Reminders for certain new guidance effective January 1, 2019, for public calendar year-end companies and effective January 1, 2020 or later, for private calendar year-end companies.
In August 2017, the financial Accounting Standards Board (FASB) issued new guidance that changes the recognition and the presentation requirements of hedge accounting including eliminating the requirement to separately measure and report hedge ineffectiveness and adding a requirement to present all the income statement effects of hedge accounting in the same caption as the hedged item.
The guidance also provides new alternatives for applying hedge accounting to additional hedging strategies, measuring the hedged item in fair value hedges of interest rate risk, reducing the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method, and reducing the risk of material error corrections if an entity applies the shortcut method inappropriately.
In June 2018, the FASB issued guidance eliminating the separate accounting model for nonemployee share-based payment awards and generally requiring companies to account for share-based payment transactions with nonemployees in the same way as share-based payment transactions with employees.
The accounting remains…
ASC 842, Leases, became effective for public companies and certain not-for-profit entities and employee benefit plans for annual and interim periods in fiscal years beginning after December 2018. In October 2019, the FASB voted unanimously to delay the effective dates for private companies and all other entities by one year, with the standard effective for annual reporting periods in fiscal years beginning after December 15, 2020.
In August 2019, KMPG published…
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