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On the Horizon -- Grant Thornton responds to FASB’s goodwill impairment proposal

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Contents
FASB to present webcast on credit losses standard
SEC Inline XBRL viewer demonstration now available
AICPA
     Exposure draft on going concern issued
     Exposure draft amending SSARS 21 released for comment
     FinREC issues additional revenue recognition implementation working drafts
Comment letters issued



FASB to present webcast on credit losses standard

The FASB will present a one-hour webcast on July 21 at 1 p.m. EDT that will provide an overview of ASU 2016-13, Measurement of Credit Losses on Financial Instruments.

Participants can register for the webcast and find additional information on the FASB website.



SEC Inline XBRL viewer demonstration now available

On July 8, the SEC’s Office of Structured Disclosure released a mock filing on the Commission’s website to allow the public to explore the functionality of the Inline XBRL viewer that is now in use on EDGAR.

The SEC’s previously issued order to permit registrants to voluntarily file structured financial information required in periodic and current reports using Inline XBRL is now operational. Inline XBRL allows registrants to embed the XBRL tag data within the HTML document. Prior to the SEC’s order, operating companies were required to provide their XBRL data as a separate exhibit to their periodic and current reports. Companies may elect to use Inline XBRL for reports due before March 30, 2020.  

The SEC believes the use of Inline XBRL could reduce filing preparation costs, as well as improve the quality and increase the use of structured data. Further, feedback from the voluntary use of Inline XBRL may help inform any future Commission rulemaking in this area.



AICPA

Exposure draft on going concern issued

The AICPA’s Auditing Standards Board (ASB) issued an exposure draft, Proposed Statement on Auditing Standards (SAS). The proposed SAS addresses changes necessitated by the FASB’s adoption of ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The proposed SAS also includes guidance to address applicability to audits of financial statements prepared under different accounting frameworks.

If adopted, the proposed SAS would supersede SAS 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted), and would also amend various sections of SAS 122, Clarification and Recodification. The proposed SAS would be effective for audits of financial statements for periods ending on or after December 15, 2017 and for interim periods beginning thereafter.

Comments are due by September 5.

Exposure draft amending SSARS 21 released for comment

The AICPA’s Accounting and Review Services Committee (ARSC) issued an exposure draft, Proposed Statement on Standards for Accounting and Review Services (SSARS). The proposed revisions constitute a technical correction of AR-C Section 90 to correct the requirements and guidance related to reporting on supplementary information by (a) clarifying the definition of supplementary information, and (b) revising the accountant’s reporting responsibility when supplementary information accompanies reviewed financial statements and the accountant’s report.

The ARSC expects that the proposed SSARS will be effective upon issuance.

Comments are due by September 2.

FinREC issues additional revenue recognition implementation working drafts

The AICPA Financial Reporting Executive Committee (FinREC) issued its second set of working drafts of revenue recognition implementation issues for informal comment. This latest set of working drafts discusses considerations and provides illustrative examples of industry-specific transactions for entities implementing the new revenue standard in the following industries:

  • Aerospace and defense
  • Airlines
  • Asset management
  • Broker-dealers
  • Construction contractors
  • Gaming
  • Healthcare
  • Not-for-profit
  • Software

The AICPA is developing a Revenue Recognition Guide that will include the final versions of all implementation issues identified.

The comment period ends September 1.



Comment letters issued

On July 11, the firm issued a letter in response to the FASB’s proposed ASU, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.

In addition, on July 5, the firm issued a letter in response to the PCAOB’s request for comment on Post-Implementation Review of Auditing Standard No. 7.




© 2016 Grant Thornton LLP, U.S. member firm of Grant Thornton International Ltd. All rights reserved. This Grant Thornton LLP On the Horizon provides information and comments on current accounting and SEC reporting issues and developments. It is not a comprehensive analysis of the subject matter covered and is not intended to provide accounting or other advice or guidance with respect to the matters addressed in this publication. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this publication. For additional information on topics covered in this publication, contact a Grant Thornton client-service partner.