News & Insights
Mind the GAAP and Wipfli Suggest FASB Areas of Focus
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.
Companies to Disclose Limited Details on Government Assistance
In 2022, companies – for the first time – will be required to disclose how much money they get in breaks, grants, and government incentives. But there “might be very little that ends up getting disclosed by the time this gets published,” said Scott Ehrlich, president of Mind the GAAP LLC. Find out why in this article from Bloomberg Tax.
Private Companies, Nonprofits Get New Accounting Rules to Ease Goodwill Triggering Event Assessment
On March 30, 2021, the FASB issued a narrow accounting alternative that enables private companies and not-for-profit organizations to potentially simplify the way in which they test goodwill for impairment. In this article, Thompson Reuters speaks with Scott Ehrlich, President of Mind the GAAP, to get his perspective on these new rules.
Mind the GAAP and Wipfli Issue Comment Letter on IFRS Discussion Paper on Goodwill Amortization
Mind the GAAP once again partnered with Wipfli LLP to issue a joint comment letter on the IFRS Discussion Paper, Business Combinations – Disclosures, Goodwill, and Impairment. The firms support many of the IASB’s specific proposals, but would recommend that IFRS (and U.S. GAAP) include a “hybrid model” that requires goodwill amortization commencing no later than five years from the date of acquisition, and ceasing no more than ten years thereafter.
Mind the GAAP Provides FASB with Thoughts on Warrant Modifications
Mind the GAAP provided feedback to the FASB on its proposal to introduce a principles-based framework in accounting for modifications of equity-classified warrants. Mind the GAAP supports the FASB proposals, but has asked the Board to strongly consider limiting the scope of any new standard and to make a few additional suggested improvements to the overall framework.
Mind the GAAP Issues Joint Comment Letter on the FASB’s Proposed Practical Expedient for Nonpublic Franchisors
Mind the GAAP and Wipfli have responded to the FASB’s proposal to introduce a revenue recognition practical expedient for nonpublic franchisors. While we generally favor efforts to simplify existing accounting guidelines, we do not support moving forward with this specific project.
Mind the GAAP and Wipfli Comment on Proposed Changes to the Definitions of Assets and Revenue
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.
FASB Proposes to Revise Lease Accounting Rules in Three Areas
Thompson Reuters included thoughts from Scott Ehrlich, President of Mind the GAAP, in an article regarding a FASB proposal to amend ASC 842 (Leases) in three areas. Subsequently, the FASB has decided to issue a formal Accounting Standards Update on only one of the three proposals.
FASB Considers Simplifying the Accounting for Partial Lease Terminations
Thompson Reuters and Checkpoint recently published an article on the current accounting requirements for partial lease terminations. Scott Ehrlich, President of Mind the GAAP, was interviewed for the article.
FASB Mum on Rulemaking about CARES Act Deferral for Credit Loss Accounting Rules
In a recent article by the Thompson Reuters news agency, Scott Ehrlich, President of Mind the GAAP, shared his thoughts on whether the relief provided to depository institutions in the CARES Act may be extended to other organizations.
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