In this section, we provide brief updates on regulatory developments in auditing and accounting that may impact Japanese companies in the United States. Further discussion of the issues can be found in KPMG's Department of Professional Practice's Defining Issues.
FASB Proposes Defined Benefit Plan Disclosures, and FASB Proposes Changes to Presentation of Net Benefit Cost
On January 26, 2016, the FASB proposed improvements to disclosures about defined benefit pension and other postretirement plans, and proposed changes to the financial statement presentation of net benefit cost, respectively.
Go to Defining Issues 16-3 (PDF) >
Go to Defining Issues 16-4 (PDF) >
FASB Reaffirms Amendments to Revenue Standard; Discusses Potential Disclosure Relief
On February 10, 2016, the FASB reaffirmed proposed narrow-scope improvements and practical expedient amendments to the new revenue standard issued on September 30, 2015, to make it more operational without changing its underlying principles. The FASB also discussed a proposal to expand disclosure relief under the standard.
Go to Defining Issues 16-5 (PDF) >
FASB Balloons Balance Sheet with New Lease Accounting Standard
On February 25, 2016, the FASB issued ASU 2016-02, Leases. The new standard ushers in a new era in which lessees will recognize most leases on-balance sheet. This will increase their reported assets and liabilities – in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP.
ASU 2016-02 is effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. For all other entities it is effective for annual periods beginning after December 15, 2019, and interim periods in fiscal years beginning after December 15, 2020. ASU 2016-02 mandates a modified retrospective transition method for all entities.
Go to Defining Issues 16-6 (PDF) >
EITF Reaches Consensus-for-Exposure about Presentation of Restricted Cash
The FASB’s Emerging Issues Task Force (EITF) reached a consensus-for-exposure at its March 3, 2016, meeting about the presentation of restricted cash in the statement of cash flows. The FASB will consider this decision at a future meeting.
Go to Defining Issues 16-7 (PDF) >
FASB and PCC Eliminate Effective Dates and Clarify Transition Guidance for Private Company Alternatives
On March 7, 2016, the FASB issued an ASU that eliminates the effective dates for four private company accounting alternatives developed by the Private Company Council (PCC). The ASU is effective immediately, and allows a private company to elect any of the PCC alternatives at the beginning of any annual reporting period for the first time without assessing preferability.
Go to Defining Issues 16-8 (PDF) >
FASB Eliminates Retroactive Application of Equity Method
On March 15, 2016, as part of its simplification initiative, the FASB issued an ASU that eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.
Go to Defining Issues 16-9 (PDF) >
FASB Finalizes Amendments to Principal-Agent Guidance in New Revenue Standard
On March 17, 2016, the FASB issued an ASU that amends the principal versus agent guidance in the new revenue standard, and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer.
Go to Defining Issues 16-10 (PDF) >
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