AccountingLink

    Technical Line

    22 August 2019

    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.

    20 August 2019

    Technical Line - How the new leases standard affects airlines
    Our Technical Line highlights key implications for airlines and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects automotive entities
    Our Technical Line highlights key implications for automotive entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects consumer products and retail entities
    Our Technical Line highlights key implications for consumer products and retail entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects engineering and construction entities
    Our Technical Line highlights key implications for engineering and construction entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects financial services entities
    Our Technical Line highlights key implications for financial services entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects health care entities
    Our Technical Line highlights key implications for health care entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects life sciences entities
    Our Technical Line highlights key implications for life sciences entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects oil and gas entities
    Our Technical Line highlights key implications for oil and gas entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects real estate entities
    Our Technical Line highlights key implications for real estate entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new leases standard affects telecom and media and entertainment entities
    Our Technical Line highlights key implications for telecommunications and media and entertainment entities and has been updated to reflect certain amendments the FASB has made to ASC 842, Leases. This publication supplements our Financial reporting developments publication, Lease accounting: Accounting Standards Codification 842, Leases, and should be read in conjunction with it.

    20 August 2019

    Technical Line - How the new revenue recognition 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.

    20 August 2019

    Technical Line - How the new revenue recognition 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.

    20 August 2019

    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.

    14 August 2019

    Technical Line - How the new revenue standard will affect media and entertainment entities
    Our Technical Line highlights key implications of the new revenue standard for media and entertainment entities. This publication has been updated to address implementation issues such as the accounting for a sports team’s or league’s broadcast revenue, sponsorship revenue and the accounting for renewals of licenses of intellectual property. It supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    25 July 2019

    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 has been updated to address considerations for private label and co-branded credit card arrangements. It supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    17 July 2019

    Technical Line - IRU contracts: A purchaser’s guide to identifying and classifying leases (after the adoption of ASC 842)
    Accounting for indefeasible rights of use (IRU) contracts can be complicated, and determining whether such a contract is a lease or contains a lease in accordance with ASC 842 requires careful consideration of the terms of the contract. Our Technical Line walks through the criteria that a purchaser (lessee) should consider when determining whether an IRU contract is or contains a lease and, if so, whether a lessee should classify the lease as an operating or finance lease.

    29 May 2019

    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.

    16 May 2019

    Technical Line - Navigating the requirements for merging with a special purpose acquisition company
    Being acquired by a special purpose acquisition company (SPAC) offers an alternative to an initial public offering for private companies that want to enter the public markets. Our Technical Line discusses the special accounting and financial reporting requirements for a SPAC and all companies that are considering being acquired by a SPAC.

    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

    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.

    13 December 2018

    Technical Line - 2018 year-end accounting and disclosure reminders
    Entities may need to consider the accounting and financial reporting implications of recent economic events and conditions, including decisions they may make about their own business and/or investment strategies in reaction to or in anticipation of those events. Our Technical Line addresses many of the financial accounting and reporting considerations entities may need to consider in preparing their annual (or interim) financial statements and reports. It also discusses internal control over financial reporting (ICFR) and disclosure considerations, including considerations for filings with the Securities and Exchange Commission (SEC).

    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.

    29 November 2018

    Technical Line - A closer look at how insurers will have to change their accounting and disclosures for long-duration contracts
    The FASB’s new guidance will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and related deferred acquisition costs. The guidance also creates a new category of market risk benefits for certain benefits embedded in deposit or account balance contracts that insurers will have to measure at fair value.

    20 November 2018

    Technical Line - Accounting and reporting considerations for Brexit
    Entities with operations and/or investments in the UK and the EU will need to consider the accounting and financial reporting implications of the uncertainty caused by the UK’s plan to exit the EU by 29 March 2019.

    18 October 2018

    Technical Line - A holder’s accounting for cryptocurrencies
    We believe cryptocurrencies meet the definition of indefinite-lived intangible assets, and holders should account for them at historical cost less impairment by applying ASC 350. However, investment companies in the scope of ASC 946 should account for their investments in cryptocurrencies as “other investments” and should subsequently measure them at fair value through earnings. Our Technical Line also discusses issues such as determining the ownership of cryptocurrencies held through third parties (e.g., exchanges), accounting for cryptocurrencies received in hard fork or airdrop events or as a result of mining activities and internal control considerations for entities that invest in cryptocurrencies.

    4 October 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 provide additional accounting and disclosure considerations related to the end of the SAB 118 measurement period, including how to address regulations the US Treasury Department may issue after the measurement period ends. We have also updated the US Treasury Department and IRS notices section of the publication to include additional considerations for proposed regulations related to the Act’s GILTI tax provisions.

    4 October 2018

    Technical Line - What’s changing under the new standard on credit losses?
    Our Technical Line provides a summary of the key changes under the new credit losses standard and is intended to help companies understand the effects of those changes. This content also appears in our Financial reporting developments publication, Credit impairment under ASC 326, which provides an in-depth look at the new standard.

    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.

    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.

    15 March 2018

    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 address amendments that the FASB recently issued to clarify the new guidance on transition, the application of the measurement alternative and the presentation of financial liabilities measured using the fair value option. We also have added interpretive guidance on the accounting and disclosure requirements for equity investments measured using the measurement alternative. The most significant update is a clarification that when an entity holds an equity investment that is measured using the measurement alternative and observes an orderly transaction for the same or a similar investment of the same issuer, it must adjust the carrying amount of its investment to fair value as determined in accordance with the principles of ASC 820. In addition, we have updated the questions and answers about how to apply the new guidance. The guidance is already effective for calendar-year public business entities.

    4 December 2017

    Technical Line - How the new revenue standard affects life sciences entities
    We have updated our Technical Line, How the new revenue standard affects life sciences entities, to include additional factors that life sciences entities should consider when evaluating the effect of termination clauses on contract duration and to reflect the SEC release that updates the Commission’s guidance on accounting for sales of vaccines that are placed in the national stockpile. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    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.

    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 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 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 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.

    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.

    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.

    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.

    4 September 2013

    Technical Line - How to apply S-X Rule 3-14 to real estate acquisitions
    The SEC staff in the Division of Corporation Finance recently revised its guidance on the S-X Rule 3-14 reporting requirements for acquisitions of real estate operations and probable acquisitions. Application of the rule has been subject to various interpretations by the SEC staff, preparers and their advisers over the years. Our Technical Line describes the staff’s revisions and provides information to help registrants contemplating real estate acquisitions or initial SEC registrations of real estate investment trusts interpret and apply the rule.

    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.