Every week, On the Horizon brings you the latest accounting developments from new guidance issued by the FASB to new rule adoptions from the SEC. For earlier issues of On the Horizon, click on the archives to the left. The May 21, 2013 edition covers:
Some leases impose requirements on a lessee to restore a facility to its original condition at the end of a lease or to uninstall and remove leasehold improvements. The accounting for those obligations varies on their exact nature. Sometimes the obligation is considered to be part of minimum lease payments and is accounted for under FASB Accounting Standards Codification (R) (ASC) 840, Leases. When the obligation is not considered part of minimum lease payments, it may be an asset retirement obligation under ASC 410-20, Asset Retirement and Environmental Obligations: Asset Retirement Obligations.
The Board is asking for comments on proposed modifications to the Master Glossary included in the FASB Accounting Standards Codification (R) (ASC). The amendments in proposed Accounting Standards Update (ASU), Technical Corrections and Improvements Related to Glossary Terms, would essentially delete outdated terms; correct existing or insert missing links; address situations where the same term is used to convey similar, but not identical, meanings by changing the term used; provide additional clarification; and correct for unintended applications. The proposed changes are not expected to impact current accounting practices.
The Board has issued a proposal to indefinitely defer the effective date for disclosing unobservable inputs in Level 3 fair value measurements of investments held by a nonpublic employee benefit plan in its private company plan sponsor.