On The Horizon - April 23, 2013

Author:Grant Thornton's Audit Practice Group
Profession:Grant Thornton LLP
 
FREE EXCERPT

FASB

FAF appoints new FASB chairman

The Financial Accounting Foundation (FAF), which oversees the FASB, recently announced that current Board member Russ Golden will succeed Leslie Seidman as FASB Chairman when Ms. Seidman's term expires on June 30.

Mr. Golden's initial term as Chairman will extend to June 30, 2017, at which time he will be eligible for an additional three-year appointment.

Board invites comments on Private Company Decision-Making Framework

The FASB and the Private Company Council recently issued an Invitation to Comment, Private Company Decision-Making Framework - A Guide for Evaluating Financial Accounting and Reporting for Private Companies, to gather feedback on how the Board and Council should determine if and under which circumstances to provide alternative financial reporting guidance for private companies reporting under U.S. GAAP.

The Board had previously gathered input on this topic based on a Discussion Paper issued in July 2012. Significant changes in the current proposal from the framework described in the Discussion Paper include

Allowing private companies to select only certain recognition and measurement alternatives without having to apply all private company alternatives under U.S. GAAP Removing a presumption that the same industry-specific recognition and measurement guidance is relevant to the users of both public and private company financial statements Responses to the Invitation to Comment are due by June 21.

ASU issued on NFPs' accounting for services provided by an affiliate

The Board recently issued FASB Accounting Standards Update (ASU) 2013-06, Services Received from Personnel of an Affiliate - a consensus of the FASB Emerging Issues Task Force.

The guidance in ASU 2013-06 requires not-for-profit entities (NFPs) to recognize services provided by personnel of an affiliate at the affiliate's cost, unless that cost does not reflect the services' value, in which case an NFP has the option to recognize the services at fair value. Refer to the March 19 edition of On the Horizon for a summary of the final consensus.

The guidance in ASU 2013-06 is effective prospectively for fiscal years beginning after June 15, 2014 and for interim and annual periods thereafter. Early adoption is permitted.

Guidance proposed for qualified affordable housing project investments

Recently,...

To continue reading

FREE SIGN UP