phase of the FASB Accounting Standards Codification. During the verification period, constituents are encouraged to use the online Codification Research System free of charge to research accounting issues and provide feedback on whether the Codification content accurately reflects existing U.S. generally accepted accounting principles (GAAP) for nongovernmental entities.
A&A

FAS 157 - Derivative valuation insights

After careful deliberation, the Financial Accounting Standards Board (FASB) voted in favor of implementing FAS 157 on time for financial assets and liabilities like derivatives. With FAS 157 taking effect as of November 15, 2007, a company reporting at year-end or any time after mid November will be obliged to consider FAS 157. Under FAS 157 companies must measure fair value by segregating observable and unobservable inputs into Level 1, Level 2, and Level 3 inputs: Level 1 inputs are market observed inputs such as quoted prices (e.g.
A&A

FASB announces free webcast on global accounting

The Financial Accounting Standards Board (FASB) has announced the launch of a series of periodic webcasts focusing on topics of importance to its constituents. The first FASB webcast, entitled Towards a Global Reporting System: Where Are We and Where Are We Going?, is scheduled for Tuesday, January 8, 2008, from 10:30 a.m. to 11:30 a.m. (EST), and will feature a panel of experts discussing international convergence of accounting standards.Panelists Robert Herz, Peter Bridgman, Greg Jonas, and Sam Ranzilla will discuss the implications of moving the U.S.
A&A

Nonpublic companies get FIN 48 reprieve from FASB

At a recent board meeting, the Financial Accounting Standards Board voted to defer the effective date of FIN 48 for all non-public entities to periods beginning after December 15, 2007. The FASB instructed the staff to develop an FASB Staff Position which will have a 30-day comment period once it is released. This action is a welcome response to a recent letter issued by the Private Company Financial Reporting Committee (PCFRC) that recommended that FASB delay the effective date of FASB FIN No.
A&A

FASB calls for delay in non-GAAP reporting

The Financial Accounting Standards Board and its oversight foundation, the Financial Accounting Foundation, have sent a letter to the Securities and Exchange Commission asking for a delay in the agreement to allow foreign firms using International Financial Reporting Standards to no longer reconcile their accounts to U.S. GAAP rules. In the letter, Robert Denham, chairman of the FAF, and Robert Herz, chairman of the FASB, said that investors would be better served if all U.S.
A&A

FEI and IMA request deferral of SFAS 157

In a letter to Robert H. Herz, chairman of the Financial Accounting Standards Board (FASB), two committee chairmen of Financial Executives International (FEI) have requested that FASB delay implementation of SFAS No. 157 - Fair Value Measurements (FAS 157) for one year in order to allow companies and their accounting firms time to prepare for implementation. Currently, FAS 157 is effective for fiscal years beginning after November 15, 2007. The Institute of Management Accountants (IMA) has also requested the delay, CFO.com reports.

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