The FASB released its much anticipated new standard, amending the accounting for certain financial instruments with characteristics of liabilities and equity. This area has been the source of many a restatement, so one of the objectives of the project was to reduce complexity. See our summary below, and stay tuned for our In depth.
Tax positions require reassessment in periods of change. Hear PwC discuss the key concepts in accounting for uncertain tax positions. This podcast is the final episode in our recent tax accounting series. Listen to our previous episodes:
For more detailed information and examples on these and other income tax accounting topics, see our updated Income taxes guide.
We’ve updated portions of our Financial statement presentation guide for targeted changes and new insights related to the presentation and disclosure of income taxes, related parties, and parent company financial statements.
Updated Income taxes guide
We share lessons learned during our own successful transition to remote auditing and other work during the COVID-19 crisis.
On August 5, the FASB issued final guidance that will impact the accounting for certain financial instruments with characteristics of liabilities and equity. The Board reduced the number of accounting models for convertible debt instruments and convertible preferred stock and made certain disclosure amendments to improve the relevance of information being provided to users. In addition, the Board amended the guidance for the “own stock” derivatives scope exception and the related EPS guidance. The new guidance is expected to reduce complexity and improve the comparability of financial reporting associated with how companies account for convertible instruments. The guidance is effective for public business entities in 2022 but can be early adopted beginning in 2021.
On August 5, 2020, the SEC proposed comprehensive modifications to the mutual fund and exchange-traded fund disclosure framework. Among other things, the proposed rule would require streamlined shareholder reports, promote a layered disclosure approach, and amend prospectus disclosure requirements. In his remarks announcing the release, Chairman Jay Clayton said “the proposal modernizes [the Commission’s] 'investor-first’ framework” and asserted the new streamlined shareholder report, together with additional information available online, would enable investors to receive information in a more useful way. Public comments will be due within 60 days of publication in the Federal Register.