ASU redefines ‘collections’
The FASB issued
ASU 2019-03, Not-for-Profit Entities (Topic 958): Updating the Definition of
Collections, which modifies the definition of “collections” and requires an entity holding collections to disclose its policy for using proceeds from transactions resulting in the removal of an item from a collection.
Revised income taxes disclosure proposal issued
The Board issued
a proposed ASU (Revised), Income Taxes (Topic 740): Disclosure Framework – Changes to the Disclosure Requirements for Income Taxes
, which would add new disclosure requirements, as well as modify, clarify, and remove certain existing disclosure requirements, related to income taxes. The proposed amendments in the revised proposal resulted from the Board’s redeliberations of the original proposal, which was issued in 2016.
Board addresses the balance-sheet classification of debt
On March 20, the FASB met to redeliberate the proposed ASU, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent)
. The Board’s tentative decisions and other actions can be found on the FASB’s website
Final Rule adopted to simplify and modernize certain Regulation S-K disclosure requirements
The SEC adopted the Final Rule
, Fast Act Modernization and Simplification of Regulation S-K
, which, among other things, provides additional flexibility regarding the reporting periods discussed in Regulation S-K, Item 303, Management’s Discussion and Analysis
; permits registrants to omit or redact certain confidential information from exhibits without applying for confidential treatment; and requires registrants to tag all data points on the cover page of certain periodic and current reports using Inline XBRL.
The amendments related to the redaction of confidential information are effective when the Final Rule is published in the Federal Register
. The requirement to tag data on the cover page of certain filings is subject to a three-year phase-in. All other amendments are effective 30 days after the Final Rule is published in the Federal Register
Reforms proposed for BDCs and registered closed-end funds
The SEC also issued a Proposed Rule
, Securities Offering Reform for Closed-End Investment Companies
, to allow business development companies (BDCs) and registered closed-end funds to use certain registration, communication, and offering processes available to operating companies. The comment period ends 60 days after the Proposed Rule is published in the Federal Register
Staff provides guidance on CAMs
The PCAOB staff issued three documents to provide guidance on critical audit matter (CAM) requirements:
The guidance is most useful for auditors, but “The Basics” may also provide insight to other stakeholders, such as preparers, audit committees, and investors. The PCAOB has also created
an auditor’s report implementation page on its website.
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