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Updates from the FASB

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The Financial Accounting Standards Board (FASB) has recently published a proposed Accounting Standards Update (ASU) to improve the accounting guidance for share based consideration payable to customers in conjunction with selling goods or services. The proposed changes are expected to improve financial reporting results by requiring revenue estimates to more closely reflect an entity’s expectations. The proposal would affect the timing of revenue recognition for entities that offer to pay share-based consideration (for example, equity instruments) to a customer (or to other parties that purchase the entity’s goods or services from the customer) to incentivize the customer (or its customers) to purchase its goods and services.

The FASB is currently inviting feedback on the proposed ASU till 14 November 2024

To access the text click here

The Financial Accounting Standards Board (FASB) has recently published a proposed Accounting Standards Update (ASU) that would clarify certain aspects of the guidance on hedge accounting and address several incremental hedge accounting issues arising from the global reference rate reform initiative. During the FASB’s 2021 agenda consultation project and other outreach, stakeholders expressed concerns that, in certain circumstances, the current guidance increases the risk of not being able to apply hedge accounting for otherwise highly effective hedging relationships, which results in less decision-useful information for investors. Stakeholders also identified some areas of hedge accounting guidance requiring further updates to address the effects of reference rate reform on hedge accounting.

The amendments in the proposed ASU would enable entities to apply hedge accounting to a greater number of highly effective economic hedges, thereby improving the decision-usefulness of information provided to investors.

The FASB is currently inviting feedback on the proposed ASU till 25 November 2024

To access the text click here

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