Here is a round-up of my top 3 financial reporting news bits which I have found interesting and informative. I hope you do to.
FRS 105: MICRO ENTITIES AND TAX
On 21 July 2017, HMRC issued ‘FRS 105 overview paper – tax implications’ which provides guidance to micro-entities that are thinking of applying, or have chosen to apply, FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. The overview paper itself is split into two sections: READ MORE
Lease accounting implementation issues How to think about some frequently asked questions in the new leases standard
The FASB’s new standard, Leases (ASC 842), represents the first comprehensive overhaul of lease accounting since FAS 13 was issued in 1976. There are elements of the new standard that could impact almost all entities to some extent, although lessees will likely see the most significant changes. ASC 842 requires all lessees to reflect a lease liability and a right-of-use asset on their balance sheet for all leases with a term of more than one year. A lessee’s income statement recognition of lease-related expense will depend on the classification of the lease as either an operating or finance lease. Although the pattern of expense recognition may be similar to today’s accounting, the amount of lease expense recorded could differ due to changes in how certain elements of rent payments are treated and the impairment of the right-of-use asset. The accounting model for lessors is READ MORE
IFRS AND THE USA
Many of the world’s capital markets now require IFRS, or some form thereof, for financial statements of public-interest entities. The remaining major capital markets without an IFRS mandate are (i) the US, with no current plans to change; (ii) Japan, where voluntary adoption is permitted but not required; and (iii) China, which intends to fully converge at some undefined future date.
Even though a mandatory change to IFRS for US public companies is not expected for the foreseeable future, the discussion about the use of IFRS in the US continues. READ MORE