The FASB is exploring adding specific guidance on accounting for government grants into US GAAP, leveraging IAS 20. While IAS 20 has “stood the test of time”, Mind the GAAP and Wipfli believe that there may be some unintended consequences if it were to be fully incorporated into GAAP, especially for not-for-profits and any entity that receives below-market interest rate loans from a government agency.
In this article by Thompson Reuters, Scott Ehrlich shares his perspectives on the Conceptual Framework, including differences between how the IASB and FASB utilize their respective guidelines.
The Bloomberg news organization interviewed Mind the GAAP’s Scott Ehrlich and others to learn about some of the financial reporting implications from Russia’s invasion of Ukraine.
Mind the GAAP and its long-time client Wipfli LLP issued a joint comment letter on the FASB’s agenda consultation invitation to comment. The firms believe that the financial community could use a respite from major standard setting activities. Instead, for the foreseeable future, we recommend that the FASB focus the majority of its time and resources on addressing relatively narrow accounting matters where there is diversity in practice or limited applicable GAAP.
The firms support the Board’s decision to revisit and update the definitions of certain elements of financial statements to reflect recent changes in practices and standards. However, we do not back the removal of (a) the word “control” from the definition of an asset or (b) the concept of “the entity’s ongoing major or central operations” from the definition of revenues.
Scott Ehrlich from Mind the GAAP shares his views on how the new revenue guidelines in ASC 606 can affect executive compensation programs.