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    14 September 2017

    Technical Line - Accounting for the effects of natural disasters
    When a natural disaster strikes, companies often have questions about how to account for the effects under US GAAP. This publication provides an overview of some of the accounting and reporting guidance that companies directly and indirectly affected by hurricanes such as Harvey and Irma, the recent earthquake in Mexico and other natural disasters should consider.

    10 August 2017

    To the Point - FASB proposes clarifying the guidance for contributions received and contributions made
    The FASB proposed clarifying the guidance on how entities determine whether a transfer of assets is a contribution or an exchange transaction and on how they distinguish between conditional and unconditional contributions. Although the accounting for contributions primarily affects not-for-profit entities, the proposal would apply to all entities (including business entities) that receive or make contributions. Comments are due by 1 November 2017.

    28 June 2017

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

    26 June 2017

    Financial Reporting Developments - Bankruptcies, liquidations and quasi-reorganizations
    We have updated our Financial reporting developments publication on bankruptcies, liquidations and quasi-reorganizations primarily for recent standard-setting activity and to clarify our guidance.

    23 June 2017

    Financial Reporting Developments - Accounting changes and error corrections
    This publication is designed to assist professionals in understanding the financial reporting issues associated with accounting changes (including changes in accounting principle, changes in estimates and changes in reporting entity) and error corrections.

    4 May 2017

    Financial Reporting Developments - Segment reporting
    We have updated our Financial reporting developments publication on segment reporting to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.

    27 March 2017

    Comment Letter - FASB proposed changes to disclosure requirement for inventory
    In our comment letter, we supported the FASB’s disclosure framework project and its objective to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP that is most important to users of each entity’s financial statements. However, we asked the FASB to provide more details about the input received from users, particularly users of other than public business entities’ financial statements, and how any expanded disclosures would affect their behavior.

    9 February 2017

    To the Point - Narrow amendments to several topics could change practice for some entities
    The FASB issued ASU 2016-19, Technical Corrections and Improvements, to clarify guidance, correct errors and make minor improvements to the Accounting Standards Codification. While most of the amendments are not expected to have a significant effect on practice, some of them may change how some entities apply aspects of the guidance on fair value measurement, joint and several liability, transfers and servicing, real estate sales and software licenses. Many of these amendments are effective for calendar-year entities in the first quarter of 2017.

    12 January 2017

    Technical Line - How to apply the FASB’s guidance on management’s going concern evaluation
    The FASB’s guidance requiring management of all entities to perform a going concern evaluation will be effective this year end for calendar-year companies. Our Technical Line provides reminders and discusses how to apply the guidance.

    12 January 2017

    To the Point - FASB proposes changes to inventory disclosure requirements
    The FASB proposed requiring all entities to make additional disclosures regarding changes in inventory outside the normal purchase, manufacture or sale of inventory and the composition of inventory. The proposal also would require all entities to make certain inventory disclosures currently required by the SEC. It would also require additional disclosures by entities that report segment information and those that apply the retail inventory method. Comments are due by 13 March 2017.

    15 December 2016

    Financial Reporting Developments - Statement of cash flows
    We have updated our Financial reporting developments publication on the statement of cash flows to reflect the issuance of ASC 2016-15, Classification of Certain Cash Receipts and Cash Payments, and other recent amendments to ASC 230.

    17 November 2016

    To the Point - FASB addresses the presentation of restricted cash in the statement of cash flows
    The FASB issued final guidance, based on an Emerging Issues Task Force consensus, that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer have to classify transfers between cash and restricted cash.

    24 October 2016

    Comment Letter - FASB’s invitation to comment, Agenda consultation
    In our comment letter, we commend the FASB for its thorough and thoughtful approach to deciding which financial reporting issues to add to its future agenda. We agree that now that the Board has completed many of its major projects, it has an opportunity to consider its direction for the next few years. However, we do not believe that now is the time for the FASB to begin actively working on any new major projects, other than continuing to conduct research for future ones. We are concerned that, given the volume of major new standards entities will have to implement over the next few years, it would be difficult for preparers, users, auditors and regulators to continue monitoring new standard-setting initiatives while effectively managing changes resulting from the major new standards.

    10 October 2016

    Financial Reporting Developments - Discontinued operations (following the adoption of ASU 2014-08)
    We have issued our Financial reporting developments publication on reporting discontinued operations following the adoption of Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The ASU changes the definition of a discontinued operation and requires new disclosures of discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for calendar year-end companies in 2015, and early adoption is permitted.

    22 September 2016

    To the Point - Proposals would provide criteria for evaluating how a company manages cybersecurity risk
    The AICPA issued two proposals that together provide a framework for evaluating how a company manages cybersecurity risk. One proposal would provide separate sets of criteria to be used by management to describe its cybersecurity risk management program and for public accounting firms to use to report on management’s description. The second proposal would revise the AICPA trust services criteria public accounting firms to evaluate the controls for SOC2 engagements so they could be used evaluate controls over a cybersecurity risk management program. The final criteria and related auditor guidance are expected to be issued in early 2017.

    6 September 2016

    Comment Letter - ASB’s going concern proposal
    In our comment letter, we support the issuance of the Proposed Statement on Auditing Standards, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, to promote consistency between the auditing standards and ASU 2014-15, Presentation of Financial Statements – Going Concern, which will require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. However, we disagree with the proposed requirement for the auditor to make inquiries of management about its knowledge of conditions or events beyond the period of management’s evaluation that raise substantial doubt about the entity’s ability to continue as a going concern.

    1 September 2016

    To the Point - FASB clarifies the classification of certain cash receipts and cash payments
    The FASB issued final guidance, based on an Emerging Issues Task Force consensus, that clarifies the classification of certain cash receipts and cash payments. The amendments also clarify how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows.

    26 August 2016

    To the Point - FASB changes certain requirements for the financial statements of not-for-profit entities
    The FASB issued final guidance that changes certain financial statement requirements for not-for-profit (NFP) entities. NFPs will no longer be required to distinguish between resources with temporary and permanent restrictions on the face of their financial statements, meaning they will present two classes of net assets instead of three. The guidance also will change how NFPs report certain expenses and provide information about their available resources and liquidity.

    15 August 2016

    Comment letter - PCAOB’s reproposal on the auditor reporting model
    In our comment letter, we supported the PCAOB’s efforts to make the auditor’s report more informative and relevant for investors and other users of the financial statements. However, we offered some suggestions to clarify the definition of critical audit matters and the related disclosure requirements to reduce the instances where the auditor would provide original information about the company. We also raised some concerns related to increased auditor liability and recommended that the PCAOB eliminate the reproposed requirement to disclose auditor tenure in the auditor’s report.

    13 July 2016

    Financial Reporting Developments - Asset retirement obligations
    We have updated our Financial reporting developments publication on asset retirement obligations to further clarify and enhance our interpretative guidance. Refer to Appendix E of the publication for a summary of the updates.

    13 July 2016

    Financial Reporting Developments - Earnings per share
    We have updated our Financial reporting developments publication on earnings per share to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.

    7 July 2016

    Technical Line - Accounting and reporting considerations of Brexit
    The recent vote by the British people to leave the European Union (EU) marks the start of a long and unprecedented process, and the terms of any exit are not yet known. How entities with significant operations or investments in the United Kingdom and the EU will be affected may not be clear for some time. Our Technical Line addresses some of the accounting and reporting considerations entities should keep in mind when preparing their upcoming interim (or annual) financial statements and reports.

    29 June 2016

    Comment Letter - FASB proposal on technical corrections and improvements
    In our comment letter on the Proposed Accounting Standards Update, Technical Corrections and Improvements, we agree that for the most part, the proposed changes would clarify the Accounting Standards Codification, correct unintended application of guidance or make minor improvements to the Codification that would not be expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities. However, we express concerns about certain of the proposed amendments

    10 February 2016

    Comment Letter - FASB proposal on disclosures of government assistance
    In our comment letter, we supported the FASB’s objective of improving the reporting and disclosure of certain government assistance arrangements, but we did not agree that the approach taken by the Board would meet that objective. We believe that the FASB should first develop recognition and measurement guidance for government assistance arrangements and then consider disclosure requirements for arrangements within the scope of that guidance. If the Board believes that additional disclosures should be required for arrangements accounted for under other topics in the Accounting Standards Codification, we believe that the Board should amend the disclosure requirements in those topics to specifically address those matters.

    23 December 2015

    Comment Letter - Amendments to conceptual framework for financial reporting, chapter 3: qualitative characteristics of useful financial information
    In our comment letters, we continue to support the objective of the FASB in its disclosure framework project to improve disclosure effectiveness in the notes to the financial statements. We supported the FASB’s proposal to align its definition of materiality in the Conceptual Framework with that of the SEC and the PCAOB. However, we have concerns that the proposed evaluation of materiality of omitted disclosures is not sufficiently clear to be applied consistently by preparers, auditors and regulators.

    23 December 2015

    Comment Letter - Assessing whether disclosures are material
    In our comment letter, we continue to support the objective of the FASB in its disclosure framework project to improve disclosure effectiveness in the notes to the financial statements. We supported the FASB’s proposal to align its definition of materiality in the Conceptual Framework with that of the SEC and the PCAOB. However, we are concerned that focusing on materiality solely as a legal concept could lead to materiality decisions becoming legal determinations, when in fact they should be accounting determinations.

    19 November 2015

    To the Point - Entities would have to make certain disclosures about government assistance they receive
    The FASB proposed requiring for-profit entities to make certain disclosures about government assistance resulting from legally enforceable agreements in which an entity receives value from a government. An entity would have to disclose information about its existing government assistance agreements, including the nature, terms and conditions of the assistance, and its accounting policies for the assistance. Comments on the exposure draft are due by 10 February 2016.

    11 November 2015

    To the Point - 2015 OMB Compliance Supplement may result in significant changes in audits of federal awards
    Non-federal entities that receive federal government awards need to be prepared for changes in how their auditors will audit compliance with federal rules, particularly the requirements of the Uniform Guidance that now apply to certain awards. These entities will need to distinguish between expenditures subject to the Uniform Guidance and those subject to Office of Management and Budget circulars so auditors can test selected federal awards against the appropriate criteria.

    11 November 2015

    To the Point - GASB issues more authoritative Implementation Guide
    The GASB approved the issuance of authoritative implementation guidance for the first time. It is effective for reporting periods beginning on or after 15 June 2015.

    11 November 2015

    To the Point - GASB requires disclosures for tax abatement agreements
    The GASB recently issued Statement No. 77, Tax Abatement Disclosures, which is effective for reporting periods beginning on or after 15 December 2016.

    1 October 2015

    To the Point - FASB proposes guidance on applying materiality to disclosures
    As part of its disclosure framework project, the FASB proposed guidance on applying materiality to promote the appropriate use of discretion by reporting entities when complying with its disclosure requirements. The FASB also proposed amending Concepts Statement No. 8 to revise the definition of materiality. Comments are due by 8 December 2015.