Third quarter accounting and financial reporting developments

During the third quarter of 2020, the Financial Accounting Standards Board issued new standards related to accounting for convertible instruments and contracts in an entity’s own equity and related to presentation and disclosure of contributed nonfinancial assets for not-for-profit entities. It also issued proposals addressing franchisor revenue recognition, stock compensation, elements of financial statements, and deferral of the effective date for insurance guidance. Also during the quarter, the Securities and Exchange Commission held a roundtable on COVID-19 disclosure considerations, the Public Company Accounting Oversight Board published its annual broker-dealer inspection report, the American Institute of Certified Public Accountants released technical questions and answers for healthcare entities and frequently asked questions on COVID-19 and related issues for the healthcare industry, and the Center for Audit Quality updated its information on COVID-19. In addition to these highlights from the quarter, this article covers updates from the Governmental Accounting Standards Board and more.