quarterly outlook - june 2017 - kpmg...business reporting language (xbrl). ifrs taxonomy for foreign...

June 2017

kpmg.com/us/frv

Quarterly Outlook

US GAAP

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member

firm of the KPMG network of independent member firms affiliated with KPMG

International Cooperative (“KPMG International”), a Swiss entity. NDPPS 671801

Quarterly Outlook – June 2017

Quarterly Outlook June 2017

The effective date of the new revenue recognition standard for public

companies quickly approaches. Implementation efforts by companies are in

high gear and stakeholders and regulators are keeping a watchful eye on

their progress.

The SEC continues to stress the importance of updating and maintaining

internal controls related to implementing the new standards on revenue

recognition, lease accounting and credit impairment; robust transition

disclosures; and considering whether transition to a new standard results in

new risks, including fraud risks.

While the FASB continues its work on new standard-setting projects, its

short-term agenda is focused on more narrowly-scoped projects geared

toward simplifying or clarifying current accounting guidance.

Our Quarterly Outlook summarizes these and other accounting and financial

reporting developments potentially affecting you in the current period or

near term.




Quarterly Outlook – June 2017

Contents Current quarter financial reporting matters ................................................... 1

SEC under new leadership .......................................................................... 1

SEC staff comments ................................................................................... 1

SEC rulemaking developments ................................................................... 2

Income tax implications of Brexit ................................................................ 4

New standards and guidance ........................................................................... 5

Revenue recognition effective date draws near .......................................... 5

Implementing the new lease accounting standard ..................................... 6

Moving forward on financial instruments .................................................... 8

Identifying the customer in a service concession arrangement .................. 9

Modification accounting in share-based payment awards........................... 9

Shortened premium amortization period for certain callable debt

securities ................................................................................................... 10

Separate presentation for service cost component of net benefit cost .... 11

Effective date clarification for new goodwill impairment standard............ 11

PCAOB adopts new standard to enhance the auditors’ report; issues two

proposals ................................................................................................... 12

Projects and agenda priorities ....................................................................... 14

Potential changes to consolidation guidance, including optional private

company exemption .................................................................................. 14

FASB proposes improvements to accounting for insurance contracts ..... 14

EITF to address costs incurred in certain cloud computing arrangements 15

Recommended reading and CPE opportunities ........................................... 16

The revenue recognition quandary ............................................................ 16

Staying ahead in a volatile tax landscape .................................................. 16

Federal tax reform could have big effect on states ................................... 16

Upcoming CPE opportunities .................................................................... 16

Appendix – Accounting standards effective dates ....................................... 18

Accounting standards affecting public companies in 2017 ....................... 18

Accounting standards affecting public companies in 2018 and beyond .... 19

Accounting standards affecting private companies in 2017 ...................... 21

Accounting standards affecting private companies in 2018 and beyond .. 22

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Quarterly Outlook – June 2017 | 1

Current quarter financial reporting matters SEC under new leadership

On May 4, Jay Clayton was sworn into office as the 32nd

Chairman of the SEC.

Since taking office, Clayton has filled numerous key roles at the SEC. Among

the appointments, the SEC named William Hinman as the new Director of the

SEC’s Division of Corporation Finance on May 9.

SEC staff comments

The SEC staff is focused on internal control over financial reporting (ICOFR) and

transition disclosures, particularly as they relate to implementing the new

revenue recognition, lease accounting and credit impairment standards.

Internal control over financial reporting

The SEC staff continues to comment on internal control over financial reporting

(ICOFR). Through March 16, SEC staff comments posted to EDGAR about

administrative deficiencies included:

— not disclosing which framework the company used;

— use of an incorrect assessment date;

— missing reports and disclosures;

— nonconforming certifications or definitions by management included in

Form 10-K, Item 9a, and Form 10-Q, Item 4;

— disclosures about changes in internal controls addressing the year-to-date

period instead of the required quarterly period;

— not excluding the acquired business from the auditors’ report when

management excluded it from its assessment of the effectiveness of

ICOFR; and

— not concluding on the effectiveness of ICOFR when a control deficiency

was identified.

Other recurring SEC staff comments about ICOFR focus on:

— material changes to ICOFR – e.g. not disclosing changes in IT systems,

business operations and unusual transactions.

— immaterial error corrections – i.e. whether management has assessed

and disclosed the effectiveness of ICOFR in the current and prior period

when it reports an immaterial correction of a prior period.

— description of control failures – e.g. insufficient detail about (1) the nature

of the material weakness and its effect on financial reporting and internal

control and (2) management’s remediation plans.

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https://www.sec.gov/news/press-release/2017-94


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Current quarter financial reporting matters





— inconsistent conclusions – e.g. concluding that disclosure controls and

procedures were ineffective but ICOFR was effective.

— disclosures about remediation – i.e. inadequate disclosure about the

remediation status of a previously identified material weakness.

Transition disclosures about new accounting standards

At the September 2016 EITF meeting, the SEC staff announced that when a

registrant does not know and cannot reasonably estimate the effects of

adopting a new accounting standard, it should consider additional qualitative

financial statement disclosures to help users understand the potential

significance of those effects.

The SEC staff expects a registrant to describe the new accounting policies that

it expects to apply, if determined, and compare those policies with current

accounting policies. In addition, a registrant should describe progress made

toward implementing the new standard and the significant implementation

matters that still must be addressed.

A registrant should avoid boilerplate transition disclosures, and strive to provide

useful information about its adoption and implementation efforts, particularly

those addressing the new revenue recognition, lease accounting and credit loss

standards.

See Revenue effective date draws near for a discussion of recent SEC staff

speeches highlighting its focus on revenue recognition implementation,

including transition disclosures.

Other SEC staff focus areas

The SEC staff also frequently comments about:

— non-GAAP financial measures;

— Management’s Discussion and Analysis;

— fair value measurements;

— income taxes;

— intangible assets and goodwill;

— revenue recognition;

— segment reporting;

— acquisitions and business combinations;

— debt/equity; and

— commitments and contingencies.

SEC rulemaking developments

Exhibit hyperlinks and HTML format

The SEC adopted amendments that require registrants that file registration

statements and reports subject to the exhibit requirements under Item 601 of

Regulation S-K, or that file Forms F-10 or 20-F, to include a hyperlink to each

exhibit listed in the exhibit index of these filings. Those registrants also are

required to submit these filings in an HTML format beginning with filings

submitted on or after September 1, 2017. Certain other registrants will need to

comply one year later.

Resources: Final rule

https://www.sec.gov/rules/final/2017/33-10322.pdf

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Initiative to modernize Guide 3

The SEC is requesting feedback about whether the disclosure requirements

under Industry Guide 3, which generally apply to bank holding companies,

continue to elicit the information that investors need to make informed

investment and voting decisions.

The comment period ends July 7.

Resources: Request for comment

Relief on conflict minerals

The staff of the SEC’s Division of Corporation Finance updated its statement

about the effect of the decision by the Court of Appeals on the Conflict

Minerals Rule. The staff decided not to recommend enforcement action if a

company performs only a reasonable country-of-origin inquiry and files Form

SD, even if it would otherwise be required under the rule to conduct detailed

supply-chain due diligence, prepare and file a conflict minerals report, or

undergo an audit.

Resources: SEC statement

Rule amendments under JOBS Act

The SEC adjusted for inflation certain thresholds for amounts raised through

crowdfunding, and for eligibility as an emerging growth company (EGC) under

the Jumpstart Our Business Startups (JOBS) Act. It also adopted technical

amendments including those related to scaled disclosure requirements for

EGCs.

Resources: Press release; Final rule

Shortened settlement for securities transactions

The SEC adopted a rule amendment to shorten by one business day the

standard settlement cycle for most broker-dealer securities transactions to two

business days (T+2) from three business days (T+3). Broker-dealers will be

required to comply with the amended rule beginning September 5, 2017.

Resources: Final rule

XBRL-related actions

The SEC announced actions aimed at improving the accessibility and quality of

data submitted by public companies and mutual funds using eXtensible

Business Reporting Language (XBRL).

IFRS taxonomy for foreign private issuers

The SEC published on its website an IFRS-based XBRL taxonomy to enable

foreign private issuers that prepare their financial statements under IFRS to

submit them in XBRL.

Inline XBRL rule proposal

The proposed rule would require all public companies and mutual funds to

embed XBRL into their financial statements and risks/returns summaries,

respectively. Currently, the XBRL information is included in a separate file. The

proposal would not change the scope of the information that public companies

and mutual funds provide in XBRL, but would eliminate the ’15 business day

filing period’ for mutual fund filings that contain risks/returns summaries. This

change accelerates a mutual fund’s filings of XBRL information.

https://www.sec.gov/rules/other/2017/33-10321.pdf

https://www.sec.gov/news/public-statement/corpfin-updated-statement-court-decision-conflict-minerals-rule




https://www.sec.gov/rules/other/2017/33-10320.pdf

https://www.sec.gov/rules/proposed/2017/33-10323.pdf

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The public company and mutual fund requirements would be phased in over

three and two years, respectively. The filer’s size would determine when

compliance is first required. Additionally, the proposal does not address the

auditors’ role, if any, related to Inline XBRL. Currently, independent auditors are

not responsible for XBRL-formatted exhibits under SEC requirements.

In 2016, the SEC initiated the voluntary Inline XBRL program, which extends

through March 30, 2020.

Resources: KPMG’s web article, SEC takes XBRL-related actions

C&DIs about Regulation A

The staff of the SEC’s Division of Corporation Finance updated its Compliance

and Disclosure Interpretations (C&DIs) about filing requirements under

Regulation A, which permits an issuer to offer and sell small amounts of

securities in a 12-month period without complying with the Securities Act of

1933 or the Securities Exchange Act of 1934.

Resources: C&DIs

Income tax implications of Brexit

On March 29, 2017, the UK formally notified the European Council of their

intention to withdraw from the European Union (EU). The notice initiated a two-

year negotiation period to establish the withdrawal terms. If no agreement is

reached after two years, the UK’s separation becomes effective, unless the

remaining EU members unanimously agree to an extension.

While withdrawal presently seems inevitable at the earlier of the withdrawal

agreement or two years, all relevant tax laws and treaties remain unchanged

and the ultimate tax consequences are unknown. Companies reporting under

US GAAP should wait to recognize in their financial statements estimated

changes in their income tax accounts until (1) the UK and the EU (or individual

member countries) enact changes in tax laws or (2) withdrawal takes place.

Meanwhile, public and private companies with UK operations should provide

clear and transparent disclosures about the withdrawal process and their

potential effects, including the:

— UK’s notice of withdrawal and the nature of the company’s activities that

could be affected;

— uncertainty in evaluating the effect on financial statements of the loss of

tax exceptions and reliefs available to EU members only; and

— expected changes in tax laws or regulations for which there may be a

financial statement effect.

Companies should monitor developments and reassess at each reporting date

whether uncertainties about the UK’s future tax status have changed, which

would require additional disclosure, or have been resolved, which would require

changes to current or deferred taxes.

Resources: KPMG’s Defining Issues, Income tax implications of Brexit

https://frv.kpmg.us/reference-library/2016/06/sec-permits-public-companies-to-use-inline-xbrl.html

https://frv.kpmg.us/reference-library/2017/03/sec-takes-xbrl-related-actions.html

https://www.sec.gov/divisions/corpfin/cfnew/cfnew0317.shtml

https://frv.kpmg.us/reference-library/2017/03/income-tax-implications-of-brexit.html

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New standards and guidance

Revenue recognition effective date draws near

As the 2018 effective date of the new revenue recognition standard for public

companies quickly approaches, companies are focused on their implementation

efforts. Revenue recognition implementation also is a key focus area of the SEC

staff, and has been frequently addressed in recent speeches.

Recurring SEC consultation themes

In a recent speech, an SEC staff member from the Office of the Chief

Accountant (OCA) shared observations from consultations with registrants

about implementing the new standard. The observations included these

common themes.

— Identifying the contract. Determining the contract with the customer is a

critical step that requires evaluating enforceable rights and obligations. An

analysis of contractual provisions such as termination clauses and

repurchase rights could affect the accounting conclusions related to a

contract. Registrants should carefully assess the specific facts and

circumstances of each transaction, including all relevant contractual terms,

and exercise reasonable judgment when identifying and evaluating each

contract with its customers.

— Identifying performance obligations.

– Companies should not presume that the concept of a ‘deliverable’

under current guidance is the same as the concept of a ‘performance

obligation’ under the new standard. Although conclusions about the

unit of account may not change in many instances, a company must

evaluate the contractual terms of its contracts with customers under

the new standard to reach those conclusions.

– A company must apply reasonable judgment and support its

identification of performance obligations using the core principles of the

standard, including whether the promised goods and services are

inputs to a combined output.

– Preparers must understand each underlying transaction, including their

specific facts and circumstances and contractual terms, and faithfully

apply the principles of the new standard to those specific facts and

circumstances.

SEC staff from the OCA has stated that based on preliminary reviews of recent

10-K and 10-Q filings, it is encouraged by the number of companies that have

enhanced their SAB 74 transition disclosures. However, some companies

indicated they do not expect the effect of the new revenue recognition

standard to be material. The SEC staff would expect that even if a registrant

anticipates little change to its balance sheet or income statement, the changes

to the related disclosures may be material. In assessing whether adoption is

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expected to materially affect their business, registrants should consider

possible changes to recognition, measurement, presentation and disclosure.

The SEC staff also expects SAB 74 disclosures about the effect of the new

standard to evolve and include significantly more detail over time as

implementation progresses. See Transition disclosures about new accounting

standards.

New disclosure requirements

The SEC’s Chief Accountant recently reminded companies that the new

revenue recognition standard introduces a number of significant new disclosure

requirements that may present implementation challenges. Companies should

dedicate appropriate time and resources to (1) gather the necessary data and

(2) implement the appropriate systems, processes and controls to comply with

the new disclosure requirements. The SEC staff is urging companies to take

these steps before the end of the year.

Internal control over financial reporting

The SEC staff also has stressed that transition to a new standard requires

management to carefully consider whether its application results in new risks or

changes to previously identified risks, including fraud risks. The new revenue

recognition standard introduces new estimates and judgments that are

susceptible to management bias, including identifying performance obligations,

estimating stand-alone selling prices for distinct goods and services, and

estimating variable consideration when determining transaction price.

Management should consider whether new or modified internal controls over

financial reporting (ICOFR) are needed to mitigate the newly identified risks,

including management bias.

Companies also likely will need to update their internal controls over measuring

the transition adjustments and preparing the expanded disclosures. Companies

should disclose those changes that have materially affected, or are reasonably

likely to materially affect, their ICOFR as the underlying business changes.

Registrants should not wait until the effective date of the new standard to

disclose related changes in ICOFR.

Resources: KPMG’s Handbook: Revenue Recognition; Q&A, Revenue

Recognition for Software and SaaS, and webpage on revenue; Speeches from

the SEC’s Chief Accountant and OCA

Implementing the new lease accounting standard

By now, most companies understand that the new lease accounting standard

will require lessees to recognize all leases (except for short-term leases) on the

balance sheet. However, in addition to the significant effort many companies

will make to identify and abstract their leases, companies should take stock of

other provisions in the new standard that will likely significantly affect their

implementation efforts and subsequent accounting.

Reassessment events and new system requirements for lessees

Current US GAAP does not require lessees to reassess the lease term or

lessee purchase options after lease inception unless the lease is modified.

https://frv.kpmg.us/reference-library/2017/04/handbook-revenue-recognition.html

https://frv.kpmg.us/reference-library/2017/03/revenue-for-software-and-saas.html

https://frv.kpmg.us/reference-library/2017/03/revenue-for-software-and-saas.html

https://frv.kpmg.us/all-topics/revenue.html

https://www.sec.gov/news/speech/remarks-2017-baruch-college-financial-reporting-conference-advancing-our-capital

https://www.sec.gov/news/speech/alicea-remarks-bloomburg-bna-conference-revenue-recognition-050817

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However, the new standard requires a lessee to update its judgments about

the lease term and lessee purchase options when significant events or changes

in circumstances within the control of the lessee - i.e. ‘triggering events’ -

occur. The new standard provides examples of triggering events that include

constructing significant leasehold improvements or entering into a sublease. In

addition to reassessing the lease term and lessee purchase options when a

triggering event occurs, lessees will need to remeasure a lease whenever the

market value of an underlying asset subject to a residual value guarantee

substantively changes or a contractual payment contingency is resolved.

To facilitate periodic reassessments, companies will need to implement new

systems and/or processes to monitor for possible triggering events, market

value changes in leased assets subject to residual value guarantees, and

contingencies that affect the lease payments. Companies also will need to

update their controls to address new risk points introduced by the

reassessment requirements. This effort likely will require cross-functional

coordination and sufficient lead time to design and implement new systems,

processes, and controls before adopting the new standard.

Foreign currency matters for operating leases

Lessees are evaluating the exchange rate(s) they should use to measure the

single lease cost for an operating lease denominated in a foreign currency.

Although the new standard describes operating lease cost as a single lease

cost, it effectively comprises two components (1) amortization of the right-of-

use (ROU) asset and (2) accretion of the lease liability. Under US GAAP about

foreign currency matters, companies should use:

— the historical exchange rate to measure the portion of lease cost associated

with the amortization of the ROU asset (a nonmonetary amount); and

— the average exchange rate for the period (assuming no major fluctuations in

exchange rate during the period) to measure the portion of lease cost

associated with the accretion of the lease liability (a monetary amount).

This represents a change from current US GAAP, where companies measure

the entire operating lease expense generally using an average exchange rate

for the period. P&L volatility may result from remeasuring the balance of the

lease liability using current exchange rates. Companies may need to update

their systems to accommodate these calculations.

Build-to-suit transition guidance

The new standard will result in many lessees derecognizing legacy build-to-suit

assets and liabilities in transition, resulting in changes to certain historical

balance sheet metrics and ratios.

This is a welcome change for affected lessees because many build-to-suit

assets and liabilities are significant and have remained on lessee balance sheets

for many years solely due to the stringent real estate sale-leaseback

requirements. The build-to-suit transition guidance is driving some companies

to early adopt the new leases standard.

Other implementation considerations

On a broader scale, companies should continue to prepare for timely

implementation by:

— evaluating the benefits of early adoption;

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— creating an inventory of all leases;

— determining whether to elect the transition practical expedients;

— evaluating incremental systems and process requirements (e.g. to prepare

the required disclosures); and

— evaluating the adequacy of transition disclosures (see Transition disclosures

for new accounting standards).

The new lease accounting standard is effective for public companies in fiscal

years beginning after December 15, 2018 (i.e. 2019 for calendar year-end public

companies), and one year later for all other entities.

Resources: KPMG’s Issues In-Depth, Build-to-suit leases, and related webpage

on leases

Moving forward on financial instruments

The FASB’s new financial instruments standards that address (1) recognition

and measurement and (2) credit impairment are effective for public business

entities with calendar year-ends in 2018 and 2020, respectively. Companies

should promptly begin to analyze the practical business implications of adopting

these standards, and consider the adequacy of their disclosures about the

expected effects of adopting the standards.

Companies that invest in equity securities should begin analyzing their

portfolios to understand the potential effects of the recognition and

measurement standard. Those companies will need to measure equity

investments with readily determinable fair values at fair value and recognize

changes in fair value in net income. Under current US GAAP, companies

recognize changes in fair value of available-for-sale equity securities in other

comprehensive income (OCI). Additionally, the standard introduces a new

measurement alternative – and US GAAP concept – ‘cost basis adjusted for

observable transaction prices’ for equity securities without a readily

determinable fair value. To date, this measurement alternative has been the

source of the greatest number of interpretive questions about the new

standard. It also will likely require the most significant changes to processes

and controls.

The FASB’s overhaul of credit impairment accounting will significantly affect

financial institutions, banks and other companies that originate or invest in

financial assets such as loans, receivables and debt securities measured at

amortized cost. The new current expected credit loss model will require

companies to recognize an estimate of credit losses expected to occur over the

remaining life of the financial assets. Companies may need to collect more

data, and significantly change their systems, processes and internal controls to

comply with the requirements of the new standard.

The FASB formed a Transition Resource Group (TRG) to discuss potential

issues arising from the implementation of the credit impairment standard.

Public companies should ensure that they adequately disclose the expected

effects of implementing these standards. See Transition disclosures about new

accounting standards.

https://frv.kpmg.us/reference-library/2017/02/build-to-suit-leases.html

https://frv.kpmg.us/all-topics/leases.html

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Hedge accounting

The FASB’s 2016 proposed improvements to hedge accounting would provide

additional opportunities for companies to align their hedge accounting with their

risk management activities, and potentially reduce the cost and effort required

to apply hedge accounting. The FASB expects to issue a final standard in

August 2017.

Resources: KPMG’s webpage on financial instruments

Identifying the customer in a service concession arrangement

On May 16, the FASB issued a new standard clarifying that the customer in a

service concession arrangement1 is always the grantor (e.g. the government or

public sector entity that owns public infrastructure such as a toll road). Third-

party users (e.g. drivers using a toll road) are not customers. The identity of the

customer affects revenue recognition and other aspects of the accounting for

these arrangements.

The standard is effective concurrent with the new revenue recognition

standard. However, the transition guidance depends on whether a company

adopted the new revenue recognition standard before the issuance date of this

standard.

Resources: KPMG’s web article, Identifying the customer in a service

concession arrangement; ASU 2017-10

1 ‘Service concession arrangements’ are arrangements between a grantor and an operator

that operates and maintains a grantor’s infrastructure (e.g. airports, roads, bridges,

tunnels, prisons and hospitals) for a specified time. The operator may be required to

construct or provide periodic capital-intensive maintenance (major maintenance) of the

infrastructure. In exchange for these services, the operator may be given the right to

charge the public (third-party) users for using the infrastructure.

Modification accounting in share-based payment awards

The FASB recently issued guidance that clarifies when changes to the terms or

conditions of a share-based payment award must be accounted for as a

modification.2 Specifically, companies will apply modification accounting unless

the fair value, vesting conditions and classification of the modified award are

the same before and after the modification. However, companies will continue

to apply modification accounting to changes in awards made in response to (1)

laws or regulations or (2) the new revenue recognition, lease accounting or

credit impairment standards.

Companies should continue to disclose significant changes in the terms and

conditions of a share-based payment award and assess the tax consequences

even if the changes do not result in modification accounting.

2 ‘Modification accounting’ is the accounting for the changes in terms or conditions of a share-

based payment award.

https://frv.kpmg.us/all-topics/financial-instruments-fasb-project.html

https://frv.kpmg.us/reference-library/2017/03/eitf-clarifies-customer-service-concession-arrangement.html


http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176169044055&mc_cid=630689e1d2&mc_eid=af2b3bcb68

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The guidance is effective for all entities in annual and interim periods in fiscal

years beginning after December 15, 2017. Early adoption is permitted, including

adoption in an interim period for which financial statements have not been

issued or made available for issuance.

Resources: KPMG’s web article, FASB clarifies scope for share-based payment

modifications and related podcast; ASU 2017-09

Shortened premium amortization period for certain callable

debt securities

A new FASB standard shortens the premium amortization period for purchased

non-contingently callable debt securities. Specifically, the premium amortization

period will end at the earliest call date, rather than the contractual maturity date.

Shortening the amortization period is generally expected to more closely align

interest income recognition with the expectations incorporated in the market

pricing on the underlying securities. The shorter amortization period means that

interest income would generally be lower in the periods before the earliest call

date and higher thereafter (if the security is not called) compared with current

US GAAP. Because the premium will be amortized to the earliest call date, the

holder will not recognize a loss in earnings for the unamortized premium if the

call is exercised.

The standard applies to companies (including investment companies) that hold

certain non-contingently callable debt securities in which the amortized cost

basis is higher than the amount repayable by the issuer at the earliest call date.

Investment companies need not apply the other aspects of the guidance on

nonrefundable fees and costs.

The standard does not change the discount amortization for purchased debt

securities. The discount continues to be amortized to the contractual maturity

date.

Effective dates and early adoption provisions

Public business

entities All other entities

Annual periods – In fiscal

years beginning after

December 15, 2018

December 15, 2019

Interim periods – In fiscal

years beginning after December 15, 2020

Early adoption allowed? Yes, including adoption in an interim period.

https://frv.kpmg.us/reference-library/2017/05/scope-clarified-share-based-payment-modifications.html


https://frv.kpmg.us/reference-library/2017/03/accounting-for-share-based-payments-to-nonemployees.html

http://fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176169021134

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Resources: KPMG’s Defining Issues, FASB changes premium amortization

period for certain callable debt securities, and related podcast; ASU 2017-08

Separate presentation for service cost component of net

benefit cost

The FASB issued a new standard requiring companies to present the service

cost component separately from the other components of net benefit cost.

Specifically, a company will present service cost in the income statement line

items in which it reports its compensation cost. All other components of net

benefit cost will be reported in the income statement separate from the service

cost component and outside of operating income, if that subtotal is presented.

The standard does not prescribe the income statement geography for the other

components of net benefit cost when a company does not present an

operating income subtotal, but those other components must be presented

separately from the service cost component. These changes may significantly

affect gross profit, operating income and profit margin for some companies.

Additionally, the service cost component will be the only component that can

be capitalized. Thus, a company that capitalizes retirement benefit costs may

need to change the way it determines the amount to be capitalized.

Effective dates and early adoption provisions

Public business

entities All other entities

Annual periods – In fiscal


December 15, 2017

December 15, 2018

Interim periods – In fiscal

years beginning after December 15, 2019

Early adoption allowed? Yes, at the beginning of an annual period for which

financial statements (interim or annual) have not

been issued or made available for issuance.

Resources: KPMG’s Defining Issues, FASB separates service cost component

from other pension cost components, and related podcast; ASU 2017-07

Effective date clarification for new goodwill impairment

standard

The FASB staff recently clarified certain aspects of the effective date for the

new accounting standard that simplifies the goodwill impairment test.

Specifically, all companies may early adopt the standard for goodwill

impairment tests with measurement dates on or after January 1, 2017.

However, companies need to apply the same impairment model consistently to

all goodwill impairment tests performed within a fiscal year, except for interim

tests performed as of a date before January 2017.

https://frv.kpmg.us/reference-library/2017/03/certain-debt-securities-amortization-period-shortened.html




https://frv.kpmg.us/reference-library/2017/03/defining-issues-17-8-net-periodic-benefits.html



http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176168888120&mc_cid=2fd5eb41f6&mc_eid=d96fcfe0d7

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For example, a company with a fiscal year ending September 30, 2017

performed a two-step interim impairment test as of November 30, 2016. The

company may early adopt the simplified goodwill impairment test if it performs

its annual impairment test on or after January 1, 2017. If the company

performed a two-step interim impairment test as of February 1, 2017, it would

be prohibited from early adopting the simplified impairment test for its annual

goodwill impairment test.

KPMG’s web article includes examples that illustrate how a company should

apply the effective date guidance.

Resources: KPMG’s Defining Issues, FASB simplifies goodwill impairment test,

and related podcast; ASU 2017-04

PCAOB adopts new standard to enhance the auditors’ report;

issues two proposals

The PCAOB recently adopted a final standard that, subject to SEC approval, will

require the auditor to include in the auditors’ report a discussion of critical audit

matters (CAMs). The standard defines CAMs as matters that have been

communicated to the audit committee; are related to accounts or disclosures

that are material to the financial statements; and involve especially challenging,

subjective or complex auditor judgment. Other changes to the auditors’ report

will include:

— disclosing auditor tenure (i.e. the year in which the auditor began

consecutive service as the company’s auditor);

— adding the phrase ‘whether due to error or fraud’ in describing the auditor’s

responsibility under PCAOB standards to plan and perform the audit to

obtain reasonable assurance about whether the financial statements are

free from material misstatement;

— adding a statement that the auditor is required to be independent; and

— reorganizing the paragraphs so that the opinion paragraph will be the first

paragraph of the auditors’ report.

The requirement to communicate about CAMs will be effective for:

— large accelerated filers, for audits of fiscal years ending on or after June

30, 2019; and

— all other companies, for audits of fiscal years ending on or after December

15, 2020.

All other requirements are effective for audits of fiscal years ending on or after

December 15, 2017.

The new requirements apply to audits conducted under PCAOB standards.

Communicating about CAMs is not required for audits of emerging growth

companies; brokers and dealers; investment companies other than business

development companies; and employee stock purchase, savings and similar

plans.

The PCAOB also recently issued two proposals to enhance the requirements

for (1) auditing accounting estimates, including fair value measurements and (2)

an auditor’s use of the work of specialists.

https://frv.kpmg.us/reference-library/2017/04/important-clarification-about-effective-date.html

https://frv.kpmg.us/reference-library/2017/01/fasb-simplifies-goodwill-impairment-test.html


http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176168778106&mc_cid=f493c497a0&mc_eid=40d90209c4

Home






The comment deadline for the two proposals is August 30.

Resources: The PCAOB’s final standard, and proposals about auditing

estimates and the auditor’s use of the work of specialists

http://pcaobus.us10.list-manage.com/track/click?u=124c85b50a8374f0468d767b1&id=3fda4e5a0b&e=ba41f9f365

https://pcaobus.org/Rulemaking/Docket043/2017-002-auditing-accounting-estimates-proposed-rule.pdf

https://pcaobus.org/Rulemaking/Docket043/2017-002-auditing-accounting-estimates-proposed-rule.pdf

https://pcaobus.org/News/Releases/Pages/specialists-proposal-6-1-17.aspx

Home





Projects and agenda priorities

Potential changes to consolidation guidance, including

optional private company exemption

The FASB plans to propose a new accounting alternative that would exempt

private companies from the requirement to apply the variable interest entity

(VIE) consolidation guidance to interests in other private companies that are

under common control. To qualify for the exemption, the reporting entity, the

common control parent and the legal entity being evaluated for consolidation

cannot be public business entities.

The accounting alternative would be an accounting policy election and would

require enhanced disclosures.

The Board also plans to propose removing from US GAAP the current private

company alternative for common control leasing arrangements.

A proposed ASU is forthcoming.

FASB proposes improvements to accounting for insurance

contracts

The FASB recently discussed comments received on its proposed accounting

standard that would change how insurance entities recognize, measure,

present and disclose long-duration insurance contracts. At an April 19 public

roundtable meeting, the FASB discussed its proposals with stakeholders and

will redeliberate issues raised at a future meeting.

The proposed improvements to long-duration insurance contracts primarily

address these issues.

— The liability for future policy benefits. The proposal would require

insurers to update cash flow assumptions at the same time every year,

unless experience indicates that more frequent updates are necessary.

Insurers would update the high-quality, fixed-income instrument yield used

for the discount rate quarterly.

— Contracts with market-risk benefits. The proposed guidance would

change the accounting for certain options and guarantees embedded in

variable products.

— Deferred acquisition costs. The proposal would simplify the amortization

process.

— Disclosures. The proposal would enhance the effectiveness of disclosures

about the liability for future policy benefits, policyholder account balances,

market-risk benefits, deferred acquisition costs, and separate account

assets and liabilities.

3

Home

Projects and agenda priorities





The changes would apply to only those insurance entities within the scope of

US GAAP guidance related to insurance contracts (ASC 944). It would exclude

holders of insurance contracts and contracts issued by non-insurance entities.

Resources: KPMG’s Issues & Trends In Insurance, FASB proposes targeted

improvements for long-duration insurance contracts; Proposed ASU

EITF to address costs incurred in certain cloud computing

arrangements

The FASB added to its agenda a project about a customer’s accounting for

implementation costs incurred in a cloud computing arrangement that is

considered a service contract. The project will be addressed by the Emerging

Issues Task Force (EITF).

The next EITF meeting is scheduled for July 20.

https://frv.kpmg.us/us-news-views/2016/10/proposed-asu-targeted-improvements-long-duration-insurance-contracts.html

https://frv.kpmg.us/us-news-views/2016/10/proposed-asu-targeted-improvements-long-duration-insurance-contracts.html

http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB/Document_C/DocumentPage&cid=1176168477111

Home





Recommended reading and CPE opportunities The revenue recognition quandary

In a byline article for Financial Manager, KPMG’s Mark Callihan advises that

there is little industry-specific guidance about how broadcast TV companies

should implement the new revenue recognition standard. The lack of guidance

has fueled a debate about the effect of the new standard on the industry.

Callihan says the accounting for network TV programming is at the crux of the

industry debate. Read the article.

Staying ahead in a volatile tax landscape

In a byline article for Texas CEO Magazine, KPMG’s Randy Sledge says it is

critical for CFOs, board members and tax departments to keep a close eye on

key tax issues. Sledge attributes tax as a key driver of success in 21st-century

organizations, especially as the likelihood of substantive US corporate tax

reform seems more certain than in several decades. Sledge provides a short list

of action items business leaders can take to stay on top of taxes in 2017. Read

the article.

Federal tax reform could have big effect on states

In a byline article for CFO.com, KPMG’s Larry Cusack advises that although

attention is predominantly focused on the federal tax effects of reform, it is

worth noting that, if enacted, federal reform would have a significant effect on

states and their income tax structures. Corporate tax and finance leaders should

focus now on the potential effects of federal tax reform on the state level and

on their company’s state tax position that would derive from the current

proposals. Read the article.

Upcoming CPE opportunities

KPMG Executive Education provides a wide range of accounting and finance

continuing professional education (CPE) programs in several formats: public

seminars, customized on-site instructor-led classes, web-based self-study

programs and live webcasts.

For more information, contact the KPMG Executive Education team at

[email protected] or 201-505-6062.

4

http://viewer.zmags.com/publication/01516026#/01516026/30

https://texasceomagazine.com/departments/business-tax-issues-2017/

https://texasceomagazine.com/departments/business-tax-issues-2017/

http://ww2.cfo.com/tax/2017/02/tax-reform-effect-on-states/

http://www.execed.kpmg.com/content/CPE-Course-List.aspx?gclid=CjwKEAiArvTFBRCLq5-7-MSJ0jMSJABHBvp0mrmK45LYdd2fLwe4kcK1oHx87wJd9iqEx3oWWZoMNRoCuA3w_wcB

Home

Recommended reading and CPE opportunities





Visit KPMG’s Financial Reporting View (FRV) for additional CPE opportunities,

including registration information for upcoming CFO Financial Forum

webcasts. The webcasts feature KPMG professionals discussing current and

forthcoming accounting and financial reporting matters, and implementation

guidance for new accounting standards.

https://frv.kpmg.us/cpe.html

Home © 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member




Appendix – Accounting standards effective dates Accounting standards affecting public companies in 2017

Calendar year-end public companies are required to begin applying these

accounting standards in 2017.

Topic Effective date for public

companies For more information

Amendments to SEC

paragraphs pursuant to

staff announcements at the

September 22, 2016 and

November 17, 2016 EITF

meetings

On issuance

(January 2017)

ASU 2017-03

Simplifying the

measurement of inventory

Annual and interim periods

in fiscal years beginning

after 12/15/2016

ASU 2015-11

Defining Issues 15-33

Podcast

Simplifying the

presentation of deferred

taxes



after 12/15/2016

ASU 2015-17


Podcast

Effect of derivative contract

novations on existing

hedge accounting

relationships



after 12/15/2016

ASU 2016-05


Podcast

Contingent put and call

options in debt instruments



after 12/15/2016

ASU 2016-06


Podcast

Simplifying the transition to

the equity method of

accounting



after 12/15/2016

ASU 2016-07


Podcast

Improvements to employee

share-based payment

accounting



after 12/15/2016

ASU 2016-09


Podcast

Consideration of interests

held through related parties

under common control



after 12/15/2016

ASU 2016-17


Podcast

54

http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176168773466


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-33-inventory-measurement.pdf

https://www.youtube.com/watch?v=HdgytOX-j3Q&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=22


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-55-deferred-taxes.pdf

https://www.youtube.com/watch?v=qP0bpBnbNFs&index=7&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE

http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176167953207&mc_cid=56ce8eead7&mc_eid=5bc1862438

http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-53-eitf.pdf

https://www.youtube.com/watch?v=iwhf5t5HdbU&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=4



https://www.youtube.com/watch?v=h8Et2AweuhA&index=3&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-9-equity-method-asu-2016-07.pdf

https://www.youtube.com/watch?v=FgdFP-2Gm-M&index=5&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-share-based-payments-2016-09.pdf

https://www.youtube.com/watch?v=O3IrqNF3Dzs&index=6&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


https://frv.kpmg.us/us-news-views/2016/10/fasb-makes-targeted-change-to-vie-primary-beneficiary-test.html

https://www.youtube.com/watch?v=bqeu8BpuyKo&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=1

Appendix – Accounting standards effective dates

Quarterly Outlook – March 2017 | 19

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Topic Effective date for public companies

For more information

Technical corrections (December 2016)

Most amendments were effective on issuance (December 2016). Certain amendments that require transition guidance are effective for annual and interim periods in fiscal years beginning after 12/15/2016.

ASU 2016-19

Accounting standards affecting public companies in 2018 and beyond

Calendar year-end public companies are required to begin applying these accounting standards in 2018 or later and may need to disclose their potential effects in 2017.

Topic Effective date for public companies


Revenue recognition Annual and interim periods in fiscal years beginning after 12/15/2017

ASU 2014-09 ASU 2015-14 ASU 2016-08 ASU 2016-10 ASU 2016-11 ASU 2016-12 ASU 2016-20 KPMG’s webpage on Revenue

Recognition and measurement of financial assets and financial liabilities

Annual and interim periods in fiscal years beginning after 12/15/2017

ASU 2016-01 KPMG’s webpage on Financial instruments

Recognition of breakage for certain prepaid stored-value products


ASU 2016-04 Defining Issues 15-53 Podcast

Statement of cash flows - classification of certain cash receipts and payments



Intra-entity transfers of assets other than inventory



Statement of cash flows - presentation of restricted cash




http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FNewsPage&cid=1176164075286













https://www.youtube.com/watch?v=Wl7tAWRq4JY&index=2&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-22-eitf-cash-flows.pdf

https://www.youtube.com/watch?v=kpvWY0A1p7M&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=10


https://frv.kpmg.us/us-news-views/2016/10/fasb-changes-accounting-for-income-taxes-on-intercompany-transfers.html

https://www.youtube.com/watch?v=WCjhW_PIZaE&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=11



https://www.youtube.com/watch?v=g8fziPzSVEw&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=7




Topic Effective date for public companies For more information

Clarifying the definition of a business


ASU 2017-01 Defining Issues 17-1 Webcast

Clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets



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



Scope of modification accounting for share-based payment awards


ASU 2017-09 Web article

Identifying the customer in a service concession arrangement


ASU 2017-10 Web article Podcast

Leases Annual and interim periods in fiscal years beginning after 12/15/2018

ASU 2016-02 KPMG’s webpage on Leases

Measurement of credit losses on financial instruments

SEC filers: Annual and interim periods in fiscal years beginning after 12/15/2019 Non-SEC filers: Annual and interim periods in fiscal years beginning after 12/15/2020

ASU 2016-13 Defining Issues 16-23 KPMG’s webpage on Financial instruments

Premium amortization for purchased callable debt securities



Simplifying the test for goodwill impairment

SEC filers: Annual and interim periods in fiscal years beginning after 12/15/2019 Non-SEC filers: Annual and interim periods in fiscal years beginning after 12/15/2020



https://frv.kpmg.us/us-news-views/2017/01/fasb-clarifies-the-definition-of-a-business.html


https://frv.kpmg.us/cpe/upcoming-archived-cpe-webcasts/2017/01/applying-the-new-definition-of-a-business.html


https://frv.kpmg.us/reference-library/2017/02/fasb-clarifies-scope-of-derecognition-of-nonfinancial-assets.html













http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-23-credit-impairment.pdf






https://frv.kpmg.us/us-news-views/2017/01/fasb-simplifies-goodwill-impairment-test.html


Home


© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. NDPPS 671801


Accounting standards affecting private companies in 2017

Calendar year-end private companies are required to begin applying these accounting standards in 2017.

Topic Effective date for private companies For more information

Eliminating certain investments from the fair value hierarchy table



Simplifications for employee benefit plans



Simplifying the transition to the equity method of accounting



Consolidation Annual periods in fiscal years beginning after 12/15/2016, and interim periods in fiscal years beginning after 12/15/2017

ASU 2015-02 Defining Issues 15-6 Webcast

Practical expedient for the measurement date of an employer's defined benefit obligation and plan assets

Annual periods in fiscal years beginning after 12/15/2016, and interim periods in fiscal years beginning after 12/15/2017

ASU 2015-04 Defining Issues 15-17

Disclosures about short-duration insurance contracts


ASU 2015-09 Issues & Trends In Insurance 15-4

Simplifying the measurement of inventory



Simplifying measurement-period adjustments



Consideration of interests held through related parties under common control




http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-20-fair-value.pdf

https://www.youtube.com/watch?v=1s45KuBBcxU&index=28&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-36-employee-benefit-plans.pdf

https://www.youtube.com/watch?v=J1bNn-wmjDQ&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=10


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-9-equity-method-asu-2016-07.pdf

https://www.youtube.com/watch?v=FgdFP-2Gm-M&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=5


https://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-6-consolidation.pdf

https://event.webcasts.com/starthere.jsp?ei=1058385


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-17-expedient-measurement.pdf

http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176166047247&mc_cid=4e353d7679&mc_eid=af2b3bcb68

http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/issues-trends-insurance-15-4-short-duration.pdf

http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/issues-trends-insurance-15-4-short-duration.pdf


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-33-inventory-measurement.pdf

https://www.youtube.com/watch?v=HdgytOX-j3Q&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=22


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-43-simplifies-measurement.pdf

https://www.youtube.com/watch?v=Xf3ehwwL1NY&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=8







Topic Effective date for private companies


Clarifying when a not-for-profit entity that is a general partner or a limited partner should consolidate a for-profit limited partnership or similar entity



Technical corrections (December 2016)

Most amendments were effective on issuance (December 2016). Certain amendments that require transition guidance are effective for:

— annual and interim periods in fiscal years beginning after 12/15/2016 (for fair value measurements);

— annual periods in fiscal years beginning after 12/15/2017, and interim periods in fiscal years beginning after 12/15/2018 (for cloud computing arrangements).

ASU 2016-19

Accounting standards affecting private companies in 2018 and beyond

Calendar year-end private companies are required to begin applying these accounting standards in 2018 or later.

Topic Effective date for private companies


Scope of modification accounting for share-based payment awards


ASU 2017-09 Web article

Simplifying the presentation of deferred taxes



Effect of derivative contract novations on existing hedge accounting relationships




https://frv.kpmg.us/us-news-views/2017/01/fasb-reinstates-presumption-of-control-for-not-for-profit-general-partners.html

https://frv.kpmg.us/us-news-views/2017/01/fasb-reinstates-presumption-of-control-for-not-for-profit-general-partners.html





http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2015/defining-issues-15-55-deferred-taxes.pdf

https://www.youtube.com/watch?v=qP0bpBnbNFs&index=7&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE

http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176167953207&mc_cid=56ce8eead7&mc_eid=5bc1862438


https://www.youtube.com/watch?v=iwhf5t5HdbU&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=4





International Cooperative (“KPMG International”), a Swiss entity.

Topic Effective date for private


Contingent put and call

options in debt instruments

Annual periods in fiscal


12/15/2017, and interim

periods in fiscal years

beginning after 12/15/2018

ASU 2016-06


Podcast

Improvements to employee

share-based payment

accounting






ASU 2016-09


Podcast

Presentation of financial

statements of not-for-profit

entities






ASU 2016-14

Revenue recognition Annual periods in fiscal





ASU 2014-09

ASU 2015-14

ASU 2016-08

ASU 2016-10

ASU 2016-12

ASU 2016-20

KPMG’s webpage on

Revenue

Recognition and

measurement of financial

assets and financial

liabilities






ASU 2016-01

KPMG’s webpage on

Financial instruments

Recognition of breakage for

certain prepaid stored-value

products






ASU 2016-04


Podcast

Statement of cash flows -

classification of certain

cash receipts and

payments






ASU 2016-15


Podcast

Intra-entity transfers of

assets other than inventory






ASU 2016-16


Podcast



https://www.youtube.com/watch?v=h8Et2AweuhA&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=3


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-share-based-payments-2016-09.pdf

https://www.youtube.com/watch?v=O3IrqNF3Dzs&index=6&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FNewsPage&cid=1176164075286













https://www.youtube.com/watch?v=Wl7tAWRq4JY&index=2&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE


http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-22-eitf-cash-flows.pdf

https://www.youtube.com/watch?v=kpvWY0A1p7M&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=10











Statement of cash flows -

presentation of restricted

cash






ASU 2016-18


Podcast

Clarifying the definition of a

business






ASU 2017-01


Webcast

Clarifying the scope of

asset derecognition

guidance and accounting

for partial sales of

nonfinancial assets






ASU 2017-05


Podcast

Employee benefit plan

master trust reporting



12/15/2018

ASU 2017-06

Improving the presentation

of net periodic pension cost

and net periodic

postretirement benefit cost






ASU 2017-07


Podcast

Identifying the customer in

a service concession

arrangement






ASU 2017-10

Web article

Podcast

Leases Annual periods in fiscal





ASU 2016-02

KPMG’s webpage on

Leases

Premium amortization for

purchased callable debt

securities






ASU 2017-08


Podcast

Measurement of credit

losses on financial

instruments






ASU 2016-13


KPMG’s webpage on

Financial instruments



https://www.youtube.com/watch?v=g8fziPzSVEw&list=PL5yThfw3pKeipfAtVdqAHK1opQ4KO0dqE&index=7




https://frv.kpmg.us/cpe/upcoming-archived-cpe-webcasts/2017/01/applying-the-new-definition-of-a-business.html

















http://www.kpmg-institutes.com/content/dam/kpmg/financialreportingnetwork/pdf/2016/defining-issues-16-23-credit-impairment.pdf










Simplifying the test for

goodwill impairment



after 12/15/2021

ASU 2017-04


Podcast


https://frv.kpmg.us/us-news-views/2017/01/fasb-simplifies-goodwill-impairment-test.html


The descriptive and summary statements in this newsletter are not intended to be a substitute for the texts of the FASB Codification, FASB pronouncements, EITF Consensuses, IFRS

standards, SEC staff announcements, PCAOB requirements, or any other potential or actual accounting literature or SEC regulations. Companies applying US GAAP or filing with the SEC

should apply the texts of the relevant laws, regulations, and accounting requirements, consider their particular circumstances, and consult their accounting and legal advisors.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative

(“KPMG International”), a Swiss entity. All rights reserved. NDPPS 671801

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Contact us

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Partner

Department of Professional Practice

KPMG LLP

Robin Van Voorhies

Senior Manager

Department of Professional Practice

KPMG LLP

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