Our Q1-2013 edition provides updates on the latest developments in revenue recognition, classification and measurement of financial instruments, impairment of financial assets, leases, insurance contracts, and more.
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).
The boards forged ahead on their joint projects this quarter, with several reaching major milestones in the standard-setting process. Redeliberations on revenue recognition are now substantially complete, and the boards are on the cusp of issuing a converged final standard.
The FASB recently issued a revised exposure draft on the classification and measurement of financial instruments. The proposal calls for a mixed measurement approach—either at fair value or amortized cost, and generally converges with the IASB’s guidance on debt investments and financial liabilities.
On impairment of financial assets, the boards were unable to reach convergence and each has released separate proposals. Despite the differences, both models are based on expected losses rather than today’s incurred loss approach.
Drafting is in full swing on a revised leases proposal that will put nearly all leases on the balance sheet. And rounding out the major joint projects, the boards expect to release exposure drafts on insurance contracts by June.
The FASB also made significant headway on many of its other projects. The board issued final standards on reclassifications from accumulated other comprehensive income, a scope clarification for balance sheet offsetting disclosures, and certain nonpublic entity fair value disclosures. The FASB also exposed its proposal on the accounting for repurchase agreements.
Learn more important details about how these and other projects could affect you in this edition of Setting the standard.