This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.


EITF meeting Image

EITF discusses accounting for episodic TV series at January meeting

Jan 18, 2019

At its meeting yesterday, the EITF discussed Issue No. 18-B, “Improvements to Accounting for Episodic Television Series.”

The EITF reached a final consensus on the issue at this meeting. FASB ratification is expected at the Board’s January 30, 2019, meeting, after which a final ASU will be issued.

For a detailed summary of the meeting, see Deloitte’s January 2019 EITF Snapshot.


FASB (US Financial Accounting Standards Board) Image

FASB issues Q&A document on estimating credit loss reserves

Jan 11, 2019

The FASB has published a Q&A document, “Whether the Weighted-Average Remaining Maturity [WARM] Method Is an Acceptable Method to Estimate Expected Credit Losses.”

In the document, the FASB concludes, among other things, that the WARM method “is one of many methods that could be used to estimate an allowance for credit losses for less complex financial asset pools.”

For more in­for­ma­tion, see the press release and Q&A doc­u­ment on the FASB’s Web site.

AICPA (American Institute of CPAs) Image

AICPA issues revenue working draft for broker-dealers

Jan 10, 2019

The AICPA’s Financial Reporting Executive Committee has released for public comment a working draft for broker-dealers that addresses an illustrative note to financial statements that is associated with the implementation of the new revenue standard.

Topics addressed in the working draft include:

  • Significant judgments.
  • Investment banking.
  • Asset management.
  • Costs of obtaining or fulfilling a contract with a customer.
  • Disaggregated revenue from contracts with customers.

Com­ments on the working draft are due by March 4, 2019. For more in­for­ma­tion, see the revenue recog­ni­tion re­source page on the AICPA’s Web site.


CAQ (US Center for Audit Quality) Image

CAQ issues publication on audit quality disclosures

Jan 08, 2019

The Center for Audit Quality (CAQ) has released a publication, “The Audit Quality Disclosure Framework.”

The publication “assists firms in their ongoing efforts to develop [audit quality] disclosures, which many accounting firms now provide through annual transparency or audit quality reports.”

For more information, see the press release and publication on the CAQ’s Web site.

GASB (blue) Image

GASB issues proposed implementation guide

Jan 04, 2019

The GASB has issued a proposed implementation guide, “Fiduciary Activities,” which contains Q&As related to GASB Statement 84 (issued in January 2017).

Topics addressed in the proposed guide’s Q&As include:

  • Identifying fiduciary activities.
  • Reporting fiduciary activities in fiduciary funds.
  • Statement of fiduciary net position.
  • Statement of changes in fiduciary net position.
  • Reporting fiduciary component units.

In addition, the proposed guide would amend certain Q&As from previously issued implementation guides.

Comments on the proposed implementation guide are due by February 28, 2019. For more information, see the proposed guide on the GASB’s Web site.

Document (Deloitte green) Image

SEC and other organizations propose guidance to exclude community banks from the Volcker Rule

Jan 03, 2019

The SEC and several other government agencies — including the Federal Reserve Board, CFTC, FDIC, and OCC — have jointly issued a proposed rule, “Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds.”

Issued in response to the Economic Growth, Regulatory Relief, and Consumer Protection Act, the proposed amendments would “exclude from these restrictions certain firms that have total consolidated assets equal to $10 billion or less and total trading assets and liabilities equal to five percent or less of total consolidated assets and amend the restrictions applicable to the naming of a hedge fund or private equity fund to permit an investment adviser that is a banking entity to share a name with the fund under certain circumstances.”

Comments on the proposed rule are due 30 days after the date of its publication in the Federal Register. For more information, see the press release and proposed rule on the SEC’s Web site.

Event (2014) (mid gray) Image

US GAAP Plus year in review — 2018

Dec 27, 2018

US GAAP Plus turned five in September.

Over the past year, our overall visitor numbers grew exponentially and our Twitter followers (@DeloitteAcctg) received regular updates about the content on US GAAP Plus and other financial reporting Web sites.

Our most popular pages remain our accounting standards summaries, but interest in our news, publications, resource pages, and project summaries continues to be high.

Our 10 most popular stories of 2018
  1. FASB issues ASU on income tax accounting related to new tax reform law (February).
  2. FASB combines ASC 305 and ASC 210 (January).
  3. FASB adds SEC-related income tax guidance to Codification (March).
  4. FASB clarifies guidance on cloud computing arrangements (August).
  5. FASB issues ASU amending certain SEC guidance (March).
  6. FASB makes improvements to leasing guidance (July).
  7. SEC issues report on implementing internal accounting controls for cyber threats (October).
  8. FASB makes targeted improvements to lease accounting guidance (July).
  9. FASB makes targeted improvements to the accounting for long-duration insurance contracts (August).
  10. FASB makes technical corrections to guidance on financial instruments (February).
Our 10 most popular publications of 2018
  1. Financial Reporting Alert 18-1 — Frequently asked questions about tax reform (August).
  2. Heads Up — SEC issues final rule that updates and simplifies its disclosure requirements (August).
  3. Heads Up — Observations from a review of public filings by early adopters of the new revenue standard (January).
  4. Financial Reporting Alert 18-2 — FASB makes decisions about the application of income tax guidance to certain tax reform provisions (January).
  5. Heads Up — What private companies should know about the new revenue recognition standard (April).
  6. Financial Reporting Alert 18-11 — Clarifying the interim stockholders’ equity and effective date requirements in the SEC’s final rule on disclosure simplification (October).
  7. Heads Up — ASC 606 is here — How do your revenue disclosures stack up? (July).
  8. Heads Up — FASB issues standard to amend required fair value measurement disclosures (August).
  9. Heads Up — At "lease" there are answers to transition questions (October).
  10. Heads Up — SEC comments reflect registrants’ efforts to implement ASC 606 (September).

We wish you a happy and safe New Year and look forward to bringing you the latest financial reporting news in 2019.

SEC (US Securities and Exchange Commission) Image

SEC posts information on its operational status during the government shutdown

Dec 26, 2018

The SEC has posted a plan for operating under the government shutdown. During this period, the agency “will have a very limited number of staff members available . . . to respond to emergency situations involving market integrity and investor protection, including law enforcement.”

The SEC’s Di­vi­sion of Cor­po­ra­tion Finance page notes that “[r]egardless of our operating status, EDGAR will accept registration statements, offering statements and other filings; however, . . . during a shutdown we will not be able to declare registration statements effective nor qualify Form 1-A offering statements.”

For more information, see the following pages on the SEC's Web site:

FASB meeting Image

Highlights of the FASB’s December 19 meeting

Dec 21, 2018

At the FASB’s December 19, 2018, meeting, the Board discussed its projects on (1) segment reporting, (2) financial performance reporting, (3) the definition of collections, and (4) credit losses implementation.

Segment reporting

The Board discussed feedback received on its segment aggregation study. It determined that the alternatives considered in the study for improving the aggregation criteria and reportable segments process do not provide cost-beneficial solutions. The Board directed its staff to conduct a second segment reporting study that will focus on “regularly reviewed” information.

For more information, see the meeting minutes on the FASB’s Web site.

Financial performance reporting — disaggregation of performance information

The Board discussed feedback received from companies on their system capabilities for disaggregating income statement line items. The Board directed its staff to consider various ways of disaggregating expense information on the basis of how management views such information internally.

The Board also discussed whether to combine its financial performance reporting project with its segment reporting project, but it decided to keep the projects separate.

For more information, see the tentative Board decisions on the FASB’s Web site.

Updating the definition of collections

The Board completed redeliberations of its June 2018 proposed Accounting Standards Update (ASU) Updating the Definition of Collections. It made decisions related to (1) direct care of collections, (2) disclosures, (3) transition, (4) effective date, and (5) analysis of cost and benefits. The Board directed its staff to draft a final ASU for vote by written ballot.

For more information, see the tentative Board decisions on the FASB’s Web site.

Financial instruments — credit losses implementation

The Board discussed its November 2018 proposed ASU Codification Improvements — Financial Instruments. The Board decided to extend the comment letter deadline by 30 days to January 18, 2019.

The Board also decided to (1) conduct further research and analysis on the presentation of total gross write-offs and total gross recoveries within the credit quality information vintage disclosure and (2) hold a related public roundtable in January 2019.

For more information, see the tentative Board decisions on the FASB’s Web site.

FASAC meeting Image

Highlights of the December 2018 FASAC meeting

Dec 21, 2018

At its December 13, 2018, meeting, the FASB’s Financial Accounting Standards Advisory Council (FASAC) discussed (1) a technology case study, (2) distinguishing liabilities from equity (including convertible debt), and (3) the relative benefits and costs of disclosures in GAAP.

Technology case study

The FASAC discussed the impact of emerging technologies on financial reporting. As noted in the meeting recap on the FASB’s Web site, FASAC members:

  • “Explained how emerging technology has helped to create process efficiencies.”
  • “Discussed the timeframes and complexities with legacy systems.”
  • “Emphasized the importance of managing high-quality data and controls over the data.”

Distinguishing liabilities from equity (including convertible debt)

FASAC members provided feedback on the FASB’s project related to distinguishing liabilities from equity (including convertible debt). Specifically, they discussed (1) the disclosure of earnings-per-share treatment of convertible instruments and (2) the derivatives scope exception.

Relative benefits and costs of disclosures in GAAP

FASAC members noted that (1) some of the costliest disclosures are not always the most useful and (2) relevant disclosures may change over time or be dependent on the user. They supported continued research on this topic.

For more information, see the meeting recap on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.