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    Business combinations

    20 December 2018

    Technical Line - Applying the definition of a business to oil and gas transactions
    The new definition of a business has generally resulted in more transactions being accounted for as asset acquisitions rather than business combinations, but oil and gas entities have found this may not always be the case for transactions in their industry. Additionally, entities have found that significant judgment may be required to determine whether a set is a business.

    20 December 2018

    To the Point - FASB proposes allowing NFPs to simplify their accounting for goodwill and intangible assets
    The FASB proposed allowing not-for-profit (NFPs) entities to apply accounting alternatives that are currently only available for private companies to simplify their subsequent accounting for goodwill and their accounting for certain intangible assets they acquire. Comments are due by 18 February 2019.

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    Compensation matters

    20 December 2018

    Financial Reporting Developments - Share-based payment (before the adoption of ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting)
    Our FRD publication on share-based payment has been updated to provide clarifications and enhancements to our interpretive guidance and to move our discussion of earnings-per share-related topics, including the effects of share-based payments on earnings per share, to our FRD publication on Accounting Standards Codification 260, Earnings per share. Refer to Appendix D of the publication for a summary of the updates.

    13 December 2018

    Technical Line - Settlement accounting reminders for employers considering pension plan de-risking strategies
    Employers considering pension plan de-risking strategies, such as making lump sum payments to plan participants and transferring their benefit obligations to third parties, need to determine whether the transactions qualify for settlement accounting. These de-risking strategies are attractive now because many pension plans are well funded. Employers are required to recognize a gain or loss on a settlement in the period in which all of the settlement criteria in Accounting Standards Codification 715 are met. It’s not appropriate to recognize settlements when they are probable and/or estimable. However, disclosure of probable settlements is encouraged.

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    Consolidation

    6 December 2018

    Financial Reporting Developments - Consolidation: Determination of a controlling financial interest and accounting for changes in ownership interests
    Our FRD publication on consolidation has been updated to clarify certain guidance on how to apply the consolidation models in ASC 810. Refer to Appendix C of the publication for a summary of the updates.

    5 November 2018

    To the Point - FASB makes targeted changes to related party consolidation guidance
    The FASB issued final guidance to allow private companies to make an accounting policy election to not apply the variable interest entity guidance to certain arrangements between entities under common control in which the reporting entity, the legal entity being evaluated for consolidation and the common control parent are not public business entities. In addition, the FASB amended the variable interest entity guidance to require an entity to consider a decision maker's indirect interests held through related parties under common control on a proportionate basis when determining whether decision-making fees are variable interests. For entities other than private companies, the guidance is effective for fiscal years beginning after 15 December 2019, and interim periods within those years. For private companies, it is effective for fiscal years beginning after 15 December 2020, and interim periods within fiscal years beginning after 15 December 2021. Early adoption is permitted.

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    Fair value measurements

    29 August 2018

    To the Point - FASB changes requirements for fair value measurement disclosures
    The FASB issued final guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for all entities for fiscal years beginning after 15 December 2019, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements.

    12 July 2018

    Financial Reporting Developments - Fair value measurement
    Our FRD publication on fair value measurement has been updated to further clarify and enhance our interpretative guidance. Refer to Appendix E of the publication for a summary of the updates.

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    Financial instruments

    3 January 2019

    Financial Reporting Developments - Derivatives and hedging (before the adoption of ASU 2017-12)
    Our FRD publication on derivatives and hedging (before the adoption of ASU 2017-12) has been updated to reflect recent standard-setting activity. Refer to Appendix F of the publication for a summary of the updates.

    19 December 2018

    Comment Letter - FASB’s proposal to changes to the three new standards on financial instruments
    In our comment letter, we support the FASB’s proposal to clarify certain aspects of the new guidance on credit losses, hedging, and recognizing and measuring financial instruments. However, we make certain recommendations to make it easier for entities to apply the new guidance and the proposed amendments.

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    Income taxes

    19 December 2018

    Quarterly tax developments - December 2018
    Our December 2018 edition has been updated to include certain enacted tax law changes from 17 December 2018 through 31 December 2018, as well as an update on the status of the pending change in Argentina’s currency to hyperinflationary status for US tax purposes.

    13 December 2018

    Financial Reporting Developments - Income taxes
    Our FRD publication on income taxes has been updated to address the Tax Cuts and Jobs Act and to include EY’s interpretative guidance as of November 2018. Additional accounting considerations related to the end of the measurement period provided by Securities and Exchange Commission Staff Accounting Bulletin (SAB) 118, including how to address regulations the US Treasury Department may issue after the measurement period ends on 22 December 2018, can be found in our Technical Line: A closer look at accounting for the effects of the Tax Cuts and Jobs Act, which was updated 4 October 2018.

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    IFRS matters

    23 February 2018

    US GAAP versus IFRS: The basics - February 2018
    Our US GAAP versus IFRS – The basics publication, which was developed to help entities that are converting from US GAAP to IFRS or that are evaluating the effects of IFRS adoption, has been updated. This release generally reflects guidance effective in 2017 and guidance finalized by the FASB and the IASB as of 31 May 2017. It also discusses current standard-setting activities at the FASB and the IASB and has been updated for the following significant new standards and related consequential amendments: ASC 606, Revenue from Contracts with Customers (created by ASU 2014-09), IFRS 15, Revenue from Contracts with Customers, ASC 842, Leases, (created by ASU 2016-02), IFRS 16, Leases, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and IFRS 9, Financial Instruments. Differences before the adoption of ASC 606, IFRS 15, ASU 2016-01 and IFRS 9 have not been included. Please refer to the October 2016 edition of the publication for these differences.

    23 February 2018

    US GAAP/IFRS accounting differences identifier tool - February 2018
    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, has been updated. This release generally reflects guidance effective in 2017 and guidance finalized by the FASB and the IASB as of 31 May 2017. It also discusses current standard-setting activities at the FASB and the IASB and reflects the following significant new standards and related consequential amendments: ASC 606, Revenue from Contracts with Customers (created by ASU 2014-09), IFRS 15, Revenue from Contracts with Customers, ASC 842, Leases, (created by ASU 2016-02), IFRS 16, Leases, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and IFRS 9, Financial Instruments. Differences before the adoption of ASC 606, IFRS 15, ASU 2016-01 and IFRS 9 have not been included. Please refer to the October 2016 edition of the tool for these differences.

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    Industry issues

    17 January 2019

    Technical Line - How the new leases standard affects real estate entities
    Our Technical Line highlights key implications of the new leases standard for entities in the real estate industry. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    3 January 2019

    Technical Line - How the new leases standard affects automotive entities
    Our Technical Line highlights key implications of the new leases standard for automotive entities. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

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    Leases

    17 January 2019

    Financial Reporting Developments - Lease accounting - Accounting Standards Codification 842, Leases
    Our FRD publication on accounting for leases under ASC 842 has been updated to reflect recent standard-setting activity and to clarify and enhance our interpretive guidance. Refer to Appendix E of the publication for a summary of the updates.

    17 January 2019

    Technical Line - How the new leases standard affects real estate entities
    Our Technical Line highlights key implications of the new leases standard for entities in the real estate industry. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

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    Private companies

    6 August 2018

    Private Company Reporting Update - How the new revenue standard will affect private companies
    While private companies don’t have to apply the new revenue standard until next year, management needs to take steps now to understand the new accounting and disclosure requirements. Our publication discusses what private companies need to do to implement the new standard. Based on our experience, developing and executing an implementation plan will likely require more effort than private companies expect.

    Revenue recognition

    20 December 2018

    Technical Line - Year-end accounting and disclosure reminders for reporting under ASC 606
    As they prepare for year-end reporting, companies that have adopted the new revenue standard should carefully evaluate their accounting and disclosures in areas that required significant judgment or changes in practice from legacy GAAP. Entities should continue to improve and refine their disclosures based on their increasing experience with the new standard and disclosures provided by their peers. Our Technical Line provides key reminders and considerations about the revenue standard entities may need to consider in preparing their annual (or interim) financial statements and reports.

    19 December 2018

    Technical Line - How the new revenue standard affects the insurance industry
    This Technical Line highlights key aspects of applying ASC 606 to arrangements entered into by entities in the insurance industry and reflects the latest implementation insights, including issues addressed by the insurance task force formed by the American Institute of Certified Public Accountants. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

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    SEC/Other regulators

    16 January 2019

    To the Point - IRS says Section 53 AMT refunds are not subject to sequestration
    The Internal Revenue Service (IRS) said alternative minimum tax refundable credits claimed by companies under Section 53(e) of the Internal Revenue Code will not be subject to sequestration for taxable years beginning after 31 December 2017. The statement reverses an earlier IRS announcement that these AMT refunds would be subject to reductions in federal spending known as sequestration. Companies that previously recorded a valuation allowance or a reserve against the related deferred tax assets or receivables in anticipation of sequestration should reverse these allowances or reserves.

    10 January 2019

    SEC in Focus - January 2019
    Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include a discussion of the key topics from the annual AICPA Conference on Current SEC and PCAOB Developments, an overview of a request for comment by the SEC on quarterly reporting requirements and a recap of other recent rulemaking activities. We also discuss the Commission’s focus on digital assets, current practice matters and enforcement activities.

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    Periodic updates

    10 January 2019

    Board Matters Quarterly - January 2019
    This issue discusses the board’s role in confronting a crisis, trends in cybersecurity-related disclosures, effective board evaluations, how independent board leadership structures have evolved since 2000 and other topics.

    10 January 2019

    SEC in Focus - January 2019
    Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include a discussion of the key topics from the annual AICPA Conference on Current SEC and PCAOB Developments, an overview of a request for comment by the SEC on quarterly reporting requirements and a recap of other recent rulemaking activities. We also discuss the Commission’s focus on digital assets, current practice matters and enforcement activities.

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    More topics

    20 December 2018

    Financial Reporting Developments - Earnings per share
    Our FRD publication on earnings per share has been updated to clarify and enhance our interpretive guidance. The updates also address the effects of share-based payments on earnings per share. Refer to Appendix D of the publication for a summary of the updates.

    19 December 2018

    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.

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