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.

Accounting Roundup — January 2017

Published on: 03 Feb 2017

Download PDF

by Magnus Orrell and Joseph Renouf, Deloitte & Touche LLP

Welcome to the January 2017 edition of Accounting Roundup. Highlights of this issue include the following:

  • The FASB’s issuance of (1) ASUs that clarify the definition of a business, amend the consolidation guidance for not-for-profit entities, simplify the goodwill impairment test, make technical corrections to the new revenue standard, and amend certain SEC guidance and (2) proposed ASUs that would simplify the balance sheet classification of debt and update the inventory disclosure requirements.
  • The release of FAQs on the FASB’s credit losses standard, ASU 2016-13, by several banking agencies.
  • Public statements by the SEC’s acting chairman, Michael Piwowar, regarding the Commission’s 2014 guidance on its August 2012 final rule on conflict minerals.

Be sure to monitor upcoming issues of Accounting Roundup for new developments. We value your feedback and would appreciate any comments you may have on this publication. Take a moment to tell us what you think by sending us an e-mail at accountingstandards@deloitte.com.

Leadership Changes

FAF: On December 22, 2016, the FAF announced that Susan J. Carter, Anthony J. Dowd, and T. Eloise Foster have been appointed to the FAF board of trustees. In addition, the trustees announced that Gary H. Bruebaker has been appointed as vice-chairman. The new board members and vice-chairman began their terms on January 1, 2017.

IASB: On January 11, 2017, the IFRS Foundation trustees announced that Tom Scott has been appointed as a member of the IASB for a five-year term beginning in April 2017.

PCAOB: On December 23, 2016, the PCAOB announced that Jay D. Hanson has resigned as a board member.

SEC: On January 4, 2017, Donald Trump announced that he has nominated Jay Clayton as SEC chairman. Mr. Clayton would replace Mary Jo White, who left the SEC at the end of the Obama Administration. Mr. Clayton’s appointment is contingent on a Senate confirmation vote. To fill the vacancy, Michael S. Piwowar was appointed as acting SEC chairman on January 23, 2017.

Accounting — New Standards and Exposure Drafts

Business Combinations

FASB Clarifies the Definition of a Business

Affects: All entities.

Summary: On January 5, 2017, the FASB issued ASU 2017-01 to clarify the definition of a business in ASC 805, which was among the primary issues raised in connection with the FAF’s post-implementation review report on FASB Statement 141(R) (codified in ASC 805). The amendments in the ASU are intended to make application of the guidance more consistent and cost-efficient.

Editor's Note

Editor’s Note

The definition of a business in ASC 805 also affects other aspects of accounting, such as disposal transactions, determining reporting units when goodwill is tested for recoverability, and the business scope exception in ASC 810.

The ASU’s Basis for Conclusions indicates that the amendments “narrow the definition of a business and provide a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business.” Specifically, the ASU:

  • Provides a “screen” for determining when a set is not a business. The screen requires a determination that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The screen will reduce the number of transactions that an entity must further evaluate to determine whether they are business combinations or asset acquisitions.
  • Specifies that if the screen’s threshold is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create outputs. The ASU provides a framework to help entities evaluate whether both an input and a substantive process are present, and it removes the evaluation of whether a market participant could replace the missing elements.
  • Narrows the definition of the term “output” to be consistent with the description of outputs in ASC 606.

The standard also provides examples that illustrate how an entity should apply the amendments in determining whether a set is a business.

Editor's Note

Editor’s Note

The definition of a business for SEC reporting purposes in Regulation S-X, Rule 11-01(d), and used by registrants to determine when financial statements and pro forma information are needed in SEC filings is different from the definition for U.S. GAAP accounting purposes. The SEC has not changed this definition as a result of the ASU’s amendments.

The definition of a business in ASC 805 is currently identical to that in IFRS 3. Nevertheless, the interpretation and application of this term in jurisdictions that apply U.S. GAAP do not appear consistent with those in jurisdictions that apply IFRSs (i.e., the definition of a business in IFRS jurisdictions is not applied as broadly). Although the ASU adds implementation guidance to U.S. GAAP that is not found in IFRSs, the FASB intends to more closely align practice under U.S. GAAP with that under IFRSs by narrowing the application of the U.S. GAAP definition. Further, the IASB has added to its agenda a project on the definition of a business and issued an ED that proposes amendments similar to those in the ASU.

Next Steps: The ASU is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods therein. For all other entities, the ASU is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The ASU must be applied prospectively on or after the effective date, and no disclosures for a change in accounting principle are required at transition.

Early adoption is permitted for transactions (i.e., acquisitions or dispositions) that occurred before the issuance date or effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance.

Other Resources: Deloitte’s January 13, 2017, Heads Up. Also see the press release and FASB in Focus newsletter on the FASB’s Web site.

Consolidation

FASB Amends Consolidation Guidance for Not-for-Profit Entities

Affects: Not-for-profit entities (NFPs).

Summary: On January 12, 2017, the FASB issued ASU 2017-02, which amends the consolidation guidance for not-for-profit entities in ASC 958-810. The amendments:

  • Incorporate into ASC 958-810 the superseded consolidation guidance in ASC 810-20.
  • Address when an “NFP limited partner should consolidate a for-profit limited partnership.”

Next Steps: The ASU is effective for NFPs for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017.

Other Resources: Deloitte’s January 30, 2017, Heads Up.

Debt Classification

FASB Proposes Changes to Simplify the Balance Sheet Classification of Debt

Affects: Entities that present a classified balance sheet.

Summary: On January 10, 2017, the FASB issued a proposed ASU aimed at reducing the cost and complexity of determining whether debt should be classified as current or noncurrent in a classified balance sheet. The ASU is being issued in response to feedback from stakeholders that the existing guidance on the balance sheet classification of debt is unnecessarily complex. The FASB’s proposed approach would replace the current, fact-specific guidance in ASC 470-10 with a uniform principle under which a debt arrangement would be classified as noncurrent if either (1) the “liability is contractually due to be settled more than one year (or operating cycle, if longer) after the balance sheet date” or (2) the “entity has a contractual right to defer settlement of the liability for at least one year (or operating cycle, if longer) after the balance sheet date.” In addition, the proposed ASU includes application guidance that would clarify how covenant violations, covenant waivers, post-balance-sheet refinancing transactions, and subjective acceleration clauses affect debt classification.

Next Steps: Comments on the proposed ASU are due by May 5, 2017.

Other Resources: Deloitte’s January 12, 2017, Heads Up. Also see the press release on the FASB’s Web site.

Goodwill

FASB Simplifies Goodwill Impairment Test

Affects: All entities.

Summary: On January 26, 2017, the FASB issued ASU 2017-04, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, “an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount [and] should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.”

In addition, the ASU:

  • Clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units in connection with an entity’s testing of reporting units for goodwill impairment.
  • Clarifies that “an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.”
  • Makes minor changes to the overview and background sections of certain ASC subtopics and topics as part of the Board’s initiative to unify and improve those sections throughout the Codification.
Editor's Note

Editor’s Note

Removing step 2 from the goodwill impairment test under ASC 350 more closely aligns U.S. GAAP with IFRSs because there is only one step in the goodwill impairment test under IFRSs. However, the impairment test required under IAS 36 is performed at the cash-generating-unit or group-of cash-generating-units level rather than the reporting-unit level as required by U.S. GAAP. Further, IAS 36 requires an entity to compare the carrying amount of the cash-generating unit with its recoverable amount, whereas the ASU requires an entity to compare the carrying amount of a reporting unit with its fair value.

Next Steps: The ASU is effective prospectively for fiscal years beginning after the following dates:

  • For public business entities that are SEC filers, December 15, 2019.
  • For public business entities that are not SEC filers, December 15, 2020.
  • For all other entities, including not-for-profit entities, December 15, 2021.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

Other Resources: Deloitte’s February 1, 2017, Heads Up.

Inventory

FASB Proposes Updates to Inventory Disclosures

Affects: All entities.

Summary: On January 10, 2017, the FASB issued a proposed ASU that would modify or eliminate certain disclosure requirements related to inventory and establish new requirements. The proposal is part of the FASB’s disclosure framework project, which is intended to help reporting entities improve the effectiveness of financial statement disclosures by “clearly communicating the information that is most important to users of each entity’s financial statements.”

Editor's Note

Editor’s Note

Also as part of its disclosure framework project, the FASB proposed guidance in July 2016, January 2016, and December 2015 that would amend disclosure requirements related to income taxes, defined benefit pensions and other postretirement plans, and fair value measurement. See Deloitte’s December 8, 2015; January 28, 2016; and July 29, 2016, Heads Up newsletters for more information.

Disclosures required by the ASU would include the following:

  • Significant changes in inventory resulting from transactions or events other than the purchase, manufacture, or sale of inventory in the normal course of business.
  • The major components of inventory (e.g., raw materials, work in process, finished goods, and supplies).
  • Entities that apply the LIFO method would be required to disclose (1) the excess of replacement cost or current cost over the reported inventory amount and (2) the effect on net income of the liquidation of a portion of an entity’s LIFO inventory.
  • For each annual period presented, “qualitative and quantitative information about the critical assumptions” used in the portions of inventory measured under the retail inventory method calculation.
  • Public business entities would be required to disclose, by reportable segment, (1) total inventory and (2) a disaggregation of inventory by major component (such as raw materials, work in process, finished goods, and supplies).

Next Steps: Comments on the proposed ASU are due by March 13, 2017.

Other Resources: Deloitte’s January 12, 2017, Heads Up. Also see the press release on the FASB’s Web site.

Revenue Recognition

FASB Makes Technical Corrections and Improvements to New Revenue Standard

Affects: All entities.

Summary: On December 21, 2016, the FASB issued ASU 2016-20, which makes certain technical corrections (i.e., minor changes and enhancements) to the Board’s new revenue standard, ASU 2014-09. The amendments were issued in response to feedback received from several sources, including the TRG for revenue recognition. The amendments clarify, rather than change, the new revenue standard’s core revenue recognition principles. The technical corrections affect the following aspects of the new revenue standard:

  • Loan guarantee fees.
  • Contract costs — impairment testing.
  • Contract costs — interaction of impairment testing with guidance in other topics.
  • Provisions for losses related to construction-type and production-type contracts.
  • Scope of the new revenue standard.
  • Disclosure of remaining performance obligations.
  • Disclosure of prior-period performance obligations.
  • A contract modification example.
  • Contract assets versus receivables.
  • Refund liabilities.
  • Advertising costs.
  • Fixed-odds wagering contracts in the casino industry.
  • Cost capitalization for advisers to private and public funds.

Next Steps: The effective date and transition requirements in ASU 2016-20 are the same as those in the new revenue standard.

Editor's Note

Editor’s Note

In August 2015, the FASB issued ASU 2015-14, which deferred for one year the effective date of the new revenue standard for public and nonpublic entities reporting under U.S. GAAP. For public business entities, as well as certain nonprofit entities and employee benefit plans, the effective date is annual reporting periods, and interim periods therein, beginning after December 15, 2017. The effective date for all other entities is one year later (i.e., December 15, 2018). Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016.

SEC

FASB Amends Certain Topics on the Basis of SEC Staff Announcements

Affects: SEC registrants.

Summary: On January 23, 2017, the FASB issued ASU 2017-03, which amends certain SEC guidance in the FASB Accounting Standards Codification in response to SEC staff announcements made at the September 22, 2016, and November 17, 2016, EITF meetings. The announcements addressed the following topics:

  • The “additional qualitative disclosures” that a registrant is expected to provide when it “cannot reasonably estimate the impact” that ASUs 2014-09, 2016-02, and 2016-13 will have in applying the guidance in SAB Topic 11.M (announcement made at the September 22, 2016, EITF meeting).
  • Guidance in ASC 323 related to the amendments made by ASU 2014-01 regarding use of the proportional amortization method in accounting for investments in qualified affordable housing projects (announcement made at the November 17, 2016, EITF meeting).

Other Resources: Deloitte’s September 2016 and November 2016 EITF Snapshot newsletters.

International

IASB Proposes Changes to IFRSs as Part of Annual Improvements Process

Affects: Entities reporting under IFRSs.

Summary: On January 12, 2017, the IASB published an ED that would make minor amendments to the following three IFRSs as part of its annual improvements process:

  • IAS 12 — These amendments would “clarify that an entity should account for all income tax consequences of dividends in the same way, regardless of how the tax arises.”
  • IAS 23 — This standard would be amended “to clarify that when a qualifying asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that qualifying asset as part of the funds that it has borrowed generally.”
  • IAS 28 — These amendments would “clarify that an entity is required to apply IFRS 9 Financial Instruments, including its impairment requirements, to long-term interests in an associate or joint venture that, in substance, form part of the net investment in the associate or joint venture but to which the equity method is not applied.”

Next Steps: Comments on the ED are due by April 12, 2017.

Other Resources: For more information, see the press release on the IASB’s Web site.

Accounting — Other Key Developments

Credit Losses

Banking Agencies Release FAQs on FASB’s Credit Losses Standard

Affects: All entities.

Summary: On December 19, 2016, the Federal Reserve, FDIC, NCUA, and OCC released a series of FAQs on the FASB’s new credit losses standard, ASU 2016-13, which was released in June 2016. Topics addressed in the FAQs include:

  • Key provisions of the ASU, including those related to scope, effective date and transition, and measurement approaches.
  • Aspects of U.S. GAAP that the ASU will change, including those related to purchased credit-deteriorated financial assets, available-for-sale and held-to-maturity debt securities, troubled debt restructurings, and off-balance-sheet credit exposures.
  • “[I]nitial supervisory views with respect to measurement methods, portfolio segmentation, use of vendors, scalability, data needs, and allowance processes.”
  • “[C]ertain steps that financial institutions are encouraged to take to prepare for the transition to the new accounting standard.”

Other Resources: For more information, see the press release on the OCC’s Web site.

Derivative Contracts

Variation Margin on Derivatives

Affects: Entities that have derivatives cleared through the Chicago Mercantile Exchange (CME) or London Clearing House (LCH).

Summary: The CME and LCH have amended their respective rulebooks to legally characterize variation margin payments — for derivative contracts that are referred to as settled-to-market (STM) — as settlements of the derivative’s mark-to-market exposure and not collateral. As a result, accounting questions have arisen regarding the determination of the appropriate unit of account, hedge accounting upon transition and going forward, and other issues.

In May 2016, the ISDA’s accounting committee submitted a whitepaper on the accounting impact of the rulebook changes to the SEC’s Office of the Chief Accountant. On January 4, 2017, the ISDA issued a confirmation letter indicating that the SEC staff does not object to the conclusions reached in the whitepaper.

Next Steps: Entities should consider the impact that the changes may have in anticipation of financial statement filings for reporting periods ending after January 3, 2017.

Other Resources: Deloitte’s January 24, 2017, Financial Reporting Alert.

Revenue Recognition

AICPA Issues Revenue Working Drafts

Affects: All entities.

Summary: In January, 2017, three AICPA revenue recognition task forces released for public comment working drafts on accounting issues associated with the implementation of the new revenue standard for the following industries: aerospace and defense, telecommunications, and time shares. The aerospace and defense working draft provides guidance on contract modifications, the working draft for time-share entities discusses performance obligations, and the two working drafts for the telecommunications industry address (1) separate performance obligations and (2) stand-alone selling prices.

Next Steps: Comments on the working drafts are due by March 2, 2017.

Other Resources: For more information, see the aerospace and defense, telecommunications, and time-share revenue recognition task force pages on the AICPA’s Web site.

XBRL

FASB Releases 2017 U.S. GAAP Financial Reporting Taxonomy

Affects: All entities.

Summary: On December 15, 2016, the FASB released the 2017 U.S. GAAP Financial Reporting Taxonomy. The taxonomy “is a list of computer-readable tags in [XBRL] format that allows companies to tag precisely the thousands of pieces of financial data that are included in typical long-form financial statements and related footnote disclosures.” The 2017 version of the taxonomy “contains updates for accounting standards and other improvements to the official Taxonomy previously in use by SEC issuers.”

Next Steps: The SEC needs to approve the taxonomy before it becomes official; the Commission is expected to do so in early 2017.

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

Auditing Developments

PCAOB

PCAOB Releases Staff Guidance on Form AP

Affects: Registered public accounting firms.

Summary: On January 26, 2017, the PCAOB issued staff guidance on Form AP, under which registered public accounting firms “must provide information about engagement partners and accounting firms that participate in audits of issuers.” The staff guidance also addresses the disclosures that an auditor is required to provide if it decides to include such information in the auditor’s report.

Governmental Accounting and Auditing Developments

FASAB

FASAB Issues Statement on Insurance Programs

Affects: Entities reporting under federal financial accounting standards.

Summary: On January 18, 2017, the FASAB issued Statement 51, which “establishes accounting and financial reporting standards for insurance programs.” Specifically, the new Statement “provides standards to ensure that insurance programs are adequately defined and report consistent information about the liabilities for losses incurred and claimed as well as expected losses during remaining coverage.”

Next Steps: Statement 51 is effective for reporting periods beginning after September 30, 2018.

Other Resources: For more information, see the press release on the FASAB’s Web site.

FASAB Issues Exposure Draft on Budget and Accrual Reconciliation

Affects: Entities reporting under federal financial accounting standards.

Summary: On December 21, 2016, the FASAB issued an ED that would amend the requirements in FASAB Statement 7 on “a reconciliation between budgetary and financial accounting information.” Specifically, the proposal “would replace the current reconciliation with a new budget and accrual reconciliation . . . and explain the relationship between the entity’s net outlays on a budgetary basis and the net cost of operations during the reporting period.”

Next Steps: Comments on the ED are due by March 14, 2017.

Other Resources: For more information, see the press release on the FASAB’s Web site.

GASB

GASB Issues Guidance on Fiduciary Activities

Affects: Entities reporting under financial accounting and reporting standards for state and local governments.

Summary: On January 31, 2016, the GASB issued Statement 84, which “establishes criteria for identifying fiduciary activities of all state and local governments.” The primary purpose of the Statement is to “improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.”

Next Steps: Statement 84 is effective for reporting periods beginning after December 15, 2018. Early application is encouraged.

GASB Requests Feedback on Financial Reporting Model

Affects: Entities reporting under financial accounting and reporting standards for state and local governments.

Summary: On January 4, 2017, the GASB issued an invitation to comment (ITC) that requests feedback on “the Board’s financial reporting model reexamination project.” Specifically, the ITC “addresses potential improvements to fundamental issues of the GASB’s financial reporting model reexamination project: (1) the measurement focus and basis of accounting for governmental funds and (2) the presentation of governmental fund financial statements.”

Next Steps: Comments are due by March 31, 2017.

Other Resources: For more information, see the press release on the GASB’s Web site.

Regulatory and Compliance Developments

SEC

SEC Acting Chairman Makes Statements Regarding Conflict Minerals Rule

Affects: SEC registrants.

Summary: On January 31, 2017, Michael Piwowar, who was recently appointed as acting chairman of the SEC, made public statements related to the Commission’s 2014 guidance on its August 2012 final rule on conflict minerals.

The SEC partially stayed compliance with the conflict minerals rule after an April 2014 appellate court ruling found that the rule violated the First Amendment of the U.S. Constitution. Mr. Piwowar indicated that the “partial stay has done little to stem the tide of unintended consequences washing over the Democratic Republic of the Congo and surrounding areas.” He further noted:

[T]he temporary transition period provided for in the Rule has expired. And the reporting period beginning January 1, 2017, is the first reporting period for which no issuer falls within the terms of that transition period. In light of this, as well as the unexpected duration of the litigation, I am directing the staff to consider whether the 2014 guidance is still appropriate and whether any additional relief is appropriate in the interim.

Next Steps: Mr. Piwowar is requesting feedback “from interested persons on all aspects of the rule and guidance.” A comment letter page has been set up on the SEC’s Web site.

Other Resources: Mr. Piwowar’s statements on the conflict minerals rule and on the reconsideration of the rule’s implementation are available on the SEC’s Web site.

SEC Updates EDGAR Filer Manual

Affects: SEC registrants.

Summary: On January 27, 2017, the SEC issued a final rule adopting Release 17.0.2 of its EDGAR system filer manual. Specifically, Volumes I–III of the EDGAR manual are being updated “to support an upgrade to the passphrase authentication process; and update the recommended Internet browser language for all EDGAR websites.”

The EDGAR system was upgraded on January 30, 2017.

SEC Publishes Examination Priorities for 2017

Affects: SEC registrants.

Summary: On January 12, 2017, the SEC’s Office of Compliance Inspections and Examinations has published its examination priorities for 2017. The priorities focus on electronic investment advice, money market funds, and financial exploitation of senior investors. In addition, the priorities “reflect a continuing focus on protecting retail investors, including individuals investing for their retirement, and assessing market-wide risks.” The document is not necessarily comprehensive and “may be adjusted in light of market conditions, industry developments, and ongoing risk assessment activities.”

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

SEC Chairman Discusses Global Accounting

Affects: SEC registrants.

Summary: On January 5, 2017, former SEC Chairman Mary Jo White issued a public statement in which she urged the next SEC chairman to continue to pursue global accounting standards to protect investors and the strength of the U.S. market. While Ms. White acknowledged that the Commission has not taken “formal action” related to such standards since 2010, she described the past years as a success:

Although the FASB and IASB have completed their agreed-upon, priority convergence projects, this milestone must not mark the end of the intense collaboration that has occurred between the two Boards over the last few years. These efforts have greatly enhanced the quality of accounting standards in a number of important areas, including recently narrowing many differences in the accounting standards for revenue recognition, leases, credit losses on financial instruments, and recognition and measurement of financial assets and liabilities.

Ms. White also suggested that such progress needs to continue. She concluded:

The United States cannot afford to be myopic about this issue in light of the benefits of these efforts for all stakeholders. Strong support of both the FASB and the IASB by U.S. investors, companies, auditors, and others, including the Commission, is essential. Indeed, it should be self-evident that the pursuit of high-quality globally accepted accounting standards is part of the SEC’s continuing responsibility to encourage, facilitate and direct efforts to enhance the quality of all financial reporting that directly impacts the protection of investors and the strength of our markets.

Dbriefs for Financial Executives

We invite you to participate in Dbriefs, Deloitte’s webcast series that provides valuable insights on important developments affecting your business. Gain access to innovative ideas and critical information during these webcasts.

Dbriefs also provides a convenient and flexible way to earn CPE credit — right at your desk. Subscribe to Dbriefs to receive notifications about future webcasts.

For more information, please see our complete Dbriefs program guide or click a link below for more information about any of these upcoming Dbriefs webcasts (all webcasts begin at 2:00 p.m. (EST) unless otherwise noted):

Don’t miss out — register for these webcasts today.

Featured Publications

Deloitte recently issued the following updated publications:

  • Insurance — Accounting and Financial Reporting Update — Highlights selected accounting and reporting developments that may be of interest to insurance entities. Among other topics, the publication discusses (1) proposed improvements to the accounting for long-duration insurance contracts; (2) the new guidance on short-duration insurance contract disclosures; and (3) the SEC’s continued focus on rulemaking, particularly in connection with its efforts to complete mandated actions under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
  • Investment Management — Accounting and Financial Reporting Update — Highlights selected accounting and reporting developments that may be of interest to investment management entities. Among other topics, the publication discusses (1) the issuance of refinements to the new guidance on recognition of revenue from contracts with customers; (2) the issuance of new guidance on classification and measurement of financial instruments; and (3) the SEC’s continued focus on rulemaking, particularly in connection with its efforts related to investment-company report modernization, liquidity risk management, and swing pricing.
  • Power and Utilities — Accounting, Financial Reporting, and Tax Update — Discusses accounting, tax, and regulatory matters that are of interest to P&U entities, including updates to SEC, FASB, and tax guidance, and focuses on specialized industry accounting topics that frequently affect P&U companies, including rate-regulated entities. Several sections of the publication have been expanded this year to concentrate on accounting and reporting considerations related to the new leases and new revenue standards, including specific industry matters that remain outstanding with the AICPA’s Power and Utility Entities Revenue Recognition Task Force.

Other Deloitte Publications

Publication

Title

Affects

February 1, 2017, Heads Up

FASB Eliminates Step 2 From the Goodwill Impairment Test

All entities.

January 30, 2017, Heads Up

FASB Amends the Consolidation Guidance for Not-for-Profit Entities

Not-for-profit entities.

January 27, 2017, Retail & Distribution Spotlight

Leases Refashioned

Retail and distribution entities.

January 24, 2017, Financial Reporting Alert

Variation Margin on Derivatives

All entities.

January 13, 2017, Heads Up

FASB Clarifies the Definition of a Business

All entities.

January 12, 2017, Heads Up

FASB Proposes Updates to Inventory Disclosures

All entities.

January 12, 2017, Heads Up

FASB Proposes Changes to Simplify the Balance Sheet Classification of Debt

All entities.

Appendix A: Current Status of FASB Projects

Please see Appendix A in the attached PDF.

Appendix B: Significant Adoption Dates and Deadlines

Please see Appendix B in the attached PDF.

Appendix C: Glossary of Standards and Other Literature

Please see Appendix C in the attached PDF.

Appendix D: Abbreviations

Please see Appendix D in the attached PDF.

Download

Related Topics

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.