Current Post-Implementation Review Projects
Standards Currently Under ReviewBelow are FASB and GASB standards currently under review by the FAF’s Post-Implementation Review team:
GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries
Statement 42 establishes measurement guidance for capital asset impairments and requires governments to report the effects of those impairments when they occur, rather than as a part of the ongoing depreciation expense for the capital asset or upon disposal of the capital asset. It also provides uniform reporting guidance for insurance recoveries of state and local governments.
- FAF to Conduct Post-Implementation Review of GASB Standard on Impairment of Capital Assets—News Release (July 2013)
Update and Next steps: The FAF PIR team reviewed their draft findings with the GASB chair in April and provided a high-level summary to the FAF Trustee’s Standard-Setting Process Oversight Committee in May. The PIR team expects to review their Findings and draft PIR Report with the GASB and the FAF Trustee’s Standard-Setting Process Oversight Committee in June and July 2014. The PIR team expects to discuss their PIR Report with the Trustees in August 2014.
Statement 123R focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. It establishes standards for the accounting for transactions in which an organization exchanges its equity instruments for goods or services. It also addresses transactions in which an organization incurs liabilities in exchange for goods or services that are based on the fair value of the organization’s equity instruments or that may be settled by the issuance of those equity instruments.
Update and Next steps: The FAF PIR team completed their research in April 2014 and is drafting their findings for review with the FASB and the FAF Trustee’s Standard-Setting Process Oversight Committee in June and July 2014. The PIR team expects to discuss their PIR Report with the Trustees in August 2014.
FASB Statement 160, Noncontrolling Interests in Consolidated Financial Statements
Statement 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements.
Update and Next steps: The FAF PIR team put their initial research on hold to consider ways to make the PIR process more efficient and effective (at the request of the Standard-setting Process Oversight Committee). The PIR team will continue their initial research sometime this summer, including talking with a variety of stakeholders (resource group members). The PIR team will consider whether additional procedures are needed after completing that outreach.
STANDARDS TO BE REVIEWEDAs announced in November 2013, the PIR team plans to review the following standard after completing their review of GASB Statement 42:
- GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, and related GASB Statement No. 36, Recipient Reporting for Certain Shared Nonexchange Revenues.