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    Business combinations

    25 May 2016

    Financial Reporting Developments - Intangibles - Goodwill and other
    We have updated our Financial reporting developments publication on goodwill and intangible assets to further clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.

    12 May 2016

    To the Point - Simplifying the accounting for goodwill impairment
    The FASB today proposed guidance that would eliminate the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, entities would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on today’s Step 1). Comments are due by 11 July 2016.

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    Compensation matters

    11 May 2016

    Technical Line - A closer look at the new guidance on accounting for share-based payments to employees
    Our publication takes a closer look at how entities will be affected by ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. Entities will have to recognize the income tax effects of awards in the income statement when the awards vest or are settled (i.e., the recordkeeping of APIC pools will no longer be necessary). The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing, and two practical expedients for nonpublic entities have been added.

    28 April 2016

    To the Point - FASB makes targeted amendments to the accounting for employee share-based payments
    The FASB issued final guidance that will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled (i.e., APIC pools will be eliminated). The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing, and two practical expedients for nonpublic entities have been added. We have updated our publication to reflect the FASB staff’s recent response to a technical inquiry about one aspect of the new guidance. The staff said a change in the net-share settlement terms of a share-based payment plan or outstanding award to allow the withholding of shares up to the maximum statutory tax rate would not be accounted for as a modification.

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    Consolidation

    12 April 2016

    Technical Line - The effects of the new consolidation guidance on real estate entities
    Our publication takes a closer look at how real estate entities are affected by ASU 2015-02, Amendments to the Consolidation Analysis, which changed both the variable interest model and the voting model. These changes mean that all real estate entities have to re-evaluate entities for consolidation and revise their documentation. Consolidation conclusions may change in some cases, while in other instances, additional disclosures must be provided about entities that are considered variable interest entities under the new guidance.

    11 February 2016

    Financial Reporting Developments - Consolidation and the Variable Interest Model: Determination of a controlling financial interest (following the adoption of ASU 2015-02, Amendments to the Consolidation Analysis)
    We have updated our Financial reporting developments publication, Consolidation and the Variable Interest Model, to reflect the comments of the SEC staff at the 2015 AICPA National Conference on Current SEC and PCAOB Developments in Washington, DC. Refer to Appendix J of the publication for a detailed list of updates.

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    Fair value measurements

    29 February 2016

    Comment letter - FASB proposal on fair value measurement disclosures
    In our comment letter, we support both the FASB’s objective to improve the effectiveness of disclosures and the proposed elimination of certain fair value disclosure requirements, including the relief that would be provided to private companies. However, we highlight the cost of implementing some of the additional requirements the FASB proposed, including the disclosures of the amount of changes in unrealized gains and losses for recurring Level 1 and Level 2 measurements disaggregated by class.

    8 December 2015

    To the Point - FASB proposes changes to fair value measurement disclosures
    The FASB proposed eliminating, modifying and adding certain fair value measurement disclosure requirements as part of its disclosure framework project. Comments are due by 29 February 2016.

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    Financial instruments

    16 June 2016

    To the Point - FASB issues sweeping changes to credit loss guidance
    The FASB issued a new credit loss standard today that changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Virtually all entities will be affected.

    28 April 2016

    To the Point - FASB delays effective dates of its upcoming credit impairment standard
    The FASB decided to delay the effective dates of the new credit impairment standard by one year in response to feedback it received from constituents. The first revised effective date would be the first quarter of 2020 for calendar-year public business entities that are SEC filers. Early adoption in the first quarter of 2019 would be permitted for all calendar-year entities. After discussing the costs and benefits of the new standard, the FASB also voted to issue the final guidance. The FASB expects to issue the new standard by the end of the second quarter of 2016.

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    Income taxes

    31 March 2016

    To the Point - FASB moves closer to issuing a proposal on income tax disclosures
    The FASB revisited the tentative decisions it reached at meetings last year on income tax disclosures related to foreign earnings and indefinite reinvestment assertions, unrecognized tax benefits and other income tax topics. Based on outreach the Board and its staff performed, the FASB tentatively decided to add certain disclosure requirements and reverse several of its earlier decisions. The FASB plans to issue a proposal seeking public comment on changes to the income tax disclosure guidance after its staff completes some additional outreach.

    31 March 2016

    To the Point - Japan tax reform law has income tax accounting implications
    Japan enacted a tax reform law on 29 March 2016 that will reduce Japan’s national corporate income tax and local enterprise tax rates and make other changes to the tax law. Entities that are subject to these taxes and report under US GAAP will need to recognize the effects of income tax rate changes on deferred tax balances in the period in which the legislation was enacted.

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    IFRS matters

    22 December 2015

    US GAAP versus IFRS: The basics
    We have updated our US GAAP versus IFRS – The basics publication, which provides an overview of common differences between US GAAP and IFRS. This release generally reflects guidance effective in 2015 and guidance finalized by the FASB and the IASB as of 31 May 2015. It also discusses current standard-setting activities at the FASB and the IASB.

    22 December 2015

    US GAAP/IFRS accounting differences identifier tool
    We have updated our US GAAP/IFRS accounting differences identifier tool, which was developed to help entities that are converting from US GAAP to IFRS or that are evaluating the effects of IFRS adoption. This release generally reflects guidance effective in 2015 and guidance finalized by the FASB and the IASB as of 31 May 2015. It also discusses current standard-setting activities at the FASB and the IASB.

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    Industry issues

    9 June 2016

    Technical Line - Accounting for cloud computing arrangements as software licenses or service contracts
    New US GAAP guidance on how customers in cloud computing arrangements determine whether the arrangement includes a software license went into effect for all calendar-year entities at the beginning of this year. Our publication discusses the new guidance, along with whether customers in cloud computing arrangements that do not include software licenses should capitalize or expense implementation and other up-front costs that relate to such arrangements.

    19 May 2016

    Technical Line - How the FASB’s new leases standard will affect oil and gas entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for oil and gas entities.

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    Leases

    19 May 2016

    Technical Line - How the FASB’s new leases standard will affect oil and gas entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for oil and gas entities.

    19 May 2016

    Technical Line - How the FASB’s new leases standard will affect power and utilities entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for power and utilities entities.

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    Private companies

    10 March 2016

    To the Point - Final guidance eliminates effective dates in PCC alternatives
    The FASB issued final guidance that eliminates the effective dates in the four private company alternatives developed by the Private Company Council (PCC) and allows private companies to forgo a preferability assessment the first time they elect each of these alternatives. It also extends the transition provisions in the alternatives indefinitely.

    16 November 2015

    Comment Letter - FASB proposal on effective date and transition guidance for existing PCC alternatives
    In our comment letter, we said we continue to support providing relief to private companies under US GAAP and believe the proposal would meet that objective by allowing private companies to forgo a preferability assessment the first time they adopt an existing Private Company Council (PCC) alternative. However, we do not believe it is necessary to add a provision indicating that private companies can forgo a preferability assessment the first time they elect to apply the simplified hedge accounting approach. We also support extending the transition guidance in the PCC alternatives indefinitely.

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    Revenue recognition

    9 June 2016

    Technical Line - Accounting for cloud computing arrangements as software licenses or service contracts
    New US GAAP guidance on how customers in cloud computing arrangements determine whether the arrangement includes a software license went into effect for all calendar-year entities at the beginning of this year. Our publication discusses the new guidance, along with whether customers in cloud computing arrangements that do not include software licenses should capitalize or expense implementation and other up-front costs that relate to such arrangements.

    9 June 2016

    To the Point - Clarifying the accounting for the derecognition of nonfinancial assets and in substance nonfinancial assets
    The FASB proposed clarifying the guidance on how to account for the derecognition of nonfinancial assets and in substance nonfinancial assets once an entity adopts the new revenue recognition guidance. The proposal also would define what constitutes an in substance nonfinancial asset. Comments are due by 5 August 2016.

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    SEC/Other regulators

    24 May 2016

    To the Point - Global tax changes may affect multinational companies
    Governments around the world are developing legislation and reconsidering their interpretations of existing tax law to address concerns that multinational companies are shifting profits to jurisdictions with lower tax rates. Many of these efforts are based on recommendations the Organisation for Economic Co-operation and Development issued in its Base Erosion and Profit Shifting project. Multinational companies need to make sure they have processes and controls in place to track developments in countries that are significant to their operations and address any accounting implications in the appropriate period.

    19 May 2016

    To the Point - SEC staff updates guidance on non-GAAP financial measures
    The SEC staff updated its interpretations of the rules on non-GAAP financial measures and added new guidance to address its concerns about some types of non-GAAP financial measures and the manner of presentation of all such measures in earnings releases and SEC filings. In the updates, the staff clarified when it will consider non-GAAP measures misleading or too prominent. The staff also provided guidance on per-share non-GAAP measures and the income tax effects of adjustments used to calculate non-GAAP measures.

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    Periodic updates

    23 June 2016

    Financial Reporting Briefs - Second quarter 2016
    This publication provides you with a snapshot of the major accounting and regulatory developments that have occurred during the second quarter of 2016. This edition brings you up to speed on the Boards' priority joint projects and several other financial reporting developments.

    15 June 2016

    Accounting pronouncements effective for the second quarter of 2016
    No new accounting pronouncements are effective for the second quarter of 2016 for calendar-year entities, but other standard-setter and regulatory requirements may apply for the first time. All entities should carefully evaluate which accounting requirements apply to them for the first time.

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    More topics

    6 June 2016

    Financial Reporting Developments - Bankruptcies, liquidations and quasi-reorganizations
    We have updated our Financial reporting developments publication on bankruptcies, liquidations and quasi-reorganizations to clarify and enhance our interpretative guidance. Refer to Appendix A of the publication for a detailed list of these updates.

    2 June 2016

    Financial Reporting Developments - Exit or disposal cost obligations
    We have updated our Financial reporting developments publication on exit or disposal cost obligations to reflect the changes resulting from the new leases standard issued by the FASB. Refer to Appendix D of the publication for a summary of the updates.

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