Quarterly accounting webcast − Fall 2024

Watch now for a special webcast hosted by RSM US LLP, in which we will explore the latest updates on ongoing FASB projects and accounting considerations related to current economic conditions, including the nuances of accounting for and disclosure of software costs. Don't miss this opportunity to enhance your understanding of these critical FASB projects and gain valuable insights into updates that may affect your organization's grant accounting practices. Register now to watch this comprehensive session.

Key updates and takeaways on where the FASB and other standard setters and regulators stand on their ongoing projects:

• The FASB issued three new proposed Accounting Standards Updates (ASUs) in the 3^rd quarter.
• The proposed ASUs related to Hedge Accounting Improvements and Derivative Scope Refinements generally reflected what was discussed in last quarter’s update related to those projects.
• The FASB also issued a proposed ASU which clarifies the accounting for  Share-Based Consideration Payable to a Customer. The main provisions of the proposed ASU include:
  • Modifying the definition of a performance condition to include vesting conditions which are based on the volume, amount or timing of customer purchases from a grantor
  • For remaining customer awards that would continue to have service conditions, the entity-wide election to account for forfeitures as they occur would be eliminated, requiring grantors to estimate forfeitures expected to occur for such awards  
  • Requiring a grantor to apply ASC 718 to evaluate award vesting conditions and award fair value, not the variable consideration guidance of ASC 606.
  • Transition would be on a modified retrospective basis, with early adoption permitted
• There are new updates for selected projects on the FASB’s technical agenda:
  • Accounting for Environmental Credit Programs
    • The proposed guidance will clarify the accounting for both assets and liabilities related to environmental programs, as no current accounting guidance exists
  • Induced Conversions of Convertible Debt
    • The proposed guidance will assist entities in determining how to account for a settlement of convertible debt at terms other than the original conversion terms
  • Interim Reporting—Narrow-Scope Improvements
    • The proposed guidance will provide clarity about how to apply the various interim disclosure requirements within GAAP
• There are various other projects on the FASB’s technical agenda for which the FASB expects to issue proposed or final ASUs in Q4 2024, including:
  • Proposed ASUs
    • Accounting for and Disclosure of Software Costs
    • Accounting for Environmental Credit Programs
    • Accounting for Government Grants
    • Codification Improvements
    • Determine the Acquirer in the Acquisition of a VIE
    • Interim reporting – Narrow Scope Improvements
  • Final ASUs
    • Induced Conversions of Convertible Debt Instruments
    • Disaggregation – Income Statement Expenses

The FASB is continuing deliberations on the following projects:

• Financial instruments – Credit Losses – Purchased Financial Assets
• Statement of Cash Flows Targeted Improvements