On The Horizon: FASB proposes taxonomy improvements

On the Horizon newsletterContents FASB

Taxonomy improvements proposed
Webcast for private companies and NFPs scheduled


FinREC releases early working draft of inventory valuation guidance    
Updated audit and accounting guide issued
New competencies explored in CPA licensing model

GASB proposes updated implementation guidance

Taxonomy improvements proposed The FASB staff issued proposed taxonomy improvements related to the proposed ASU, Codification Improvements – Financial Instruments. The proposed taxonomy improvements can be found on the FASB’s website.

Comments on these proposed taxonomy improvements are due Dec. 26.

See the Nov. 29 On the Horizon for a summary of the proposed ASU.

Webcast for private companies and NFPs scheduled On Dec. 14, the FASB will host a webcast titled “IN FOCUS: FASB Update for Private Companies and Not-for-Profit Organizations,” updating the Board’s activities for private companies and not-for-profit entities.

Registration is required.

AICPA FinREC releases early working draft of inventory valuation guidance The AICPA’s Financial Reporting Executive Committee (FinREC) released an early working draft of “Inventory Valuation Guidance,” which is intended to be part of a broader forthcoming release of the AICPA’s Accounting and Valuation Guide, Business Combinations.

The purpose of this guidance is to outline matters that preparers of financial statements, auditors, and valuation specialists might consider when estimating the fair value of inventory acquired in a business combination. The inventory guidance consists of a section providing general principles for valuing inventory, and two examples illustrating how to value finished goods and work-in-process inventory. It also includes questions and answers explaining some of these inventory valuation considerations.

The comment period for this working draft ends Feb. 1, 2019.

Updated audit and accounting guide issued The AICPA issued a new version of the Property and Liability Insurance Entities Audit and Accounting Guide, updated as of Sept. 1.

New competencies explored in CPA licensing model The AICPA and the National Association of State Boards of Accountancy (NASBA) announced that they are working with the regulatory community and certain stakeholder groups to consider potential changes to the CPA licensure model, particularly to reflect expanded technology and data analysis skillsets.

A joint press release was issued on this matter.

GASB proposes updated implementation guidance The Governmental Accounting Standards Board (GASB) issued a proposed Implementation Guide, Implementation Guidance Update – 2019, which contains new questions and answers, along with amendments to previously issued questions and answers, that are designed to clarify, explain, or elaborate on existing guidance.

The requirements of the final guide would be effective for reporting periods beginning after June 15, 2019. Earlier application is encouraged if the guidance addressed by the question and answer has already been applied.

State and local governments would apply the provisions of the final guide retroactively by restating financial statements for all prior periods. If retroactive restatement is not practicable, these provisions would be applied as a restatement of beginning net position (or fund balance or fund net position, as applicable) for the earliest period restated, and certain disclosures would be required.

Comments on the proposal are due by Jan. 31, 2019.

© 2018 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.