bdo knowledge webinar series technical update – q1 2015 · • tier 1 – audited financial...
TRANSCRIPT
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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BDO KNOWLEDGE WEBINAR SERIES
Technical Update – Q1 2015
April 14, 15, or 16, 2015
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CPE AND SUPPORT CPE Participation Requirements ‒ To receive CPE credit for this webcast: • You’ll need to actively participate throughout the program. • Be responsive to at least 75% of the participation pop-ups.
Certificate of Attendance: If you are logged in the entire time and respond to the requisite 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: • BDO USA professionals ‒ CPE will automatically be issued in CPE Tracking & Reporting at the end of
every week. A copy of your certificate will be sent after you have been issued credit. • Clients and Contacts and all other individual participants ‒ You will be emailed instructions on how
to access your certificate.
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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 [email protected] within 24 hours of the webcast. • BDO USA professionals ‒ Submit your sign-in sheets using a General Training & Development Request in
BDO Service Now found at: BDOWorld > Applications & Resources > BDO Service Now > Click “Service Catalog” in the left menu, then under Training & Development, “Make a Request”.
• Alliance Firm Members ‒ Should proctor their own group participants. This process is detailed in the LearnLive Participant Guide, which can be found by searching “LearnLive Participant Guide” on the Alliance Portal. Call LearnLive Support below for questions.
• International Firm Members ‒ Unfortunately, we cannot currently support group CPE for International Firms. Those wanting CPE must register and log in on their own computer.
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LEARNING OBJECTIVES
Upon completion of this course participants will be able to:
• Recognize recently released FASB guidance and appropriately implement relevant guidance to their business
• Describe project and proposal stage literature that may have a broad impact on financial reporting
• Analyze pitfalls in implementing new guidance • Discuss recent and proposed SEC and PCAOB rulemaking
and activities
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PRESENTERS
Accounting Update Adam Brown, National Director of Accounting, BDO USA, LLP [email protected] SEC Matters Update Jeff Lenz, National Director – SEC Practice, BDO USA, LLP [email protected] Accounting and PCAOB Updates Wendy Hambleton, National Assurance Partner, BDO USA, LLP [email protected]
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Accounting Update
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ACCOUNTING UPDATE – DISCUSSION OUTLINE
• “Big 3” Convergence Projects - Revenue - Leases - Financial Instruments
• FASB Decisions on Short-Duration Insurance Contracts
• Other FASB, EITF and PCC matters
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REVENUE RECOGNITION
Transition Resource Group • Met January & March 2015 FASB Tentative Decisions • Performance obligations • Licenses of intellectual property • Effective date – Proposed 1 yr deferral
• https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-april-2015
BDO Resource Webpage https://www.bdo.com/services/assurance/revenue-recognition/overview
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POLLING QUESTION
Assuming the FASB defers the standard for a year as proposed, do you plan to adopt early (i.e., in accordance with the original adoption timeline)? A. Yes, I will continue on the original timeline. B. No, I need the extra time. C. Undecided. D. Not applicable, I’m not a preparer of financial statements (e.g.,
analyst, auditor, etc.).
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REVENUE RECOGNITION
Tentative Decisions - Performance Obligations
• Identifying promised goods/services – immaterial promises do not need to be evaluated
• Distinct in context of contract - Define “separately identifiable” - Revise the separation criteria to focus on bundles of goods/services - Add illustrative guidance
• Shipping & handling services
- Clarify S&H occurring before transfer of control = fulfillment costs - Allow policy election to treat S&H occurring after control transfers as
fulfillment costs
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REVENUE RECOGNITION
Tentative Decisions - Licenses of Intellectual Property (IP) • Determining the nature of promise in granting a license
- Classify IP into one of two categories: functional or symbolic, in order to clarify whether a license of IP is satisfied over time or at a point in time
• Sales-based and usage-based royalties - Royalties should not be split into portions subject separately to royalty and
general constraints - Apply royalty constraint if license of IP is predominant item to which royalty
relates
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POLLING QUESTION
Do you plan to adopt using full retrospective or modified retrospective? A. Full retrospective. B. Modified retrospective. C. Undecided. D. Not applicable, I’m not a preparer of financial statements (e.g., analyst,
auditor, etc.).
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LEASES – Q1 DECISIONS
• Disclosures http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FActionAlertPage&cid=1176164739188
• Lessee & lessor transition - Modified retrospective approach with hindsight allowed for evaluating renewal and
purchase options on existing leases. No option for full retrospective. - Significant relief provisions allowed as a policy election
• Sale-and-leaseback transition - No reassessment of initial sale/leaseback conclusions - Specific transition for deferred gains (or losses) related to capital or operating leases
• Variable lease payments tied to index only reassessed if lease liability is remeasured (e.g., change in lease term)
• Build-to-suit lease arrangements – eliminated • Final standard expected in 2015. Future BDO Knowledge Webinar
planned
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FINANCIAL INSTRUMENTS – Q1 DECISIONS
• No disclosures required for core deposit liabilities. • Specific disclosures for embedded derivatives proposed. • Available-for-sale debt securities – retain existing disclosure guidance, updated
to include disclosure of credit risk. • Narrowed rollforward requirement to allowance for expected credit losses
related to instruments carried at amortized cost and fair value – OCI. • Disaggregated credit quality indicators to be disclosed for debt instruments. • Nonpublic entities required to apply credit impairment disclosure requirements. • Not-for-profit entities required to apply disclosure requirements to
programmatic loans. • Transition: Generally cumulative effect adjustment, but special transition
provided for OTTI instruments, purchased credit impaired instruments, and beneficial interests.
• Final standard on classification and measurement, as well as impairment, expected in 2015.
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SHORT DURATION INSURANCE CONTRACTS – Q1 DECISIONS
• Disclose only current year claims development information in footnotes; include all prior year claims information and related disclosures in required supplementary information.
• Disclosure of claims counts including quantitative & qualitative information, unless it is impracticable to provide such information.
• Expand incurred but not reported (IBNR) disclosure requirement to include IBNR plus expected development on reported claims, and description of process to determine such amounts.
• Final standard expected in 2015, with effective dates as follows: - Public Business Entities – annual periods beginning after 12/15/2015; interim
periods w/in annual periods beginning after 12/15/2016. - All other entities – one year delay.
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FINAL ASUS ISSUED Q1 2015
ASU 2015- Title
01
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
02
Amendments to the Consolidation Analysis
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ASU 2015-01: EXTRAORDINARY ITEMS*
• Eliminates “extraordinary items” from GAAP • Items that are unusual AND/OR infrequently occurring to be reported as
separate component of income from continuing operations • Alternatively, disclose in the footnotes • Effective for all entities for FYs beginning after 12/15/15 (and interim
periods within); early adoption permitted (beginning of FY only) • Apply prospectively or retrospectively • BDO Flash Report:
https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-january-2015-1
*Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
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ASU 2015-02: AMENDMENTS TO THE CONSOLIDATION ANALYSIS
1. Limited partnerships and similar legal entities - Eliminates presumption that
general partner should consolidate limited partnership 2. Entities other than limited partnerships and their equivalents 3. Evaluating fees paid to a decision maker or a service provider as a variable
interest 4. The effect of fee arrangements on the primary beneficiary determination 5. The effect of related parties on the primary beneficiary determination 6. Certain investment funds – eliminates the indefinite investment company
deferral (ASU 2010-10) and replaces it with an exemption for certain money market funds.
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ASU 2015-02: CONSOLIDATION (CONTINUED)
• Effective date - Public business entities - FYs, and interim periods within, beginning after
12/15/15 - All other – FYs beginning after 12/15/16; interim periods beginning after
12/15/17 - Early adoption permitted - Full or modified retrospective transition
• For more information:
- BDO Flash Report: https://www.bdo.com/insights/assurance/fasb/fasb-flash-report-march-2015
- BDO Knowledge Webinar: How ASU 2015-02 Changes Consolidation Accounting (May 14, 2015)
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POLLING QUESTION
How great of an impact do you expect the consolidation amendments to have on your financial reporting? A. Significant. B. Moderate. C. Low or no impact. D. Unsure, or not applicable to my organization.
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EITF AND PCC UPDATE
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EITF UPDATE
EITF meeting - March 2015 • Final consensuses
- Issue 14-A: Effects on historical earnings per unit of master limited partnership dropdown transactions
- Issue 14-B: Disclosures for investments in certain entities that calculate net asset value per share (or its equivalent)
• Consensuses-for-exposure - Issue 15-A: Application of the normal purchases and normal sales scope exception to
certain electricity contracts within nodal energy markets - Issue 15-B: Recognition of breakage for prepaid stored-value cards - Issue 15-C: Employee benefit plan simplifications
Next meeting scheduled for May 2015
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PCC UPDATE
PCC Meeting – February 2015 • Definition of a Public Business Entity (Phase 2) – decided not to amend existing
definitions of nonpublic entity • Balance sheet classification of debt • PCC accounting alternative effective dates (new project) • Share-based compensation • Uncertain tax positions • Other FASB projects
Next meeting planned for May 2015
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SEC Matters Update
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RULEMAKING – FINAL RULES AMENDMENTS TO REGULATION A
• Release at: http://www.sec.gov/rules/final/2015/33-9741.pdf
• Concept – Scaled approach for public offerings by private companies - Securities sold are freely tradable - Limits on how much can sell to an investor; depends on various factors
• Tier 1 – Up to $20 million over twelve months
- State regulation
• Tier 2 – Up to $50 million over twelve months
- State regulation pre-empted
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RULEMAKING – FINAL RULES AMENDMENTS TO REGULATION A
Offering Circular (Form 1-A) • “Qualified” with SEC
- Submitted via EDGAR but no XBRL data required - Confidential submissions - Content - scaled version of Form S-1/S-11 – two years of financial
statements plus comparative half year interims; update every 9 months; financial statements of other entities (e.g., targets, guarantors); pro formas; PCC standards not permitted
• Tier 1 – Audited financial statements only if otherwise available - GAAS, unregistered auditing firm, AICPA independence all ok
• Tier 2 – Audited financial statements required - GAAS, unregistered auditing firm ok - Must comply with SEC independence rules
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RULEMAKING – FINAL RULES AMENDMENTS TO REGULATION A
Ongoing Reporting (Tier 2 Only) • Content - scaled version of 34 Act reporting • Annual report (Form 1-K) – similar audited financial statements to Form
1-A, due 120 days after year-end • Semiannual report (Form 1-SA) – comparative half year interims, due 90
days after end of the first six months • Current reports (Form 1-U) – similar to Form 8-K reporting except no
target financial statements or pro formas, due 4 business days after the event
• All submitted via EDGAR but no XBRL data required • PCC standards not permitted
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SEC STAFF ACTIVITIES
January 12, 2015 update of the Financial Reporting Manual (FRM) posted: http://www.sec.gov/divisions/corpfin/cffinancialreportingmanual.shtml • Revisions to conform FRM to ASU 2014-17, Pushdown Accounting, and
corresponding rescission of SAB Topic 5.J, New Basis of Accounting Required in Certain Circumstances, in November
Implementation issues related to new accounting standards – stay tuned • ASU 2014-09 – Revenue from Contracts with Customers • ASU 2015-02 – Amendments to the Consolidation Analysis
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PCAOB Update
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PCAOB UPDATE
PCAOB reorganization of auditing standards • Topical system for easier navigation, organized by:
1. General auditing standards 2. Audit procedures 3. Auditor reporting 4. Matters related to filings under federal securities laws 5. Other matters associated with audits
• The amendments do not introduce new auditing requirements or change the substance of existing standards
Other matters
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ADDITIONAL WEBINARS
BDO Knowledge Upcoming Webinar: • How ASU 2015-02 Changes Consolidation Accounting (May 14, 2015 –
registration forthcoming on https://www.bdo.com/events) BDO Knowledge Archived Webinars: • 2015 Executive Pay Outlook for Mid-Cap Companies – March 2015
https://www.bdo.com/events/2015-executive-pay-outlook-for-mid-cap-companies-a
• What’s On the Minds of Boards – January 2015 https://www.bdo.com/events/what-is-on-the-minds-of-boards
• Q4 2014 Technical Update – January 2015 https://www.bdo.com/events/quarterly-technical-update-q4-2014
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BDO BOARD REFLECTIONS Additional resources accessible via BDO Board Governance: https://www.bdo.com/services/assurance/board-governance/overview
Recent BDO Publications: • FASB Flash Reports • 2013 COSO Internal Control – Integrated Framework – Update on Implementation
Considerations • BDO 2014 Board Survey • BDO Guide to Going Public • BDO Board Reflections: Perspectives on Executive Succession Planning • CAQ Approach to Audit Quality Indicators • Cybersecurity – Its Impact on the External Audit and Other Recent Developments • Cybersecurity – A Board Primer • Private Company Council (PCC) Flash Reports • Significant Accounting and Reporting Matters Guide
For a complete listing of publications, refer to: https://www.bdo.com/insights/
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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!
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CONCLUSION THANK YOU FOR YOUR PARTICIPATION! Certificate Availability: If you participated the entire time and responded to at least 75% of the participation pop-ups, click the “Participation” button below to access the print certificate button.
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BDO USA professionals - submit your sign-in sheets using a Training & Development Request in BDO Service Now found at: BDOWorld > Applications & Resources > BDO Service Now > Click “Service Catalog” in the left menu, then under Training & Development, “Make a Request”.
Clients and Contacts – email sign-in sheets to [email protected] within 24 hours of the webcast.
Alliance Members ‒ should proctor their own group participants. This process is detailed in the LearnLive Participant Guide on Alliance Portal > Resource Center. Call LearnLive Support for questions at 1-888-228-4088.
Unfortunately, we cannot currently support group CPE for International Firms. Those wanting CPE must have registered and participated from their own computer.
Please exit the course by clicking on the red “X” in the upper right corner.
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APPENDIX Effective Dates of U.S. Accounting Pronouncements
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES 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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 205, Presentation of Financial Statements
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. 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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES 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 periods within those fiscal years, beginning after December 15, 2015.
Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.
ASC 310, Troubled Debt Restructuring by Creditors
ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure
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.
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 310, Troubled Debt Restructuring by Creditors
ASU 2014-04, Reclassification of Residential Real Estate collateralized consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)
Effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. 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.
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 323, Investments – Equity Method and Joint Ventures
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)
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.
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 350, Intangibles – Goodwill and Other
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES 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
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. 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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC 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)
Effective for fiscal years, and interim periods within those years, beginning after 12/31/2013. 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 12/31/2014 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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON
PUBLIC ASC 606, Revenue
ASU 2014-09, Revenue from Contracts with Customers
Effective for annual periods beginning after December 15, 2016, 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, 2017) 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 prohibited.
Effective for annual periods beginning after December 15, 2017. In addition, the new standard is effective for interim periods within annual periods that begin after December 15, 2018. The same transition alternatives apply. There are certain provisions that allow for nonpublic entities to early adopt.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC ASC 718, Compensation—Stock Compensation
ASU 2014-12, Accounting for Share-Based 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)
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 ASU specifies additional transition considerations.
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 ASU specifies additional transition considerations.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
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)
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES 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)
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 805, Business Combinations
ASU 2014-17, Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)
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.
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
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 810, Consolidation
ASU 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 810, Consolidation
ASU 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements (a consensus of the Private Company Council)
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
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)
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
ASC 815, Derivatives and Hedging ASU 2014-03, Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach (a consensus of the Private Company Council)
Not applicable to public entities.
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.
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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATES PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC
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)
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 12/31/2013. 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 12/31/2014 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.
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ASC 853, Service Concession Arrangements
ASU 2014-05, Service Concession Arrangements (a consensus of the FASB Emerging Issues Task Force)
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.
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ASC 860, Transfers and Servicing
ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures
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.
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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
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. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. See also ASC 810, Consolidation.
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. See also ASC 810, Consolidation.
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ASC 958, Not-for-Profit Entities
ASU 2013-06, Services Received from Personnel of an Affiliate
Not applicable to public entities.
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.