Business Frame Weekly – Some of the world's largest central banks came together on Sunday to stop a banking crisis from spreading / The Financial Accounting Standards Board (FASB) today published a proposed Accounting Standards Update (ASU)

Some of the world's largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG on Sunday to buy rival Credit Suisse Group AG in a historic deal.

The Financial Accounting Standards Board (FASB) today published a proposed Accounting Standards Update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital (collectively, “investors”) that use the financial statements to make capital allocation decisions.

The 1099-K Fairness Coalition wants Congress to ensure that casual online sellers aren’t burdened with the 1099-K form.

In this newsletter:

• Central banks try to calm markets after UBS deal to buy Credit Suisse
• FASB Seeks Public Comment On Proposed Enhancements To Income Tax Disclosures
• FASAB issues bulletin on reimbursable work agreements
• $3.5B accounting error gets SC comptroller in hot water
• PayPal, eBay Seek IRS 1099-K Relief for Online Sellers
• Federal Reserve and Global Central Banks Act to Shore Up Dollar Access

March 21, 2023

Central banks try to calm markets after UBS deal to buy Credit Suisse

Some of the world's largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG on Sunday to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Soon after the announcement late on Sunday, the U.S. Federal Reserve, European Central Bank, and other major central banks came out with statements to reassure markets that have been walloped by a banking crisis that started with the collapse of two regional U.S. banks earlier this month.

FASB Seeks Public Comment On Proposed Enhancements To Income Tax Disclosures

The Financial Accounting Standards Board (FASB) today published a proposed Accounting Standards Update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital (collectively, “investors”) that use the financial statements to make capital allocation decisions. Stakeholders are encouraged to review and provide comment on the proposed ASU by May 30, 2023. “The FASB’s proposed enhancements to income tax disclosures, primarily related to the rate reconciliation and income taxes paid information, are intended to help investors better assess how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows,” stated FASB Chair Richard R. Jones.

FASAB issues bulletin on reimbursable work agreements

The Federal Accounting Standards Advisory Board (FASAB) on Friday issued Technical Bulletin 2023-1, Intragovernmental Leasehold Reimbursable Work Agreements, which is intended to further explain, and address accounting issues not directly covered under Statement of Federal Financial Accounting Standards 54, Leases, and other relevant statements. "This technical bulletin addresses a complex accounting topic in a manner that is harmonious with numerous board statements and conceptual framework considerations," FASAB Executive Director Monica Valentine said in a news release.

$3.5B accounting error gets SC comptroller in hot water

A $3.5 billion accounting error has South Carolina lawmakers initiating the process to oust the comptroller general responsible, CPA Richard Eckstrom. Eckstrom told senators last month he had unintentionally exaggerated the state's cash position by $3.5 billion by overstating the amount the state had sent to colleges and universities for a decade, according to the Associated Press.

PayPal, eBay Seek IRS 1099-K Relief for Online Sellers

The 1099-K Fairness Coalition wants Congress to ensure that casual online sellers aren’t burdened with the 1099-K form. Online shopping sites like Etsy, and eBay, and payment network PayPal, among other companies, want Congress to change the new $600 reporting threshold for IRS Form 1099-K. The rule which currently applies for 2023, affects millions of people who sell on sites like Airbnb, and Poshmark, and get paid through third-party networks like PayPal, Square and CashApp. Previously to receive a 1099-K, you had to have at least 200 third-party payment network transactions totalling more than $20,000 in gross payments. Now, in 2023, a single transaction on a payment network of just $600 can trigger a 1099-K.

Federal Reserve and Global Central Banks Act to Shore Up Dollar Access

The Federal Reserve and other major global central banks on Sunday announced that they would work to make sure dollars remain readily available across the global financial system as bank blowups in America and banking issues in Europe create a strain. The Fed, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank announced that they would more frequently offer so-called swap operations — which help foreign banks to get weeklong access to U.S. dollar financing — through April. Instead of being weekly, the offerings will for now be daily.

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