Effective Dates of U.S. Accounting Pronouncements

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1 Effective Dates of U.S. Accounting Pronouncements This appendix was prepared with a calendar year-end company in mind. Therefore standards with an effective date in 2015 have been included since many companies applied them for the first time in 2016, e.g., the first interim or annual period beginning on or after December 15, Standards that do not require adoption before 2017 are highlighted in blue. PRONOUNCEMENT EFFECTIVE DATE PUBLIC EFFECTIVE DATE NON PUBLIC ASC 205, Presentation of Financial Statements ASU , Disclosure of Uncertainties about an Entity s Ability to Continue as a Going Concern Effective for all entities, unless they have adopted the liquidation basis of accounting under Subtopic The new standard applies prospectively to annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is Effective for all entities, unless they have adopted the liquidation basis of accounting under Subtopic The new standard applies prospectively to annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is ASC 225, Income Statement ASU , Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Effective for fiscal years, and interim periods December 15, Effective for fiscal years, and interim periods December 15, ASC 230, Statement of Cash Flows ASU , Restricted Cash December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. December 15, 2018, and interim periods within fiscal years beginning after December 15, Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. ASU , Classification of Certain Cash Receipts and Cash Payments Effective for fiscal years, and interim periods December 15, Early adoption is December 15, 2018, and interim periods within fiscal years beginning after December 15,

2 ASC 260, Earnings Per Share ASU , Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the Emerging Issues Task Force) beginning after December 15, 2015, and interim periods within those fiscal years. beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is ASC 323, Investments Equity Method and Joint Ventures ASU , Simplifying the Transition to the Equity Method of Accounting The amendments are effective for all entities for fiscal years, and interim periods December 15, The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the application of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the application of the equity method. Early adoption is ASC 326, Financial Instruments Credit Losses ASU , Measurement of Credit Losses on Financial Instruments ASC 330, Inventory ASU , Simplifying the Measurement of Inventory For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Effective prospectively for fiscal years, and for interim periods within those fiscal years, beginning after December 15, Early adoption is permitted as of the beginning of an interim or annual reporting period. If an entity has previously written down inventory (within the scope of the ASU) below its cost, that reduced amount is considered the cost upon adoption. Upon adoption, the change from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of the ASU will be accounted for as a change in accounting principle For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, December 15, 2016, and for interim periods within fiscal years beginning after December 15, Early adoption is permitted as of the beginning of an interim or annual reporting period. If an entity has previously written down inventory (within the scope of the ASU) below its cost, that reduced amount is considered the cost upon adoption. Upon adoption, the change from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of the ASU will be accounted for as a change in accounting principle 2

3 ASC 350, Intangibles Goodwill and Other ASU , Customer s Accounting for Fees Paid in a Cloud Computing Arrangement ASU , Accounting for Goodwill (a consensus of the Private Company Council) ASC 405, Liabilities , Liabilities Extinguishments of Liabilities (Subtopic ): Recognition of Breakage for Certain Prepaid Stored-Value Products ASC 606, Revenue ASU , Revenue from Contracts with Customers ASU , Revenue from Contracts with Customers: Deferral of the Effective Date ASU , Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ASU , Identifying Performance Obligations and Licensing ASU , Narrow-Scope Improvements and Practical Expedients ASU , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers December 15, 2015, and interim periods within those fiscal years. Early adoption is An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. Not applicable to public entities. December 15, 2017, and interim periods within those fiscal years. Early adoption is December 15, 2017, including interim periods therein. Entities may adopt using a retrospective approach (with certain optional practical expedients) or a cumulative effect approach. Under the this alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2018) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. December 15, 2015, and interim periods within fiscal years beginning after December 15, An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. ASU removed the effective date of ASU , thereby permitting an entity to apply the accounting alternative at any time without justifying that the use of the accounting alternative is preferable as described in paragraph December 15, 2018, and interim periods within fiscal years beginning after December 15, December 15, In addition, the new standard is effective for interim periods within annual periods that begin after December 15, The same transition alternatives apply. Early adoption is permitted as of either: An annual reporting period beginning after December 15, 2016, including interim periods within that year, or An annual reporting period beginning after December 15, 2016 and interim periods within annual reporting periods beginning one year after the annual period in which the entity first applies the new standard. 3

4 ASC 715, Compensation Retirement Benefits ASU , Practical Expedient for the Measurement Date of an Employer s Defined Benefit Obligation and Plan Assets Effective prospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Effective prospectively for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, ASC 718, Compensation Stock Compensation ASU , Improvements to Employee Share-Based Payment Accounting December 15, 2016, and interim periods within those annual periods. Early adoption is December 15, 2017, and interim periods within annual periods beginning after December 15, ASU , Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) Effective for annual periods and interim periods within those annual periods beginning after December 15, Earlier adoption is Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. Effective for annual periods and interim periods within those annual periods beginning after December 15, Earlier adoption is Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. 4

5 ASC 740, Income Taxes ASU , Intra-Entity Transfers of Assets Other Than Inventory Effective for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those fiscal years. An entity may elect early adoption, but it must do so for the first interim period of an annual period if it issues interim financial statements. Effective for annual reporting periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, An entity may elect early adoption, but it must do so for the first interim period of an annual period if it issues interim financial statements. ASU , Balance Sheet Classification of Deferred Taxes Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, Early adoption is permitted as of the beginning of any interim or annual reporting period. December 15, 2017, and for interim periods within fiscal years beginning after December 15, Early adoption is permitted as of the beginning of any interim or annual reporting period. ASC 805, Business Combinations ASU , Simplifying the Accounting for Measurement- Period Adjustments Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, Early adoption is December 15, 2016, and for interim periods within fiscal years beginning after December 15, ASU , Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council) Not applicable to public entities. ASU removed the effective date of ASU , thereby permitting an entity to apply the accounting alternative at any time without justifying that the use of the accounting alternative is preferable as described in paragraph ASC 810, Consolidation ASU , Interests Held through Related Parties That Are under Common Control December 15, 2016, including interim periods within those fiscal years. Early adoption is However, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year. December 15, 2016, and interim periods within fiscal years beginning after December 15, However, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year. ASU , Amendments to the Consolidation Analysis Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, December 15, 2016, and for interim periods within fiscal years beginning after December 15,

6 ASU , Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity ASU Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements (a consensus of the Private Company Council) Effective for annual periods, and interim periods within those annual periods, beginning after December 15, Early adoption is permitted as of the beginning of an annual period. Entities may adopt using either a full or modified retrospective approach. The modified approach only impacts the annual period of adoption by recording a cumulative-effect adjustment to equity. Not applicable to public entities. December 15, 2016, and interim and annual periods thereafter. Early adoption is permitted as of the beginning of an annual period. Entities may adopt using either a full or modified retrospective approach. The modified approach only impacts the annual period of adoption by recording a cumulative-effect adjustment to equity. ASU removed the effective date of ASU , thereby permitting an entity to apply the accounting alternative at any time without justifying that the use of the accounting alternative is preferable as described in paragraph ASC 815, Derivatives and Hedging , Contingent Put and Call Options in Debt Instruments December 15, 2016, and interim periods within those fiscal years. Early adoption is However, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year. December 15, 2017, and interim periods within fiscal years beginning after December 15, However, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year , Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships December 15, 2016, and interim periods within those fiscal years. Early adoption is December 15, 2017, and interim periods within fiscal years beginning after December 15, ASU , Application of the Normal Purchases and Normal Sales Exception to Certain Electricity Contracts within Nodal Energy Markets Effective upon issuance and should be applied prospectively. An entity will have the ability to designate qualifying contracts that are entered into on or after the effective date of the ASU as normal purchases and normal sales ( NPNS ). Because an entity may elect the NPNS scope exception at contract inception or at a later date, it also will be able to designate qualifying contracts entered into before the effective date as NPNS, but only prospectively. Effective upon issuance and should be applied prospectively. An entity will have the ability to designate qualifying contracts that are entered into on or after the effective date of the ASU as normal purchases and normal sales ( NPNS ). Because an entity may elect the NPNS scope exception at contract inception or at a later date, it also will be able to designate qualifying contracts entered into before the effective date as NPNS, but only prospectively. 6

7 ASU , Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force) ASU Accounting for Certain Receive-Variable, Pay- Fixed Interest Rate Swaps Simplified Hedge Accounting Approach (a consensus of the Private Company Council) Effective for annual periods, and interim periods within those annual periods, beginning after December 15, Not applicable to public entities. December 15, 2015, and interim periods within annual periods beginning after December 15, ASU removed the effective date of ASU , thereby permitting an entity to apply the accounting alternative at any time without justifying that the use of the accounting alternative is preferable as described in paragraph ASC 820, Fair Value Measurement ASU , Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force) ASC 825, Financial Instruments , Recognition and Measurement of Financial Assets and Financial Liabilities beginning after December 15, 2015, and interim periods within those fiscal years. Effective for fiscal years, and interim periods December 15, Certain provisions of the ASU are eligible for early adoption. beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2017 including interim periods within those years. Certain provisions of the ASU are eligible for early adoption prior to December 15, ASC 835, Interest ASU , Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting) ASU , Simplifying the Presentation of Debt Issuance Costs Effective upon issuance. beginning after December 15, 2015, and interim periods within those fiscal years. Effective upon issuance. beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15,

8 ASC 842, Leases , Leases December 15, 2018, including interim periods within those fiscal years. Early adoption is Specific transition requirements apply. December 15, 2019, and interim periods within fiscal years beginning after December 15, Specific transition requirements apply. ASC 915, Development Stage Entities ASU , Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation DSE requirements Effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. While the elimination of the DSE financial reporting requirements applies retrospectively, the new disclosures about related risks and uncertainties are required prospectively. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. Consolidation update Effective for annual reporting periods beginning after December 15, 2015 and interim periods therein. The amendments apply retrospectively and also generally incorporate the transition provisions of Statement 167 to address situations in which it may not be practicable to obtain the necessary information for prior years. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. DSE requirements Effective for annual reporting periods beginning after December 15, 2014, and interim periods beginning after December 15, While the elimination of the DSE financial reporting requirements applies retrospectively, the new disclosures about related risks and uncertainties are required prospectively. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. Consolidation update Effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods beginning after December 15, The amendments apply retrospectively and also generally incorporate the transition provisions of Statement 167 to address situations in which it may not be practicable to obtain the necessary information for prior years. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. ASC 944, Financial Services Insurance ASU , Disclosures about Short-Duration Contracts Effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods within annual periods beginning after December 15, Effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods within annual periods beginning after December 15,

9 ASC 958, Not-for-Profit Entities and Topic 954, Health Care Entities ASU , Presentation of Financial Statements of Notfor-Profit Entities Not applicable. Effective for annual financial statements issued for fiscal years beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, Application to interim financial statements is permitted but not required in the initial year of application. ASC 960, Defined Benefit Pension Plans ASU , (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient December 15, Early adoption is permitted for all parts individually or in the aggregate. Part II of the ASU should be applied retrospectively, while Part III should be applied prospectively. December 15, Early adoption is permitted for all parts individually or in the aggregate. Part II of the ASU should be applied retrospectively, while Part III should be applied prospectively. ASC 962, Defined Contribution Pension Plans ASU , (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient December 15, Early adoption is permitted for all three parts individually or in the aggregate. Parts I and II of the ASU should be applied retrospectively, while Part III should be applied prospectively. December 15, Early adoption is permitted for all three parts individually or in the aggregate. Parts I and II of the ASU should be applied retrospectively, while Part III should be applied prospectively. ASC 962, Health and Welfare Benefit Plans ASU , (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient December 15, Early adoption is permitted for all three parts individually or in the aggregate. Parts I and II of the ASU should be applied retrospectively, while Part III should be applied prospectively. December 15, Early adoption is permitted for all three parts individually or in the aggregate. Parts I and II of the ASU should be applied retrospectively, while Part III should be applied prospectively. Other ASU , Technical Corrections and Improvements Most of the amendments do not require transition guidance and are effective upon issuance. Several amendments have specific transition requirements, and early adoption is permitted for those items. Most of the amendments do not require transition guidance and are effective upon issuance. Several amendments have specific transition requirements, and early adoption is permitted for those items. 9

10 ASU , Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates and Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting The amendments within Topics 605 and 932 are effective upon adoption of Topic 606. Paragraph S99-3 is rescinded to coincide with the effective date of ASU The amendments within Topics 605 and 932 are effective upon adoption of Topic 606. Paragraph S99-3 is rescinded to coincide with the effective date of ASU ASU , Technical Corrections and Improvements Transition guidance varies based on the individual amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods December 15, Early adoption is permitted, including adoption in an interim period. All other amendments became effective upon issuance. Transition guidance varies based on the individual amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods December 15, Early adoption is permitted, including adoption in an interim period. All other amendments became effective upon issuance. Material Discussed in this article is meant to provide general information and should not be acted on without obtaining professional advice tailored to your firm's individual and specific needs. Any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This information is for general guidance only and is not a substitute for professional advice. 10