August 18: Airline balance sheets won't look the same next year—especially liabilities—after carriers apply new revenue recognition accounting rules. Some carriers will have to book millions more in liabilities associated with frequent flyer points. Click here to see the full story (Subscription required).


August 21: Companies such as Intel Corp., Kemet Corp., and Texas Instruments Inc. remain among a very small group that can say minerals in their supply chains don't fund conflict in Africa, a study of regulatory filings found. The vast majority of corporate reporting on conflict minerals still can’t make a determination. Click here to see the full story (Subscription required).


August 21: Banks and other companies eager to apply more business-friendly accounting rules on derivatives and hedging may soon have that opportunity. The Financial Accounting Standards Board's (FASB) new standard intends to simplify complex hedge accounting rules and make them more attractive to investors. Click here to see the full story (Subscription required).


August 21: Oil companies and other petroleum sector players want a two-year delay of the effective date of the new lease accounting standard. The balance sheets of retailers, airlines, shipping and rail companies, many banks, hotel and restaurant chains, and others, will likely swell under ASC 842, Leases. The oil companies requested the delay in a letter to the FASB and the chief accountant of the Securities and Exchange Commission (SEC). Click here to see the full story (Subscription required).


August 22: Pharmaceutical companies receive revenue guidance from the SEC on government sales. Manufacturers that adopt new revenue recognition rules must account for sales to the federal government of vaccines and bioterror countermeasures, once they are placed into the government's stockpile programs, the SEC said. Therefore the criteria to recognize revenue in a bill-and-hold arrangement will have been met. Click here to see the full story (Subscription required).


August 23: The overseer of the U.S. governmental accounting standard setter will press the Senate to restore guaranteed funding for the Government Accounting Standards Board (GASB) that a House committee voted to eliminate. “Right now we're expecting the Senate to take this up either later this year or early next year,” Terri Polley, president and CEO of the GASB's parent organization, the Financial Accounting Foundation, said. “We are continuing to actively engage with key members of the Senate and their staffs.” Click here to see the full story (Subscription required).


August 23: Banks will have flexibility in how they calculate loan and other credit losses under new accounting rules on credit losses, Harold Schroeder, a member of the FASB, told Bloomberg BNA. “It really leaves open what banks can do.” Watch Schroeder's interview with Bloomberg BNA here:  Click here to see the full story (Subscription required).  


August 24: A number of pension plans in the manufacturing and transportation industries are on a list they would prefer to avoid—plans heading toward insolvency. Nearly 1.3 million participants in about 114 multiemployer plans are in funds heading toward insolvency, according to a report issued by actuarial consultant Cheiron Inc. More than a third of the participants in at-risk multiemployer plans are in the manufacturing industry, and more than 40 percent are in the transportation industry. Click here to see the full story (Subscription required).  


August 24: There is no debate that the first half of 2017 saw a significant fall-off in SEC enforcement activity. There have been no mega-cases and broken window policing seems to be on the decline. A temporary lull would not be surprising given the SEC's leadership transitions and the record enforcement results posted in the prior year. However, there are other indications that the shift may be policy-driven and thus likely to continue for the foreseeable future.  Click here to see the full story (Subscription required).  


August 25: The Internal Revenue Service (IRS) and the Treasury Department should consider modifying general rules for how a taxpayer can obtain consent from the IRS commissioner to change a method of accounting, the American Institute of CPAs said. Certain changes would “better achieve their goal of encouraging voluntary compliance with proper tax accounting methods, while minimizing the administrative burdens of compliance.” Click here to see the full story (Subscription required).



August 21: Audits of broker-dealers continue to fall short of U.S. regulatory standards, according to a report by the Public Company Accounting Oversight Board (PCAOB). “PCAOB inspectors continued to find high levels of deficiencies in the work of auditors of broker-dealers,” said Helen Munter, PCAOB Director of Registration and Inspections. Click here to see the full story (Subscription required).

Composed and Compiled by Gery Brownholtz, Accounting Editor, Bloomberg BNA

Rely on expert practitioners for practical guidance and real-world approaches to complex accounting issues with Bloomberg BNA’s Financial Accounting Resource CenterTake a free trial today.