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 publishes recap of July 21 PCC meeting
FASB - 07/21/2015
The FASB published a summary of issues addressed by the Private Company Council (PCC) at its July 21 meeting. Among other developments, the PCC decided to develop a proposal that grants private companies an unconditional one-time option to elect a PCC alternative without having to conduct an initial assessment to determine whether an alternative is preferable. It also decided to extend transition guidance indefinitely for the goodwill and interest rate swaps alternatives. In addition, the PCC asked the FASB staff to (1) conduct research to determine ways to clarify the application of the variable interest entity guidance to non-leasing common control arrangements through the use of examples and (2) research potential modifications to existing business scope exceptions to address application issues. The PCC also discussed its leasing project and its simplifying the balance sheet classification of debt project.

FASB finalizes one-year deferral of new revenue standard
FASB - 07/09/2015
At its July 9 board meeting, the FASB decided to delay the effective date of the new revenue standard by one year. The board also agreed to allow entities to choose to adopt the standard as of the original effective date. The FASB decided, based on its outreach to various stakeholders and the forthcoming amendments to the new revenue standard, that a deferral is necessary to provide adequate time to effectively implement the new revenue standard.

FASB issues five Taxonomy implementation guides
FASB - 06/29/2015
The FASB staff announced the issuance of five GAAP Financial Reporting Taxonomy (Taxonomy) implementation guides. The first is a proposed Taxonomy implementation guide titled Measurement Date Practical Expedient for Defined Benefit Plans. The other four are final GAAP Financial Reporting Taxonomy Implementation Guides on the following topics: (1) Disclosures about Offsetting Assets and Liabilities, (2) Notional Amounts Disclosures, (3) Repurchase-to-Maturity Transactions and Repurchase Financings, and (4) Subsequent Events.

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).

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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 of the 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—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 the FASB's proposed equity method simplifications
PwC - 07/29/2015
The FASB has proposed two simplifications in the exposure draft. We support the proposal to eliminate the requirement to retroactively adopt the equity method (when an existing investment first qualifies for the equity method) and believe this proposal meets the objective of the Simplification Initiative. However, we do not support the proposal to eliminate the accounting for basis differences. We believe this proposal would reduce the usefulness of financial reporting because it would not faithfully represent an investment’s performance in relation to its underlying economics.

PwC comments on simplifying accounting for measurement period adjustments
PwC - 06/30/2015
PwC supports the proposal in the exposure draft for acquirers to recognize the cumulative effect of measurement period adjustments in the reporting period in which the adjustment is determined. We agree that the proposal would simplify financial reporting by eliminating the effort associated with restating prior period financial statements for measurement period adjustments, as currently required by ASC 805.

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Final standards

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

Accounting Standard Update No. 2015-12
FASB – 07/31/2015
Plan Accounting — (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical

Accounting Standard Update No. 2015-11
FASB – 07/22/2015
Inventory (Topic 330): Simplifying the Measurement of Inventory

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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