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2016

TRG discusses implementation of new revenue standard

Nov 11, 2016

At its November 7, 2016, meeting, the FASB’s revenue transition resource group (TRG) discussed potential issues related to implementing the new revenue standard.

Topics dis­cussed at the meeting in­cluded:

  • Revenue recognition over time.
  • Capitalization and amortization of the incremental costs of obtaining a contract.
  • Sales-based or usage-based royalties with a minimum guarantee.
  • Payments to customers.

For more in­for­ma­tion, see De­loitte’s November 2016 TRG Snap­shot.

SEC updates Financial Reporting Manual

Nov 10, 2016

The SEC’s Division of Corporation Finance has published an update to its Financial Reporting Manual (FRM) that contains revisions made as of November 9, 2016.

The re­vi­sions include:

  • Sections 1140.3 and 10220.7 — Revised “guidance on the number of years of financial statements of a target company in a proxy statement when an emerging growth company is involved.”
  • Section 1330.5 — Clarified the filings that will be required after Form 10 becomes effective.
  • Section 5120.1 — Elucidated the “effect of loss of smaller reporting company status on accelerated filer determination and filing due dates.”
  • Section 8110.2 — Reflected changes to C&DIs on non-GAAP financial measures.
  • Section 10220.5 — Clarified “emerging growth company guidance on financial statements of entities other than the registrant and pro forma information.”
  • Section 11120.4 — Added implementation guidance related to new revenue standards (ASU 2014-09 and IFRS 15).
  • Section 11200 — Incorporated implementation guidance related to new leases standards (ASU 2016-02 and IFRS 16).
  • Section 11300 — Added implementation guidance related to short-duration contract disclosures (ASU 2015-09).

For more in­for­ma­tion, see Deloitte's related journal entry as well as the updated FRM on the SEC’s Web site.

SEC staff publishes C&DIs related to Form S-8

Nov 10, 2016

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to filing considerations associated with Form S-8 registration statements for securities to be offered to employees under employee benefit plans.

For more in­for­ma­tion, see Ques­tions 126.06, 126.43, and 126.44 of the Securities Act forms C&DIs as well as Questions 240.11, 240.15, and 240.16 of the Securities Act rules C&DIs on the SEC’s Web site.

FASB issues four proposed taxonomy implementation guides

Nov 07, 2016

The FASB has issued four proposed 2017 U.S. GAAP financial reporting taxonomy implementation guides to help entities apply the taxonomy’s modeling structure to their XBRL disclosures.

The guides address the following topics:

  • Leases (ASC 842). 
  • Revenue from contracts with customers (ASC 606). 
  • Dimensional modeling for disclosures related to consolidated and nonconsolidated entities. 
  • Retirement benefits.

Comments on the implementation guides are due by December 2, 2016. For more information, see the taxonomy guide page on the FASB’s Web site.

FASB refines Investor Advisory Committee objectives

Nov 07, 2016

The FASB has announced refinements to the objective of its Investor Advisory Committee (IAC) as part of its periodic review of the committee’s effectiveness.

The refined IAC “will advise the FASB in two primary areas, including generalist issues (such as Disclosure Framework, Hedging, and other broad projects added to the future agenda) and emerging trends. Future IAC meetings also may include breakout sessions, as well as substantive public sessions.”

FASB member Marc Siegel will serve as the board liaison to the IAC. The FASB is looking to broaden IAC membership and is seeking nominations for new IAC members.

For more information, see the press release on the FASB’s Web site.

SEC extends deadline related to proposed plan governing consolidated audit trail

Nov 04, 2016

The SEC has issued “Interim Final Temporary Rule Regarding the Consolidated Audit Trail.”

The interim final temporary rule extends — from November 10, 2016, to November 15, 2016 — the deadline “by which the Commission is required to act on the proposed National Market System . . . Plan Governing the Consolidated Audit Trail.”

For more information, see the interim final temporary rule on the SEC’s Web site.

FASB proposes amendments to guidance on service concession arrangements

Nov 04, 2016

The FASB has issued a proposed ASU, “Determining the Customer of the Operation Services,” in response to an EITF consensus-for-exposure.

The pro­posed ASU “would clarify that the grantor (government), rather than the third-party [users], is the customer of the operation services in all cases for service concession arrangements within the scope of Topic 853.” In addition, the proposal would eliminate diversity in practice related to the “customer determination for the operation services” and would “enable more consistent application of other aspects of the revenue guidance” associated with this determination.

Com­ments on the pro­posed ASU are due by January 6, 2017. For more in­for­ma­tion, see Deloitte’s September 2016 EITF Snapshot as well as the pro­posed ASU on the FASB’s Web site.

Highlights from the FASB’s November 2 meeting

Nov 04, 2016

At its November 2, 2016, meeting, the FASB discussed whether to add a project on consolidation to its technical agenda. In addition, the Board discussed its project on pension and postretirement benefit costs.

Consolidation

The FASB decided to add to its agenda a project in which it would (1) reorganize the consolidation guidance in ASC 810 into separate subtopics on variable interest entities and voting interest entities, (2) rescind the guidance in ASC 810-10-15 that applies to consolidation of entities controlled by contract and ASC 810-30 (on research and development arrangements), and (3) create a new Codification topic, ASC 812, that will completely supersede ASC 810.

The Board directed its staff to prepare a draft of the proposed amendments. For more information, see the meeting minutes on the FASB’s Web site.

Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost

The FASB dis­cussed staff outreach and research on its proposed ASU Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The Board reaffirmed the proposed guidance and authorized its staff to draft a final ASU.

For more in­for­ma­tion, see Deloitte’s related journal entry as well as the meeting minutes on the FASB’s Web site.

New SEC deputy chief accountant appointed

Nov 04, 2016

The SEC has announced that Marc A. Panucci has been appointed as deputy chief accountant to replace Brian T. Croteau.

Mr. Panucci worked for the SEC from 2007 to 2010 as an SEC senior associate chief accountant. Cur­rently, he is a partner at Price­wa­ter­houseCoopers LLP and a member of the AICPA’s Auditing Standards Board.

For more information, see the press release on the SEC’s Web site.

SEC staff updates C&DIs

Nov 03, 2016

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to (1) Securities Act forms and (2) proxy rules and Schedule 14A.

The update related to Securities Act forms concerns the transaction requirements in Instructions I.B.3 and I.B.6 of Form S-3. The update related to proxy rules and Schedule 14A pertains to the submission of annual reports to the SEC under Rules 14a-3(c) and 14c-3(b). In addition to mailing or submitting to EDGAR an annual report, registrants can meet the requirement of providing annual reports to security holders by posting it on their corporate Web sites for one year.

For more in­for­ma­tion, see Ques­tion 116.25 of the C&DIs on Securities Act forms and the C&DI on submission of annual reports to the SEC on the SEC’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.