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Accounting & Audit Alert January 2017


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


FASB Issues Accounting Standards Update on Classification and Presentation Changes in Restricted Cash on the Statement of Cash Flows

The FASB has issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash to eliminate diversity in practice in the classification and presentation of changes in restricted cash on the statement of cash flows.


GASB Issues Guidance for Asset Retirement Obligations

The GASB has issued Statement No. 83 that addresses asset retirement obligations. An asset retirement obligation is a legally enforceable liability associated with the retirement of a tangible capital asset. Under this statement, a government should recognize a liability and a corresponding deferred outflow of resources when the liability is legally incurred and reasonably estimable.


GASB Proposes Additional Implementation Guidance

The GASB has issued an Exposure Draft entitled GASB Implementation Guide No. 201X-Y, Implementation Guidance Update – 201X. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions. The implementation guidance takes the form of questions and answers on a variety of governmental accounting topics.


FASB Issues Exposure Draft to Address Issues for Certain Financial Instruments with Characteristics of Liabilities and Equity

The FASB has issued an Exposure Draft titled, Distinguishing Liabilities from Equity (Topic 480): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.


FASB Proposes To Simplify Stock Compensation Accounting

The FASB has issued an Exposure Draft, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting to provide clarity and reduce diversity in practice, as well as to reduce cost and complexity, when applying the guidance in Topic 718, Compensation—Stock Compensation, about a change to the terms or conditions of a share-based payment award.


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