AccountingLink

    Technical Line

    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.

    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 - 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.

    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.

    20 September 2018

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

    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.

    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.

    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 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.

    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.

    20 November 2017

    Technical Line - How the new revenue 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.

    14 September 2017

    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.

    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 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.

    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 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.

    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 June 2017

    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.

    9 May 2017

    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 supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    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.

    23 February 2017

    Technical Line - How the new revenue standard will affect media and entertainment entities
    This Technical Line highlights how practice will change for media and entertainment entities under the new revenue standard issued by the FASB and the IASB. It addresses the amendments the FASB has made and the discussions of members of the Transition Resource Group for Revenue Recognition on topics of interest to media and entertainment entities. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    9 February 2017

    Technical Line - A closer look at the FASB’s new guidance on the definition of a business
    The FASB issued new guidance that will likely reduce the number of transactions accounted for as business combinations. The guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If that threshold is met, the set of assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance.

    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.

    25 January 2017

    Technical Line - How changes to the definition of a business will affect life sciences entities
    This publication focuses on how life sciences entities will be affected by the final guidance issued by the FASB that narrows the definition of a business.

    25 January 2017

    Technical Line - How changes to the definition of a business will affect real estate entities
    This publication focuses on how real estate entities will be affected by the final guidance issued by the FASB that narrows the definition of a business.

    12 January 2017

    Technical Line - How to apply the FASB’s guidance on management’s going concern evaluation
    The FASB’s guidance requiring management of all entities to perform a going concern evaluation will be effective this year end for calendar-year companies. Our Technical Line provides reminders and discusses how to apply the guidance.

    1 November 2016

    Technical Line - A closer look at proposed changes in insurers’ accounting and disclosures for long-duration contracts
    The FASB proposed changing how insurers account for and make disclosures about long-duration contracts to provide users of the financial statements with more meaningful information about the amount, timing and uncertainty of cash flows related to these contracts. The proposal would change how insurers recognize and measure insurance liabilities and deferred acquisitions costs and require them to make new disclosures. The proposal would significantly change practice and could have a material effect on insurers’ financial statements. Comments are due by 15 December 2016.

    27 October 2016

    Technical Line - New OMB A-123 requires federal agencies to integrate enterprise risk management and internal controls
    Federal agencies are required to integrate enterprise risk management (ERM) and internal controls into their business activities under the updated Circular No. A-123 recently issued by the Office of Management and Budget. The Circular emphasizes the importance of coordinating ERM activities with the strategic planning and review process. Agency management is expected to engage in the ERM process and form an integrated governance structure to address the risks in an increasingly complex environment of uncertain budgets, expanded mandates and increased transparency 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.

    29 September 2016

    Technical Line - 2016 trends in SEC comment letters
    Our Technical Line highlights the SEC staff’s increased focus on non-GAAP financial measures and other trends in SEC comment letters in the year ended 30 June 2016, including the staff’s comments on segment reporting, loss contingencies and management’s discussion and analysis. We also note that, in the latest year, the SEC staff continued to issue fewer comment letters than it has in the past.

    7 September 2016

    Technical Line - How the new revenue recognition standard will affect homebuilders
    This Technical Line highlights key aspects of applying the FASB’s standard to homebuilding arrangements, addresses significant changes to current practice and reflects the latest implementation insights for homebuilders. It supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with it.

    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.