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 Revenue TRG Holds Last Scheduled Meeting
Defining Issues 16-36 reports that the FASB Transition Resource Group for Revenue Recognition (TRG) met on November 7 and discussed implementation issues raised by stakeholders. The Board said that it does not expect additional standard setting before the effective date of the revenue standard beyond the technical corrections already in progress.
Go to Defining Issues 16-36 (PDF) >
EITF Reaches Final Consensus on Employee Benefit Plan Reporting Issues
Defining Issues 16-37 reports that the FASB’s Emerging Issues Task Force (EITF) reached a final consensus on employee benefit plan master trust reporting issues at its November 17 meeting. The consensus would clarify how employee benefit plans should present and disclose investments in master trusts. The FASB will consider these decisions at its November 30 meeting.
Go to Defining Issues 16-37 (PDF) >
FASB Proposes Scope Clarification for Share-based Payment Modifications
Defining Issues 16-38 reports that the FASB’s proposed ASU would clarify what constitutes a modification of a share-based payment award. The proposal would specify when companies would need to apply modification accounting.
Go to Defining Issues 16-38 (PDF) >
SEC Staff Clarifies Effect of Rule Changes on Hedge Accounting
Defining Issues 16-39 reports that the SEC staff recently indicated that rule changes that will be made by certain central clearing parties (CCP) would not require their clearing members or end users to discontinue existing hedge accounting relationships. The SEC staff responded to accounting questions raised by the International Swaps and Derivatives Association, which asked for clarification about the accounting for these CCP rule changes.
Go to Defining Issues 16-39 (PDF) >
FASB Proposes Changes to Accounting for Down-Round Financial Instruments
Defining Issues 16-40 reports that a recent FASB proposal would require companies to disregard down-round features when determining whether certain equity-linked financial instruments should be classified as liabilities or equity. Down-round features likewise would not affect ongoing measurement of financial instruments (when liability-classified) and would only be accounted for when they are triggered.
Go to Defining Issues 16-40 (PDF) >
FASB Finalizes Technical Corrections to Revenue Standard
Defining Issues 16-41 reports that the FASB recently issued an ASU that provides disclosure relief, and clarifies the scope and application of the new revenue standard and related cost guidance. This ASU represents the last expected standard-setting activity on this topic before the revenue standard becomes effective.
Go to Defining Issues 16-41 (PDF) >
FASB Clarifies the Definition of a Business
Defining Issues 17-1 reports that the FASB recently issued an ASU that provides a new framework for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted.
Go to Defining Issues 17-1 (PDF) >
FASB Proposes Simplification to Balance Sheet Classification of Debt
Defining Issues 17-2 reports that, as part of its simplification initiative, the FASB proposed changes to how companies classify debt as current or noncurrent on the balance sheet. The proposal would replace the existing detailed guidance with a principles-based approach that considers a company’s facts and circumstances as of the balance sheet date.
Go to Defining Issues 17-2 (PDF) >
FASB Proposes Additional Inventory Disclosures
Defining Issues 17-3 reports that, as part of its broader disclosure framework project, the FASB proposed improvements to disclosures about inventory.
Go to Defining Issues 17-3 (PDF) >
FASB Simplifies Goodwill Impairment Test
Defining Issues 17-5 reports that the FASB issued an ASU to simplify the measurement of goodwill impairment.
Go to Defining Issues 17-5 (PDF) >
For more information, please contact:
Michael Maekawa | +1 213 955 8331 | firstname.lastname@example.org
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.