New Effective Date Philosophy from the FASB for 2020 (Completed)
Date: Monday, January 27, 2020
Instructor: Pat Patterson
||9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
||2 hours for CPAs
The Financial Accounting Standards Board (FASB) has stated, “Quality standards need quality implementation. You can’t have one without the other.” On July 17, the FASB voted to issue proposals that would increase the amount of time that smaller public companies, private companies and not-for-profit organizations have to implement major standards. The new deadline for other than large publicly traded companies would be at least two years after large publicly traded companies adopt a major standard.
The change would stagger effective dates using two “buckets”:
• “Bucket One” would include all Securities and Exchange Commission (SEC) filers (as defined in existing GAAP) excluding smaller reporting companies (SRCs) as currently defined by the SEC.
• “Bucket Two” would consist of all other entities, including: All other Public Business Entities (PBEs), including SRCs, Private companies, all not-for-profit organizations, and all employee benefit plans.
Two Accounting Standards Updates (ASUs) that apply this effective date philosophy have been issued. One ASU has effective date changes to Hedging, Leases, and Credit Losses (CECL). The second ASU has a deferral of effective dates for the Insurance standard for long-duration contracts (life insurance) for all stakeholders. This course will explain and explore the standards that have been issued and their impact on the profession and its application of the standards in question.
Who Should Attend
Attendees should include all professionals who will be affected by the changes issued. This would be professionals in public practice, in business, in government, and in education.
- The "Two Bucket" approach
- Impact on those entities in Bucket One
- Impact on those entities in Bucket Two
- The newly issued ASUs on the areas of: Hedging, Leases, Credit Losses (CECL), Insurance for long-duration contracts (life insurance)
- Recognize and apply the newly issued standards
- Identify the impact if early application has been initiated
- Identify which standards have been delayed as to "effective dates"
NASBA Field of Study
Accounting (2 hours)
Basic understanding of GAAP and Accounting Standard Updates.