On-demand

Quarterly accounting webcast - 2024 series

Watch our webcasts for critical insights and strategies

Jul 11, 2024
Event details
Date and time

Thu, Jul 11, 2024

Recorded, watch anytime

Intended audience

Chief financial officers, controllers, directors and other professionals involved in the financial reporting process

Duration

60 minutes

Fee

Complimentary

Event overview

Each quarter, RSM informs middle market businesses about accounting guidance and its impact on companies like yours.


Missed one or more sessions? Get the highlights of each webcast and watch the on-demand here!

Key takeaways

The FASB has been active in their meetings making tentative decisions on the following:

1. ASC 815: Derivative Scope Refinements

  • The project originated from the FASB’s 2021 Invitation to Comment
  • Its goal is to provide clarity concerning the applicability of the scope exceptions to the derivative accounting guidance in ASC 815-10
  • Project will provide guidance on applying the scope exceptions to when a derivative has more than one underlying

2. Hedge accounting improvements. The update will improve hedge accounting in the following areas:

  • Cash flow hedges – applying the similar risk assessment
  • Cash flow hedges – Narrowing the application of “You Pick’em” Debt
  • Cash flow hedges – changed guidance related to hedged risk components in a hedge of a forecasted non-monetary transaction
  • Updated guidance on net written options and dual F/X options

3. Accounting for and disclosure of software costs

  • Retaining the current 2 model approach, with targeted improvements
  • Capitalization will begin under ASC 350-40 (Software for internal use) when it is probable that the project will be completed and that the software will perform the function intended
  • The stages approach currently used in ASC 350-40 will be eliminated
  • Further guidance will be provided on evaluating software with development uncertainties or unresolved high-risk development issues
  • Cash outflows for software development will require disclosure

4. Accounting for government grants

  • The FASB will retain the basics of the IAS 20 model
  • Grants related to income will be recognized when the entity incurs the grant-related cost
  • Grants related to capital items will be recognized on a cost-incurred basis, as part of the asset cost
  • Monetary and tangible nonmonetary assets
  • Exchanges and transactions
  • Entities will follow the current disclosure requirements in ASC 832, Government Assistance

Exposure drafts on these four projects are expected in Q3, 2024.

Accounting considerations related to weakness in the commercial real estate sector:

1. Real estate companies

  • Impairment of real estate assets
    • Held and used - ASC 360-10-35-21
    • Assets held for sale
  • Accounting for leas modifications from the lessor’s perspective
  • Amendments to debt agreements, from the borrower’s perspective
    • Criteria and accounting for troubled debt restructurings
    • Accounting for loan extinguishments
    • Accounting for loan modifications
  • Debt covenants and related accounting and disclosure issues

2. Lenders

  • Development of reasonable and supportable forecasts by creditors when developing their CECL loss reserves
  • Accounting for loan amendments
    • Accounting for loan extinguishments
    • Accounting for loan modifications

3. Lessees

  • ROU asset impairment
  • Lease modifications
  • Lease reassessments
Event details
Date and time

Thu, Jul 11, 2024

Recorded, watch anytime

Intended audience

Chief financial officers, controllers, directors and other professionals involved in the financial reporting process

Duration

60 minutes

Fee

Complimentary

Related resources