• Fine-tuning of liability definition continues

    The FASB’s latest effort to update its Conceptual Framework is focusing on the so-called “building blocks” of financial statements — the definitions of assets and liabilities. These questions have confounded the FASB for years, and the board still needs more work to decide how to improve the framework’s definition of a liability.
  • Final version of amended debt classification guidance is approved

    The FASB agreed to publish a final version of its amended guidance for classifying debt as long-term or short-term. Before it issues the final update, the accounting board still wants to solicit feedback about its decision that a long-term financing arrangement would be ignored in determining how other debt should be classified.
  • Update to accounting for long-term insurance to bring major changes

    The FASB published a long-awaited update to U.S. GAAP’s guidance for long-term insurance policies. The changes require insurers to regularly assess their need to update the assumptions they use for estimating their liabilities to policyholders. The amended accounting marks a sea change from current reporting practices, which often leave insurers with forecasts about policyholders and future cash flows that are based on assumptions that may be years, if not decades, out of date.