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    Business combinations

    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.

    7 February 2018

    Financial Reporting Developments - Business combinations
    We have updated our FRD publication on business combinations to include interpretive guidance on how to apply the recognition and measurement principles in ASC 805 to acquired contracts with customers that are accounted for under ASC 606. Refer to Appendix H 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.

    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.

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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

    4 October 2018

    Financial Reporting Developments - Credit impairment under ASC 326
    Our new FRD publication on Accounting Standards Codification 326, Credit Losses, discusses the guidance for measuring and recognizing credit losses on financial assets measured at amortized cost, net investments in leases, off-balance sheet commitments and reinsurance recoverables as well as the impairment model for available-for-sale debt securities and certain beneficial interests. It is intended to help companies consider the effects of adopting the new standard. The publication reflects our views as of September 2018 and will be updated to reflect standard-setting developments and enhancements to our interpretative guidance.

    4 October 2018

    Technical Line - A closer look at the FASB’s new hedge accounting standard
    We have updated our Technical Line on ASU 2017-12 to reflect the FASB staff’s responses at the 5 September 2018 Board meeting to various technical inquiries from stakeholders. This publication also highlights the implementation issues that the FASB plans to address in its Codification improvements projects.

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    Income taxes

    4 October 2018

    Quarterly tax developments - September 2018
    Our September 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 26 September 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.

    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.

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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

    11 October 2018

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

    11 October 2018

    Technical Line - How the new leases standard affects telecom and media and entertainment entities
    Our Technical Line highlights key implications of the new leases standard for telecom and media and entertainment 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

    11 October 2018

    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, including the amendments to ASC 842 that allow an entity to apply the transition provisions at the beginning of the period of adoption. The updates also address proposed amendments to ASC 842 and clarify and enhance our interpretive guidance. Refer to Appendix E of the publication for a summary of the updates.

    11 October 2018

    Technical Line - How the new leases standard affects airlines
    Our Technical Line highlights key implications of the new leases standard for airlines. 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

    11 October 2018

    Financial Reporting Developments - Revenue from contracts with customers (ASC 606)
    Our FRD publication on ASC 606, Revenue from Contracts with Customers, has been updated to further clarify and enhance our interpretative guidance. Refer to Appendix A of the publication for a summary of the significant updates.

    26 September 2018

    Accounting overview of ASC 606 for private companies – on-demand video
    An on-demand video is now available to help private companies get started with implementing the new revenue recognition standard. This video addresses the five-step model under ASC 606, the accounting for licenses of intellectual property and the criteria for cost capitalization under the new guidance in ASC 340-40. The video also addresses the disclosure requirements in ASC 606 for private companies.

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    SEC/Other regulators

    11 October 2018

    Comment Letter - AICPA’s proposed changes to standards on agreed-upon procedures and other attestation engagements
    In our comment letter, we support expanding the instances in which a practitioner could perform and report on procedures. But we believe the AICPA should accomplish this objective by creating a new type of engagement similar to the selected procedures engagement the AICPA proposed in September 2017 rather than eliminating requirements for agreed-upon procedures engagements. We also do not support aligning the AICPA attestation standards with the International Standard on Assurance Engagements 3000 (Revised). Instead, we believe the Accounting Standards Board should conduct a post-implementation review of its clarified attestation standards that went into effect in May 2017.

    4 October 2018

    SEC in Focus - October 2018
    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 SEC’s capital formation agenda, an analysis of a new interim financial statement disclosure requirement and a proposal by the SEC to streamline disclosure requirements for certain registered debt offerings. We also discuss the Commission’s focus on digital assets, current practice matters and significant personnel changes.

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    Periodic updates

    4 October 2018

    Accounting pronouncements effective for the third quarter of 2018
    Several new accounting pronouncements are effective for the third quarter of 2018 for calendar-year entities. We list them along with related EY publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.

    4 October 2018

    Quarterly tax developments - September 2018
    Our September 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 26 September 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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    More topics

    16 October 2018

    Financial Reporting Developments - Accounting changes and error corrections
    Our FRD publication on accounting changes and error corrections has been updated to further enhance and clarify our interpretive guidance.

    3 October 2018

    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.

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