American Gas Association Accounting Principles Committee Accounting and other issues related to M&A activity
|
|
- Terence Bertram Pitts
- 5 years ago
- Views:
Transcription
1 American Gas Association Accounting Principles Committee Accounting and other issues related to M&A activity August 14, 2017
2 Accounting and other issues related to M&A activity David Humphreys Partner, PricewaterhouseCoopers LLP U.S. Power and Utilities Accounting Technical Leader 488 Almaden Boulevard, Suite 1800, San Jose, CA 2
3 Agenda Overview of general concepts Accounting implications for regulated utilities Navigating the new landscape Financial reporting and other considerations 3
4 Overview of general concepts 4
5 Overview of general concepts (ASC 805) Definition of a business combination A business combination is a transaction or other event in which the acquirer obtains control of one or more businesses: Business combinations may result from events or transactions that do not involve the acquisition of the net assets or equity interests in a business, such as: - Lapsing or removal of participating rights - An investee's repurchase of its own shares from other parties, causing the primary investor to obtain control - Newly consolidated Variable Interest Entities (VIEs) under ASC 810 Business combinations require the use of Acquisition Method accounting 5
6 Acquisition method Applying this method requires the following steps: 1. Identify the acquirer 2. Determine the acquisition date 3. Recognize and measure the identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree; and* 4. Recognize and measure goodwill or a gain from a bargain purchase An acquirer in a business combination typically incurs acquisition-related costs, such as finder s fees; advisory, legal, accounting, valuation, other professional or consulting fees; and general and administrative costs. Acquisition-related costs are considered separate transactions and should not be included as part of the consideration transferred but, rather, expensed as incurred or when the service is received. These costs are not considered part of the fair value of a business and, by themselves, do not represent an asset. Acquisition-related costs represent services that have been rendered to and consumed by the acquirer *All assets acquired and liabilities assumed in a business combination should be recorded at their acquisition-date fair values (with fair value measured in accordance with the principles of ASC 820, Fair Value Measurement), except as specifically stated in ASC 805 (limited exceptions to the fair value measurement principles for acquired assets and liabilities are provided for in the Standards, which are covered later in this section). 6
7 Determining the accounting acquirer The party that obtains control based on the guidance in the consolidation standard (ASC 810) Factors to consider: - Who transfers cash or incurs liabilities? - Who issues equity interests? - Relative voting rights - Composition of governing body - Composition of senior management - Terms of exchange Challenges - New entity formed to effect a business combination - Reverse acquisition Accounting acquirer vs Legal acquirer - Acquirer/acquiree reporting under different accounting standards (i.e., US entity reporting under US GAAP acquired by foreign entity reporting under IFRS) 7
8 Fair value measurement exceptions The measurement of the identifiable assets acquired and liabilities assumed is at fair value, with limited exceptions as provided for in the Standards. Summary of exceptions to the recognition and fair value measurement principles Measurement principle Reacquired rights Assets held-for-sale Share-based payment awards Recognition and measurement Principles Income taxes Employee benefits Contingencies Indemnification assets 8
9 Post-acquisition accounting issues Determining the appropriate period and method to depreciate or amortize assets requires a certain amount of judgment and an understanding of the assets and their useful lives. The useful life of a long-lived tangible or intangible asset is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of an entity. The useful life is dependent upon a number of factors, the assessment of which can require a significant amount of judgment. Developments and events after a business combination or an asset acquisition may result in a material and sustained decrease in the value of tangible and intangible assets, potentially leading to impairment. Measuring assets that an acquirer intends to use in a way other than their highest and best use may result in additional amortization expense and future impairment losses. Goodwill impairment testing (covered later as part of Navigating the new landscape ). Measurement period adjustments (covered later as part of Navigating the new landscape ). 9
10 Accounting implications for regulated utilities 10
11 Accounting implications for regulated utilities Regulated utility acquisition = Easy Just throw the difference between acquisition price and net assets into goodwill and DONE!!! Not so fast A business combination that involves a regulated utility may have certain unique issues as a result of the impact of regulation, including: Measuring the fair value of assets and liabilities arising from, or subject to, regulation Determining when regulatory offset of fair value adjustments is appropriate Accounting for merger credits Post-acquisition accounting for goodwill 11
12 Interaction of regulation and fair value in a business combination Regulation can impact the fair value of utility plant assets and it may be appropriate to offset certain fair value adjustments with regulatory assets and liabilities. However, regulation does not override other U.S. GAAP. ASC 805 and ASC 820 should be applied when accounting for a business combination. The interaction of regulation and fair value in a business combination is summarized on the following slide. 12
13 Interaction of regulation and fair value in a business combination (continued) Component Fair value considerations Regulatory considerations Utility plant assets Regulation is a characteristic of utility plant No separate regulatory accounting assets and as it would be considered by market participants, its effects should be incorporated in the valuation Regulatory assets and liabilities Assets that are earning higher or lower returns than market participants require for similar assets and liabilities should be adjusted to reflect fair value (i.e., a market participant s required return may differ from the current allowed rate of return) Nonperformance risk should be incorporated in the fair value measurement of liabilities Not applicable; the asset or liability being recorded is the regulatory asset or liability itself 13
14 Interaction of regulation and fair value in a business combination (continued) Component Fair value considerations Regulatory considerations Intangible assets and liabilities, Including contractual rights and Obligations Liabilities (including long-term Debt and environmental obligations) Identifiable intangible assets acquired should be recognized separately from goodwill All contracts should be recorded at their acquisition-date fair values (e.g., derivatives, executory contracts, land rights, leases, and others) Some licenses may be valued as part of related plant assets All liabilities, including long-term debt, should be recorded at their acquisition date fair values (except for pensions and tax liabilities, which follow specific guidance in ASC 805) Fair value should incorporate the reporting entity s own credit and current market conditions Regulatory offset may be appropriate in certain circumstances, depending on ratemaking and specific pass-through mechanisms Regulatory offset may be appropriate in certain circumstances 14
15 Determining when regulatory offset should be recorded Would the predecessor entity have recorded regulatory offset if the related asset or liability had been recorded on the balance sheet? Yes Are the ASC 980 criteria for recognition of a regulatory asset or liability met? No No Yes Record at fair value with no regulatory adjustment Record at fair value AND record regulatory offset 15
16 Merger credits Many regulated utility acquisitions include some provision for rate credits, merger credits, or other rate concessions for customers after the merger. Merger credits represent rate discounts negotiated by the acquirer with the regulator as part of obtaining the regulator s support for the transaction. The accounting for merger credits will be dependent upon the specific facts and circumstances and require both an evaluation of the substance and legal form of the credits. Merger credits may meet the definition of a liability and be recognized at the acquisition date separate from the accounting for the business combination. As the merger credits are not part of the exchange, no merger credit liability should be recorded as part of the business combination. Contrast: A. Merger credit of $25M. Recovery mechanism to be $0.002 per therm to all customers until the $25M credit has been satisfied (Projected to be two years) B. Merger credit of $0.002 per therm to all customers for a two year period (Projected at a cost of $25M) 16
17 Post-acquisition accounting for goodwill Goodwill often results from a business combination. ASC 980 specifically addresses the accounting for goodwill by a regulated utility. ASC Topic 350 states that goodwill shall not be amortized and shall be tested for impairment in accordance with that Subtopic. For rate-making purposes, a regulator may permit an entity to amortize purchased goodwill over a specified period. In other cases, a regulator may direct an entity not to amortize goodwill or to write off goodwill. ASC If the regulator permits all or a portion of goodwill to be amortized over a specific time period as an allowable cost for rate-making purposes, the regulator s action provides reasonable assurance of the existence of a regulatory asset (see paragraph ). That regulatory asset would then be amortized for financial reporting purposes over the period during which it will be allowed for rate-making purposes. Otherwise, goodwill shall not be amortized and shall be accounted for in accordance with Topic
18 Navigating the new landscape (and making life easier ) 18
19 Clarifying the definition of a business executive summary Issued January 2017 What you need to know A set now needs to have an input and a substantive process that together significantly contribute to the ability to create outputs to be a business. A new screen test if substantially all of the fair value of the gross assets acquired are concentrated in a single asset or similar assets, the set is not a business. Definition of outputs narrowed to be consistent with the new revenue standard. Narrows the scope of transactions which will qualify as a business Looking forward Effective 2018 Early adoption allowed Prospective application 19
20 Comparison to existing guidance Screen Inputs and processes Existing guidance No screen Inputs and processes, if not included, could be replaced by market participant New guidance Not a business when substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of assets The set must include, at a minimum, an input and substantive process that together create outputs Organized workforce Organized workforce is not required. Evaluate certain factors to determine if a business When no outputs are present, a set must include an organized workforce Outputs Return in the form of dividends, lower costs, or other economic benefits Goods or services to customers, other revenues, or investment income, such as dividends or interest 20
21 Derecognition of nonfinancial assets executive summary Issued February 2017 What you need to know The standard defines the term in substance nonfinancial asset Scope exclusions added, such as equity method investments and certain subsidiaries Eliminates specific nonmonetary exchange guidance in order to apply ASC Provides guidance for partial sales of nonfinancial assets, including partial sales of real estate (retained portion would now result in full gain or loss recognition) Impacts Clarifies guidance by defining in substance nonfinancial asset Provides guidance for partial sales of nonfinancial assets Looking forward Effective January 1, 2018 (must adopt at same time as revenue recognition) Early adoption permitted Choice of full or modified retrospective (can be different than revenue recognition) 21
22 Measurement period adjustments Issued September 2015 What you need to know Recognize the cumulative impact in the period in which the adjustment is identified Do not restate prior periods Amount to recognize = cumulative effect on earnings including prior period impact Disclose out-of-period impact (how much of the prior period effect is in the current period) Impacts Entities would no longer restate prior periods for measurement period adjustments Looking forward Effective in 2016 for calendar-year-end public companies. One additional year for nonpublic companies. Early adoption permitted To be applied prospectively. 22
23 Goodwill impairment simplification executive summary (ASU ) Issued January 2017 What you need to know Eliminates Step 2 of the quantitative impairment testing model Goodwill impairment is measured by the excess of the carrying value of a reporting unit over its fair value, up to the carrying value of goodwill in the reporting unit Same model is applied for all reporting units, including reporting units with negative or zero carrying value Impacts Intended to reduce cost and complexity Eliminates Step 2 from the goodwill impairment test Looking forward Effective 2020 Early adoption beginning 2017 Prospective transition 23
24 Comparison to existing guidance Number of steps Existing guidance Two-step approach with optional qualitative assessment (step 0) New guidance One-step approach with optional qualitative assessment Impairment calculation Negative reporting units Impairment measured by the excess of the carrying amount of goodwill to the implied fair value of goodwill For reporting units with zero or negative carrying amount, step 2 is required if mandatory step 0 test fails Impairment measured by the excess of the carrying amount of a reporting unit to its fair value (up to the carrying amount of goodwill) No separate model for reporting units with zero or negative carrying amount 24
25 Financial reporting and other considerations 25
26 Other financial reporting considerations (AKA things that can be a real pain ) An acquisition may close on a date other than period-end, which could result in: - An evaluation of system configuration for generating financial information at a date that does not coincide with the regular monthly reporting cycle - Additional auditing procedures being required at the acquisition date at the request of the acquiring entity Financial reporting integration between the acquirer and aquiree may be required: - Interfaces between existing financial reporting information - Chart of accounts mapping for presentation, disclosure and group reporting packages An acquiring entity may be an SEC Registrant. If so, additional reporting requirements may exist that require additional information relating to the acquired entity such as: - Pro forma disclosures - SOX Controls relating to the Business Combination transaction - Evaluation of SOX exemption at the acquired entity level 26
27 Other financial reporting considerations (continued) An exercise to align accounting policies with the acquired entity will need to be performed once an acquisition is consummated - Consideration of differences in the acquirer s and acquiree s approach to adopting new accounting standards such as revenue and leasing Year-end reporting timelines may change to align with the reporting deadlines of the acquired entity Evaluation of the accounting for one-off items arising at the date of the acquisition: - Assessment of what constitutes consideration e.g., employee compensation costs - Assessment of what is a cost of the acquire, the acquirer or part of purchase accounting e.g., restructuring costs - Push-down accounting elections Resource planning considerations - External resources (actuaries, auditors, valuation specialists) - Internal resource (steering committee, competing priorities, tax, HR, treasury coordination) 27
28 Pro forma financial information Regulation S-X article 11 Rule of Regulation S-X requires pro forma financial statements for significant business combinations as defined in S-X 3-05 (which points to S-X 1-02(w) for determining significance). Such business acquisitions are treated differently than asset acquisitions. Under Article 11, a presumption exists that a separate entity, subsidiary, or division is a business. However, a lesser component such as a separate product line could be a business for the purpose of determining financial statement and pro forma requirements related to an acquisition or disposition. ASC 805 and IFRS 3 Business Combinations pro forma disclosures may be required even when Article 11 pro forma financial information is not required. Pro forma financial statements required: - Most recent interim period (P&L and BS) - Prior year (P&L) (requirements may differ for discontinued operations and reorganizations of entities under common control) Acquisition is required to be reported on Form 8-K within four business days of consummating the transaction. Historical financial statements of the acquired business and pro forma financial information must be filed as an amendment, no later than 71 calendar days after the initial Form 8-K due date. 28
29 Pro forma financial information Significance test Rule of Regulation S-X requires the significant subsidiary test in Rule 1-02(w) to be applied to compute the significance of the acquired business using three tests: - Investment test sum of the registrant s investment in and advances to the acquired business, divided by the registrant s total assets as of the most recent audited fiscal year - Asset test registrant s proportionate interest in total assets of the acquired business, divided by the registrant s total assets as of the most recent audited fiscal year - Income test registrant s equity in income from continuing operations before income taxes, extraordinary items and cumulative effect of accounting changes, exclusive of amounts attributable to any noncontrolling interests, divided by the registrant s such consolidated income (certain circumstances may require the use of 5-year average income) The test with the highest significance determines the significance of the acquired business. The threshold for the requirement to file historical financial statements and related pro forma financial information is 20%. 29
30 Where can I find more information? PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details.
A Roadmap to Accounting for Asset Acquisitions
A Roadmap to Accounting for Asset Acquisitions 2017 Other Publications in Deloitte s Roadmap Series Roadmaps are available on these topics: Common-Control Transactions (2016) Consolidation Identifying
More informationSelect FASB projects. May 24, 2017
Select FASB projects May 24, 2017 Agenda Phase 1 - Clarifying the definition of a business (ASU 2017-01) Phase 2 - Sale of nonfinancial assets (ASU 2017-05) Phase 3 Aligning the differences in assets and
More informationUS GAAP versus IFRS. The basics. February 2018
versus The basics February 2018 Table of contents Introduction... 1 Financial statement presentation... 3 Interim financial reporting... 7 Consolidation, joint venture accounting and equity method investees/associates...
More informationIssues In-Depth. Defining Issues. Pushdown Accounting. February January 2014, No. 14-XX. kpmg.com
Defining Issues January 2014, No. 14-XX Issues In-Depth Pushdown Accounting February 2015 kpmg.com 2001 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network
More informationUS GAAP versus IFRS. The basics. January 2019
versus The basics January 2019 Table of contents Introduction...1 Financial statement presentation...2 Interim financial reporting...5 Consolidation, joint venture accounting and equity method investees/associates...6
More informationRevenue from contracts with customers (ASC 606)
Financial reporting developments A comprehensive guide Revenue from contracts with customers (ASC 606) Revised August 2017 To our clients and other friends The Financial Accounting Standards Board (FASB
More informationGetting Merger and Acquisition Accounting Right. Presented by John Donohue, Partner and Anthony Porter, Senior Manager Moss Adams LLP
Getting Merger and Acquisition Accounting Right Presented by John Donohue, Partner and Anthony Porter, Senior Manager Moss Adams LLP Agenda Review of accounting for business combinations Updates on new
More informationAccounting Standards Updates ( ASUs ) effective in 2017 for calendar year-end entities:
Accounting Standards Updates ( ASUs ) effective in 2017 for calendar year-end entities: ASU Title Effective in 2017 for Public, Nonpublic, or Both? ASU 2014-10 Development Stage Entities (Topic 915): Elimination
More informationSIGNIFICANT ACCOUNTING & REPORTING MATTERS FIRST QUARTER 2017
SIGNIFICANT ACCOUNTING & REPORTING MATTERS FIRST QUARTER 2017 Significant Accounting & Reporting Matters First Quarter 2017 2 TABLE OF CONTENTS Financial Accounting Standards Board (FASB)... 3 Final FASB
More informationAccounting and Financial Reporting Developments for Private Companies
Accounting and Financial Reporting Developments for Private Companies THIRD QUARTER UPDATE 2017 The Quarterly Newsletter is a quarterly publication from EKS&H s Technical Accounting and Auditing Group.
More informationI. OVERVIEW OF FIRMS. Table of Contents FAIR VALUE MEASUREMENTS AND FINANCIAL REPORTING UPDATE PRESENTATION TO DALLAS CPA SOCIETY.
Table of Contents Overview of Firms 2 ASC 820: Fair Value Measurements and Disclosures 5 FAIR VALUE MEASUREMENTS AND FINANCIAL REPORTING UPDATE PRESENTATION TO DALLAS CPA SOCIETY MAY 4, 2012 ASC 805: Business
More informationThe basics November 2012
versus The basics November 2012!@# Table of contents Introduction... 2 Financial statement presentation... 3 Interim financial reporting... 6 Consolidation, joint venture accounting and equity method
More informationEKS&H Newsletter 2015 Second Quarter Update (Public Company)
EKS&H Newsletter 2015 Second Quarter Update (Public Company) This newsletter provides a summary of some of the more important 2015 second quarter accounting and financial reporting activities. The content
More informationEquity method investments
Financial reporting developments A comprehensive guide Equity method investments September 2015 To our clients and other friends Investors frequently enter into transactions in which they make significant
More informationLatest Developments in Accounting and Auditing for Not-for-Profits. Latest Developments in Accounting and Auditing for Not-for- Profits.
Latest Developments in Accounting and Auditing for Not-for-Profits May 4, 2010 Presenter: Angela Dunlap Partner, Grant Thornton LLP Latest Developments in Accounting and Auditing for Not-for- Profits Objectives
More informationIFRS compared to US GAAP: An overview. September 2010
IFRS compared to US GAAP: An overview September 2010 1 IFRS compared to US GAAP: An overview This overview is an abridged version of our publication IFRS compared to US GAAP, published in September 2010.
More informationEquity method investments and joint ventures
Financial reporting developments A comprehensive guide Equity method investments and joint ventures July 2016 To our clients and other friends Investors frequently enter into transactions in which they
More informationEquity method investments and joint ventures
Financial reporting developments A comprehensive guide Equity method investments and joint ventures October 2017 To our clients and other friends Investors frequently enter into transactions in which they
More informationThe basics November 2013
versus The basics November 2013 Table of contents Introduction... 2 Financial statement presentation... 3 Interim financial reporting... 6 Consolidation, joint venture accounting and equity method investees/associates...
More informationA Roadmap to Pushdown Accounting
A Roadmap to Pushdown Accounting June 2016 The FASB Accounting Standards Codification material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116,
More informationRevenue for Telecoms. Issues In-Depth. September IFRS and US GAAP. kpmg.com
Revenue for Telecoms Issues In-Depth September 2016 IFRS and US GAAP kpmg.com Contents Facing the challenges 1 Introduction 2 Putting the new standard into context 6 1 Scope 9 1.1 In scope 9 1.2 Out of
More informationUS GAAP versus IFRS. The basics. October 2016
versus The basics October 2016 Table of contents Introduction... 2 Financial statement presentation... 4 Interim financial reporting... 8 Consolidation, joint venture accounting and equity method investees/associates...
More informationMcKESSON CORPORATION (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period
More information8/22/2011. Mayer Hoffman McCann P.C. s Executive Education Series Business Combinations AGENDA. History of Business Combinations.
Mayer Hoffman McCann P.C. s Executive Education Series Business Combinations August 2011 AGENDA Background/Basics of Accounting for Business Combinations The Acquisition Method the Basics Common Non-controlling
More informationAccounting & Auditing Update
Accounting & Auditing Update TCOSCPA Fall 2016 CPE Seminar Series November 9, 2016 Calvin Rowland, CPA Assurance Partner Accounting & Auditing Update FASB What FASB has been up to lately What was first
More informationCREDIT UNION IFRS FINANCIAL STATEMENTS
CREDIT UNION IFRS FINANCIAL STATEMENTS Tips to help prepare and improve (2012 & Beyond) BDO CANADA LLP February 1, 2013 Page 1 With an introduction from Richard Dale, Director, Regulatory Affairs of DICO
More informationTransUnion (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationThe basics December 2011
versus The basics December 2011!@# Table of contents Introduction... 2 Financial statement presentation... 4 Interim financial reporting... 6 Consolidation, joint venture accounting and equity method
More informationConsolidated and other financial statements
Financial reporting developments A comprehensive guide Consolidated and other financial statements Presentation and accounting for changes in ownership interests Revised August 2015 To our clients and
More informationAccounting updates. Kaustav Ghose
Accounting updates Kaustav Ghose New guidance of Financial Accounting Standards Board (FASB) on the definition of a business The FASB has changed its definition of a business in an effort to assist entities
More informationAppendix A. Summary of Changes to Accounting Terms and Phrases and Other Changes for the Continuous Disclosure Rules
A. TERMINOLOGY CHANGES Appendix A Summary of Changes to Accounting Terms and Phrases and Other Changes for the Continuous Disclosure Rules Accounting Terms or Phrases We replaced the following terms or
More informationRevenue from contracts with customers (ASC 606)
Financial reporting developments A comprehensive guide Revenue from contracts with customers (ASC 606) Revised August 2016 To our clients and other friends In May 2014, the Financial Accounting Standards
More informationBusiness Combinations and consolidation
Business Combinations and consolidation Madhu Sudan Kankani June 2017 KPMG.com/in Agenda 1 Introduction 2 Ind AS 103: Business combinations 3 Ind AS 110: Consolidated financial statements 4 Practical perspectives
More informationASPE at a Glance. Standards Included in Topic
ASPE AT A GLANCE ASPE AT A GLANCE This publication has been compiled to assist users in gaining a high level overview of Accounting Standards for Private Enterprises (ASPE) included in Part II of the CPA
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationNARUC: REVENUE RECOGNITION JULIE PETIT AUDIT SENIOR MANAGER BRIAN JONES AUDIT SENIOR MANAGER MONDAY, SEPTEMBER 11 TH, 2017
NARUC: REVENUE RECOGNITION JULIE PETIT AUDIT SENIOR MANAGER BRIAN JONES AUDIT SENIOR MANAGER MONDAY, SEPTEMBER 11 TH, 2017 Mazars USA LLP is an independent member firm of Mazars Group. Mazars USA LLP is
More informationAMTRUST FINANCIAL SERVICES, INC.
AMTRUST FINANCIAL SERVICES, INC. FORM 10-Q (Quarterly Report) Filed 08/09/17 for the Period Ending 06/30/17 Address 59 MAIDEN LANE 43RD FLOOR NEW YORK, NY 10038 Telephone (212) 220-7120 CIK 0001365555
More informationNo February Technical Corrections to Various Topics
No. 2010-08 February 2010 Technical Corrections to Various Topics The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by
More informationAccounting, Financial Reporting and Regulatory Developments for Public Companies
Accounting, Financial Reporting and Regulatory Developments for Public Companies SECOND QUARTER UPDATE 2017 The Quarterly Newsletter is a quarterly publication from EKS&H s Technical Accounting and Auditing
More informationVoya Financial, Inc.
(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationA Roadmap to Reporting Discontinued Operations
A Roadmap to Reporting Discontinued Operations 2016 The FASB Accounting Standards Codification material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116,
More informationProposed Accounting Standards Update, Business Combinations (Topic 805): Clarifying the Definition of a Business (File Reference No.
Ernst & Young LLP 5 Times Square New York, NY 10036 Tel: +1 212 773 3000 ey.com Ms. Susan M. Cosper Technical Director File Reference No. 2015-330 Financial Accounting Standards Board 401 Merritt 7 P.O.
More informationAccounting and Financial Reporting Developments for Private Companies
Accounting and Financial Reporting Developments for Private Companies THIRD QUARTER 2018 In this update, we highlight some of the more important 2018 third-quarter accounting and financial reporting activities
More informationFair Value Measurement
U.S. GAAP AND IFRS Fair Value Measurement Questions and Answers November 2013 kpmg.com Contents Substantial Convergence 1 About this Publication 2 Summary of Differences Between U.S. GAAP and IFRS 3 Questions
More informationWork Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S.
Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers A Comparison of U.S. GAAP and IFRS A Securities and Exchange
More informationTax accounting services Goodwill impairment testing tax considerations prior to adopting ASU
www.pwc.com Tax accounting services Goodwill impairment testing tax considerations prior to adopting ASU 2017-04 June 2017 Tax accounting services In financial accounting, goodwill is an asset representing
More informationVoya Financial, Inc.
(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationFASB/IASB Update Part I
American Accounting Association FASB/IASB Update Part I Tom Linsmeier FASB Member August 3, 2014 The views expressed in this presentation are those of the presenter. Official positions of the FASB are
More informationIFRS Viewpoint. Common control business combinations
Accounting Tax Global IFRS Viewpoint Common control business combinations What s the issue? How should an entity account for a business combination involving entities under common control? This is an important
More informationDiscontinued operations
Financial reporting developments A comprehensive guide Discontinued operations Accounting Standards Codification 205-20 (prior to the adoption of ASU 2014-08, Reporting Discontinued Operations and Disclosure
More informationINTERNATIONAL PAPER COMPANY (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ýquarterly REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended
More informationLAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2017 Fall Meeting Washington DC
LAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2017 Fall Meeting Washington DC Randall D. McClanahan Butler Snow LLP randy.mcclanahan@butlersnow.com ACCOUNTING STANDARDS UPDATE NO. 2017
More informationHURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationFinancial reporting developments. A comprehensive guide. Joint ventures. July 2015
Financial reporting developments A comprehensive guide Joint ventures July 2015 To our clients and other friends Companies often form new arrangements and strategic ventures with other parties to manage
More informationSimplified accounting for private companies: Certain intangible assets
Simplified accounting for private companies: Certain intangible assets Prepared by: Brian H. Marshall, Partner, National Professional Standards Group, RSM US LLP brian.marshall@rsmus.com, +1 203 905 5014
More information2018 FINANCIAL INSTITUTIONS OVERVIEW FOR KNOWLEDGE COACH USERS
2018 FINANCIAL INSTITUTIONS OVERVIEW FOR KNOWLEDGE COACH USERS PURPOSE This document is published for the purpose of communicating, to users of the toolset, updates and enhancements included in the current
More informationAN OFFERING FROM BDO S NATIONAL ASSURANCE PRACTICE SIGNIFICANT ACCOUNTING & REPORTING MATTERS
AN OFFERING FROM BDO S NATIONAL ASSURANCE PRACTICE SIGNIFICANT ACCOUNTING & REPORTING MATTERS Significant Accounting & Reporting Matters Second Quarter 2011 1 FIRST QUARTER 2016 BDO is the brand name for
More informationWelcome. Year-End Audit and Accounting Update. Presented by: Stephen Bucker and Sean Prince. November 28, 2018
Welcome Year-End Audit and Accounting Update Presented by: Stephen Bucker and Sean Prince November 28, 2018 2018 Crowe 2018LLP Crowe LLP 1 Housekeeping Please note that all of today s audio is being broadcast
More informationCFGINSIGHTS PERSPECTIVES REVENUE CONVERGENCE: A NEW RECOGNITION MODEL
WINTER 2014 CFGINSIGHTS INDUSTRY TRENDS AND DEVELOPMENTS FROM CFGI Welcome to the Winter 2014 edition of CFGInsights. Our goal is to provide you with a round-up of the most pressing accounting and reporting
More informationIFRS compared to US GAAP: An overview
compared to GAAP: An overview November 2014 kpmg.com/ifrs KPMG s Global Institute KPMG s Global Institute provides information and resources to help board and audit committee members gain insight and access
More informationDefining Issues. FASB Agrees to Issue New Consolidation Guidance. July 2014, No Key Facts
Defining Issues July 2014, No. 14-34 FASB Agrees to Issue New Consolidation Guidance At its July 16 meeting, the FASB voted to issue a new consolidation standard that would change the way reporting enterprises
More informationAccounting considerations for UP-C transactions
September 11, 2018 Accounting considerations for UP-C transactions Accounting for common umbrella partnership C corporation transactions Summary The use of an umbrella partnership C corporation (UP-C)
More informationEITF Roundup: Highlights from the November Meeting
The Dbriefs Financial Reporting series presents: EITF Roundup: Highlights from the November Meeting Bob Uhl, Partner, Deloitte & Touche LLP Adrian Mills, Partner, Deloitte & Touche LLP Jason Nye, Senior
More informationFEI Accounting and SEC/PCAOB Update
FEI Accounting and SEC/PCAOB Update Billy W. Tilotta Assurance Partner Moss Adams Mark Zilberman Assurance Partner Moss Adams Agenda for Today Accounting/FASB update Big 3 Leases Financial Instruments
More informationTechnical Line Common challenges in implementing the new revenue recognition standard
No. 2017-28 24 August 2017 Technical Line Common challenges in implementing the new revenue recognition standard In this issue: Overview... 1 Key accounting and disclosure considerations. 2 Contract duration...
More informationFASB Update. Jaime Dordik. Assistant Project Manager, FASB. March 27, 2017
FASB Update Jaime Dordik Assistant Project Manager, FASB March 27, 2017 FASB Staff Disclaimer Expressions of individual views by members of the FASB and staff are encouraged. The views expressed in this
More informationEye on the Prize: Accounting s Impact on the Bottom Line Gina Anderson and Sara Dopkin. financial services
Eye on the Prize: Accounting s Impact on the Bottom Line Gina Anderson and Sara Dopkin 1 Presenters: Gina Anderson and Sara Dopkin Gina has more than 18 years of experience specializing in audit and accounting
More informationCredit impairment. Handbook US GAAP. March kpmg.com/us/frv
Credit impairment Handbook US GAAP March 2018 kpmg.com/us/frv Contents Foreword... 1 About this publication... 2 1. Executive summary... 4 Subtopic 326-20 2. Scope of Subtopic 326-20... 14 3. Recognition
More informationLAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2015 Fall Meeting Washington, DC
LAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2015 Fall Meeting Washington, DC Randall D. McClanahan Butler Snow LLP randy.mcclanahan@butlersnow.com ACCOUNTING STANDARDS UPDATE NO.
More informationRevenue From Contracts With Customers
September 2017 Revenue From Contracts With Customers Understanding and Implementing the New Rules An article by Scott Lehman, CPA, and Alex J. Wodka, CPA Audit / Tax / Advisory / Risk / Performance Smart
More informationExpense recognition of nonemployee awards with graded vesting
On the Horizon March 2, 2017 Contents Current reporting issue... 1 Expense recognition of nonemployee awards with graded vesting... 1 FASB... 3 ASU 2017-05 clarifies nonfinancial asset derecognition guidance...
More informationGovernment Contractors: Are You Prepared for the New Revenue Standard? Presented by CohnReznick s Government Contracting Industry Practice
Government Contractors: Are You Prepared for the New Revenue Standard? Presented by CohnReznick s Government Contracting Industry Practice PLEASE READ This presentation has been prepared for information
More informationAPPENDIX A Important Implementation Dates
APPENDIX A Important Implementation Dates The following table contains significant implementation dates and deadlines for FASB/EITF/PCC and GASB standards. FASB/EITF/PCC Implementation Dates ASU 2018-08,
More informationACCOUNTING AND AUDITING SUPPLEMENT NO
Chapter 1 ACCOUNTING AND AUDITING SUPPLEMENT NO. 4 2015 INTRODUCTION This update includes the more significant accounting and auditing developments from October 2015 through December 2015. Included in
More informationAccounting and financial reporting developments for private companies
Accounting and financial reporting developments for private companies YEAR-END 2018 UPDATE In this update, we highlight some of the more important 2018 year-end accounting and financial reporting activities
More informationExit or disposal cost obligations
Financial reporting developments A comprehensive guide Exit or disposal cost obligations Revised March 2018 To our clients and other friends Accounting Standards Codification (ASC) 420, Exit or Disposal
More informationAccounting and Financial Reporting Developments for Public Companies
Accounting and Financial Reporting Developments for Public Companies YEAR-END UPDATE 2017 The Quarterly Newsletter is a quarterly publication from EKS&H s Technical Accounting and Auditing Group. In the
More informationAUDITED FINANCIAL STATEMENTS
AUDITED FINANCIAL STATEMENTS 1// FINANCIAL HIGHLIGHTS 1 FINANCIAL HIGHLIGHTS 2// FINANCIAL HIGHLIGHTS & RATIOS (CONSOLIDATED) IN USD MIO. 2017 (EXCLUDING USB)* 2016 2015 2014 2013 2012 2011 2010 2009 2008
More informationQuarterly Accounting Roundup: An Update of
The Dbriefs Financial Reporting series presents: Quarterly Accounting Roundup: An Update of Important Developments Bob Uhl, Deloitte & Touche LLP Alfred Popken, Deloitte & Touche LLP Elsye Putri, Deloitte
More informationSeptember 2014 Call Report Changes Goodwill & TDRs
September 2014 Call Report Changes Goodwill & TDRs Table of Contents EXECUTIVE SUMMARY... 3 GOODWILL ALTERNATIVE... 3 BACKGROUND... 3 DEFINITION OF A PUBLIC BUSINESS ENTITY... 3 Financial Institution Considerations...
More informationLAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2016 Spring Meeting Montreal
LAW AND ACCOUNTING COMMITTEE SUMMARY OF CURRENT FASB DEVELOPMENTS 2016 Spring Meeting Montreal Randall D. McClanahan Butler Snow LLP randy.mcclanahan@butlersnow.com ACCOUNTING STANDARDS UPDATE NO. 2016-09
More informationV. F. CORPORATION (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationAPPENDIX A: APPLICATION CHECKLIST FOR ASC 805
APPENDIX A: APPLICATION CHECKLIST FOR ASC 805 A GUIDE TO ACCOUNTING FOR BUSINESS COMBINATIONS This application checklist is part of RSM US LLP s A Guide to Accounting for Business Combinations and should
More informationA Roadmap to Reporting Discontinued Operations
A Roadmap to Reporting Discontinued Operations 2017 Other Publications in Deloitte s Roadmap Series Roadmaps are available on these topics: Asset Acquisitions (2017) Common-Control Transactions (2016)
More informationFASB Insurance Contracts
GAAP and SEC Update FASB Insurance Contracts FASB Initiatives Short-Duration Contracts (Final Standard ASU 2015-09 Issued May 2015) Long-Duration Contracts (Beginning) Focused efforts on targeted improvements
More informationRevenue from Contracts with Customers
Grant Thornton August 2017 Revenue from Contracts with Customers Navigating the guidance in ASC 606 and ASC 340-40 This publication was created for general information purposes, and does not constitute
More informationSIGNIFICANT ACCOUNTING & REPORTING MATTERS SECOND QUARTER 2017
SIGNIFICANT ACCOUNTING & REPORTING MATTERS SECOND QUARTER 2017 Significant Accounting & Reporting Matters Second Quarter 2017 2 TABLE OF CONTENTS Financial Accounting Standards Board (FASB)... 3 Final
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationDELPHI AUTOMOTIVE PLC
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More information2018 HUD MULTIFAMILY HOUSING PROGRAMS OVERVIEW FOR KNOWLEDGE COACH USERS
PURPOSE 2018 HUD MULTIFAMILY HOUSING PROGRAMS OVERVIEW FOR KNOWLEDGE COACH USERS This document is published for the purpose of communicating, to users of the toolset, updates and enhancements included
More informationAccounting, financial reporting, and regulatory developments for public companies
Accounting, financial reporting, and regulatory developments for public companies SECOND QUARTER 2018 In this update, we highlight some of the more important 2018 second-quarter accounting, financial reporting,
More informationJOHNSON CONTROLS INTERNATIONAL PLC
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationJanuary Segment Reporting. More than just disclosure
January 2018 Segment Reporting More than just disclosure This publication was created for general information purposes, and does not constitute professional advice on facts and circumstances specific to
More informationGuide to preparing carve-out financial statements
Guide to preparing carve-out financial statements Contents 1 Introduction... 1 1.1 Carve-out financial statements... 1 1.2 When carve-out financial statements may be required... 2 1.2.1 Financial statements
More informationBrighthouse Financial, Inc.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationNew Developments Summary
June 5, 2014 NDS 2014-06 New Developments Summary A shift in the top line The new global revenue standard is here! Summary After dedicating many years to its development, the FASB and the IASB have issued
More informationIFRS Center of Excellence (CoE) Newsletter
Luxembourg Audit 13 July 2017 IFRS Center of Excellence (CoE) Newsletter Dear all, Welcome to this edition of the IFRS Newsletter prepared by the Deloitte Luxembourg IFRS Centre of Excellence. We are happy
More informationFASB/IASB/SEC Update. American Accounting Association. Tom Linsmeier FASB Member August 4, 2014
American Accounting Association FASB/IASB/SEC Update Tom Linsmeier FASB Member August 4, 2014 The views expressed in this presentation are those of the presenter. Official positions of the FASB are reached
More information2015 ACCOUNTING YEAR IN REVIEW
JANUARY 2016 www.ryansharkey.com CONTENTS click a topic for details 2015 ACCOUNTING YEAR IN REVIEW FINE TUNING During 2015, the Financial Accounting Standards Board (FASB) made progress on several major,
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended
More information