FASB OFFERS UPDATE TO REPORTING ON OBSOLETE OPS

The Financial Accounting Standards Board is proposing improvements to financial reporting about discontinued operations of major business lines or major geographic areas of operations.

Proposed Accounting Standards Update: Presentation of Financial Statements (Topic 205) - Reporting Discontinued Operations would redefine "discontinued operation" and would require organizations to provide additional disclosures about discontinued operations such as operating, investing and financing cash flows.

"Investors have raised concerns that for certain industries, too many disposals of assets qualify for discontinued operations presentation under current standards, resulting in financial statements that are less relevant and more costly to prepare," FASB Chairman Leslie Seidman said in statement. "The board is seeking stakeholder input on changes intended to capture only those disposals that represent major strategic shifts as discontinued operations and to provide enhanced disclosures about the financial effects of discontinued operations and other disposals of significant components of an organization."

The amendments in the proposed ASU would also require additional disclosures about discontinued operations and other disposals of individually material components of an organization that do not qualify for discontinued operations presentation in the financial statements.

The proposed amendments also would expand the disclosures about an organization's continuing involvement with a discontinued operation. Those disclosures would be required until the results of operations of the discontinued operation are no longer separately presented in the statement where net income is reported.

Finally, the proposed guidance would achieve greater convergence with the requirements for reporting discontinued operations with International Financial Reporting Standard 5, Non-current Assets Held for Sale and Discontinued Operations.

 

PCAOB AIMS FOR SINGLE SYSTEM AUDITING STANDARDS

Washington, D.C. -- The Public Company Accounting Oversight Board is seeking comments on a proposal to re-organize its auditing standards into a single system. The proposed re-organization would provide a potential framework for the existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system, presenting them "in a logical order that generally follows the flows of the audit process," according to a board statement.

"This proposed re-organization is intended to help users navigate the standards more easily," said PCAOB Chairman James Doty. "It is just the first step. The PCAOB also intends to explore additional steps and undertake additional projects to enhance the organizational structure of PCAOB standards."

As part of the proposed changes, all board auditing standards would be grouped into the following categories:

  • General auditing standards;
  • Audit procedures;
  • Auditor reporting;
  • Matters relating to filings under federal securities laws; and,
  • Other matters associated with audits.

"The proposed framework will benefit users of PCAOB standards by creating a logical and easy-to-understand structure and numbering system," said chief auditor and director of professional standards Martin Baumann. "Also, no substantive changes will be made or new audit requirements added to PCAOB standards by the implementing amendments."
 

EDGAR RELEASE WON'T SUPPORT OLDER GAAP TAXONOMY

Washington, D.C. -- The Securities and Exchange Commission reminded corporate filers in early April that the forthcoming release of its Edgar financial statement database will support the 2013 U.S. GAAP Taxonomy, but not the older 2011 taxonomy.

If approved by the commission, the latest release of Edgar, 13.1, is scheduled to take effect on April 29.

The SEC said that remaining filers who have not yet transitioned from the 2011 U.S. GAAP Taxonomy must transition to a supported version with their next submission on or after this date.The U.S. GAAP taxonomy uses interactive data based on Extensible Business Reporting Language.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access