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The FASB, the nation’s developer of U.S. GAAP, closed out 2022 having issued six slender accounting requirements, a drop from the final 5 years a lot to the glee of the accounting occupation.
In 2021, the board issued 10 new accounting normal updates (ASUs); in 2020, 11 had been issued; in 2019, 12; and in 2018, 20, in line with the board’s web site. The FASB’s file breaking yr for the previous 20 years happened in 2010 with 29 new requirements issued.
This yr’s falloff comes throughout a pivotal yr for the board, which over the previous yr had been doing outreach broadly through an agenda session course of to set its five-year agenda for 2022 to 2026. As a part of that effort, the board streamlined its technical agenda, dropped some initiatives and revised others.
“In June 2022, the Board accomplished its 2021 agenda session course of to make sure its agenda displays the priorities of traders and different stakeholder teams,” a FASB spokesperson stated on Dec. 29. “With that agenda in place, the Board has already made vital progress on precedence initiatives and can proceed to take action in 2023.”
Accountants have for years complained that too many accounting requirements had been being issued by the FASB, some suggesting it push pause for some time to allow the system to correctly digest them. This yr’s accounting requirements are slender, largely amendments to broader requirements that had been beforehand issued.
Particularly, they’re:
- ASU No. 2022-01, Derivatives and Hedging (Matter 815): Truthful Worth Hedging—Portfolio Layer Technique;
- ASU No. 2022-02, Monetary Devices—Credit score Losses (Matter 326): Troubled Debt Restructurings and Classic Disclosures;
- ASU No. 2022-03, Truthful Worth Measurement (Matter 820): Truthful Worth Measurement of Fairness Securities Topic to Contractual Sale Restrictions;
- ASU No. 2022-04, Liabilities—Provider Finance Applications (Subtopic 405-50): Disclosure of Provider Finance Program Obligations;
- ASU No. 2022-05, Monetary Providers—Insurance coverage (Matter 944): Transition for Offered Contracts;
- ASU No. 2022-06, Reference Charge Reform (Matter 848): Deferral of the Sundown Date of Matter 848.
The FASB additionally issued 9 proposals to solicit public remark, together with two associated charge reform and insurance coverage contracts which are among the many six ASUs.
Presently, the board has 19 initiatives on its predominant technical agenda, together with three conceptual framework matters, section expense disclosures, revenue taxes paid, cryptocurrencies and accounting for software program prices, in line with the most recent replace as of Dec. 21.
Moreover, its analysis agenda has eight initiatives, together with on authorities grants, monetary devices with environmental, social and governance (ESG)-linked options, and monetary key efficiency indicators for enterprise entities.
Furthermore, three broad requirements — Topic 326, Credit score Losses, Topic 606, Income from Contracts with Prospects, and Topic 842, Leases — are underneath post-implementation-review (PIR), its course of to determines whether or not a typical labored as supposed.
This text initially appeared within the December 30, 2022 version of Accounting & Compliance Alert, out there on Checkpoint.
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