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Accounting & Audit Alert August 2013


 

RubinBrown's Accounting & Auditing Alert is published monthly to inform our clients and contacts about relevant technical accounting and audit-related information.


FASB Issues Exposure Draft On Disclosure Of Going Concern Uncertainties


The FASB recently issued a proposed Accounting Standards Update (ASU), Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption.

This proposed ASU is intended to improve GAAP guidance on management’s responsibilities for evaluating and disclosing going concern uncertainties and reduce inconsistencies among footnote disclosures by improving the timing, nature and extent of going concern footnote disclosures.

FASB Proposes Improvements To Accounting For Insurance Contracts


The FASB has issued for public comment a proposal to improve financial reporting of insurance contracts, including measurement of insurance liabilities and the related effect on the statement of comprehensive income.

Proposed ASU, Insurance Contracts (Topic 834), would apply to all contracts that meet the definition of an insurance contract, not just those written by insurance companies.

FASB Deferring Certain Nonpublic Benefit Plan Disclosures


Stakeholders have raised concerns that certain disclosure requirements in paragraph 820-10-50-2 of the Accounting Standards Codification, which were effective for nonpublic entities for annual periods beginning after December 15, 2011, would potentially provide proprietary information about nonpublic entities through the dissemination of their employee benefit plans’ financial statements on the regulator’s website. The FASB has issued ASU 2013-09 to address these concerns.

GASB Issues Exposure Draft Related To Application Of Statement No. 68


The Governmental Accounting Standards Board (GASB) has issued an Exposure Draft that addresses an issue in applying the provisions of Statement No. 68.

That issue relates to contributions made subsequent to the measurement date of the beginning net pension liability.

GASB Issues Proposals On Concepts For Measurement


The GASB has issued two proposals for public comment that address how governments measure assets and liabilities within their financial statements.

The first is an Exposure Draft titled Measurement of Elements of Financial Statements, and proposes concepts that will guide the GASB’s decisions when establishing future standards for how state and local governments would determine the dollar amount at which to report assets and liabilities.

The second is a Preliminary Views titled Fair Value Measurement and Application, and describes how fair value should be defined and measured, which assets and liabilities should be measured at fair value, and what information about fair value should be disclosed in the notes to the financial statements.

U.S. House Passes Bill Prohibiting Mandatory Audit Firm Rotation


The House of Representatives has passed a bipartisan bill that would prohibit the Public Company Accounting Oversight Board (PCAOB) from requiring public entities to rotate audit firms on a regular basis.

08/01/2013

FASB Issues Exposure Drafts Related To Three Private Company Council Proposals


The Financial Accounting Standards Board (FASB) has issued for public comment three Exposure Drafts that address private company stakeholder concerns raised about the relevance and complexity of certain aspects of U.S. generally accepted accounting principles (GAAP).

As reported in the July 2013 Accounting & Auditing Alert, these Private Company Council (PCC) proposals had been previously endorsed by the FASB.

 

Readers should not act upon information presented without individual professional consultation.