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    Business combinations

    18 October 2017

    Financial Reporting Developments - Business combinations
    We have updated our Financial reporting developments (FRD) publication on business combinations to include recent standard-setting activity related to the new definition of a business and the new leases standard, and to clarify and enhance our interpretive guidance.

    29 June 2017

    Financial Reporting Developments - Intangibles - Goodwill and other
    We have updated our Financial reporting developments (FRD) publication on goodwill and intangibles to reflect the guidance in Accounting Standards Update 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, and to clarify and enhance our interpretative guidance. See Appendix D of the publication for a summary of the updates.

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    Compensation matters

    18 October 2017

    Financial Reporting Developments - Share-based payment
    We have updated our Financial reporting developments publication on share-based payment to reflect the new guidance in ASU 2017-09, Scope of modification accounting, and to clarify and enhance our interpretative guidance. Refer to Appendix F of the publication for a summary of the updates.

    10 March 2017

    To the Point - Employers’ presentation of defined benefit retirement plan costs will change
    The FASB issued new guidance that will change how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The standard is effective for public business entities for annual periods beginning after 15 December 2017, and interim periods therein. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance.

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    Consolidation

    28 September 2017

    Financial Reporting Developments - Consolidation: Determination of a controlling financial interest and accounting for changes in ownership interests
    We have updated our Financial reporting developments (FRD) publication on consolidation to include recent standard-setting activity related to the evaluation of indirect interests as part of the primary beneficiary analysis, the application of the voting model for not-for-profit entities and gains and losses from the derecogintion of nonfinancial assets, and to clarify and enhance our interpretive guidance.

    31 August 2017

    Comment Letter - FASB proposal for targeted improvements to related party guidance for Variable Interest Entities (VIE)
    In our comment letter, we support the FASB’s objective of reducing complexity when applying the variable interest entity (VIE) guidance, but recommend they pursue development of a single comprehensive consolidation model. To the extent they move forward with the targeted improvements, we believe the FASB should provide additional guidance to clarify the current model, which would reduce the cost and complexity for all companies. Further, we support the proposed changes in the determination of whether fees paid to decision makers or service providers are a variable interest.

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    Fair value measurements

    4 October 2017

    Financial Reporting Developments - Fair value measurement
    We have updated our Financial reporting developments publication on fair value measurement to further clarify and enhance our interpretative guidance. Refer to Appendix F of the publication for a summary of the updates.

    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.

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    Financial instruments

    19 October 2017

    Financial Reporting Developments - Derivatives and hedging
    We have updated our Financial reporting developments publication on derivatives and hedging to further clarify and enhance our interpretative guidance. Our updates also address the accounting implications of rulebook changes made by certain central clearinghouses to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements rather than collateral. Refer to Appendix F of the publication for a summary of the updates.

    5 October 2017

    Financial Reporting Developments - Issuer’s accounting for debt and equity financings
    We have updated our Financial reporting developments (FRD) publication on an issuer’s accounting for debt and equity financings to reflect the issuance of ASU 2017 11 on accounting for certain financial instruments with down round features. We have also enhanced and clarified our interpretive guidance. Refer to Appendix F of the publication for a summary of the updates.

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    Income taxes

    9 October 2017

    Quarterly tax developments - September 2017
    Our September 2017 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes certain enacted tax legislation, as well as regulatory developments, legislative proposals and other items, through 28 September 2017 to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

    5 October 2017

    Eyes on US tax reform: A guide to income tax accounting considerations
    Our publication provides tax accounting considerations and references to EY interpretive guidance to help companies prepare for changes in accounting that could result from US tax reform. The tax plan now under consideration by Congress would reduce the corporate income tax rate to 20%, allow immediate capital expensing, broaden the tax base and create a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings. While ASC 740, Income Taxes, requires changes in tax law to be accounted for in the period of enactment (i.e., when the President signs legislation), companies need to understand the tax proposals under consideration so they can evaluate and prepare for changes in their financial reporting.

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    IFRS matters

    20 October 2016

    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 2016 and guidance finalized by the FASB and the IASB as of 31 May 2016. It also discusses current standard-setting activities at the FASB and the IASB.

    20 October 2016

    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 2016 and guidance finalized by the FASB and the IASB as of 31 May 2016. It also discusses current standard-setting activities at the FASB and the IASB.

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    Industry issues

    10 October 2017

    Financial Reporting Developments - Real estate project costs
    We have updated our Financial Reporting Developments publication on real estate costs to clarify and enhance our interpretative guidance.

    25 August 2017

    Technical Line - How the new revenue standard affects engineering and construction entities
    Our Technical Line highlights key implications of the new revenue standard for engineering and construction entities. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

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    Leases

    2 October 2017

    To the Point - FASB proposes narrow amendments and technical corrections to the new leases standard
    The FASB proposed narrow amendments and technical corrections to clarify how to apply certain aspects of the new leases standard. The proposed clarifications would address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. Comments are due by 13 November 2017.

    28 September 2017

    To the Point - FASB proposes transition practical expedient for land easements and clarification on applying ASC 842
    The FASB proposed adding a transition practical expedient for land easements in the new leases standard that would permit an entity to continue applying its current accounting policy for land easements that existed or expired before the standard’s effective date. The proposal also would clarify that an entity would evaluate whether land easements are leases under the new standard before applying the guidance on intangible assets. Comments are due by 25 October 2017.

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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

    10 October 2017

    To the Point - How companies should prepare for the audit of the new revenue standard
    The PCAOB issued a staff alert discussing what auditors need to do to audit a company’s implementation of the new revenue recognition standard. While the alert is aimed at auditors, it provides a roadmap for management about how to prepare for the audit of the company’s implementation of the new standard.

    30 August 2017

    Financial Reporting Developments - Revenue from contracts with customers (ASC 606)
    We have updated our Financial reporting developments (FRD) publication, Revenue from contracts with customers (ASC 606), to address changes to SEC and SEC staff interpretive guidance on revenue recognition and the staff’s comment that it wouldn’t object if entities that are public business entities only because their financial statements or financial information is included in another entity’s SEC filing use the private company effective date to adopt the new revenue recognition standard.

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    SEC/Other regulators

    12 October 2017

    To the Point - SEC proposes modernizing and simplifying certain Regulation S-K disclosure requirements
    The SEC proposed amending Regulation S-K to modernize and simplify certain disclosure requirements as part of a broader review aimed at reducing the compliance burden on registrants while still providing all material information to investors. Among other thing, the proposal would allow a registrant to omit a discussion of the earliest annual period from Management’s Discussion and Analysis if the discussion is not considered to be material and the discussion of that period was included in the prior-year Form 10-K. The proposal also would allow a registrant to omit commercially sensitive and confidential information without obtaining advance permission from the SEC staff. Comments are due within 60 days.

    5 October 2017

    To the Point - PCAOB asks for more input on its proposal on supervision of other auditors
    The PCAOB issued a supplemental request for comment on its proposal to strengthen the requirements for supervising other auditors who participate in an audit but don’t issue the auditor’s report. Comments are due by 15 November 2017.

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    Periodic updates

    19 October 2017

    Third Quarter 2017 Standard Setter Update
    Our Third Quarter 2017 Standard Setter Update highlights significant developments in financial reporting and accounting between 1 July 2017 and 30 September 2017.

    9 October 2017

    Quarterly tax developments - September 2017
    Our September 2017 edition is designed to help you identify changes in tax law and other events when they occur so the accounting can be reflected in the appropriate period. This edition includes certain enacted tax legislation, as well as regulatory developments, legislative proposals and other items, through 28 September 2017 to consider as you prepare your income tax provision. We've also listed our tax and other publications that provide more detail on the topics we discuss.

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    More topics

    5 October 2017

    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.

    26 September 2017

    Financial Reporting Developments - Statement of cash flows
    We have updated our Financial reporting developments (FRD) publication on the statement of cash flows to reflect the issuance of ASU 2016-18, Restricted Cash, and other recent amendments to ASC 230. See Appendix D of the publication for a summary of the updates.

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