#FASB

[springbordrealestateservices]

#quotefortheday #ThomasDrummond #CivilEngineer . . . “Property has its duties as well as its rights. – Thomas Drummond, Civil Engineer . . .

[technology098]

Exploring Current Expected Credit Loss solutions, transforming financial accounting by predicting credit losses, adhering to FASB standards

[mewhenget]

New Year's Eve? More like Balance Sheet Day! 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

[ladookhotnikov]

Tax Changes for Cryptocurrency Holders from FASB

Hi all!

Somehow, the news about the approval of new tax rules in the United States for the companies holding digital assets slipped past. Meanwhile, in my opinion, these changes catalyze the influx of investments into the crypto industry.

The point is that now companies owning cryptocurrencies evaluate them based on the value of the coin that was fixed upon purchase. And they are allowed to write off losses only if the price falls below the purchase price.

It turns out that, for example, a company bought 1000 BTC a year ago at a price of $16 thousand. And today, when its price is $26 thousand, it is still on the company’s balance sheet at a price of $16 thousand. That is, real capitalization has increased, but according to securities it has not.

Now, starting in 2025, companies in reporting periods will calculate the value of cryptocurrency based on the market value at the time of reporting. Consequently, they will be more transparent to investors.

An illustrative example is one of the largest BTC holders, MicroStrategy. As of the end of the second quarter of this year they had 152,300 BTC on their balance sheet; their reported dollar amount was $2.3 billion and the real price was almost 50% more.

The innovation will affect all companies that have crypto assets on their balance sheets. This will become mandatory from December 15 next year but if you wish you can switch to the new rules now.

At the FASB meeting, where it was decided (unanimously, by the way) to change tax rules, the issue regarding NFTs was separately considered. Everything here remains unchanged for now.

Why do I think this is good news? Well, imagine that you are an investor, you decided to invest in crypto, you come to a specialized company, they tell you: in three years we have earned millions on bitcoins. But the official reports show completely different figures - two or three years ago. Why do you need to delve into these tax jungles? You will find other investment projects in traditional markets where everything is clear. So I dare to assume that by the end of the year the number of investments in the crypto market will increase significantly. 

[bitcoinversed]

How FASB’s New Ruling Will Benefit Bitcoin and Companies Holding Bitcoin

The recent announcement by the Financial Accounting Standards Board (FASB) regarding digital asset reporting can be seen as a leap forward for both Bitcoin and businesses holding it on their balance sheets.

Historically, the lack of a standardized accounting approach for Bitcoin has been a contentious issue, creating a fog of ambiguity for companies and potential investors alike. The FASB’s move to provide clear guidelines represents a significant effort to demystify Bitcoin’s place in corporate finance and instill greater confidence in the broader financial community. Read More

[acquisory]

IMPLEMENTATION OF NEW IFRS REVENUE RECOGNITION STANDARD

India will have a new revenue recognition standard outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This supersedes most current revenue recognition standard.

In brief, the new standard seeks to streamline, and remove inconsistencies from, revenue recognition requirements; provide a more robust framework for addressing revenue issues; make revenue recognition practices more comparable; and increase the usefulness of disclosures.

Introduction

The Government has introduced two significant game-changers to financial reporting standards in 2018 to effective communication to investors by corporates.

International Financial Reporting Standards (IFRS) accounting framework replaces extant revenue and lease standards effective financial periods commencing from January 1, 2018. Both the new standards have a significant impact on financial statements for majority of sectors. Indian companies too have to brace up for the new Indian Accounting Standards (IND-AS) on revenue that would go live shortly.

The International Accounting Standards Board (IASB), as part of a joint convergence project with its United States Counterpart, the Financial Accounting Standards Board (FASB) has re-modeled the revenue recognition guidance. The new IFRS 15 — Revenue From Contracts With Customers replaces prevailing IAS’s and related interpretations, primary of them being (1) IAS 11- Construction Contracts and (2) IAS 18 — Revenue. A new principle for revenue recognition has emerged with the emphasis on the concept of transfer of control and a detailed accounting model, it has been launched as the Five Step Revenue Recognition Model and is to be followed for every revenue contract to account for the financial statement reporting consequences.

“IFRS 15 Revenue from Contracts with Customers provides a single revenue recognition model based on the transfer of control of a good or service to a customer. The new revenue standard marks a significant change from current requirements under IFRS. It provides a more structured approach to measuring and recognizing revenue, with detailed application guidance. Therefore, adoption may be a significant undertaking for many entities. Early assessment will be key to managing a successful implementation.”

Evaluation of contracts, customer agreements, pricing models, side-arrangements, revenue and delivery models, contractual clauses, underlying economics, deliverables analysis, et al, become very critical as companies’ transition to the new revenue recognition standard.

Standard operating procedures and internal controls also need to be geared up and fine-tuned to comply with this critical financial reporting standard.

The Exposure Draft on clarifications to Ind AS 115 proposes that Ind AS 115 would be applicable for accounting periods beginning on or after 1st April, 2018. The MCA is expected to notify the standard soon.

The effect on entities will vary, and some may face significant changes in revenue recognition. Entities should now be assessing how they will be affected so they can prepare an implementation plan for the new standard.

Core Principle of Revenue Recognition Changes

The global reporting standard moves from a “transfer of risks and rewards” model to a “transfer of control” model. This model determines the timing of revenue recognition. The new timing is when there is a transfer of control of promised deliverable by the seller (reporting entity).

The core principle of the new revenue standard under both IFRS and United States Generally Accepted Accounting Principles (USGAAP) is that an entity recognized revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for such promised goods and services. Henceforth, revenue needs to be recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those products or services.

Where a company enters into contracts that could include various combinations of products and services, the company needs to isolate the various revenue components, based on whether each component is generally capable of being distinct and accounted for as separate performance obligations. IFRS reporting entities need to follow a detailed 5-step model to account for revenue as follows…

Read More: https://www.acquisory.com/ArticleDetails/67/Implementation-of-new-IFRS-Revenue-Recognition-Standard

[gmanwhore]

Fusion shenanigans as incorrect quotes! (Dwarf Star is me and @breakcoreboxcat, Bee Mantis is me and @cupid-beatricereden, and Double O is me and @otherworldlyoddities

Bee Mantis: I love short people! Like come over here armrest 🩷

-

Double O: I am not tired of being nice!!! I want to experience the joy and whimsy in the world!!!

-

Dwarf Star: I'm not "playing god" this is my full time job.

-

Double O: Where is Bee Mantis?

Dwarf Star: Probably upstairs brushing her hair so she'll be the ✨prettiest girl at the party✨

Bee Mantis: I'm gonna be the prettiest girl at the party!

-

Dwarf Star: *at Bee Mantis* I see through your fasood. Fasad. Fasb. I DON'T BUY YOUR SHIT BITCH.

-

Double O: Nice ironic comment bro. Now say something true and from the heart.

-

Dwarf Star: I am going to kill the next person I see I swear to god

Double O: Hi!! I'm so happy to see you!

Dwarf Star: Oh hi!

-

Bee Mantis: Everyone says I'm such a Mary Sue and am like soooo pretentious just because I have 50 million girlfriends and they all love me. Like maybe try having 50 million girlfriends and maybe then you'll stop being such a salty bitch!

-

Double O: I am ambivalent about my computer. It contains friends. Enemies. Love. Hate. Music. Images.

Bee Mantis: It contains boobs.

Double O: That too.

-

Dwarf Star: Yeah maybe you just have a chattering lack of bitches

[praesaepe]

back on my bs (peter p*rker field trip fics) and its so funny how they try to make SI groundbreaking in every single department, even like, legal and accounting. this fic is like "the Accounting department had contributed to some improvements in the whole financial system" babygirl FASB is like its entire own thing <3 r u saying stark industries has a say in GAAP standards or like, works with the DOR?? that feels like it would be a huge conflict of interest

the Accounting department doesnt need to be groundbreaking i prommy

[future-of-educationandlearning]

If a child gravitates towards not-hard sciences such as engineering/medicine, equally interesting bridge between hard and soft= economics or if not economics, next would be accounting.

Beauty of accounting = rules

rules= governing bodies= FASB, GAAP, GASB, AICPA

Beauty of accounting = rules = main goal= save taxes. 

Main concern of HNWI = normally individuals over 35, mostly individuals over 45= mitigate taxes = for wealth suggestion folks= may not be high pressure like work at investment banks, but work such as "Estate Executor= Estate Planning" also, when to exercise stock options and advisory on such time-related decisions.

In no way, the implication is intended that hard sciences such as engineering/medicine are superior than semi-hard such as economics.

[springbordrealestateservices]

#fridayquotes #quotefortheday #AdamContos . . . “If you’re committed to it, you’ll find a way. If not, you’ll find an excuse.” – Adam Contos . . .

[cpapartners]

FASB proposes changes in scope of derivatives and shared-based payment rules

By Michael Cohn

The Financial Accounting Standards Board issued a proposed accounting standards update to request public comments on possible changes to two of its standards.

[technology098]

Exploring Current Expected Credit Loss Solutions & Their Impact on Standards

The development of Current Expected Credit Loss (CECL) solutions is underway to address the requirements of a new accounting standard set forth by the Financial Accounting Standards Board (FASB). This standard aims to facilitate the rapid calculation of estimated future credit losses throughout the lifespan of various financial instruments such as loans, debt securities, trade receivables, and purchased credit deteriorated (PCD) assets.

Previously, financial institutions (FIs) relied on traditional methods that primarily focused on incurred losses, marking loans as impaired only when they were deemed unrecoverable. These losses were then accounted for as expenses within the allowance for loan and lease losses (ALLL). Additionally, the determination of bad debts by FIs was often based on previous year's losses, with the same amount earmarked for potential credit impairment in the subsequent year.

However, the updated guidance from FASB mandates a shift towards incorporating predictive information into the calculation of bad debt. This necessitates the implementation of the CECL model, which enables companies to anticipate and account for potential credit losses more effectively. By doing so, FIs can address the inherent delay in recognizing credit losses across all financial assets.

The CECL model fundamentally requires organizations to take a proactive approach in assessing their exposure to credit losses. Rather than relying solely on historical data, companies must now factor in forward-looking information to better anticipate potential losses and subsequently adjust their financial records accordingly. This entails recording impairment, thereby deducting from revenues to reflect the impact of these anticipated losses.

By embracing the CECL model, FIs can enhance their risk management practices by gaining deeper insights into the potential credit risks associated with their portfolios. This proactive approach enables institutions to allocate appropriate reserves for expected credit losses, thereby strengthening their financial position and resilience against economic downturns or unforeseen events.

Furthermore, the Current Expected Credit Loss model encourages greater transparency and accountability in financial reporting. By requiring companies to incorporate forward-looking information into their calculations, stakeholders are provided with a more comprehensive understanding of the potential risks and uncertainties inherent within the institution's financial statements.

Implementing CECL solutions involves leveraging advanced analytical tools and methodologies to effectively model and predict future credit losses. This may include the utilization of statistical techniques, machine learning algorithms, and scenario analysis to assess various factors that could impact creditworthiness and repayment abilities.

Moreover, the adoption of CECL solutions necessitates a collaborative effort across different functional areas within an organization, including finance, risk management, and IT. By fostering cross-functional collaboration, companies can ensure the successful integration of CECL methodologies into their existing processes and systems.

Despite the benefits offered by CECL solutions, their implementation may pose certain challenges for FIs. These challenges may include data availability and quality issues, complexity in modeling forward-looking information, and the need for ongoing monitoring and validation of CECL models to ensure their accuracy and effectiveness.

In conclusion, the development and adoption of Current Expected Credit Loss solutions represent a significant evolution in credit risk management practices within the financial industry. By incorporating forward-looking information into the calculation of expected credit losses, FIs can better anticipate and prepare for potential risks, thereby enhancing their resilience and ability to navigate uncertain economic environments.

[tumnikkeimatome]

SFAS160とは？連結会計における非支配持分の新たな扱い、グローバル企業の財務戦略に不可欠な知識

SFAS160の概要と目的 SFAS160（財務会計基準書第160号）は、米国財務会計基準審議会（FASB）が2007年12月に公表した会計基準です。 この基準は、企業の連結会計における非支配持分（従来の「少数株主持分」）の取り扱いを定めています。 SFAS160の主な目的は、連結財務諸表における非支配持分の表示と会計処理を改善し、財務報告の透明性を高めることです。 非支配持分の新たな位置づけ SFAS160の導入により、非支配持分の位置づけが大きく変わりました。 従来、非支配持分は負債と資本の中間項目として扱われていましたが、SFAS160では資本の一部として認識されるようになりました。 この変更により、企業グループ全体の資本構成がより明確になり、財務諸表の比較可能性が向上しました。 資本取引としての処理 SFAS160では、親会社が子会社を支配している間の子会社非支配株主との取引を、…

[accountingrelatedblogs]

The Importance of Nonprofit Bookkeeping: Roles and Responsibilities

Introduction:

Nonprofit organizations rely on accurate financial management to achieve their mission and maintain donor trust. Nonprofit bookkeeping is crucial for tracking financial transactions, ensuring compliance, and making informed decisions. A nonprofit accountant plays a vital role in maintaining the financial health of the organization.

Nonprofit Bookkeeping:

Nonprofit bookkeeping involves recording, classifying, and reporting financial transactions. This includes:

Financial statement preparation (balance sheet, income statement, cash flow statement)

Accounts payable and receivable management

Payroll processing

Grant management

Compliance with financial regulations (GAAP, FASB)

Role of a Nonprofit Accountant:

A nonprofit accountant is responsible for:

Financial statement preparation and analysis

Budgeting and forecasting

Audit preparation

Compliance with financial regulations

Financial reporting to stakeholders (board, donors, government agencies)

Internal control development and implementation

Financial planning and strategy

Benefits of Hiring a Nonprofit Accountant:

Improved financial accuracy and transparency

Enhanced compliance with regulations

Increased donor trust and confidence

Better financial decision-making

Reduced risk of financial mismanagement

Qualifications of a Nonprofit Accountant:

Certified Public Accountant (CPA) certification

Experience in nonprofit accounting

Knowledge of GAAP and FASB regulations

Strong analytical and communication skills

Best Practices for Nonprofit Bookkeeping:

Maintain accurate and timely financial records

Implement internal controls

Conduct regular audits

Provide transparent financial reporting

Stay up-to-date with regulatory changes

Conclusion:

Nonprofit bookkeeping is critical for maintaining the financial health and integrity of nonprofit organizations. A nonprofit accountant plays a vital role in ensuring accurate financial management, compliance, and transparency. By hiring a qualified non profit accountant and implementing best practices, nonprofits can ensure their financial resources are used efficiently and effectively to achieve their mission.

[cpeinc]

Accounting Refresher Courses: GAAP Topics for CPAs

The accounting profession is constantly evolving, and CPAs must stay on top of the latest Generally Accepted Accounting Principles (GAAP) updates.

Whether you are a seasoned CPA or relatively new to the profession, ensuring your skills are current is essential. Complex topics such as accounting for leases, impairments, goodwill impairment, and materiality require a thorough understanding and precise application. These areas are covered in-depth through the Accounting Refresher courses offered by CPE Inc., ensuring CPAs have the knowledge and tools they need to remain proficient and compliant in their practice.

Let’s take a quick look at some of these topics and why CPE Inc. is your go-to for staying up to date and in compliance as a CPA:

Accounting for Leases

In recent years, the Financial Accounting Standards Board (FASB) updated its guidance on lease accounting through ASC 842, fundamentally changing how organizations recognize leases on their financial statements. This update was introduced to enhance transparency and comparability by requiring companies to recognize almost all leases on their balance sheets as right-of-use assets with corresponding lease liabilities.

CPE Inc.’s Accounting Refresher Courses thoroughly cover the new lease accounting standards under ASC 842, helping CPAs understand how to properly classify leases, determine lease terms, and calculate right-of-use assets and liabilities. The course also offers guidance on the significant disclosure requirements and strategies for maintaining compliance in this area.

Impairments and Discontinued Operations

Impairments of long-lived assets and discontinued operations are crucial topics in GAAP that can have significant financial implications for a company. These impairments must be carefully evaluated and properly reflected in the financial statements.

Impairments:

Long-Lived Assets: Under ASC 360, companies must assess whether there are indicators of impairment for long-lived assets such as property, plant, and equipment (PP&E), and intangible assets subject to amortization. If impairment is indicated, an entity must measure and recognize the impairment loss by comparing the asset’s carrying amount with its fair value.

Triggering Events: Common triggering events include a significant decrease in market value, adverse changes in the business climate, or an expectation that the asset will be disposed of before the end of its previously estimated useful life.

Goodwill Impairment

Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Over time, however, goodwill may become impaired, and companies are required to assess this under ASC 350.

The goodwill impairment topic is critical for companies involved in mergers and acquisitions, and an inaccurate assessment can lead to material misstatements. CPE Inc.’s courses are designed to help CPAs gain a deep understanding of goodwill impairment, including how to apply both qualitative and quantitative tests, calculate impairment losses, and report them in the financial statements.

Why Accounting Refresher Courses Are Essential

CPE Inc. provides robust accounting refresher courses designed to help CPAs navigate complex GAAP topics like accounting for leases, impairments, goodwill impairment, and materiality. These courses offer:

Up-to-Date Knowledge: Stay current on the latest updates to GAAP and FASB standards.

Real-World Applications: Case studies and examples allow CPAs to see how the principles are applied in real business situations.

Expert-Led Instruction: Courses are led by industry experts who offer practical insights and tips.

Compliance and Best Practices: Learn how to maintain compliance with evolving standards while implementing best practices in your accounting work.

CPAs who wish to stay at the forefront of their profession must continuously refresh their knowledge and skills, especially in areas like lease accounting, impairments, goodwill impairment, and materiality.

With CPE Inc.’s comprehensive accounting refresher courses, CPAs can ensure that they are equipped to meet the challenges of an evolving financial landscape while maintaining the highest standards of accuracy and compliance in their work.

For more in formation about Continuing Professional Education Cpa and CPE Course please visit:- CPE Inc.