Comment letter on FASB’s Invitation to Comment, Agenda Consultation

Sep 27, 2021
Audit Financial reporting

In our response to the Financial Accounting Standards Board’s (FASB) Invitation to Comment (ITC), Agenda Consultation, we commend the FASB’s efforts to solicit feedback from its stakeholders about its future standard-setting agenda and recommend that they treat projects on the following topics as high priorities:

  • Eliminating unnecessary complexity and emphasis of form over substance as it relates to the guidance on distinguishing liabilities from equity
  • Providing guidance on the accounting for digital assets
  • Rethinking the approach to the borrower’s accounting for debt modifications
  • Undertaking a holistic review of consolidation accounting
  • Eliminating certain differences between the accounting for asset acquisitions and the accounting for business combinations
  • Completing amendments to Topics 326, Financial Instruments—Credit Losses, and 842, Leases, of the FASB’s Accounting Standards Codification prior to their impending effective dates for certain types of entities

We believe completing these projects would most benefit the financial reporting process and the FASB’s various stakeholders. Our more specific thoughts on these projects, as well as our responses to each of the questions posed in the ITC, can be found in our comment letter.