Melissa Fowler’s Post

NFPs often have December year ends, more so than corporates. So NFPs will be embarking on this change to 'material' accounting policy information first - see Mel's message below for more information!

We have summarized the new accounting standard effective dates for public and private companies. Follow the link below to learn more and prepare for your financial reporting. #accountingstandards #publiccompany #privatecompany

As we enter into 2024, it's important to be aware of the new accounting standards and their upcoming effective dates for both public and private companies. In this article, we outline the mandatory effective dates in the first quarter of 2024 for public entities, as well as new standards that take effect in annual 2023 financial statements for nonpublic entities. 👉 https://loom.ly/fcKaEvQ #wissllp #accountingstandards #ASU #accounting

SIC-10: Government Assistance – No Specific Relation to Operating Activities SIC-10 is an interpretative standard concerning the accounting treatment of government grants and other forms of government assistance that do not have a specific relation to the operating activities of an entity. This standard was designed to clarify how entities should recognize and measure such assistance in their financial statements. - Purpose of SIC-10: The purpose of SIC-10 is to provide guidance on how to account for government assistance that is not tied directly to the operating activities of a company. This includes various forms of government grants that might be given for reasons other than to compensate the entity for expenses incurred. - Recognition Criteria: Under SIC-10, government assistance should not be recognized until there is reasonable assurance that the entity will comply with the conditions attached to it and that the assistance will be received. This principle is important to avoid prematurely recognizing benefits that may not materialize. - Accounting Treatment: When recognized, such assistance is generally treated as income and can be presented either separately or under a general heading such as “Other Income” in the financial statements. The timing of recognition might differ depending on the nature of the government grant. - Measurement of Assistance: The standard requires that the assistance be measured at the fair value of the benefits received. This could include, for example, grants related to assets, where the grant is accounted for as deferred income or deducted from the carrying amount of the asset. - Disclosure Requirements: Entities are required to disclose the nature and amounts of government assistance recognized in the financial statements, as well as the accounting policies adopted for such assistance. This ensures transparency and helps users of financial statements understand the impact of government assistance on the financial position and performance of the entity. - Supersession and Updates: Like other SIC interpretations, SIC-10 has been integrated into or superseded by later IFRS standards as part of ongoing efforts to refine and consolidate financial reporting standards. #AccountingStandards #IAS #FinancialReporting #IFRSUpdates #GlobalAccounting #CorporateFinance #AuditAndAssurance #FinancialManagement #BusinessCompliance #AccountingTrends

ICYMI: The Financial Accounting Standards Board recently issued the final chapter of its Conceptual Framework, which focuses on the measurement of items in financial statements. Read more: https://ow.ly/6xUK50SInEM. #FASB #accounting #standards #financialaccounting #financialreporting

Meet the elite minds behind FASB's EITF, shaping tomorrow's accounting standards. Join the discussion as they redefine financial reporting's future. #FASB #EITF #AccountingStandards #FinanceExperts #accounting #news #finance https://lnkd.in/e6fpkiS6

Mere moments ago, the seven members of the Governmental Accounting Standards Board (GASB) voted unanimously to approve Statement No. 103, Financial Reporting Model Improvements, which: - Revises the requirements for management's discussion and analysis to make it more readable and understandable - Combines extraordinary items and special items into a single category of "unusual or infrequent items" - Defines operating and nonoperating revenues and expenses - Adds a section for noncapital subsidies in the proprietary funds statement of revenues, expenses, and changes in fund net position, and a new subtotal, operating income (loss) and noncapital subsidies, which is more directly comparable to operating income reported by NFP and private counterparts - Requires that the statistical section of a government engaged only in business-type activities or only business-type and fiduciary activities reflect the changes to the statement of revenues, expenses, and changes in fund net position - Requires that major component units either be shown individually in the government-wide statements, as long as it does not diminish their readability, or be presented in combining financial statements following the fund financial statements; the option to disclose condensed financial statements in notes is eliminated - Requires that budgetary comparisons be presented as required supplementary information and contain columns showing variances for original-to-final budget and final budget-to-actual results; the option to present them as basic financial statements is eliminated. The effective date is fiscal years ending June 30, 2026 and later (9-30-26, 12-31-26, 3-31-27, etc.).

In November 2023, the Financial Accounting Standards Board issued a new Accounting Standards Update to improve disclosures related to reportable segments. The new guidance applies to all public entities that are following Topic 280 Segment Reporting requirements already, and these entities must apply the new requirements retrospectively to all periods presented in their financial statements.

Discover how the FASB's final conceptual framework chapter shapes future accounting standards with an innovative measurement baseline. Dive into the milestone setting the trajectory for accounting excellence. #accounting #news #finance https://lnkd.in/epBNssrS