- 16 Democrats in the House of Representatives called on the FASB to write standards to require U.S. multinationals to disclose more information about their offshore earnings and taxes. The lawmakers’ request comes as reform and civic groups have urged Congress and regulators to crack down on tactics companies use to hide profits in offshore tax havens.
- The IASB decided to scrap guidelines about assessing covenant breaches from its forthcoming guidance to help businesses and other organizations determine the information that is important enough to include in their financial statements. The board wants its Practice Statement, to be published by the end of the year, to help businesses use judgment when drawing up financial statements.
- Businesses have two major accounting changes on the horizon in the next two years — the revenue recognition standard that goes into effect for public companies in less than six months and the lease accounting overhaul that must be followed in 2019. The lease standard is less complicated than the revenue guidance, but lease amendments still require major work to implement, and companies have been slow in making the necessary changes to their financial reporting systems and the processes to support the change.
- The FASB published an update to U.S. GAAP to simplify the accounting for a class of financial instruments with embedded options that early-stage companies often issue to investors to protect them from a decline in the value of their investment. The amendment allows a financial instrument with a down-round feature to no longer automatically be classified as a liability solely based on the existence of the down-round provision.
- The AICPA said the Audit and Accounting Guide (AAG) AAG: Reporting on an Entity’s Cybersecurity Risk Management Program and Controls (aag-cyb) provides a framework for managing cybersecurity risks. The guide explains how to implement the framework and report on an organization’s program for managing technology risks on a company-wide basis.