Setting the standard -- What you need to know about the FASB's and IASB's standard setting activities -- December 2012

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Welcome to the latest edition of Setting the standard, our publication designed to keep you informed about the standard setting activities of the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB).

There is no shortage of activity to report this quarter as the boards forged ahead on their major convergence projects. The FASB and IASB made several key decisions as they move closer toward issuing exposure drafts and final standards.

Revenue recognition occupied much of the boards’ joint agenda this quarter as they tackled a number of important redeliberation topics. Although there is still ground to cover, the boards expect to issue a converged final standard in the first half of 2013. During that same timeframe, the boards plan to re-expose their joint leases proposal, which likely will spark a fresh round of debate.

On the other major joint projects, the boards have reached varying levels of convergence. The boards are broadly converged on classification and measurement for debt instruments, but other differences remain. And, despite lengthy deliberations and debate, the boards have not reached a converged solution for insurance contracts.

The FASB also made meaningful progress on a number of its other projects this quarter. Key developments came in several areas, ranging from re-activating the project on discontinued operations to addressing the thorny topic of going concern. The board also made important clarifications related to disclosures on comprehensive income and balance sheet offsetting, both of which are slated to take effect next month.

Read this edition of Setting the standard for the latest on these projects and more.