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Accounting & Audit Alert June 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 Guidance For Not-For-Profit Entities Regarding Services Received From Personnel Of An Affiliate


The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2013-06, Not-for-Profit Entities: (Topic 958): Services Received from Personnel of an Affiliate.

The ASU clarifies the guidance that not-for-profit entities apply for recognizing and measuring services received from personnel of an affiliate.

FASB Issues Guidance On Liquidation Accounting


The FASB has issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.

Currently, there is minimal guidance in U.S. generally accepted accounting principles (GAAP) that addresses when it is appropriate, or how to apply, the liquidation basis of accounting.

The amendments in this ASU clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting.

FASB Proposes Changes To Accounting Guidance For Low Income Housing Tax Credit Investments


The FASB has released an Exposure Draft of proposed amendments that would modify the conditions that public and private companies are required to meet to elect the use of the effective yield method of accounting for qualified low income housing tax credit (LIHTC) investments.

The proposed ASU is titled, Investments – Equity Method and Joint Ventures (Topic 323) – Accounting for Investments in Qualified Affordable Housing Projects.

FASB Proposes Deferring Certain Disclosures For Nonpublic Employee Benefit Plans


The FASB has issued a proposed ASU which would defer indefinitely the effective date of certain required disclosures in ASU 2011-04 (Topic 820) of quantitative information about the significant unobservable inputs used in Level 3 fair value measurements for investments held by a nonpublic employee benefit plan in its plan sponsor’s own nonpublic entity equity securities.

FASB Issues Revised Exposure Draft On Lease Accounting


The FASB has issued its second Exposure Draft as part of its project to change the manner in which entities account for lease transactions.

The first Exposure Draft was issued in August 2010 and generated over 800 comment letters. The FASB conducted extensive redeliberations on this topic prior to releasing the second Exposure Draft.

The International Accounting Standards Board (IASB) issued its proposal simultaneously with the FASB’s action. The revised Exposure Drafts for both organizations are nearly identical.

GASB Issues Statement No. 70, Accounting And Financial Reporting For Nonexchange Financial Guarantees


The Governmental Accounting Standards Board has issued Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees.

This statement is intended to improve the recognition, measurement and disclosure guidance for governments that have extended or received financial guarantees that are nonexchange transactions.

 

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