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    12 July 2018

    To the Point - Argentina’s economy considered highly inflationary under US GAAP
    All of the three-year cumulative inflation rates commonly used to evaluate Argentina’s inflation currently exceed 100%. As a result, we expect entities to conclude that Argentina’s economy is highly inflationary under US GAAP no later than 30 June 2018. Because an economy is accounted for as highly inflationary beginning on the first day of the reporting period following the period in which the economy becomes highly inflationary, calendar-year entities that prepare quarterly interim financial statements with operations in Argentina have to begin applying the guidance on highly inflationary accounting no later than 1 July 2018.

    27 June 2018

    To the Point - FASB clarifies the guidance for contributions received and contributions made
    The FASB issued final guidance to clarify how entities will determine whether to account for a transfer of assets as an exchange transaction or a contribution and how they will determine whether a contribution is conditional. While accounting for contributions primarily affects not-for-profit entities, the clarified guidance applies to all entities (including business entities) that receive or make contributions, except for certain transactions such as transfers of assets business entities receive from government entities.

    9 May 2018

    Financial Reporting Developments - Bankruptcies, liquidations and quasi-reorganizations
    Our Financial reporting developments publication on bankruptcies, liquidations and quasi-reorganizations has been updated. See Appendix A for a summary of important changes.

    26 April 2018

    Financial Reporting Developments - Segment reporting
    Our FRD publication on segment reporting has been updated to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a summary of the updates.

    11 April 2018

    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.

    29 January 2018

    Guide to preparing carve-out financial statements
    When a company is planning to divest all or a portion of a business, financial statements reflecting the operations to be divested may be needed to comply with regulatory requirements, to enable the seller and the buyer to evaluate the potential transaction or to obtain financing. In practice, such financial statements are often referred to as carve-out financial statements. Our publication provides accounting and reporting guidance to help companies prepare carve-out financial statements.

    28 December 2017

    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.

    19 December 2017

    Financial Reporting Developments - Impairment or disposal of long-lived assets
    We have updated our Financial Reporting Developments publication on impairment or disposal of long-lived assets to provide additional interpretive guidance.

    8 November 2017

    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.

    1 November 2017

    Comment Letter - FASB’s proposal to clarify the scope and accounting guidance for contributions
    In our comment letter, we support the FASB’s proposal to clarify the scope and accounting guidance for contributions received and contributions made. We agree that the proposed amendments would help entities evaluate whether a transfer of assets should be accounted for as an exchange transaction or a contribution and distinguish between a conditional and an unconditional contribution. However, we recommend that the FASB make certain clarifications in the proposed table of indicators that would help entities determine whether an agreement includes a barrier. Further, we are concerned that the proposed effective date could create implementation challenges for certain calendar year-end entities.

    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.

    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.

    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.

    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.

    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.

    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.