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    Business combinations

    2 August 2018

    Technical Line - A closer look at the guidance on accounting for share-based payments to nonemployees
    Our Technical Line summarizes the FASB’s final guidance that aligns the accounting for share-based payments to nonemployees with the accounting for share-based payments to employees, with certain exceptions, and describes how entities will apply the new measurement and transition provisions. Early adoption is permitted for entities that have adopted the new revenue guidance.

    22 June 2018

    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

    29 August 2018

    To the Point - FASB makes minor changes to disclosure requirements for sponsors of defined benefit plans
    The FASB issued final guidance that changes the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. The guidance is effective for fiscal years ending after 15 December 2020 for public business entities and fiscal years ending after 15 December 2021 for all other entities. Early adoption is permitted.

    21 June 2018

    To the Point - FASB simplifies the accounting for share-based payments to nonemployees
    The FASB issued final guidance to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which may lower their cost and reduce volatility in the income statement. Early adoption is permitted, including in an interim period, but not before an entity adopts ASC 606, Revenue from contracts with customers.

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    Consolidation

    14 June 2018

    Financial Reporting Developments - Equity method investments and joint ventures
    Our FRD publication on equity method investments and joint ventures has been updated. See Appendix C for a summary of important changes.

    30 November 2017

    Comment Letter - FASB’s proposed consolidation reorganization
    In our comment letter, we support the FASB’s objective of making the consolidation guidance easier to navigate and apply but continue to recommend that the Board pursue the development of a single comprehensive consolidation model. If the FASB moves forward with the proposed ASU, it should provide a concordance, mapping the changes from ASC 810 to ASC 812 and any changes to the original wording. This would make it less costly for companies to implement the proposed changes. Further, we recommend that the Board allow for prospective adoption and that the guidance be effective after all companies adopt ASU 2015-02, ASU 2016-17 and ASU 2017-02.

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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

    22 August 2018

    NAIC Bulletin - Summer 2018 edition
    Our NAIC Bulletin contains the highlights of the Summer 2018 meeting of the National Association of Insurance Commissioners.

    14 June 2018

    Financial Reporting Developments - Certain investments in debt and equity securities (after the adoption of ASU 2016-01)
    Our new FRD publication on certain investments in debt and equity securities (after adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities) is now available. This publication also reflects recent technical corrections and improvements to the new guidance. It includes answers to questions that entities have raised about how to apply the new guidance and provides examples. The guidance is already effective for calendar-year public business entities.

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    Income taxes

    30 August 2018

    Technical Line - A closer look at accounting for the effects of the Tax Cuts and Jobs Act
    We have updated our Technical Line to add a section on accounting considerations for measuring global intangible low-taxed income (GILTI) deferred taxes when companies elect an accounting policy to recognize deferred taxes for GILTI-related temporary basis differences. The updated guidance discusses an acceptable approach for accounting for GILTI in deferred taxes. Based on discussions with the FASB staff and SEC staff, the approach is consistent with ASC 740’s framework. We have also updated the US Treasury Department and IRS notices section to include notices and a proposed regulation that provide additional guidance on computing the transition tax under the Act.

    27 June 2018

    Quarterly tax developments - June 2018
    Our June 2018 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 20 June 2018, 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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    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

    15 August 2018

    To the Point - FASB changes how insurers measure and disclose liabilities for long-duration insurance contracts
    The FASB issued final guidance that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and deferred acquisition costs. The guidance is effective for public business entities for fiscal years beginning after 15 December 2020 and a year later for all other entities.

    31 July 2018

    Technical Line - How the new leases standard affects oil and gas entities
    Our Technical Line highlights key implications of the new leases standard for entities in the oil and gas 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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    Leases

    14 August 2018

    To the Point - FASB proposes narrow-scope amendments to help lessors apply the new leases standard
    The FASB proposed allowing lessors to make an accounting policy election to not evaluate whether sales taxes and other similar taxes imposed by a third party on a lease revenue-producing activity are the primary obligation of the lessor as owner of the underlying leased asset. The proposal would require lessors to exclude certain lessor costs paid directly by lessees to third parties on the lessor’s behalf from variable payments if the amount paid is not readily determinable by the lessor. The proposal would also clarify that lessors are required to allocate (rather than recognize) certain variable payments to lease and non-lease components of a contract when the changes in facts and circumstances on which the variable payment is based occur. Comments are due by 12 September 2018.

    31 July 2018

    Technical Line - How the new leases standard affects oil and gas entities
    Our Technical Line highlights key implications of the new leases standard for entities in the oil and gas 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

    6 September 2018

    Technical Line - FASB issues guidance on accounting for implementation costs in cloud computing arrangements
    Our Technical Line highlights key accounting and financial reporting implications of the new standard that requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Early adoption is permitted for all entities.

    11 June 2018

    Comment Letter - FASB proposal to clarify the guidance on collaborative arrangements
    In our comment letter, we support the FASB’s proposal to clarify the scoping guidance in ASC 808, Collaborative Arrangements, and ASC 606, Revenue from Contracts with Customers, and believe the amendments would remove doubt about whether a counterparty in a collaborative arrangement also could be a customer for one or more transactions. However, we do not believe the FASB should preclude the presentation of amounts recorded for collaborative arrangements as revenue when the amounts are not received from a customer or directly related to third-party sales.

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    SEC/Other regulators

    10 September 2018

    Comment Letter - PCAOB Draft Strategic Plan for 2018-2022
    In our comment letter on the PCAOB’s Draft Strategic Plan for 2018-2022, we commend the PCAOB for seeking public input and generally support the five goals the PCAOB laid out. We also offer suggestions to enhance inspection reporting, strengthen the PCAOB’s goal relating to technological innovations and expand the stakeholders with which the PCAOB engages to include foreign regulators and international standard setters. The PCAOB is expected to publish its final Strategic Plan by the end of the year.

    23 August 2018

    To the Point - SEC amends rules to eliminate redundant and outdated disclosures
    The SEC adopted a final rule that eliminates or amends disclosure requirements that have become redundant or outdated. The SEC also referred certain of its disclosure items to the FASB for potential incorporation into US GAAP. The amendments are intended to simplify compliance without substantially changing the information provided to investors. The changes are effective 30 days after the final rule is published in the Federal Register.

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    Periodic updates

    22 August 2018

    NAIC Bulletin - Summer 2018 edition
    Our NAIC Bulletin contains the highlights of the Summer 2018 meeting of the National Association of Insurance Commissioners.

    26 July 2018

    Second Quarter 2018 Standard Setter Update
    Our Second Quarter 2018 Standard Setter Update highlights significant developments in financial reporting and accounting between 1 April and 30 June 2018.

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    More topics

    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.

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