BDO KNOWLEDGE WEBINAR SERIES
Technical Update – Q3 2015
October 7, 8 and 9, 2015
Alternative audio option:
• Call: 1-855-233-5756
• Code: 307-216-7162##
BDO USA, LLP, a Delaware limited liability partnership, is
the U.S. member of BDO International Limited, a UK
company limited by guarantee, and forms part of the
international BDO network of independent member firms.
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CPE AND SUPPORT
CPE Participation Requirements ‒ To receive CPE credit for this
webcast:
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You’ll need to actively participate throughout the program.
Be responsive to at least 75% of the participation pop-ups.
Certificate of Attendance:
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participation pop-ups, you will be able to print your certificate from the
“Participation” section at the end of the webcast.
If you log out before printing your certificate:
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Clients and Contacts and all other individual participants ‒ You will be
emailed instructions on how to access your certificate.
BDO USA professionals ‒ CPE will automatically be issued in CPE Tracking &
Reporting. A copy of your certificate will be sent after you have been issued
credit.
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CPE AND SUPPORT (CONTINUED)
Group Participation ‒ To receive credit:
•
•
•
•
•
Sign-in sheets must list a Proctor name and CPA license number.
Clients and contacts ‒ Email sign-in sheets to cpe@bdo.com within 24 hours of
the webcast.
BDO Alliance USA ‒ Should proctor their own group participants. This process is
detailed in the LearnLive Participant Guide on the Alliance Portal > Resource
Center. Call LearnLive Support for questions – 1-888-228-4088.
BDO International ‒ Unfortunately, we cannot currently support group CPE for
International Firms. Those wanting CPE must register and log in on their own
computer.
BDO USA ‒ Submit your sign-in sheets using a General Training & Development
Request in BDO Service Now found at: https://apps.bdo.com > A to Z > BDO
Service Now > Click “Request” in the upper right menu, then chose
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Page 3
CPE AND SUPPORT (CONTINUED)
Audio by Teleconference:
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Page 4
WITH YOU TODAY
Page 5
Adam Brown
National Director of
Accounting
BDO USA, LLP
Direct: (214) 665-0673
abrown@bdo.com
Jeff Lenz
National Director of SEC
Practice
BDO USA, LLP
Direct: (312) 616-3944
jlenz@bdo.com
Paula Hamric
Director, SEC Practice
BDO USA, LLP
Direct: (312) 616-3947
phamric@bdo.com
Amy Rojik
National Assurance
Partner
BDO USA, LLP
Direct: (617) 239-7005
arojik@bdo.com
AGENDA
• Accounting Update
• SEC Matters Update
• PCAOB and Governance Update
Page 6
Accounting Update
Page 7
ACCOUNTING UPDATE – DISCUSSION OUTLINE
• “Big 3” Convergence Projects
- Revenue
- Leases
- Financial Instruments
• Other FASB, EITF and PCC matters
Page 8
REVENUE RECOGNITION
Transition Resource Group
• Next meeting: November 2015
FASB Issued ASU
• Effective date –1 year deferral
https://www.bdo.com/insights/assurance/fasb/fasbflash-report-august-2015-(1)
FASB Proposed ASUs
• Performance obligations
• Licenses of intellectual property
• Principal vs Agent (Gross vs Net)
• Narrow-Scope Improvements
BDO Resource Webpage
https://www.bdo.com/services/assurance/revenuerecognition/overview
Page 9
REVENUE RECOGNITION
ASU 2015-14: Deferral of the Effective Date
• Public entities
- FYs beginning after 12/15/17 (and interim periods within)
- Early adoption permitted only as of FYs beginning after 12/15/16 (and
interim periods within)
• Nonpublic entities
- FYs beginning after 12/15/18 (and interim periods within FYs beginning after
12/15/19)
- Early adoption permitted as of either:
•
•
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FYs beginning after 12/15/16 (and interim periods within), or
FYs beginning after 12/15/16 and interim periods within FYs beginning one year
after the annual period in which an entity first applies the new standard.
REVENUE RECOGNITION
Remarks of Wes Bricker, Deputy Chief Accountant
Bloomberg BNA Conference on Revenue Recognition – Sept. 17, 2015
Topics
• Obtaining resources from senior management
• Internal controls: disclose changes
• SAB 74: disclose anticipated impact as more is known
• Cautioned against conclusions designed to preserve current accounting
• Second guessing: consider the CAQ Professional Judgment Resource
-
http://www.thecaq.org/docs/reports-and-publications/professional-judgmentresource.pdf?sfvrsn=4
Complete speech: http://www.sec.gov/news/speech/wesley-bricker-remarks-bloomberg-bnaconf-revenue-recognition.html
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REVENUE RECOGNITION
Proposed ASU – Principal versus Agent (Gross vs Net)
• Unit of account at which an entity would determine whether it is a
principal or an agent
- Requires an entity to identify the good or service before applying the control
principle
- If a contract includes more than one good or service, an entity could be a
principal for some and an agent for others
• Apply control principle by assessing what a principal controls before the
good or service is transferred to the customer
• Addresses purpose of the control indicators and their relationship to
the control principle
• Amends existing examples
• Comment deadline: October 15, 2015
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REVENUE RECOGNITION
PROPOSED ASU – NARROW SCOPE IMPROVEMENTS
Area
Amendment
Step 1 - Collectability
Recognize revenue upon transfer of control,
no further obligations remain and
consideration received is nonrefundable.
Step 3 – Sales taxes
Option to exclude sales and similar taxes
from transaction price.
Step 3 – Noncash consideration
Measurement date is inception.
Only consider variability for reasons other
than form of consideration.
Transition
Expedient to allocation transaction price for
all performance obligations in a modified
contract as of earliest period presented.
Transition
Contract is considered complete when all
revenue is recognized under legacy GAAP.
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POLL
Where is your company in considering its implementation plan for the new revenue
recognition standard?
1. Have not yet begun
2. Have begun employee education for understanding the standard
3. Implementation efforts are well underway
4. Implementation is complete
5. N/A - I’m not a preparer of financial statements (e.g., analyst, auditor, etc.) or
this standard does not apply to my organization
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LEASES – Q3 TENTATIVE DECISIONS
• None in Q3 2015 (last discussion held: May 13, 2015)
• Status: final drafting of the standard is underway.
• Final standard expected in Q4 2015. Future BDO Knowledge Webinar
planned
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FINANCIAL INSTRUMENTS – Q3 TENTATIVE DECISIONS
• None in Q3 2015 (last discussion held: June 29, 2015)
• Status
- Classification and Measurement: ASU expected in Q4 2015
- Impairment: ASU expected in Q4 2015
- Hedging: Proposed ASU expected in Q4 2015
• http://www.fasb.org/jsp/FASB/FASBContent_C/ProjectUpdatePage&ci
d=1176159271017#decisions
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FASB UPDATE
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FINAL ASUS ISSUED Q3 2015
ASU 2015-
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Title
11
Simplifying the Measurement of Inventory
12
(Part I) Fully Benefit-Responsive Investment Contracts,
(Part II) Plan Investment Disclosures, (Part III)
Measurement Date Practical Expedient
13
Application of the Normal Purchases and Normal Sales
Scope Exception to Certain Electricity Contracts within
Nodal Energy Markets
14
Revenue from Contracts with Customers (Topic 606):
Deferral of Effective Date
15
Presentation and Subsequent Measurement of Debt
Issuance Costs Associated with Line-of-Credit Arrangements
(Amendments to SEC Paragraphs Pursuant to Staff
Announcement at June 18, 2015 EITF Meeting)
16
Simplifying the Accounting for Measurement-Period
Adjustments
ASU 2015-11: MEASUREMENT OF INVENTORY
• Inventory within the scope (e.g. FIFO or average cost) – measured at
lower of cost and net realizable value
• Inventory excluded from the scope (i.e. LIFO or retail inventory
method) – measured at lower of cost or market
• Effective date: (early adoption permitted)
Public Business Entities
All Other Entities
FYs beginning after 12/15/16
(and interim periods within)
FYs beginning after 12/15/16
(interim periods within FYs beginning after 12/15/17)
• Transition: Prospective
• BDO Alert: https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-july-2015
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ASU 2015-12: EMPLOYEE BENEFIT PLANS
•
•
•
Part I. Fully Benefit-Responsive Investment Contracts*
- Contract value is the only required measure
- Eliminates requirement to measure, present and disclose at fair value
Part II. Plan Investment Disclosures**
- Eliminates certain disclosure requirements
- Reduces disclosures required specifically for investments using the NAV per
share practical expedient
- Requires investments to be grouped only by general type
Part III. Measurement Date Practical Expedient**
- Allows plans to measure investments and investment-related accounts as of
a month-end date that is closest to the plan’s fiscal year-end.
*Applies to entities within the scope of Topics 962 (Defined Contribution Pension Plans) and 965 (Health and Welfare
Benefit Plans)
**Apply to reporting entities that follow the requirements of Topics 960 (Defined Benefit Pension Plans), 962 (Defined
Contribution Pension Plans) and 965 (Health and Welfare Benefit Plans)
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ASU 2015-12: EMPLOYEE BENEFIT PLANS
•
Effective date:
- FYs beginning after 12/15/15
- Early adoption is permitted for all 3 parts individually or in the aggregate
•
Transition:
- Parts I and II should be applied retrospectively
- Part III should be applied prospectively
•
BDO Alert: https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-august2015
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ASU 2015-13: NORMAL PURCHASES AND NORMAL
SALES (“NPNS”) SCOPE EXCEPTION
•
Use of locational marginal pricing (“LMP”) for certain contracts for the
purchase or sale of electricity on a forward basis utilizing a nodal energy
market does not, by itself, cause the contract to fail the physical delivery
criterion of the NPNS elective scope exception of Topic 815.
•
Effective date: Upon issuance
•
Transition: Prospective
•
BDO Alert: https://www.bdo.com/insights/assurance/fasb/fasb-flash-reportseptember-2015
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ASU 2015-15: DEBT ISSUANCE COSTS RELATED TO
LINE-OF-CREDIT ARRANGEMENTS
• SEC staff announcement: won’t object when debt issuance costs related
to a revolving debt arrangement are presented as an asset regardless of
whether there is an outstanding balance on the revolving debt
arrangement
• ASU codifies the SEC staff announcement
• Effective date: Upon issuance
• BDO Alert: https://www.bdo.com/insights/assurance/fasb/fasb-flash-reportseptember-2015-(1)
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POLLING QUESTION
How do you plan to account for debt issuance costs associated with a
revolving debt agreement?
A. Defer the cost as an asset and reclassify as a direct deduction from
debt when proceeds are received.
B. Defer as cost and continue to present as asset even after the proceeds
are received and associated liability is recorded, consistent with SEC
staff observer comment.
C. Undecided.
D. Not applicable.
Page 24
ASU 2015-16: SIMPLIFYING THE ACCOUNTING FOR
MEASUREMENT-PERIOD ADJUSTMENTS
• Eliminates the requirement to account for measurement-period
adjustments retrospectively
• Measurement-period adjustments, including cumulative effect of
changes in depreciation, amortization, or other income effects =
recognize in current-period financial statements
• Incremental disclosures:
- Nature and amount of measurement-period adjustments recognized
in current period
- Amount of adjustment to current-period income statement, by line
item, relating to income effects as a result of the change to the
provisional amounts
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ASU 2015-16: SIMPLIFYING THE ACCOUNTING FOR
MEASUREMENT-PERIOD ADJUSTMENTS
• Effective date:
Public Business Entities
All Other Entities
FYs beginning after 12/15/15
(and interim periods within)
FYs beginning after 12/15/16
(interim periods within FYs beginning after 12/15/17)
• Transition: Prospectively to measurement-period adjustments that
occur after the effective date of this Update
• Early adoption is permitted
• Refer to BDO Flash report:
https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-october-2015
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EITF AND PCC UPDATE
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EITF UPDATE
EITF meeting - September 2015
• Did not reach any final consensuses or consensuses-for-exposure
• Issues discussed:
-
Issue 15-B: Recognition of Breakage for Certain Prepaid Stored-Value Cards
Issue 15-F: Statement of Cash Flows: Classification of Certain Cash Receipts and Cash
Payments
Next meeting is scheduled for November 2015
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PCC UPDATE
PCC Meeting – July 2015
• Preferability Assessment and Transition of PCC Alternatives
• Applying Variable Interest Entities (VIE) Guidance to Non-Leasing Common
Control Arrangements
• Leasing
• Simplifying the Balance Sheet Classification of Debt
• Statement of Cash Flows
• Disclosure by Business Entities about Government Assistance
FASB Exposure Draft - PCC Consensus
• Assessing the Preferability of Private Company Accounting Alternatives
• Extending Transition Guidance beyond the Effective Date for Electing Private
Company Accounting Alternatives
•
http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocument
Page&cid=1176166423329
• Comments due by November 16, 2015.
Page 29
PCC UPDATE
PCC Meeting – September 2015
• Identified topics as top priorities for the FASB to consider
• Discussed private company issues relating to intangible assets
• Provided input on certain FASB projects
Next meeting planned for December 2015
Page 30
SEC Matters Update
Page 31
RULEMAKING – PAY RATIO DISCLOSURE
• Release at: http://www.sec.gov/rules/final/2015/33-9877.pdf
• Flash report at: https://www.bdo.com/insights/assurance/sec/sec-flashreport-august-2015
• Rule amends Item 402 of Regulation S-K and requires issuers to disclose
the following:
- The median annual total compensation of all employees except the chief
executive officer
- The annual total compensation of the CEO
- The ratio of the median annual total compensation of all employees to the
annual total compensation of the CEO
• Disclosures required in any annual report, proxy, or registration
statement for first fiscal year beginning on or after January 1, 2017
-
Certain filers are exempt from the requirements
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RULEMAKING – PAY RATIO DISCLOSURE
The rule requires a registrant to:
1. Identify the employee whose annual total compensation is the median
of all employees (except CEO)
-
Procedure required once every three years (unless significant changes in employee
population)
2. Compute median employee’s annual total compensation
3. Compute the ratio – median employee = 1 and CEO = calculated
number
-
For example, if median employee’s total compensation = $57,000 and the CEO’s total
compensation = $4,600,000, the pay ratio is “1 to 81” (or express narratively)
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RULEMAKING – PAY RATIO DISCLOSURE
• Determine median employee by analysis of all U.S. and non U.S.
full-time, part-time, seasonal, and temporary workers employed by
registrant and its subsidiaries as of any date within the last three
months of the year
- Analyze entire employee population, use statistical sampling methodology,
or any other reasonable method
- Data privacy and de minimus exceptions available
- Use a consistently applied compensation measure (e.g., amounts from
payroll or tax records)
- Can make adjustments to account for differences between the cost-of-living
in the CEO’s jurisdiction and the cost-of-living in other jurisdictions
• Determine annual total compensation in accordance with Item
402(c)(2)(x) of Regulation S-K
- Can make estimates when calculating elements of total compensation
Page 34
PAY RATIO – POLLING QUESTION
I would expect the pay ratio for my company to approximate:
A. A ratio of less than 50:1.
B. A ratio between 50:1 and 100:1.
C. A ratio greater than 100:1.
D. I can’t guess, I really have no idea.
Page 35
PAY RATIO – POLLING QUESTION
I would expect that calculating the pay ratio for my company will be:
A. Difficult, time-consuming, and costly.
B. Only moderately difficult, time-consuming and not too costly.
C. Fairly easy.
D. I can’t guess, I really have no idea.
Page 36
SEC STAFF ACTIVITIES
• August 25, 2015 update of the Financial Reporting Manual (FRM) posted:
http://www.sec.gov/divisions/corpfin/cffinancialreportingmanual.shtml
- Provides guidance for registrants with delinquent filings who seek to become current
by presenting all information that would have been included in the delinquent filings
in a comprehensive annual report on Form 10-K
- The staff will generally not issue comments asking a delinquent registrant to file
separately all of its delinquent filings if the registrant takes this approach
• Request for comment on the effectiveness of financial disclosures about
entities other than the registrant http://www.sec.gov/rules/other/2015/33-9929.pdf
-
Flash report available at: https://www.bdo.com/insights/assurance/sec/sec-flashreport-october-2015
Part of SEC staff’s broader-based Disclosure Effectiveness Initiative
Focuses on financial information requirements of Rules 3-05, 3-09, 4-08(g), 3-10, and
3-16
Comments should be submitted by November 30
• New rulemaking index available
-
“One-stop shopping” for rulemaking information
Page 37
PCAOB AND GOVERNANCE MATTERS
Page 38
PCAOB CURRENT PROJECTS
Project
Timing
Reorganization of PCAOB Auditing Standards
Effective as of 12/31/2016 with early implementation by auditors
permitted.
Improving Transparency Through Disclosure of
Engagement Partner and Certain Other
Participants in Audits
Supplemental Request for Comment issued July 2015; comments were due
8/31/2015
Moving toward adoption – Q4 2015
Supervision of Other Auditors and MultiLocation Audit Engagements
Proposed standard anticipated – Q4 2015
Going Concern
Staff Consultation Paper anticipated - Q1 2016
Auditor’s Reporting Model
Reproposed standard anticipated – Q1 2016
Auditor’s Use of the Work of Specialists
Staff Consultation Paper issued May 2015; comments were due 7/31/2105
Moving toward proposal phase – Q2 2016
Auditing of Accounting Estimates…
Proposed standard anticipated – Q2 2016
Quality Control Standards
Staff Consultation Paper anticipated – Timing TBD
Confirmation
Reproposed standard anticipated – Timing TBD
Audit Quality Indicators
Concept Release issued July 2015; comments were due 9/28/2015
Page 39
PCAOB RECENT ACTIVITY
PCAOB Staff Inspection Brief (October 2015) -
http://pcaobus.org/Inspections/Documents/Inspection-Brief-2015-2-2015-Inspections.pdf
• Details objectives, focus, and scope of ongoing inspections of auditors
registered with the PCAOB
• Three general areas*:
o Auditing internal control over financial reporting;
o Assessing and responding to risks of material misstatement; and
o Auditing accounting estimates, including fair value measurements.
*These are among the most common areas where inspectors found significant deficiencies in the past
several years.
Certain economic developments that factor into the 2015 selections include:
• The high pace of mergers and acquisitions activity
• The search for higher-yielding investment returns in a low interest rate
environment
• The recent fluctuation in oil prices and its varying effects on the financial
reporting risks of different industries
Page 40
PCAOB CONCEPT RELEASE
AUDIT QUALITY INDICATORS
• Identified 28 potential quantitative audit quality indicators (AQIs) at both the
firm and engagement level
• Not intended to result in a comprehensive firm-wide scorecard but rather to
provide information and a basis for more informed discussions with auditors
• PCAOB’s Goal: Reduce this set of AQIs to the most meaningful to be included in
a future proposed standard.
• Comment period ended September 28, 2015; public roundtable to be scheduled
for fall 2015
• Majority of comment letters reviewed point toward encouragement of
voluntary, principles-based approach to be determined between the auditor and
the audit committee.
• Note: The Center for Audit Quality is currently completing its own AQI project
• PCAOB Concept Release is accessible at:
http://pcaobus.org/Rules/Rulemaking/Docket%20041/Release_2015_005.pdf
• Refer to BDO’s Alerts: https://www.bdo.com/insights/assurance
Page 41
SEC AUDIT COMMITTEE FOCUS
SEC Concept Release 33-9862 Possible Revisions to Audit Committee
Disclosures
• Explores ideas around how audit committee (AC) disclosures could be made
more robust and useful to shareholders and others who rely on them.
• Focuses on the AC’s reporting of its process for overseeing the independent
auditor, including whether the AC would disclose the tenure of the audit firm
and the engagement partner.
• Comments were due 9/8/2015.
• Trends point toward encouragement of voluntary, principles-based approach to
be determined by the audit committee.
• Refer to BDO’s Alert: https://www.bdo.com/insights/assurance
Page 42
CENTER FOR AUDIT QUALITY ACTIVITY
The Center for Audit Quality (CAQ), through its partnerships, provides a variety
of thought leadership, events, and information to enhance investor confidence and
public trust in the global capital markets.
Examples include:
• Profession in Focus video series
• Main Street Investor Survey
• Anti-Fraud Collaboration: Kendallville Bank Case Study
• 7th Annual CAQ Symposium: “The Audit and Engagement Team of the Future”
Much more is available on at: http://thecaq.org/
Page 43
BDO BOARD GOVERNANCE
ADDITIONAL RESOURCES ACCESSIBLE VIA BDO BOARD GOVERNANCE:
HTTPS://WWW.BDO.COM/SERVICES/ASSURANCE/BOARD-GOVERNANCE/OVERVIEW
RECENT BDO PUBLICATIONS:
•
•
•
•
•
•
•
SEC Adopts Rule for Pay Ratio Disclosure
Continuous Monitoring
Q2 2015 Significant Accounting and
Reporting Matters
SEC Proposed Rules Requiring Clawback of
Executive Compensation
2015 BDO IPO Halftime Report
SEC Issues Concept Release Seeking
Comment on Possible Revisions to Audit
Committee Disclosures
PCAOB Issues Proposals to Improve
Transparency and Provide Insight Into
Audit Quality
•
•
•
•
•
•
•
•
PCAOB Audit Committee Dialogue and
Other Resources
SEC Adopts Amendments to Regulation A
External Auditor Assessment Tools
Audit Committee Disclosure Resources
SEC Proposal on Pay vs. Performance
Disclosures
FASB ASU on Going Concern
PCAOB AS 18 – Related Party Transactions
Center for Audit Quality Approach to Audit
Quality Indicators
For a complete listing of BDO publications, refer to: https://www.bdo.com/insights/
Page 44
BDO BOARD GOVERNANCE
Upcoming BDO Governance and Financial Reporting Knowledge Webinars:
• Establishing an Effective Internal Audit Function* - October 22
• Effective Audit Committees – November 9*
• Quarterly Technical Update (Q4 2015)* - January 7, 8 and 11
*Registration will be available shortly on https://www.bdo.com/events
Recent Archived Webinars:
• The Board’s Role in Anticorruption Compliance – October 2015
• Revenue Recognition Transition Resource Group 2015 Update – September 2015
• Quarterly Technical Update (Q2 2015) – July 2015
• How ASU 2015-02 Changes Consolidation Accounting - May 2015
• Data Analytics and Risk Management – A Board Primer – April 2015
• 2015 Q1 Technical Update – April 2015
• 2015 Executive Pay Outlook for Mid-Cap Companies – March 2015
• What’s On the Minds of Boards – January 2015
Page 45
GET TO KNOW BDO
BDO commits significant resources to keep our professionals and our clients up to date on current and evolving technical,
governance, industry and reporting developments. Visit http://www.bdo.com for all of our offerings.
To begin receiving email notifications regarding BDO publications and event invitations (live and web-based), visit
https://www.bdo.com/member/registration and create a user profile. If you already have an account on BDO’s website, visit
the My Profile page to login and manage your account preferences https://www.bdo.com/member/my-profile.
Some examples of our thought leadership offerings include the following:

Board Governance — Resources that include BDO’s proprietary studies,
publications, practice aids, and educational programs to keep board
members of both public and private companies up to date on emerging
issues and trends to assist in fulfilling their corporate oversight
responsibilities. Such resources contain customized information for the
various committees of the board. For example, refer to our Effective
Audit Committees in the Ever Changing Marketplace practical guide and
related tools. Visit our Insights page on http://www.bdo.com.

Significant Accounting and Reporting Matters Guide — Quarterly digest
of final and proposed financial accounting standards designed to help
audit committees, boards and financial executives keep up to date on
the latest corporate governance and financial reporting developments.

Client Advisories — Concise documents that provide timely
commentary, analysis and insights on events and trends of interest to
management and boards of directors.
Page 46
GET TO KNOW BDO

Tax Newsletters and Alerts — Updates with respect to federal,
state, local, expatriate, and international developments, along
with other specific tax planning and strategy considerations
including specific practice areas such as compensation and
benefits, private client and individual filer services, transfer
pricing, Foreign Account Tax Compliance Act, etc.

Technical Research Tools — BDO uses Accounting Research
Manager™ (ARM) as a primary source of insightful interpretations
on GAAP, GAAS and Securities and Exchange Commission rules.
ARM is updated daily and is considered to be one of the
timeliest and most comprehensive online databases of analytical
interpretations of accounting, auditing and SEC matters. Access
to ARM, and a number of other research tools, provides each
professional the technical research capability to respond
immediately to client-specific technical issues.

BDO Knows Flash Reports — Provide briefs about select
technical and regulatory developments and emerging issues are
made immediately available to BDO professionals and to clients.

BDO Knows Financial Reporting Letters — Provide more indepth discussions and practical guidance on technical guidance
affecting both public and private entities.

Industry Newsletters, Alerts, Reports, Proprietary Studies and
Surveys — A variety of publications depicting specific industry
issues, emerging trends and developments.
Page 47

BDO Knowledge Webinar Series — An educational series
designed to assist those charged with governance (e.g.,
Audit Committees) and financial executives in keeping up
to date on the latest corporate governance, risk
management and financial reporting developments. The
program is multi-faceted and consists of complimentary
CPE webinars and archived self-study courses, covering
both broad and specific topics of interest, publications
and links to various BDO and external resources.
Additionally, consider our monthly tax series that provide
insights and perspectives on the tax issues most
important to our clients and their businesses. Visit our
Event/Webinar page for a current listing of programming
on http://www.bdo.com.
EVALUATION
We continually try and improve our programming and appreciate
constructive feedback.
Following the program, we will be sending out a thank you e-mail that
contains a link to a brief evaluation.
Thank you in advance for your participation!
Page 48
CONCLUSION
THANK YOU FOR YOUR PARTICIPATION!
Certificate Availability – If you participated the entire time and responded to at least 75% of
the polling questions, click the Participation tab to access the print certificate button.
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the LearnLive Participant Guide on the Alliance Portal > Resource Center. Call LearnLive
Support for questions – 1-888-228-4088.
• BDO International - Unfortunately, we cannot currently support group CPE for
International Firms. Those requesting CPE must have registered and participated from their
own computer.
• BDO USA ‒ Submit your sign-in sheets using a General Training & Development Request in
BDO Service Now found at: https://apps.bdo.com > A to Z > BDO Service Now > Click
“Request” in the upper right menu, then chose “Training & Development” from the
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Page 49
APPENDIX
Effective Dates of U.S. Accounting Pronouncements
Page 50
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 205, Presentation of Financial Statements
ASU 2014-15,
Disclosure of
Uncertainties about an
Entity’s Ability to
Continue as a Going
Concern
Effective for all entities, unless they have
adopted the liquidation basis of accounting
under Subtopic 205-30. The new standard
applies prospectively to annual periods ending
after December 15, 2016, and to annual and
interim periods thereafter. Early adoption is
permitted.
Effective for all entities, unless they have
adopted the liquidation basis of accounting
under Subtopic 205-30. The new standard
applies prospectively to annual periods ending
after December 15, 2016, and to annual and
interim periods thereafter. Early adoption is
permitted.
ASU 2014-08,
Reporting
Discontinued
Operations and
Disclosures of
Disposals of
Components of an
Entity
Effective for annual periods beginning on or
after December 15, 2014, and interim periods
within those years.
Entities should not apply the amendments to a
component of an entity (or a business or
nonprofit activity) that is classified as held for
sale before the effective date even if it is
disposed of after the effective date. That is,
the ASU must be adopted prospectively. Early
adoption is permitted, but only for disposals (or
classifications as held for sale) that have not
been previously reported in the financial
statements.
Effective for annual periods beginning on or
after December 15, 2014, and interim periods
within annual periods beginning on or after
December 15, 2015.
Page 51
Entities should not apply the amendments to a
component of an entity (or a business or
nonprofit activity) that is classified as held for
sale before the effective date even if it is
disposed of after the effective date. That is,
the ASU must be adopted prospectively. Early
adoption is permitted, but only for disposals (or
classifications as held for sale) that have not
been previously reported in the financial
statements.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 225, Income Statement
ASU 2015-01, Simplifying Income
Statement Presentation by Eliminating the
Concept of Extraordinary Items
Effective for fiscal years, and interim Effective for fiscal years, and interim
periods within those fiscal years,
periods within those fiscal years,
beginning after December 15, 2015.
beginning after December 15, 2015.
ASC 260, Earnings Per Share
ASU 2015-06, Effects on Historical
Effective retrospectively for fiscal
Earnings per Unit of Master Limited
years beginning after December 15,
2015, and interim periods within
Partnership Dropdown Transactions (a
those fiscal years. Early adoption is
consensus of the Emerging Issues Task
permitted.
Force)
ASC 310, Troubled Debt Restructuring by Creditors
Effective retrospectively for fiscal
years beginning after December 15,
2015, and interim periods within
those fiscal years. Early adoption is
permitted.
ASU 2014-14, Classification of Certain
Government-Guaranteed Mortgage Loans
upon Foreclosure
Effective for annual periods ending
after December 15, 2015, and interim
periods beginning after December 15,
2015. Early adoption is permitted, if
the entity has already adopted ASU
2014-04.
Page 52
Effective for annual periods, and
interim periods within those annual
periods, beginning after December
15, 2014. Early adoption is
permitted, if the entity has already
adopted ASU 2014-04.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 310, Troubled Debt Restructuring by Creditors
ASU 2014-04,
Effective for annual periods and interim
Reclassification of
periods within those annual periods, beginning
Residential Real Estate
after December 15, 2014. Early adoption is
collateralized consumer
permitted. An entity can elect to adopt the
Mortgage Loans upon
amendments in this update using either a
Foreclosure (a consensus modified retrospective transition method or a
of the FASB Emerging
prospective transition method.
Issues Task Force)
ASC 323, Investments – Equity Method and Joint Ventures
Effective for annual periods beginning after
December 15, 2014, and interim periods within
annual periods beginning after December 15,
2015. Early adoption is permitted. An entity
can elect to adopt the amendments in this
update using either a modified retrospective
transition method or a prospective transition
method.
ASU 2014-01, Accounting
for Investments in
Qualified Affordable
Housing Projects (a
consensus of the FASB
Emerging Issues Task
Force)
Effective for annual periods beginning after
December 15, 2014, and interim periods within
annual reporting periods beginning after
December 15, 2015. Early adoption is
permitted. If adopted, the amendments in this
Update should be applied retrospectively to all
periods presented. A reporting entity that
uses the effective yield method to account for
its investments in qualified affordable housing
projects before the date of adoption may
continue to apply the effective yield method
for those preexisting investments.
Page 53
Effective for annual periods and interim
reporting periods within those annual periods,
beginning after December 15, 2014. Early
adoption is permitted. If adopted, the
amendments in this Update should be applied
retrospectively to all periods presented. A
reporting entity that uses the effective yield
method to account for its investments in
qualified affordable housing projects before
the date of adoption may continue to apply
the effective yield method for those
preexisting investments.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective prospectively for fiscal
years, and for interim periods within
those fiscal years, beginning after
December 15, 2016. Early adoption is
permitted as of the beginning of an
interim or annual reporting period.
Effective for fiscal years beginning after
December 15, 2016, and for interim periods
within fiscal years beginning after December 15,
2017. Early adoption is permitted as of the
beginning of an interim or annual reporting
period. If an entity has previously written down
inventory (within the scope of the ASU) below its
cost, that reduced amount is considered the cost
upon adoption. Upon adoption, the change from
the lower of cost or market to the lower of cost
and net realizable value for inventory within the
scope of the ASU will be accounted for as a
change in accounting principle
ASC 330, Inventory
ASU 2015-11, Simplifying the
Measurement of Inventory
If an entity has previously written
down inventory (within the scope of
the ASU) below its cost, that reduced
amount is considered the cost upon
adoption. Upon adoption, the change
from the lower of cost or market to
the lower of cost and net realizable
value for inventory within the scope
of the ASU will be accounted for as a
change in accounting principle
Page 54
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 350, Intangibles – Goodwill and Other
ASU 2015-05, Customer’s
Accounting for Fees Paid in a
Cloud Computing Arrangement
Effective for fiscal years beginning
after December 15, 2015, and interim
periods within those fiscal years.
Early adoption is permitted. An entity
can elect to adopt the amendments
either (1) prospectively to all
arrangements entered into or
materially modified after the
effective date or (2) retrospectively.
Effective for fiscal years beginning after
December 15, 2015, and interim periods within
fiscal years beginning after December 15, 2016.
Early adoption is permitted. An entity can elect
to adopt the amendments either (1) prospectively
to all arrangements entered into or materially
modified after the effective date or (2)
retrospectively.
ASU 2014-02, Accounting for
Goodwill (a consensus of the
Private Company Council)
Not applicable to public entities.
The accounting alternative, if elected, should be
applied prospectively to goodwill existing as of
the beginning of the period of adoption and new
goodwill recognized in annual periods beginning
after December 15, 2014, and interim periods
within annual periods beginning after December
15, 2015. Early application is permitted,
including application to any period for which the
entity’s annual or interim financial statements
have not yet been made available for issuance.
Page 55
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 360, Property, Plant, and Equipment
ASU 2014-08, Reporting Discontinued
Operations and Disclosures of Disposals of
Components of an Entity
Page 56
Effective for annual periods beginning Effective for annual periods beginning
on or after December 15, 2014, and
on or after December 15, 2014, and
interim periods within annual periods
interim periods within those years.
beginning on or after December 15,
2015.
Entities should not apply the
amendments to a component of an
Entities should not apply the
entity (or a business or nonprofit
activity) that is classified as held for amendments to a component of an
sale before the effective date even if entity (or a business or nonprofit
activity) that is classified as held for
it is disposed of after the effective
sale before the effective date even if
date. That is, the ASU must be
it is disposed of after the effective
adopted prospectively. Early
date. That is, the ASU must be
adoption is permitted, but only for
adopted prospectively. Early
disposals (or classifications as held
adoption is permitted, but only for
for sale) that have not been
disposals (or classifications as held
previously reported in the financial
for sale) that have not been
statements.
previously reported in the financial
statements.
PRONOUNCEMENT
ASC 405, Liabilities
ASU 2013-04, Obligations Resulting from
Joint and Several Liability Arrangements
for Which the Total Amount of the
Obligation Is Fixed at the Reporting Date (a
consensus of the FASB Emerging Issues Task
Force)
Page 57
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for fiscal years, and interim
periods within those years, beginning
after December 31, 2013. Early
adoption is permitted. Retrospective
application is required for all periods
presented. Entities are permitted to
use hindsight when determining the
appropriate amount to be recorded in
prior periods.
Effective for fiscal years ending after
December 31, 2014 and interim and
annual periods thereafter. Early
adoption is permitted. Retrospective
application is required for all periods
presented. Entities are permitted to
use hindsight when determining the
appropriate amount to be recorded in
prior periods.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for annual periods beginning after
December 15, 2017, including interim periods
therein. Entities may adopt using a retrospective
approach (with certain optional practical
expedients) or a cumulative effect approach.
Under the this alternative, an entity would apply
the new revenue standard only to contracts that
are incomplete under legacy U.S. GAAP at the date
of initial application (e.g. January 1, 2018) and
recognize the cumulative effect of the new
standard as an adjustment to the opening balance
of retained earnings. That is, prior years would not
be restated and additional disclosures would be
required to enable users of the financial
statements to understand the impact of adopting
the new standard in the current year compared to
prior years that are presented under legacy U.S.
GAAP. Early adoption is permitted only as of
annual reporting periods beginning after December
15, 2016, including interim periods within that
year.
Effective for annual periods beginning after
December 15, 2018. In addition, the new
standard is effective for interim periods
within annual periods that begin after
December 15, 2019. The same transition
alternatives apply.
ASC 606, Revenue
ASU 2014-09,
Revenue from
Contracts with
Customers;
ASU 2015-14,
Revenue from
Contracts with
Customers: Deferral
of the Effective Date
Page 58
Early adoption is permitted as of either:
•
An annual reporting period beginning
after December 15, 2016, including
interim periods within that year, or
•
An annual reporting period beginning
after December 15, 2016 and interim
periods within annual reporting periods
beginning one year after the annual
period in which the entity first applies
the new standard.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 715, Compensation—Retirement Benefits
ASU 2015-04,
Practical Expedient
for the Measurement
Date of an
Employer’s Defined
Benefit Obligation
and Plan Assets
Page 59
Effective prospectively for fiscal years beginning
after December 15, 2015, and interim periods
within those fiscal years. Early adoption is
permitted.
Effective prospectively for fiscal years
beginning after December 15, 2016, and interim
periods within fiscal years beginning after
December 15, 2017. Early adoption is
permitted.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 718, Compensation—Stock Compensation
ASU 2014-12,
Accounting for ShareBased Payments
When the Terms of
an Award Provide
That a Performance
Target Could Be
Achieved after the
Requisite Service
Period (a consensus
of the FASB Emerging
Issues Task Force)
Page 60
Effective for annual periods and interim periods
within those annual periods beginning after
December 15, 2015. Earlier adoption is
permitted.
Effective for annual periods and interim periods
within those annual periods beginning after
December 15, 2015. Earlier adoption is
permitted.
Entities may apply the amendments in this
Update either (a) prospectively to all awards
granted or modified after the effective date or
(b) retrospectively to all awards with
performance targets that are outstanding as of
the beginning of the earliest annual period
presented in the financial statements and to all
new or modified awards thereafter. If
retrospective transition is adopted, the
cumulative effect of applying this Update as of
the beginning of the earliest annual period
presented in the financial statements should be
recognized as an adjustment to the opening
retained earnings balance at that date.
Additionally, if retrospective transition is
adopted, an entity may use hindsight in
measuring and recognizing the compensation
cost.
Entities may apply the amendments in this
Update either (a) prospectively to all awards
granted or modified after the effective date or
(b) retrospectively to all awards with
performance targets that are outstanding as of
the beginning of the earliest annual period
presented in the financial statements and to all
new or modified awards thereafter. If
retrospective transition is adopted, the
cumulative effect of applying this Update as of
the beginning of the earliest annual period
presented in the financial statements should be
recognized as an adjustment to the opening
retained earnings balance at that date.
Additionally, if retrospective transition is
adopted, an entity may use hindsight in
measuring and recognizing the compensation
cost.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for fiscal years, and
interim periods within those
years, beginning after
December 15, 2013. Early
adoption is permitted.
Effective for fiscal years and interim periods within those
years, beginning after December 15, 2014. Early adoption
is permitted.
ASC 740, Income Taxes
ASU 2013-11, Presentation of
an Unrecognized Tax Benefit
When a Net Operating Loss
Carryforward, a Similar Tax
Loss, or a Tax Credit
Carryforward Exists (a
consensus of the FASB
Emerging Issues Task Force)
Page 61
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 805, Business Combinations
ASU 2015-16, Simplifying the
Accounting for MeasurementPeriod Adjustments
Effective for fiscal years, and
for interim periods within
those fiscal years, beginning
after December 15, 2015.
Early adoption is permitted.
Effective for fiscal years beginning after December 15,
2016, and for interim periods within fiscal years
beginning after December 15, 2017. Early adoption is
permitted.
ASU 2015-08, Pushdown
Accounting—Amendments to
SEC Paragraphs Pursuant to
Staff Accounting Bulletin No.
115 (SEC Update)
SAB 115 became effective
November 21, 2014.
Not applicable to private entities.
Page 62
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 805, Business Combinations
ASU 2014-18, Accounting for
Identifiable Intangible Assets
in a Business Combination (a
consensus of the Private
Company Council)
Page 63
Not applicable to public
entities.
If elected, the accounting alternative should be applied
to eligible transactions in fiscal years beginning after
December 15, 2015. Specifically, if the first eligible
transaction occurs in the first fiscal year beginning after
December 15, 2015, the elective adoption will be
effective for that fiscal year’s annual financial reporting
and all interim and annual periods thereafter. If the first
eligible transaction occurs in fiscal years beginning after
December 15, 2016, the elective adoption will be
effective in the interim period that includes the date of
that first in-scope transaction and subsequent interim
and annual periods thereafter. Early application is
permitted for any interim and annual financial
statements that have not yet been made available for
issuance.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 805, Business Combinations
ASU 2014-17, Pushdown
Effective on November 18, 2014.
Accounting (a consensus of the After the effective date, an
FASB Emerging Issues Task
acquired entity can make an
Force)
election to apply the guidance to
future change-in-control events or
to its most recent change-incontrol event.
Effective on November 18, 2014. After the effective
date, an acquired entity can make an election to
apply the guidance to future change-in-control
events or to its most recent change-in-control event.
ASC 810, Consolidation
ASU 2015-02, Amendments to
the Consolidation Analysis
Page 64
Effective for fiscal years, and for
interim periods within those fiscal
years, beginning after December
15, 2015.
Effective for fiscal years beginning after December
15, 2016, and for interim periods within fiscal years
beginning after December 15, 2017.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for annual periods, and
interim periods within those
annual periods, beginning after
December 15, 2015. Early
adoption is permitted as of the
beginning of an annual period.
Entities may adopt using either a
full or modified retrospective
approach. The modified approach
only impacts the annual period of
adoption by recording a
cumulative-effect adjustment to
equity.
Effective for annual periods beginning after
December 15, 2016, and interim and annual
periods thereafter. Early adoption is permitted
as of the beginning of an annual period.
Entities may adopt using either a full or
modified retrospective approach. The modified
approach only impacts the annual period of
adoption by recording a cumulative-effect
adjustment to equity.
ASC 810, Consolidation
ASU 2014-13, Measuring the
Financial Assets and the Financial
Liabilities of a Consolidated
Collateralized Financing Entity
Page 65
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Not applicable to public entities.
If elected, the accounting alternative
is effective for annual periods
beginning after December 15, 2014,
and interim periods within annual
periods beginning after December 15,
2015. Early application is permitted,
including application to any period
for which the entity’s annual or
interim financial statements have not
yet been made available for issuance.
The accounting alternative should be
applied retrospectively to all periods
presented. Prospective adoption is
not permitted.
ASC 810, Consolidation
ASU 2014-07, Applying Variable Interest
Entities Guidance to Common Control
Leasing Arrangements (a consensus of the
Private Company Council)
Page 66
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective upon issuance and
should be applied
prospectively. An entity will
have the ability to designate
qualifying contracts that are
entered into on or after the
effective date of the ASU as
normal purchases and normal
sales (“NPNS”). Because an
entity may elect the NPNS
scope exception at contract
inception or at a later date, it
also will be able to designate
qualifying contracts entered
into before the effective date
as NPNS, but only
prospectively.
Effective upon issuance and should be applied
prospectively. An entity will have the ability
to designate qualifying contracts that are
entered into on or after the effective date of
the ASU as normal purchases and normal sales
(“NPNS”). Because an entity may elect the
NPNS scope exception at contract inception or
at a later date, it also will be able to
designate qualifying contracts entered into
before the effective date as NPNS, but only
prospectively.
ASC 815, Derivatives and Hedging
ASU 2015-13, Application of the Normal
Purchases and Normal Sales Exception to
Certain Electricity Contracts within
Nodal Energy Markets
Page 67
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for annual periods,
and interim periods within
those annual periods, beginning
after December 15, 2015.
Effective for annual periods beginning after
December 15, 2015, and interim periods
within annual periods beginning after
December 15, 2016.
ASC 815, Derivatives and Hedging
ASU 2014-16, Derivatives and Hedging
(Topic 815): Determining Whether the
Host Contract in a Hybrid Financial
Instrument Issued in the Form of a Share
Is More Akin to Debt or to Equity (a
consensus of the FASB Emerging Issues
Task Force)
ASU 2014-03, Accounting for Certain
Not applicable to public
Receive-Variable, Pay-Fixed Interest
entities.
Rate Swaps – Simplified Hedge
Accounting Approach (a consensus of the
Private Company Council)
Page 68
If elected, the simplified hedge accounting
approach will be effective for annual periods
beginning after December 15, 2014, and
interim periods within annual periods
beginning after December 15, 2015. Early
adoption is permitted, and private companies
are able (but not required) to adopt the new
standards for December 31, 2013 year-end
financial statements that are not yet available
for issuance. Private companies have the
option to apply the amendments in this
Update using either a modified or full
retrospective approach.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective retrospectively for fiscal
years beginning after December 15,
2015, and interim periods within
those fiscal years. Early adoption is
permitted.
Effective retrospectively for fiscal
years beginning after December 15,
2016, and interim periods within
those fiscal years. Early adoption is
permitted.
Effective prospectively for all entities
with derecognition events after the
effective date. The guidance is
effective for fiscal years, and interim
periods within those years, beginning
after December 31, 2013. Early
adoption is permitted. If early
adoption is elected, the guidance
should be applied as of the beginning
of the entity’s fiscal year of
adoption.
Effective prospectively for all entities
with derecognition events after the
effective date. The guidance is
effective for fiscal years beginning
after December 31, 2014 and interim
and annual periods thereafter. Early
adoption is permitted. If early
adoption is elected, the guidance
should be applied as of the beginning
of the entity’s fiscal year of
adoption.
ASC 820, Fair Value Measurement
ASU 2015-07, Disclosures for Investments in
Certain Entities That Calculate Net Asset
Value per Share (or Its Equivalent) (a
consensus of the Emerging Issues Task
Force)
ASC 830, Foreign Currency Matters
ASU 2013-05, Parent’s Accounting for the
Cumulative Translation Adjustment upon
Derecognition of Certain Subsidiaries or
Groups of Assets within a Foreign Entity or
of an Investment in a Foreign Entity (a
consensus of the FASB Emerging Issues Task
Force)
Page 69
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 835, Interest
ASU 2015-15, Presentation and Subsequent Effective upon issuance.
Measurement of Debt Issuance Costs
Associated with Line-of-Credit
Arrangements (Amendments to SEC
Paragraphs Pursuant to Staff Announcement
at June 18, 2015 EITF Meeting)
ASU 2015-03, Simplifying the Presentation
of Debt Issuance Costs
Page 70
Effective retrospectively for fiscal
years beginning after December 15,
2015, and interim periods within
those fiscal years. Early adoption is
permitted.
Effective upon issuance.
Effective retrospectively for fiscal
years beginning after December 15,
2015, and interim periods within
fiscal years beginning after December
15, 2016. Early adoption is
permitted.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Effective for annual periods and
interim periods within those annual
periods beginning after December 15,
2014. Early adoption is permitted.
The amendments should be applied
on a modified retrospective basis, to
all arrangements existing at the
beginning of the fiscal year of
adoption and to all arrangements
entered into after that date.
Effective for annual periods beginning
after December 15, 2014, and interim
periods within annual periods
beginning after December 15, 2015.
Early adoption is permitted. The
amendments should be applied on a
modified retrospective basis, to all
arrangements existing at the
beginning of the fiscal year of
adoption and to all arrangements
entered into after that date.
ASC 853, Service Concession Arrangements
ASU 2014-05, Service Concession
Arrangements (a consensus of the FASB
Emerging Issues Task Force)
Page 71
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
The accounting changes and
disclosure for certain transactions
accounted for as a sale are effective
for the first period (interim or
annual) beginning after December 15,
2014. Earlier application for a public
business entity is prohibited. The
disclosure for transactions accounted
for as secured borrowings is required
for annual periods beginning after
December 15, 2014, and for interim
periods after March 15, 2015.
The accounting changes and both
new disclosures are effective for
annual periods beginning after
December 15, 2014 and interim
periods after December 15, 2015.
These entities may elect early
application and apply the
requirements for interim periods
beginning after December 15, 2014.
ASC 860, Transfers and Servicing
ASU 2014-11, Repurchase-to-Maturity
Transactions, Repurchase Financings, and
Disclosures
Page 72
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 915, Development Stage Entities
ASU 2014-10,
Elimination of Certain
Financial Reporting
Requirements,
Including an
Amendment to
Variable Interest
Entities Guidance in
Topic 810,
Consolidation
Page 73
DSE requirements – Effective for annual
reporting periods beginning after December
15, 2014 and interim periods therein. While
the elimination of the DSE financial reporting
requirements applies retrospectively, the new
disclosures about related risks and
uncertainties are required prospectively.
DSE requirements – Effective for annual reporting
periods beginning after December 15, 2014, and
interim periods beginning after December 15,
2015. While the elimination of the DSE financial
reporting requirements applies retrospectively,
the new disclosures about related risks and
uncertainties are required prospectively.
Early adoption is permitted for financial
statements that have not yet been issued or
made available for issuance.
Early adoption is permitted for financial
statements that have not yet been issued or made
available for issuance.
Consolidation update – Effective for annual
reporting periods beginning after December
15, 2015 and interim periods therein. The
amendments apply retrospectively and also
generally incorporate the transition provisions
of Statement 167 to address situations in
which it may not be practicable to obtain the
necessary information for prior years.
Consolidation update – Effective for annual
reporting periods beginning after December 15,
2016 and interim reporting periods beginning
after December 15, 2017. The amendments apply
retrospectively and also generally incorporate the
transition provisions of Statement 167 to address
situations in which it may not be practicable to
obtain the necessary information for prior years.
Early adoption is permitted for financial
statements that have not yet been issued or
made available for issuance.
See also ASC 810, Consolidation.
Early adoption is permitted for financial
statements that have not yet been issued or made
available for issuance.
See also ASC 810, Consolidation.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 944, Financial Services—Insurance
ASU 2015-09,
Disclosures about
Short-Duration
Contracts
Effective for annual reporting periods
beginning after December 15, 2015 and
interim reporting periods within annual
periods beginning after December 15, 2016.
Early adoption is permitted.
Effective for annual reporting periods beginning
after December 15, 2016 and interim reporting
periods within annual periods beginning after
December 15, 2017. Early adoption is permitted.
ASC 958, Not-for-Profit Entities
ASU 2013-06, Services Not applicable to public entities.
Received from
Personnel of an
Affiliate
Page 74
Effective prospectively for fiscal years beginning
after June 15, 2014, and interim and annual
periods thereafter. A recipient not-for-profit
entity may apply the amendments using a
modified retrospective approach under which all
prior periods presented upon the date of adoption
should be adjusted, but no adjustment should be
made to the beginning balance of net assets of
the earliest period presented. Early adoption is
permitted.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 960, Defined Benefit Pension Plans
ASU 2015-12, (Part II)
Plan Investment
Disclosures, (Part III)
Measurement Date
Practical Expedient
Effective for fiscal years beginning after
December 15, 2015. Early adoption is
permitted for all parts individually or in the
aggregate. Part II of the ASU should be
applied retrospectively, while Part III should
be applied prospectively.
Effective for fiscal years beginning after
December 15, 2015. Early adoption is permitted
for all parts individually or in the aggregate. Part
II of the ASU should be applied retrospectively,
while Part III should be applied prospectively.
ASC 962, Defined Contribution Pension Plans
ASU 2015-12, (Part I)
Fully BenefitResponsive Investment
Contracts, (Part II) Plan
Investment Disclosures,
(Part III) Measurement
Date Practical
Expedient
Page 75
Effective for fiscal years beginning after
December 15, 2015. Early adoption is
permitted for all three parts individually or in
the aggregate. Parts I and II of the ASU should
be applied retrospectively, while Part III
should be applied prospectively.
Effective for fiscal years beginning after
December 15, 2015. Early adoption is permitted
for all three parts individually or in the
aggregate. Parts I and II of the ASU should be
applied retrospectively, while Part III should be
applied prospectively.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
ASC 962, Health and Welfare Benefit Plans
ASU 2015-12, (Part I)
Fully BenefitResponsive Investment
Contracts, (Part II) Plan
Investment Disclosures,
(Part III) Measurement
Date Practical
Expedient
Page 76
Effective for fiscal years beginning after
December 15, 2015. Early adoption is
permitted for all three parts individually or in
the aggregate. Parts I and II of the ASU should
be applied retrospectively, while Part III
should be applied prospectively.
Effective for fiscal years beginning after
December 15, 2015. Early adoption is permitted
for all three parts individually or in the
aggregate. Parts I and II of the ASU should be
applied retrospectively, while Part III should be
applied prospectively.
PRONOUNCEMENT
EFFECTIVE DATE – PUBLIC
EFFECTIVE DATE – NON PUBLIC
Transition guidance varies based on the
individual amendments. The amendments
that require transition guidance are
effective for all entities for fiscal years, and
interim periods within those fiscal years,
beginning after December 15, 2015. Early
adoption is permitted, including adoption in
an interim period. All other amendments
became effective upon issuance.
Transition guidance varies based on the
individual amendments. The amendments
that require transition guidance are
effective for all entities for fiscal years,
and interim periods within those fiscal
years, beginning after December 15, 2015.
Early adoption is permitted, including
adoption in an interim period. All other
amendments became effective upon
issuance.
Other
ASU 2015-10, Technical
Corrections and Improvements
Page 77
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