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FASB Issues Proposed Accounting Standards Update on Fair Value Measurement

On June 29, 2010, the Financial Accounting Standards Board (FASB), in conjunction with the International Accounting Standards Board, issued an Exposure Draft of a proposed Accounting Standards Update (Update) intended to develop common requirements for measuring fair value and for disclosing information about fair value measurements in U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs).

The proposed Update sets forth amendments that the Boards believe would improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. This proposed Update is the result of the Boards’ joint efforts to ensure that fair value will have the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements will be the same (except for minor differences in wording and style). The amendments in this proposed Update would apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an instrument classified in shareholders’ equity in the financial statements.

The Exposure Draft is available at www.fasb.org. Individuals and organizations are invited to send written comments on all matters in this Exposure Draft. Instructions for submitting comments are in the introduction to the document. To be considered, comments must be received by FASB on or before September 7, 2010.

FASB Releases Staff Draft of an Exposure Draft on Financial Statement Presentation

On July 1, 2010, the Financial Accounting Standards Board (FASB) released a staff draft of an Exposure Draft on standard financial statement presentation. The draft reflects the cumulative, tentative decisions made by FASB and the International Accounting Standards Board at their joint meeting in April 2010. However, work on the project is continuing, and the proposals are subject to change before the Boards decide to publish an Exposure Draft for public comment.

The Boards decided to engage in additional outreach activities before finalizing and publishing an Exposure Draft. Those activities will focus primarily on two areas: (1) the perceived benefits and costs of the proposals and (2) the implications of the proposals for financial reporting by financial services entities. After completing those outreach activities, the Boards will consider whether to change any of their tentative decisions in response to the input received.

The Boards are not formally inviting comments on this staff draft; however, they welcome input from interested parties. The Boards expect to publish an Exposure Draft for public comment in early 2011. More information about the project and contact information is available on the FASB website www.fasb.org.

If you haven’t had a chance to register for the upcoming annual conference in August, you can do so here.  Although Early Bird registration has come and gone, we welcome any and all registrations from now until the conference.  Please pass this information on to anyone in your cooperative.  We would love to have them join us for two and a half days of education and networking.

We have added to the line-up on Sunday evening, the Chapter Officers Workshop from 5:00p.m. – 6:00p.m. We invite all the new chapter officers,you to attend this function.  An invitation will be sent out to all 2010-2011 chapter officers or you can contact the National office, to RSVP or register for this event. Kent Erhardt, Chair of the Chapter Development Committee, is looking forward to seeing you there.  The room location will be posted on-site.

For the Monday evening President’s Reception, we have secured the Caliente band who will be bringing us a Latin flavor for the evening.  This band has opened for singer Gloria Estefan in the past and is well known in Florida.  Besides the band and casino, several other treats during the reception include a strolling magician and caricature artist.  Monday evening promises to be a fun and entertaining night. 

Also, due to the enormous amount of registrations that have come in these past few days, we are trying to get everyone’s credit card charged.  We appreciate your patience in this matter.  Please feel free to contact us at the National office if you have any questions.

FASB and IASB Propose New Joint Standard for Revenue Recognition

On June 24th, the US Financial Accounting Standards Board and the International Accounting Standards Board published for public comment a draft standard on reporting of revenue from contracts with customers and related costs.  FASB reports that the core principle of the draft standard is that an entity should recognize revenue from contracts with customers when it transfers goods or services to the customer in the amount of consideration the entity receives, or expects to receive, from the customer.

The exposure draft Revenue from Contracts with Customers is open for comment until October 22, 2010.  A live webcast introducing the proposals is planned for early July.  The text of the exposure draft is available at www.fasb.org under the "Exposure Documents" link in the "Projects" menu.

IRS Requests Comments on Form 1120-C

The Internal Revenue Service published a Notice in the Federal Register inviting comments on IRS Form 1120-C, the tax return form used by most Subchapter T cooperatives.  This is a routine request required by the Paperwork Reduction Act of 1995.  Any NSAC member who has an idea on how to improve Form 1120-C may want to take advantage of this opportunity.

Instructions for filing comments are included in the Notice, published in the Federal Register of June 25, 2010, at pp. 36478-79.  To be assured of consideration, comments must be received by IRS on or before August 24, 2010.