Effective Dates of U.S. Accounting Pronouncements

Transcription

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 2014 have been included since many companies applied them for the first time in 2015, e.g., the first interim or annual period beginning on or after December 15, Standards that do not require adoption before 2016 are highlighted in blue. Note that the final amendments to the FASB Codification resulting from EITF Issues No. 15-A and 15-C were not available before this quarterly Significant Accounting & Reporting Matters Alert was published. 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 ASU , Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ASC 225, Income Statement ASU , Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items on or after December 15, 2014, and interim periods within those years. Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15,

2 PRONOUNCEMENT EFFECTIVE DATE - PUBLIC EFFECTIVE DATE NON PUBLIC 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) 2015, and interim periods within those fiscal years. Early adoption is 2015, and interim periods within those fiscal years. Early adoption is ASC 310, Troubled Debt Restructuring by Creditors ASU , Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure ASU , Reclassification of Residential Real Estate collateralized consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force) Effective for annual periods, and periods, beginning after December 15, Early adoption is permitted, if the entity has already adopted ASU Effective for annual periods and periods, beginning after December 15, Early adoption is An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. Effective for annual periods ending after December 15, 2015, and interim Early adoption is permitted, if the entity has already adopted ASU after December 15, 2014, and interim periods within annual periods beginning after December 15, Early adoption is An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. ASC 323, Investments Equity Method and Joint Ventures ASU , Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force) Effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, Early adoption is If adopted, the amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. after December 15, 2014, and interim periods within annual reporting Early adoption is If adopted, the amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. 2

3 PRONOUNCEMENT EFFECTIVE DATE - PUBLIC EFFECTIVE DATE NON PUBLIC 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 360, Property, Plant, and Equipment ASU , Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective for fiscal years beginning after 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. on or after December 15, 2014, and interim periods within those years. Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. Effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 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. The accounting alternative, if elected, should be applied prospectively to goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after December 15, 2014, and interim periods within annual Early application is permitted, including application to any period for which the entity s annual or interim financial statements have not yet been made available for issuance. on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. 3

4 PRONOUNCEMENT EFFECTIVE DATE - PUBLIC EFFECTIVE DATE NON PUBLIC ASC 405, Liabilities ASU , Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force) ASC 606, Revenue ASU Revenue from Contracts with Customers ASC 715, Compensation Retirement Benefits ASU , Practical Expedient for the Measurement Date of an Employer s Defined Benefit Obligation and Plan Assets Effective for fiscal years, and interim periods within those years, beginning after December 31, Early adoption is Retrospective application is required for all periods presented. Entities are permitted to use hindsight when determining the appropriate amount to be recorded in prior periods. after December 15, 2016, including interim periods therein. Entities may adopt using a retrospective approach (with certain optional practical expedients) or a cumulative effect approach. Under the this alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited. Effective prospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is Effective for fiscal years ending after December 31, 2014 and interim and annual periods thereafter. Early adoption is Retrospective application is required for all periods presented. Entities are permitted to use hindsight when determining the appropriate amount to be recorded in prior periods. after 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. There are certain provisions that allow for nonpublic entities to early adopt. Effective prospectively for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, Early adoption is 4

5 ASC 718, Compensation Stock Compensation 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 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 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. ASC 740, Income Taxes ASU , Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) Effective for fiscal years, and interim periods within those years, beginning after December 15, Early adoption is Effective for fiscal years and interim periods within those years, beginning after December 15, Early adoption is ASC 805, Business Combinations ASU , Pushdown Accounting Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 (SEC Update) SAB 115 became effective November 21, Not applicable to private entities. 5

6 ASU , Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council) Not applicable to public entities. If elected, the accounting alternative should be applied to eligible transactions in fiscal years beginning after December 15, Specifically, if the first eligible transaction occurs in the first fiscal year beginning after December 15, 2015, the elective adoption will be effective for that fiscal year s annual financial reporting and all interim and annual periods thereafter. If the first eligible transaction occurs in fiscal years beginning after December 15, 2016, the elective adoption will be effective in the interim period that includes the date of that first in-scope transaction and subsequent interim and annual periods thereafter. Early application is permitted for any interim and annual financial statements that have not yet been made available for issuance. ASU , Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force) Effective on November 18, After the effective date, an acquired entity can make an election to apply the guidance to future change-incontrol events or to its most recent change-in-control event. Effective on November 18, After the effective date, an acquired entity can make an election to apply the guidance to future change-incontrol events or to its most recent change-in-control event. ASC 810, Consolidation ASU , Amendments to the Consolidation Analysis Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, Effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, ASU , Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity Effective for annual periods, and 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 cumulativeeffect adjustment to equity. after December 15, 2016, and interim and annual periods thereafter. Early adoption is permitted as of the beginning of an annual period. Entities may adopt using either a full or modified retrospective approach. The modified approach only impacts the annual period of adoption by recording a cumulative-effect adjustment to equity. 6

7 ASU Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements (a consensus of the Private Company Council) Not applicable to public entities. If elected, the accounting alternative is effective for annual periods beginning after December 15, 2014, and interim periods within annual Early application is permitted, including application to any period for which the entity s annual or interim financial statements have not yet been made available for issuance. The accounting alternative should be applied retrospectively to all periods presented. Prospective adoption is not ASC 815, Derivatives and Hedging 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) ASC 820, Fair Value Measurement Effective for annual periods, and periods, beginning after December 15, Not applicable to public entities. after December 15, 2015, and interim periods within annual periods beginning after December 15, If elected, the simplified hedge accounting approach will be effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, Early adoption is permitted, and private companies are able (but not required) to adopt the new standards for December 31, 2013 year-end financial statements that are not yet available for issuance. Private companies have the option to apply the amendments in this Update using either a modified or full retrospective approach. 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) 2015, and interim periods within those fiscal years. Early adoption is 2016, and interim periods within those fiscal years. Early adoption is 7

8 ASC 830, Foreign Currency Matters ASU , Parent s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force) Effective prospectively for all entities with derecognition events after the effective date. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 31, Early adoption is If early adoption is elected, the guidance should be applied as of the beginning of the entity s fiscal year of adoption. Effective prospectively for all entities with derecognition events after the effective date. The guidance is effective for fiscal years beginning after December 31, 2014 and interim and annual periods thereafter. Early adoption is If early adoption is elected, the guidance should be applied as of the beginning of the entity s fiscal year of adoption. ASC 835, Interest ASU , Simplifying the Presentation of Debt Issuance Costs ASC 853, Service Concession Arrangements ASU , Service concession Arrangements (a consensus of the FASB Emerging Issues Task Force) 2015, and interim periods within those fiscal years. Early adoption is Effective for annual periods and Early adoption is The amendments should be applied on a modified retrospective basis, to all arrangements existing at the beginning of the fiscal year of adoption and to all arrangements entered into after that date. 2015, and interim periods within fiscal Early adoption is after December 15, 2014, and interim periods within annual periods beginning after December 15, Early adoption is The amendments should be applied on a modified retrospective basis, to all arrangements existing at the beginning of the fiscal year of adoption and to all arrangements entered into after that date. ASC 860, Transfers and Servicing ASU , Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures The accounting changes and disclosure for certain transactions accounted for as a sale are effective for the first period (interim or annual) beginning after December 15, Earlier application for a public business entity is prohibited. The disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and for interim periods after March 15, The accounting changes and both new disclosures are effective for annual 2014 and interim periods after December 15, These entities may elect early application and apply the requirements for interim periods beginning after December 15,

9 ASC 915, Development Stage Entities ASU , Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation ASC 944, Financial Services Insurance ASU , Disclosures about Short- Duration Contracts 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. Effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods within annual periods beginning after December 15, Early adoption is DSE requirements Effective for annual reporting periods beginning after December 15, 2014, and interim 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. Effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods within annual periods beginning after December 15, Early adoption is 9

10 PRONOUNCEMENT EFFECTIVE DATE - PUBLIC EFFECTIVE DATE NON PUBLIC ASC 958, Not-for-Profit Entities ASU , Services Received from Personnel of an Affiliate Not applicable to public entities. Effective prospectively for fiscal years beginning after June 15, 2014, and interim and annual periods thereafter. A recipient not-for-profit entity may apply the amendments using a modified retrospective approach under which all prior periods presented upon the date of adoption should be adjusted, but no adjustment should be made to the beginning balance of net assets of the earliest period presented. Early adoption is Other 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 within those fiscal years, beginning after 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 within those fiscal years, beginning after December 15, Early adoption is permitted, including adoption in an interim period. All other amendments became effective upon issuance. Material Discussed in this Alert 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