Financial Accounting Standards Board FASB FASB Statement Quick Finder FASB home page Emerging Issues Task Force EITF home page EITF index SEC policy [more...]
Financial Reporting Developments Meeting on 3.13.08 and 3.14.08 Notice of Meeting 2.21.08 Agenda Restatements Professional Judgment XBRL Review of Comment Letters Reports from Subcommittees Next Steps and Future Timetable Meeting on 2.11.08 SEC Advisory Committee on Improvements to Financial Reporting (CIFiR) [more...]
Accounting for Impairment, Disposal or Retirement of Assets Developments FASB adopted FIN 47 2005 Intended to spur adoption of FASB 143 Tells issuers not to wait on recognizing liabilities because of difficulty of estimation FASB 144 Impairment or Disposal of Long-Lived Assets FASB Text 2001 Supercedes FASB [more...]
Regulation S-X 3-01 Consolidated Balance Sheets 5-01 Application of Rules 5-01 to 5-04 5-02 Balance sheets FASB Statements FASB 150 (2003) Certain Financial Instruments with Characteristics of both Liabilities and Equity Amends FASB 128 and 133 FASB summary FASB status Summary FASB revisits [more...]
SEC Rules S-X Article 9 Financial Statements Rule 9-01 Application of Article 9 Rule 9-02 General Requirement Rule 9-03 Balance Sheets Rule 9-04 Income Statements Rule 9-05 Foreign Activities Rule 9-06 Condensed Financial Information of Registrant S-X 1-02(e) Bank holding company defined S-X 4-08(e) Notes to financials - [more...]
FASB Statements FASB 34 1979 Capitalization of Interest Cost FASB summary FASB status FIN 33 1980 Applying FASB 34 to Oil and Gas Producing Operations Accounted for by the Full Cost Method FASB summary FASB status FASB 42 1979 Determining Materiality for Capitalization of Interest Cost Amends FASB 34 FASB summary FASB status FASB 58 1982 [more...]
FASB Statements FASB 154 2005 Accounting Changes and Error Corrections Replaces APB Opinion 20 and FASB 3 FASB summary FASB status FASB 111 1992 Rescission of FASB Statement No. 32 and Technical Corrections FASB summary FASB status FASB 73 1983 Reporting a Change in Accounting for Railroad Track Structures Amends APB Opinion 20 FASB summary FASB [more...]
FASB Statements FASB 94 1987 Consolidation of All Majority-Owned Subsidiaries Amends APB Opinion 18 and ARB 43 FASB summary FASB status Equity Method - Investments in Common Stock FIN 35 1981 Accounting Changes Related to the Cost of Inventory Interprets APB 20 FASB summary FASB status Related Topics Accounting Issues Variable [more...]
FASB Statements FASB 5 1975 Accounting for Contingencies FASB summary FASB status FIN 14 1976 Reasonable Estimation of the Amount of a Loss Interprets FASB 5 FASB summary FASB status FASB 11 1975 Accounting for Contingencies: Transition Method Amends FASB 5 FASB summary FASB status Summary Ability to Reasonably Estimate the Potential [more...]
SEC Releases Proposal release 33-8098 2002 Comment letters Release 33-8040 2001 Provided cautionary advice for MD&A disclosure About affect of accounting estimates on reported financial results Related Topics Accounting Issues MD&A
FASB 145 FASB 145 (2002) Extinguishment of Debt Rescinds FASB 4, 44 and 64 FASB summary FASB status Gains / losses from extinguishment of debt included in income from continuing operations unless an extraordinary item under per APB 30 Change was made to accommodate use of hedging in day-to-day risk management Archive [more...]
FASB's Derivatives Implementation Group (DIG) Webpage Guidance on Implementation FASB Statements FASB 133 1998 Derivative Instruments and Hedging Activities Superseded FASB 80, 105, and 119 FASB summary FASB status FASB Staff Positions (FSPs) FSP 140-1 2003 Accrued interest receivables Proposed FASB [more...]
Rules S-X 1-02(h) Development stage company defined FASB 7 (1975) Development Stage Enterprises Supercedes FASB 33, 39, 40, 41, 46, 54, 70 and 82 FASB summary FASB status FIN 7 (1975) Applying FASB 7 in Financial Statements of Established Operating Enterprises Interprets FASB 7 FASB summary FASB status SOP 98-5 [more...]
Summary Covers financial statement presentation of earnings per share (EPS) Developments FASB proposes changes to EPS reporting News release (9.30.05) Exposure draft FASB Statements FASB 128 (1997) Supersedes APB 15 FASB summary FASB status SEC FAQs SAB 103 Topic 3.A Convertible securities - effect on [more...]
Summary FASB substantially rewrote rules with FASB 123R 2004 Requires fixed price options to be expensed Covers share-based payments to employees and directors Revised rules for non-employees and ESOPs are to follow SEC press release 12.16.04 FASB press release 12.16.04 Historical Background SEC summaries SEC [more...]
FASB Statements FASB 157 2006 Exemption for Certain Nonpublic Entities Amends FASB 107 FASB summary Press release 9.15.06 Press release 11.14.07 No blanket deferral of effective date For fiscal years beginning after 11.15.07, companies will need to implement the standard for financial assets and liabilities, as [more...]
Superseded FASB Statements FASB 127 Deferral of FASB 125 FASB statement FASB summary FASB status Superseded by FASB 140 FASB 125 Transfers and Servicing of Financial Assets FASB statement FASB summary FASB status Superseded by FASB 140 FASB 122 Mortgage Servicing Rights FASB statement FASB summary FASB [more...]
FASB Statements SFAS 161 140 120 100 80 60 [more...]
Summary Type of reinsurance that transfers only a finite or limited amount of risk Risk is reduced through accounting or financial methods, along with the actual transfer of economic risk Practices related to finite risk insurance have recently come under scrutiny and attack Focus has been on accounting treatment by the parties involved [more...]
Guarantor's accounting and disclosure for guarantees FASB Interpretation 45 Guarantor's accounting and disclosure for guarantees, including indirect guarantees of indebtedness of others Issued 2002 FASB press release FASB summary FASB status FASB Exposure Draft 2002 Summary Interprets [more...]
FASB Interpretation 46(R) Consolidation of Variable Interest Entities Issued Jan 2003; revised Dec 2003 FASB press release FASB summary FASB status FASB blackline Summary Interprets ARB 51 Replaces old bright-line 3% independent investment test for when entities should be consolidates Using a new definition: Variable Interest [more...]
Superseded FASB Interpretations FIN 44 Certain Transactions involving Stock Compensation Interpretation No. 44 Summary Status Interpretation of APB 25 Superseded by FASB 123R FIN 42 Transfers of Assets in Which a Not-for-Profit Organization Is Granted Variance Power Interpretation No. 42 Summary [more...]
SEC Rules Rule 405 Rule 12b-2 S-X Rule 1-02(k) Disclosure Requirements Form 8-K Item 5.03(b) Precedent Form 8-Ks Medicis Pharma 2005 Related Topics Accounting Issues
Overview Covers SEC and FASB rules for financial reporting by foreign public issuers Developments IFRS Alternative to GAAP Reconciliation Spotlight On: IFRS "Roadmap" SEC website Proposed rulemaking, roundtable documents, press releases, staff review if IFRS statements, speeches and testimony Spotlight [more...]
Summary Fresh-start accounting : Exception to the general accounting principle of using historical cost Instead, all of an entitys assets and liabilities are revalued with a new basis at fair value Developments FASB Project Studying applying fresh-start accounting to: multiparty business combination where no single preexisting entity [more...]
Summary Transferable Stock Option (TSO) program is alternative to traditional option program Announced in December 2006 Test launch in February 2007 Launched in April 2007 Employee stock option plan administrator is Smith Barney Allows employees below Executive Management Group to sell vested stock options to third-party financial [more...]
Summary SEC and FASB are working to eliminate differences between US GAAP and IASB standards International Accounting Standards Board IASB SEC Commissioner speech 10.26.05 Developments SEC concept release 33-8831 Speech by SEC Staff 7.25.07 SEC press release 7.25.07 Federal Register PDF 8.14.07 SEC [more...]
Summary Covers financial statement presentation of income, cash flow and EPS Developments SEC sends letter to selected issuers about the presentation of cash receipts from inventory sales in the statement of cash flows Feb 2005 SEC summary SEC disclosure issues SEC form letter Letter was reportedly sent to automakers and particularly [more...]
SEC Releases Re: FPIs with operations in a hyperinflationary economy Final release 33-7117 (1994) FASB Statements FASB 89 (1986 ) Financial Reporting and Changing Prices Supercedes FASB 1, 8 and 20 FASB summary FASB status Related Topics Accounting Issues Foreign Accounting
SEC Rules S-X Article 7 Financial Statements S-X 1-02(m) Insurance holding company defined S-K 801(f) Securities Act -- Guide 6 Property-casualty insurance underwriters S-K 802(d) Securities Act -- Guide 4 Property-casualty insurance underwriters Regulation S-X Items: S-X 4-08(e) Notes to financials - [more...]
FASB Statements FASB 151 (2004) Inventory Costs Amends ARB No. 43, Chapter 4 FASB summary FASB status Related Topics Accounting Issues
"Mark to Market" Requirements FASB Statements FASB 159 2007 Fair Value Option for Financial Assets and Financial Liabilities Amends FASB 115 FASB summary FASB status FASB 115 1993 Certain Investments in Debt and Equity Securities Supercedes FASB 12 FASB summary FASB status FASB Staff Position 115-1 [more...]
Developments FASB adds project to revise lease accounting Plans to amend FASB 13 But not expected to act until 2009 FASB press release 7.19.06 CFO article SEC Chief Accountant Letter 2.07.05 In response to a rash of restatements, addresses: Amortization of leasehold improvements To amortize leasehold improvements over a term that [more...]
Summary Leveraged recaps involve deal structuring techniques, often used by financial buyers in LBOs, to avoid application of push down accounting to acquired companies Push down accounting is required if more than 94.9% of a target company's shares are acquired, per SEC SAB 54 Leveraged recap techniques avoid application of SAB 54 by [more...]
FASB Statements FASB 141 Business Combinations 2001 Supercedes APB Opinion 16 FASB summary FASB status Eliminates use of pooling accounting Requires purchase accounting for business combinations initiated after 6.30.01 Provides guidance on identifying the acquiring entity see paragraphs 15 - 19 FASB 142 Goodwill and Other [more...]
FASB Statements FASB 139 2000 Covers Producers and Distributors of Motion Picture Films Rescinds FASB 53 Amends FASB 63 , 89 and 121 FASB summary FASB status AICPA SOP 00-2: Accounting by Producers or Distributors of Films Article : Journal of Accountancy 2000 Article : Journal of Accountancy 1998 FASB 63 1982 Financial [more...]
SEC Rules Properties S-K 102 Significant Mining Operations S-K 801(g) Securities Act - Guide 7 S-K 802(g) Exchange Act - Guide 7 SEC Telephone Manual FAQ Related Topics Accounting Issues
FASB Statements FASB 134 1998 Mortgage-Backed Securities Retained after the Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise Amends FASB 65 FASB summary FASB status FASB 65 1982 Certain Mortgage Banking Activities Amends FASB 32 FASB summary FASB status AICPA note (11/98) FASB 61 [more...]
FASB Statements FASB 136 (1999) Transfers of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others Supersedes FIN 42 FASB summary FASB status AICPA summary FASB 124 (1995) Accounting for Certain Investments Held by Not-for-Profit Organizations FASB summary FASB status FASB Staff [more...]
SEC Rules S-K 302(b) Supplementary Financial Information Oil and gas producing activities S-K 102 Description of Property S-K 801(b) Securities Act -- Guide 2 Disclosure of oil and gas operations S-K 801(d) Securities Act -- Guide 4 Prospectus for oil and gas programs See SEC FAQs below S-K 802(b) [more...]
Summary - Developments Covers accounting for pensions and other postretirement benefits FASB project to overhaul pension accounting Two-stage overhaul of rules for pension plans First phase is focused on balance sheet presentation Disclosures would be moved out of footnotes and into the balance sheet Would require an employer to [more...]
Regulation S-X 10-01 10-01(a) - Condensed statements 10-01(b) - Other instructions as to content 10-01(c) - Periods to be covered 10-01(d) - Interim review by auditor 10-01(e) - SEC waiver Auditor Review Requires that interim financials be reviewed by auditor prior to a company's filing a Form 10-Q or Form [more...]
FASB Statements FASB 152 (2004) Real Estate Time-Sharing Transactions Amends FASB 66 and 67 FASB summary FASB status FASB 98 (1988) Sale-Leaseback Transactions Involving Real Estate Amends FASB 13 , 66 , and 91 ; rescinds FASB 26 FASB summary FASB status FASB 67 (1982) Sale-Leaseback Transactions Involving Real Estate Amends [more...]
Developments Stock option timing Issues over timing of option grants have led to restatements See Stock Option Backdating SEC Staff Accounting Bulletin 108 Sept 2006 SEC press release 9.13.06 SAB 108 Interpretive guidance on how the effects of the carryover or reversal of prior year misstatements should be considered in quantifying a [more...]
FASB Statements FASB 146 2002 Costs of "Exit or disposal activities" FASB press release FASB summary FASB status Requires companies to recognize costs of exit or disposal activities when they are incurred, rather than at the date of a commitment to an exit or disposal plan FASB Staff Positions - Final: FSP FAS 146-1 9.03.03 [more...]
SEC Materials Staff Accounting Bulletin 104 2003 Updating revisions / rescissions to SAB 101 Principal revisions rescind material no longer necessary because of private sector developments in US GAAP These changes affect "Topic 13" of SAB 103 -- see below Staff Accounting Bulletin 101 1999 Guidance on [more...]
FASB Statements FASB 140 2000 Transfers and Servicing of Financial Assets and Extinguishments of Liabilities Replaced FASB 125; Superseded FASB 76, 77 and 122 FASB summary FASB status Special rule for " qualifying special purpose entities " ( QSPEs ) QSPE is unconsolidated, if strict limits on activities are met FASB [more...]
SEC Rules S-K 101(b) Incorporates GAAP standard for financial segment reporting Also see S-K 102 (re: location of properties) S-K 101(d) Disclosure requirements by geographic area FASB 131 1997 Text of FASB 131 Sets GAAP standard for segment reporting FASB summary FASB status Superseded FASB 14 1976 [more...]
Financial statements for acquired businesses Summary S-X Rule 3-05 Requires audited financial statements for a significant acquisition of a business that has closed, or as soon as the acquisition becomes probable, subject to a significance test Applies to registration statements for public offerings or US listings (but not annual reports) S-X [more...]
Guarantor Financial Statements Summary Financial reporting rules for issuers and guarantors of guaranteed securities Supercedes SAB 53 and related no-action letters SEC summary Separate financials required, unless exempt SEC Rules S-X Rule 3-10 Financial reporting rules for issuers and guarantors of guaranteed securities Supercedes SAB [more...]
Pro forma financial statements for business combinations Summary Topic covers required use of pro forma financials Required by Reg S-X to show effects of significant business combinations For new SEC rule on use of non-GAAP financial measures , also commonly called pro forma financials , see Non-GAAP financial [more...]
Developments FASB issues FASB Staff Position FSP FIN 48-1 May 2007 Amends FIN 48 Provides guidance on whether tax position is settled for purpose of recognizing previously unrecognized tax benefits FASB issues FIN 48 June 2006 FASB issued draft of Uncertain Tax Positions FASB press release Interprets FASB 109 FASB [more...]
FASB Statements FASB 86 1985 Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed Amends FASB 13, 66, and 91; rescinds FASB 26 FASB summary FASB status Software R&D costs expensed as incurred until "technological feasibility" point at which all significant risks of the development effort have been resolved Thereafter, R&D costs [more...]
Summary Refers to tax minimization strategies used by multi-divisional organizations Choice of transfer prices affects the division of profits among different parts of the company Companies can have an incentive to book profits in a jurisdiction with relatively low taxes Many international companies use transfer pricing to book revenue in select [more...]
FASB Statements FASB 101 1988 Discontinuation of Application of FASB 71 FASB summary FASB status FASB 92 1987 Regulated Enterprises - Phase-in Plans Amends FASB 71 FASB summary FASB status FASB 90 1986 Abandonments and Disallowances of Plant Costs Amends FASB 71 FASB summary FASB status FASB 71 1982 [more...]