Posts Tagged ‘FASB’

Reval Recommends: Top 10 Treasury Articles in August/September 2016

It’s hard for treasurers to keep up with regulatory change. The proposed regulation 385 is challenging treasuries in multi-national corporations, as the new rules could have negative effects on intercompany loan management. At the moment, most treasuries are still trying to understand what the impact on their treasury operations would be. Good reads to better…

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IFRS 9 Hedge Accounting Jeopardizes Convergence Dream

In September this year, the International Accounting Standards Board (IASB) finally issued the Review Draft for Hedge Accounting, phase three of the replacement project for IAS 39 (under the banner of IFRS 9). Although this is not the final draft of the standard, the IASB do not expect any changes between now and the final…

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Conflicting Messages: Death of Short Cut vs Death of Quantitative Assessment

While many will commend the FASB for mandating measurement in all circumstances, it seems odd to go the other direction by eliminating the highly effective criteria under the current quantitative assessment requirement. The FASB states that “eliminating the shortcut method and the critical terms match method would result in a more consistent model for assessing hedge effectiveness.”

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Importers Beware – IFRS 9 Could Result in Lost Margin

One of the proposed changes from IAS 39 in the new standard IFRS 9 is the removal of the ability to make ‘basis adjustments’ to non-financial hedged items. This could be a major issue for many importers who hedge their currency risk. The whole process of capturing gross margin in the ERP/Stock Management system may need to change or importers may risk losing margin on sales.

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When Opposites Distract – FASB and IASB

When the FASB and the IASB started talking about the convergence of accounting standards back in 2006, the road map was pretty optimistic. Now the path to convergence is clearly widened further. No doubt its exposure draft issuance will coincide with the holiday period with comments due by September, so don’t forgot your laptop when your pack your suitcase.

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Much Ado About Nothing: The FASB Amends Topic 820 (FAS 157)

Nothing is ever as easy as it seems. When the FASB issued FAS 157 (now Topic 820) in September 2006, their goal seemed pretty straightforward. Several iterations and years later, the FASB continues to tinker with the standard. On January 21, 2010 the FASB issued ASU 2010-06-1 which amended Topic 820.

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