- The FASB issued an update to U.S. GAAP that aims to simplify hedge accounting, one of the most complicated areas of accounting. The update allows hedge accounting to be used for a broader range of risk management strategies.
- The FASB’s sweeping new revenue recognition rules go into effect in 2018 and will require a major change in the way companies calculate the top line in their income statements. The actual impact to the revenue figure reported, however, will vary from company to company, and most experts believe the software industry will see a significant impact.
- The International Auditing and Assurance Standards Board (IAASB), the International Ethics Standards Board for Accountants (IESBA), and the International Accounting Education Standards Board (IAESB) published a joint report that outlines potential ways to promote professional skepticism in auditing. The three international standard-setters said increasing complexity of business and financial reporting underscores the importance of professional skepticism.
- The FASB plans to hold a webcast to explain an August proposal to help not-for-profit groups and some business enterprises determine how to record grants and other funds from foundations and government bodies. The proposal clarifies the difference between restrictions and donor-imposed conditions on a gift or grant and attempts to explain which arrangements qualify as exchanges.
- 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.