Financial Accounting Standards Board (FASB)

Website: www.fasb.org

The mission of the FASB is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports.

Resources


PwC resources

Status of FASB standard-setting projects
We provide quick access to the expected publication dates for select FASB standard-setting projects.

Effective dates for FASB guidance
The FASB's active standard setting means it is more important than ever to know which standards are effective when. Here we provide effective dates for the FASB's recently released guidance, segregated between public companies and nonpublic companies.

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Select news releases

FASB Issues Accounting Standards Update to Improve Disclosures for Short-Duration Insurance
FASB - 05/21/2015
The FASB issued final guidance that aims to enhance disclosures about short-duration insurance contracts, effective for public insurers for year-end 2016, with a one year deferral for non-public entities. The new disclosure requirements focus on providing users of financial statements with more transparent information about an insurance entity's (1) initial claim estimates and subsequent adjustments to those estimates, (2) methodologies and judgments in estimating claims, and (3) timing, frequency and severity of claims. The disclosures may require the accumulation and reporting of new and different groupings of data by insurers for U.S. GAAP reporting from what is currently captured for U.S. statutory and other reporting purposes.

FAF issues post-implementation review report on noncontrolling interest standard
FASB - 05/20/2015
The FAF completed its Post-Implementation Review (PIR) of FAS 160, Noncontrolling Interests in Consolidated Financial Statement. Overall the PIR found that FAS 160: (i) eliminated the diversity associated with reporting noncontrolling interests in the financial statements, (ii) improved the relevance of reported financial information on noncontrolling interests by providing clear guidance on how to account for changes in a parent’s ownership interest in a subsidiary, (iii) converged the accounting for noncontrolling interests with International Accounting Standard 27, Consolidated and Separate Financial Statements. The PIR report notes, however, that several practitioner and preparer stakeholders find the requirements in FAS 160 for allocating net income or loss of a subsidiary between the parent and the noncontrolling interest holder(s) to be vague, insufficient, and difficult to apply in situations in which the equity structure of a subsidiary is complex and net income or loss is not shared proportionally.

FAF issues 2014 annual report
FASB - 05/18/2015
The FAF has issued its 2014 Annual Report. In addition to presenting the FAF’s 2014 audited financial statements, the annual report outlines the future direction of the FAF and its standard-setting boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

FASB publishes recap of May 5 PCC meeting
FASB - 05/05/2015
The FASB published a summary of issues addressed by the Private Company Council (PCC) at its May 5 meeting. Among other developments, the PCC directed the FASB staff to conduct further research and develop recommendations for private companies to have an unconditional option to make an initial election of a PCC alternative. The PCC also asked the board and FASB staff to consider conducting research on clarifying the application of certain aspects of variable interest entity guidance (not already addressed by ASU No. 2014-07, Applying Variable Interest Entities Guidance toCommon Control Leasing Arrangements) to private companies under common control.

FASB Seeks Public Comment on Proposal to Defer Effective Date of Revenue Recognition Standard
FASB - 04/29/2015
The FASB has issued for public comment a proposed Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, that would defer the effective date of its new revenue recognition standard by one year. The proposed ASU would permit public organizations to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Nonpublic organizations would be permitted to apply the new revenue standard to annual reporting periods beginning after December 15, 2018.

FASB proposes improvements to not-for-profit financial statements
FASB - 04/22/2015
The FASB has issued proposed Accounting Standards Update (ASU), Presentation of Financial Statements of Not-for-Profit Entities, intended to improve the information provided in not-for-profit financial statements and notes to financial statements. It includes proposed improvements to the current net asset classification requirements and the information presented in financial statements and notes to financial statements about a not-for-profit organization’s liquidity, financial performance, and cash flows.

FAF Board of Trustees issues the 2015 strategic plan
FASB - 04/09/2015
The Financial Accounting Foundation (FAF), the FASB, and the GASB have developed a strategic plan to articulate the long-range vision and mission of each of the groups and the organization collectively. This plan represents an evolution and a refinement of previous plans and mission statements developed by the groups.

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Proposed standards

See the FASB's website for a copy of all outstanding proposed Standards.

Proposed Accounting Standards Update—Improvements to Employee Share-Based Payment Accounting
FASB - 06/08/2015
This proposed Update would simplify several aspects accounting guidance for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. [Comments due - August 14, 2015]

Proposed Accounting Standards Update—Simplifying the Equity Method of Accounting
FASB - 06/05/2015
The FASB proposes to eliminate the requirement for an equity method investor to account for the basis difference, which is the difference between the cost of an investment and the investor’s proportionate share of the net assets of the investee. Under existing equity method guidance, an entity determines the acquisition date fair value of the identifiable assets and liabilities assumed in the same manner as for a business combination. The entity’s proportionate share of the difference between the fair value of the investee’s identifiable assets and liabilities assumed and the book value of recorded assets and liabilities generally must be accounted for in net income in subsequent periods. [Comments due - August 4, 2015]

Proposed Accounting Standards Update—Simplifying the Accounting for Measurement-Period Adjustments 
FASB - 05/21/2015
The FASB has issued a proposed Accounting Standards Update (ASU) intended to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. Stakeholders have told the FASB that the requirement to retrospectively apply adjustments made to provisional amounts recognized in a business combination adds cost and complexity to financial reporting but does not significantly improve the usefulness of the information provided to users. The FASB’s proposal would require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer also would record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. [Comments due - July 6, 2015]

Proposed Accounting Standards Update—Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing 
FASB - 05/12/2015
The proposed Update would clarify guidance related to performance obligations and licensing contained in the new revenue recognition standard. The proposed Update includes targeted improvements based on input the Board received from the Transition Resource Group for Revenue Recognition and other stakeholders. The Update seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. [Comments due - June 30, 2015]

Proposed Accounting Standards Update—Recognition of Breakage for Certain Prepaid Stored-Value Cards 
FASB - 04/30/2015
The amendments in the proposed Update would provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606, Revenue from Contracts with Customers, for those liabilities with the characteristics described in this proposed Update. [Comments due - June 29, 2015]

Proposed Accounting Standards Update—Presentation of Financial Statements of Not-for-Profit Entities 
FASB - 04/22/2015
This proposed Update is intended to improve the information provided in not-for-profit financial statements and notes to financial statements. The proposed ASU sets forth the FASB’s proposed improvements to current net asset classification requirements and information presented in financial statements and notes to financial statements about a not-for-profit organization’s liquidity, financial performance, and cash flows. [Comments due - August 20, 2015]

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PwC comment letters

PwC comments on deferral of the effective date of the new revenue standard
PwC - 05/27/2015
PwC supports the FASB and IASB’s efforts to respond to concerns raised by constituents about the revenue standard. We commend the boards for their ongoing collaboration, including efforts to maintain convergence of the mandatory effective date of the standards by proposing a one-year deferral of both standards. We support the proposed one-year deferral of the effective date for all entities and also support the option for entities that apply U.S. GAAP to adopt the standard as of the original effective date.

PwC comments on FAF's Three-Year-Review of the Private Company Council
PwC - 05/06/2015
PwC believes the PCC has advanced the concerns of private companies and, in a short amount of time, established itself as an important contributor to the FASB’s understanding of private company perspectives. In our letter, we share our recommendations to ensure the longer-term success of the PCC.

PwC comments on the FASB's bifurcated embedded derivatives exposure draft
PwC - 04/24/2015
PwC does not support the proposal due to both conceptual and practical reservations regarding its requirements.

PwC comments on the FASB's income tax exposure draft on balance sheet classification of deferred taxes
PwC - 04/01/2015
PwC generally supports the decision to require all deferred income tax assets and liabilities be presented as noncurrent in a classified statement of financial position.

PwC comments on FASB's income tax exposure draft on intra-entity asset transfers
PwC - 04/01/2015
PwC generally supports the proposal to require recognition of the current and deferred income tax consequences of an intra-entity asset transfer when the transfer occurs.

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Final standards

See the FASB's website for a copy of each Accounting Standards Update (ASU).

Accounting Standard Update No. 2015-10
FASB – 06/12/2015
Technical Corrections and Improvements

Accounting Standard Update No. 2015-09
FASB – 05/21/2015
Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts

Accounting Standard Update No. 2015-08
FASB – 05/08/2015
Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115

Accounting Standard Update No. 2015-07
FASB – 05/01/2015
Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)

Accounting Standard Update No. 2015-06
FASB – 04/30/2015
Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions

Accounting Standard Update No. 2015-05
FASB – 04/15/2015
Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement

Accounting Standard Update No. 2015-04
FASB – 04/15/2015
Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets

Accounting Standard Update No. 2015-03
FASB – 04/07/2015
Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

Accounting Standard Update No. 2015-02
FASB – 02/18/2015
Consolidation (Topic 810): Amendments to the Consolidation Analysis

Accounting Standard Update No. 2015-01
FASB – 01/09/2015
Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

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Meeting minutes

Meeting minutes - Current and archived
FASB - As issued
Provides access to the current and archived FASB board meeting handouts as issued by the FASB. See also the Tentative Board Decisions section of the FASB's website for a summary of current and recent tentative decisions reached at FASB meetings.

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