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    Board Matters Quarterly

    9 January 2018

    Board Matters Quarterly - January 2018
    This issue examines the board’s role in corporate culture, discusses next-generation enterprise risk management and provides an overview of SEC Chairman Jay Clayton’s comments on the importance of cybersecurity disclosures.

    21 September 2017

    Board Matters Quarterly - September 2017
    This issue features an article about the board’s role in overseeing cyber risk management. Other articles look at how disclosures by audit committees of Fortune 100 companies have changed since 2012 and how a new PCAOB standard will significantly change the auditor’s report.

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    Comment Letters

    5 February 2018

    Comment letter - FASB proposal to add a transition option and practical expedient for lessors to the new leases standard
    In our comment letter, we supported the FASB’s efforts to reduce the cost and complexity of applying the guidance in ASC 842, Leases. However, we believe the Board could provide additional relief by giving entities the option to use an alternative transition method that would allow them to apply the recognition and subsequent measurement guidance in ASC 842 to existing leases at the date of initial application. In addition, we expressed concern that the proposed criteria for use of the lessor practical expedient would inadvertently limit the population of leases to which the practical expedient could be applied.

    2 February 2018

    Comment letter - Reclassification of stranded tax effects
    In our comment letter, we said the FASB’s proposed guidance appropriately addresses the concerns raised by stakeholders regarding the effects of US tax reform on financial reporting. However, we questioned whether the proposed guidance would be beneficial or operational for all entities and recommended that the Board give companies the option to apply the guidance and/or exclude certain tax effects recorded in other comprehensive income from the scope of any final standard. We also supported the addition of a broader project on backwards tracing to the FASB’s standard-setting agenda.

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    Effective Date Matrix

    20 December 2017

    Accounting pronouncements effective in 2017
    Several new accounting pronouncements are effective for 2017 interim or annual periods 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 in 2017.

    16 March 2017

    Accounting pronouncements effective for the first quarter of 2017
    Several new accounting pronouncements are effective for the first quarter of 2017 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.

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    EITF Update

    19 January 2018

    EITF Update - January 2018
    The EITF reached a consensus-for-exposure on customer’s accounting for implementation, setup, and other upfront costs (implementation costs) incurred in a cloud computing arrangement that is considered a service contract.

    21 March 2017

    EITF Update - March 2017
    The EITF reached a final consensus on determining the customer of the operation services in a service concession arrangement.

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    Financial Reporting Briefs

    14 December 2017

    Financial Reporting Briefs - Fourth quarter 2017
    This publication provides you with a snapshot of the major accounting and regulatory developments that have occurred during the fourth quarter of 2017. This edition brings you up to speed on the Boards' priority joint projects and several other financial reporting developments.

    14 September 2017

    Financial Reporting Briefs - Third quarter 2017
    This publication provides you with a snapshot of the major accounting and regulatory developments that have occurred during the third quarter of 2017. This edition brings you up to speed on the Boards' priority joint projects and several other financial reporting developments.

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    Financial Reporting Developments

    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.

    25 January 2018

    Financial Reporting Developments - Accounting for certain life insurance and annuity products
    Our FRD publication, Accounting for certain life insurance and annuity products, has been updated to incorporate and supersede content from our FRD publication, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. The updated FRD also includes enhanced and clarified interpretive guidance but does not address the FASB’s project on targeted improvements to the accounting for long-duration insurance contracts.

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    NAIC Bulletin

    21 December 2017

    Quarterly tax developments - December 2017
    Our December 2017 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 14 December 2017, 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.

    20 December 2017

    NAIC Bulletin - Fall 2017 edition
    Our NAIC Bulletin contains the highlights of the Fall 2017 meeting of the National Association of Insurance Commissioners.

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    SEC Comments and Trends

    25 September 2017

    SEC Comments and Trends - September 2017
    Our 2017 SEC Comments and Trends – An analysis of current reporting issues publication discusses in detail the SEC staff’s focus areas in its reviews of public filings in the year ended 30 June 2017. Our publication also identifies the top comment areas by industry. The publication provides best practices for responding to comment letters and will help you plan for the year-end reporting season.

    22 December 2016

    SEC Comments and Trends – December 2016 – Life sciences industry supplement
    This publication is intended to give you insights into the SEC staff’s areas of focus involving life sciences registrants. It should be read in conjunction with our 2016 SEC Comments and Trends publication and our Technical Line, 2016 trends in SEC comment letters publication, which both discuss matters that relate to all registrants.

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    SEC Compendium

    10 December 2017

    2017 AICPA Conference on Current SEC and PCAOB Developments
    Our compendium summarizes comments of representatives of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) at last week’s 2017 AICPA Conference on Current SEC and PCAOB Developments in Washington, D.C.

    12 December 2016

    2016 AICPA National Conference on Current SEC and PCAOB Developments
    Our compendium summarizes comments of representatives of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) at last week’s 2016 AICPA National Conference on Current SEC and PCAOB Developments in Washington, D.C.

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    SEC in Focus

    11 January 2018

    SEC in Focus - January 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 SEC staff guidance on tax reform, remarks by SEC Chairman Jay Clayton and members of the SEC staff at the recent AICPA Conference on Current SEC and PCAOB Developments on the new accounting standards, critical audit matters and cybersecurity, and a discussion of Mr. Clayton’s concerns about initial coin offerings. We also discuss recent SEC rulemaking activities, SEC staff guidance updates and significant personnel changes.

    5 October 2017

    SEC in Focus - October 2017
    Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include remarks from SEC Chairman Jay Clayton on cybersecurity disclosures in SEC filings, recent guidance on pay ratio disclosure requirements, regulatory relief for companies and individuals affected by recent hurricanes, staff clarifications about its nonpublic review program and recent trends in SEC staff comments on non-GAAP measures and other topics.

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    SEC Reporting Series

    30 November 2017

    2018 proxy statements - An overview of the requirements
    Our proxy publication is a reference tool for use when preparing the annual meeting proxy statement. It reflects all final SEC rules and interpretive guidance issued through 31 October 2017.

    30 November 2017

    Pro forma financial information - A guide for applying Article 11 of Regulation S-X
    Our publication summarizes the requirements for pro forma financial information and illustrates how registrants may apply the guidance to different transactions and pro forma adjustments.

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    Standard Setter Update

    22 January 2018

    2017 Standard Setter Update - Financial reporting and accounting developments
    Our 2017 Standard Setter Update highlights significant developments in financial reporting and accounting between 1 January and 31 December 2017.

    19 October 2017

    Third Quarter 2017 Standard Setter Update
    Our Third Quarter 2017 Standard Setter Update highlights significant developments in financial reporting and accounting between 1 July 2017 and 30 September 2017.

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    Technical Line

    8 February 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 incorporate the FASB decision to finalize guidance that would allow entities to reclassify tax effects stranded in OCI by tax reform. We also added discussions of the effect of interest expense deduction limitations on sources of future taxable income and accounting considerations for US Treasury Department and IRS regulations and notices, among other things. This document incorporates our views on SAB 118 and provides additional discussion on other accounting effects of the Act, including the views expressed by the FASB staff on the accounting for certain provisions of the Act. It also addresses the accounting implications for companies with fiscal years that end on a date other than 31 December.

    4 January 2018

    Technical Line - SEC staff provides guidance on accounting for the effects of US tax reform
    The SEC staff issued Staff Accounting Bulletin (SAB) 118 and Compliance and Disclosure Interpretation 110.02 addressing US tax reform, which was enacted on 22 December 2017. This SAB clarifies how companies that haven’t completed their accounting for the effects of the most significant change in US tax legislation in the last 30 years by their financial reporting deadlines should apply ASC 740. Under the SAB, a company can report provisional amounts based on reasonable estimates for items for which the accounting is incomplete. A company that cannot make a reasonable estimate of an item for which the accounting is incomplete should not account for that effect until it can make such an estimate. Those amounts will be subject to adjustment during a measurement period of up to one year.

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    To the Point

    15 February 2018

    To the Point - FASB issues guidance on reclassification from OCI of tax effects related to tax reform
    The FASB issued an Accounting Standards Update that will permit entities to reclassify tax effects stranded in accumulated other comprehensive income (OCI) as a result of tax reform to retained earnings. The final guidance gives entities the option to reclassify these amounts, but requires new disclosures, regardless of whether they elect to do so. The guidance is effective for fiscal years beginning after 15 December 2018, and interim periods within those fiscal years. Early adoption in any period is permitted.

    7 February 2018

    To the Point - FASB moves ahead with guidance on reclassification of tax effects stranded in OCI by tax reform
    The FASB decided to finalize guidance that would permit entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings and directed the staff to draft a final Accounting Standards Update. The FASB decided to give entities the options to (1) reclassify these amounts rather than require reclassification and (2) apply the guidance retrospectively or in the period of adoption.

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    US GAAP vs. IFRS: The Basics

    20 October 2016

    US GAAP versus IFRS: The basics
    We have updated our US GAAP versus IFRS – The basics publication, which provides an overview of common differences between US GAAP and IFRS. This release generally reflects guidance effective in 2016 and guidance finalized by the FASB and the IASB as of 31 May 2016. It also discusses current standard-setting activities at the FASB and the IASB.

    US Week in Review

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    More Publications

    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.

    1 November 2017

    Trends in US IPO registration statements
    Initial public offering (IPO) activity in the US rebounded in 2017 from 2016’s slow pace, and the outlook for IPOs is strong. Our publication analyzes recent US IPO activity and discusses trends in US IPO registration statements and common IPO accounting and reporting pitfalls. The publication also discusses the SEC staff’s recently expanded nonpublic review program and how emerging growth companies are using the various accommodations available to them under the Jumpstart Our Business Startups Act of 2012. It also highlights the most common accounting areas for restatements of financial statements during the IPO process and trends in the voluntary disclosure of material weaknesses in IPO registration statements.

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