AccountingLink

    Technical Line

    20 November 2017

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

    2 November 2017

    Technical Line - A closer look at the new guidance on recognizing and measuring financial instruments
    We have updated our Technical Line, A closer look at the new guidance on recognizing and measuring financial instruments, to include answers to questions companies have raised about how to apply the new guidance and to discuss amendments the FASB recently proposed to clarify the guidance on transition, the application of the measurement alternative and presentation of financial liabilities measured using the fair value option. The guidance is effective in 2018 for calendar-year public business entities.

    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.

    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.

    24 August 2017

    Technical Line - Common challenges in implementing the new revenue standard
    Our Technical Line highlights aspects of the revenue recognition standard that some entities are finding particularly challenging to implement and provides examples of how to apply the guidance in these areas. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    3 August 2017

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

    27 July 2017

    Technical Line - Financial reporting obligations under SEC Rule 701 for private companies that issue equity compensation
    As companies remain private longer and continue growing, they often pass the $5 million threshold for the aggregate sales or issuances of securities to employees and other covered persons within a 12-month period, thus triggering the requirement under SEC Rule 701 to provide financial statements and other disclosures to participants in the offering. We are finding that companies may not be aware of the financial reporting obligations under Rule 701 and may not want or be able to provide, even confidentially, the required information to offering participants for competitive reasons. Our Technical Line highlights what private companies need to do to comply with the financial reporting requirements under Rule 701.

    27 July 2017

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

    20 July 2017

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

    13 July 2017

    Technical Line - How the new revenue standard may affect a company’s income tax accounting
    As companies prepare to adopt the new revenue recognition standard, they must consider the potential income tax accounting implications. Adoption of the standard may create new temporary differences or require the remeasurement of existing ones, and companies may need to revise their processes and data collection tools to capture any new ones. Tax professionals should be actively involved in implementation discussions to make sure all implications are considered.

    30 June 2017

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

    29 June 2017

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

    29 June 2017

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

    29 June 2017

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

    29 June 2017

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

    29 June 2017

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

    29 June 2017

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

    22 June 2017

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

    16 June 2017

    Technical Line - How principle-based reserving will affect life insurers
    Our Technical Line takes a closer look at the new principle-based reserving (PBR) framework established by the National Association of Insurance Commissioners that will require life insurers to significantly change how they estimate reserves for most types of life insurance contracts under the statutory basis of accounting. Life insurers also will need to prepare a comprehensive PBR actuarial report documenting the judgments made in the PBR valuation process to submit to state insurance regulators.

    1 June 2017

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

    9 May 2017

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

    1 May 2017

    Technical Line - A closer look at the guidance on derecognition of nonfinancial assets and in substance nonfinancial assets
    The FASB issued final guidance that clarifies the scope and application of ASC 610-20 on the sale of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The guidance clarifies that businesses are generally derecognized using the deconsolidation guidance in ASC 810. It also defines an in substance nonfinancial asset and says that all of the assets promised in a contract with a noncustomer are in the scope of ASC 610-20 if they are all nonfinancial assets or in substance nonfinancial assets.

    16 March 2017

    Technical Line - How the new credit impairment standard will affect entities outside the financial services industry
    The FASB issued new guidance that will change how entities account for credit impairment for many financial assets. For receivables and certain other instruments that aren’t measured at fair value, entities will be required to estimate expected credit losses, which generally will result in the earlier recognition of credit losses. For available-for-sale debt securities, they will recognize an allowance for credit losses rather than a reduction to the asset’s carrying value.

    23 February 2017

    Technical Line - How the new revenue standard will affect media and entertainment entities
    This Technical Line highlights how practice will change for media and entertainment entities under the new revenue standard issued by the FASB and the IASB. It addresses the amendments the FASB has made and the discussions of members of the Transition Resource Group for Revenue Recognition on topics of interest to media and entertainment entities. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    9 February 2017

    Technical Line - A closer look at the FASB’s new guidance on the definition of a business
    The FASB issued new guidance that will likely reduce the number of transactions accounted for as business combinations. The guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If that threshold is met, the set of assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance.

    9 February 2017

    Technical Line - A closer look at the new guidance on accounting for tax consequences of intercompany transactions
    Our publication takes a closer look at how entities will be affected by ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. Companies will be required to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. The guidance is effective for public business entities in annual periods beginning after 15 December 2017, and for all other entities in annual periods beginning after 15 December 2018. Early adoption is permitted as of the beginning of an annual period, meaning the first quarter of 2017 is the only opportunity for calendar-year public business entities to early adopt.

    9 February 2017

    Technical Line - Insurers will have to make additional disclosures about short-duration contracts
    We have updated our Technical Line to include the SEC staff’s views on the presentation of acquisitions, disposals and foreign currency exchange translation adjustments in the incurred and paid claims development tables required by the guidance. All insurers, not just SEC registrants, should consider those views.

    26 January 2017

    Technical Line - Tips for complying with the SEC reporting requirements for equity method investees
    Registrants should make sure they comply with the reporting requirements in Regulation S-X Rule 3-09 and Rule 4-08(g) for equity method investees. This publication discusses key considerations relating to how to calculate significance, reporting requirements if an investee meets certain thresholds of significance, applying the appropriate accounting standards in financial statements or financial information required under the rules, and interim disclosure requirements.

    25 January 2017

    Technical Line - How changes to the definition of a business will affect life sciences entities
    This publication focuses on how life sciences entities will be affected by the final guidance issued by the FASB that narrows the definition of a business.

    25 January 2017

    Technical Line - How changes to the definition of a business will affect real estate entities
    This publication focuses on how real estate entities will be affected by the final guidance issued by the FASB that narrows the definition of a business.

    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.

    20 December 2016

    Technical Line - A closer look at the FASB’s hedge accounting proposal
    The FASB proposed targeted amendments to its hedge accounting guidance that are aimed at enabling entities to more clearly portray the economics of their risk management activities in their financial statements. The proposal would expand the strategies that qualify for hedge accounting, change how many hedging relationships are presented in the financial statements and simplify the application of hedge accounting in certain situations. In addition, certain disclosure requirements would be modified or added.

    1 November 2016

    Technical Line - A closer look at proposed changes in insurers’ accounting and disclosures for long-duration contracts
    The FASB proposed changing how insurers account for and make disclosures about long-duration contracts to provide users of the financial statements with more meaningful information about the amount, timing and uncertainty of cash flows related to these contracts. The proposal would change how insurers recognize and measure insurance liabilities and deferred acquisitions costs and require them to make new disclosures. The proposal would significantly change practice and could have a material effect on insurers’ financial statements. Comments are due by 15 December 2016.

    27 October 2016

    Technical Line - New OMB A-123 requires federal agencies to integrate enterprise risk management and internal controls
    Federal agencies are required to integrate enterprise risk management (ERM) and internal controls into their business activities under the updated Circular No. A-123 recently issued by the Office of Management and Budget. The Circular emphasizes the importance of coordinating ERM activities with the strategic planning and review process. Agency management is expected to engage in the ERM process and form an integrated governance structure to address the risks in an increasingly complex environment of uncertain budgets, expanded mandates and increased transparency requirements.

    12 October 2016

    Technical Line - A closer look at the new credit impairment standard
    The FASB issued credit impairment guidance that modifies or replaces existing credit impairment models for many financial assets. For receivables, loans, held-to-maturity debt securities and certain other financial assets, entities will be required to estimate expected credit losses, which generally will result in the earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. Our publication takes an in-depth look at the new standard and is intended to help companies consider the effects of adopting it. We expect to update this publication as we develop additional insights and views related to this standard. In the coming weeks, we will issue a publication that highlights significant changes for entities outside the financial services industry.

    10 October 2016

    Technical Line - A closer look at the SEC staff’s scrutiny of non-GAAP financial measures
    In the nearly six months since the Securities and Exchange Commission (SEC) staff updated its Compliance and Disclosure Interpretations (C&DIs) on non-GAAP financial measures, the staff has focused on compliance with that guidance in its reviews of earnings releases and SEC filings. The clear message is that companies need to reevaluate their use and presentation of non-GAAP financial measures. This publication discusses the SEC staff’s main areas of focus in comment letters seeking compliance with the updated C&DIs, changes companies have made to their disclosures and challenges companies are encountering with their non-GAAP disclosures.

    29 September 2016

    Technical Line - 2016 trends in SEC comment letters
    Our Technical Line highlights the SEC staff’s increased focus on non-GAAP financial measures and other trends in SEC comment letters in the year ended 30 June 2016, including the staff’s comments on segment reporting, loss contingencies and management’s discussion and analysis. We also note that, in the latest year, the SEC staff continued to issue fewer comment letters than it has in the past.

    7 September 2016

    Technical Line - How the new revenue recognition standard will affect homebuilders
    This Technical Line highlights key aspects of applying the FASB’s standard to homebuilding arrangements, addresses significant changes to current practice and reflects the latest implementation insights for homebuilders. It supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    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.

    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.

    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.

    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

    Technical Line - Spotlight on non-GAAP financial measures
    SEC officials recently have expressed concerns about the growing use of non-GAAP financial measures in SEC filings and corporate earnings releases. This publication reviews the applicable SEC rules, highlights current SEC staff concerns and provides recommendations for companies that disclose non-GAAP metrics.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect airline 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 airline entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect automotive 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 automotive entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect engineering and construction 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 engineering and construction entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect financial services 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 financial services entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect health care 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 health care entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect mining and metals 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 mining and metals entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect real estate 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 real estate entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect retail and consumer products 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 retail and consumer products entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect telecommunications and cable 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 telecommunications and cable entities.

    14 April 2016

    Technical Line - Using the 2016 XBRL US GAAP Financial Reporting Taxonomy
    As we previously reported, the SEC has updated the EDGAR system to support the 2016 XBRL US GAAP Financial Reporting Taxonomy. The 2016 taxonomy includes new tags to address accounting standards updates, industry-specific issues, common terms and leading practices. Many tags were also deprecated or changed to reflect new definitions. Our publication summarizes the major changes to the taxonomy to help companies make the transition. It also discusses leading practices for creating XBRL exhibits and the SEC staff’s concerns about companies’ inappropriate use of custom axis tags.

    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.

    3 March 2016

    Technical Line - A closer look at the new guidance on classifying and measuring financial instruments
    The FASB issued final guidance that will require entities to measure equity investments (except those accounted for under the equity method, those that result in consolidation of the investee and certain other investments) at fair value and recognize any changes in fair value in net income. Entities will have to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The new guidance also changes certain disclosure requirements and other aspects of current US GAAP. It does not change the guidance for classifying and measuring investments in debt securities or loans.

    14 December 2015

    Technical Line - FASB proposes changes to the definition of a business - oil and gas
    This publication focuses on how oil and gas entities would be affected by the FASB’s proposal to change the definition of a business.

    5 November 2015

    Technical Line - Accounting risks related to the decline in oil prices
    The continued decline in worldwide crude oil prices and the prices of related refined products over the past year may create a number of accounting risks for oil and gas entities. In addition, it can have an indirect effect on their suppliers, customers, lenders, joint interest partners and others that directly or indirectly rely on or do business with the oil and gas industry. This publication discusses accounting and financial reporting issues that entities in the industry and those that depend on them may need to consider.

    7 October 2015

    Technical Line - IPO financial statement accounting and disclosure considerations
    Initial public offering (IPO) activity has increased in recent years, and the vast majority of new public companies are taking advantage of the various relief provided by the Jumpstart Our Business Startups Act. Before submitting an IPO registration statement to the SEC, companies have to consider many requirements that didn’t apply to them as private companies. We have updated our Technical Line to discuss the unique accounting and disclosure matters companies must address when preparing financial statements for their IPO registration statement.

    22 August 2013

    Technical Line - Movin’ on up to accelerated filer status: You’ll need an audit of ICFR for this year
    With the increase in equity values in 2013, many non-accelerated filers will be required to transition to accelerated filer status in their upcoming Form 10-K. In addition to preparing for the transition to larger company reporting timelines and disclosures, these registrants must obtain auditor attestation as to the effectiveness of their internal control over financial reporting (ICFR) under Section 404(b) of the Sarbanes-Oxley Act. Our Technical Line publication focuses on the transition from a filer status that allowed a Section 404(b) exemption and the timing of compliance with Section 404(b).

    12 January 2012

    Technical Line - Aggregating milestone method disclosures may sometimes be appropriate
    Many life sciences companies adopted Accounting Standards Update 2010-17, Milestone Method of Revenue Recognition, for the first time in their 2011 financial statements. The standard requires disclosures at the individual milestone level. While we believe entities should provide these disclosures for each material milestone, it may be appropriate for life sciences entities to aggregate disclosures for immaterial milestones. Our Technical Line publication provides questions to consider when assessing the materiality of milestones for disclosure.