- The FASB plans to publish by this summer an update to U.S. GAAP that will make businesses more clearly distinguish between debts that are due right away versus those on which they have time to make payments. The board expected to publish the update earlier this year, but it had to delay finalizing the amended guidance while it prioritized work related to the Tax Cuts and Jobs Act (TCJA).
- The International Ethics Standards Board for Accountants (IESBA) updated the International Code of Ethics for Professional Accountants to make it easier to use and help accountants address issues of ethics and independence. The revisions do not change the code’s fundamental principles, but they do alter the code’s framework for addressing ethical issues.
- The FASB agreed to drop a proposal that would have erased some guidance for deferred tax credits and liabilities on reserves for bad debt. Large banks no longer use the guidance, but it still applies to small banks and thrifts, a CPA told the board.
- Instead of making a single, sweeping update to the U.S. GAAP financial reporting taxonomy, the FASB this year is rolling out proposed and final changes individually. The board is aligning changes to the interactive data taxonomy with the standard-setting process.
- Organizations should carefully consider nonmonetary asset conversion and related insurance accounting as they account for the impact of a natural disaster on their properties.