Quarterly accounting roundup: An update on Q important developments The Dbriefs Financial Reporting series Bob Uhl, Partner, Deloitte & Touche

Quarterly accounting roundup: The Dbriefs Financial Reporting series Bob Uhl, Partner, Deloitte & Touche LLP Chris Chiriatti, Managing Director, Deloitte & Touche LLP Elena Cilenti, Manager, Deloitte & Touche LLP Kristen Sullivan, Partner, Deloitte & Touche LLP June 26, 2018

Items to note Keep in mind This webcast does not provide official Deloitte & Touche LLP interpretive accounting guidance. Check with a qualified advisor before taking any action. Learning objective To enhance participants understanding of important accounting issues and developments pertaining to recent actions of standard setters, regulators, and others. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 3

Polling question #1 Are you a financial statement preparer, user, auditor, or other interested party? a) Preparer b) User c) Auditor d) Other Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 4

Leases and CECL Lessor s billed operating lease receivables The FASB s credit losses transition resource group (TRG) met on June 11, 2018 ( June meeting ) to discuss ASU 2016-13, known as the current expected credit losses (CECL) model Billed operating lease receivables Background: A stakeholder asked the FASB staff whether billed operating lease receivables are within the scope of the guidance in ASC subtopic 326-20. The stakeholder noted conflicting views, including the following: a. ASC 842 indicates that if the assessment of collectability of an operating lease changes, any amount of lease income recognized that has not been collected should be reversed through a current-period adjustment to lease income, and b. ASC subtopic 326-20 includes financing receivables within its scope and billed operating receivables appear to meet that definition Note: The FASB staff indicated that operating lease receivables are not within the scope of ASC subtopic 326-20 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 6

Leases and CECL Lessor s billed operating lease receivables The FASB s credit losses transition resource group (TRG) met on June 11, 2018 ( June meeting ) to discuss ASU 2016-13, known as the current expected credit losses (CECL) model Billed operating lease receivables (cont.) Summary At the June meeting, the FASB staff stated that it is now reconsidering its previous response to the inquiry discussed above and asked for feedback from the TRG members TRG members generally supported the FASB staff s initial response to the stakeholder inquiry; that is, operating leases should be excluded from the scope of ASC 326 TRG members encouraged the FASB Staff to amend ASC 326 to clarify whether operating lease receivables are included or excluded from its scope Next steps: FASB staff indicated that they plan to discuss this issue with the FASB Board, including the views expressed by the TRG members Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 7

Comparatives under ASC 840 option At its March 7, 2018 meeting, the FASB discussed the proposed ASU providing comparatives under ASC 840 option: Board reaffirmed its decision to provide an alternative, but optional, transition approach: If elected, only contracts that exist as of the effective date would be transitioned, with a cumulative effect adjustment as of that date All comparative periods prior to the effective date will retain the financial reporting and disclosure requirements of ASC 840 (including the five-year table) FASB issued a proposed ASU on January 5, 2018 Final ASU expected in Q3 2018 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 9

Polling question #2 How prepared is your organization to comply with the new lease accounting standard? Extremely prepared (or ready) Very prepared Somewhat prepared Not too prepared Not at all prepared Don t know/not applicable Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 10

Proposed lessor nonlease component separation practical expedient At its March 28, 2018 meeting, the FASB discussed the proposed ASU on an optional practical expedient for lessors: Reaffirmed that a lessor would not be required to separate lease and nonlease components when certain conditions are met: Criterion A: The timing and pattern of transfer of the lease and nonlease components are the same Criterion B: The lease component, if accounted for separately, would be classified as an operating lease (classification analysis could be performed on a qualitative basis in many circumstances) FASB issued a proposed ASU on January 5, 2018 Final ASU expected in Q3 2018 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 11

Proposed lessor nonlease component separation practical expedient (cont.) The FASB agreed to remove the proposed ASU requirement that a lessor always account for the combined component as a lease under ASC 842: Lessor should consider the magnitude of the nonlease component(s) to determine whether the combined component should be accounted for under ASC 842 (leases) or ASC 606 (revenue) Lessor should account for the combined component under ASC 606 if the nonlease component(s) is the predominant component in the combined component The FASB acknowledged that predominant is used elsewhere in U.S. GAAP, including in ASC 842 and ASC 606 Given a fact pattern whereby the components were evenly split (e.g., a 50/50 split of value), the Board suggested that the default position would be to account for the combined component under ASC 842 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 12

Proposed lessor nonlease component separation practical expedient (cont.) Other decisions made related to the proposed lessor practical expedient: A nonlease component that is ineligible for the practical expedient does not preclude a lessor from electing the practical expedient for the lease component and another nonlease component(s) that meets the criteria All variable payments should follow the scoping of the combined component (e.g., if the combined component is accounted for as a lease, all variable payments would be accounted for pursuant to ASC 842) Upon transition to ASC 842, the practical expedient, if elected, would apply to all existing transactions within a class of underlying assets Early adopters of the new leasing standard would be permitted to elect the practical expedient as of either: (1) the lessor s first reporting period (quarterly or annual) following the issuance of a final ASU (2) the mandatory effective date of ASC 842 (i.e., January 1, 2019, for calendar-year-end public companies) Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 13

Narrow scope improvements: Sales taxes and property taxes and insurance At its March 28, 2018 meeting, the FASB discussed other implementation requests raised by stakeholders, specifically the accounting for: Sales taxes collected from the lessee Property taxes and insurance that are either (1) paid directly by the lessee or (2) paid by the lessor and subsequently reimbursed by the lessee The key issue related to both topics is whether a lessor should be permitted to analogize to certain guidance in ASC 606 FASB is expected to issue a proposed ASU in Q3 2018 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 14

Narrow scope improvements: Sales taxes and property taxes and insurance (cont.) Sales taxes ASC 606 provides entities with an accounting policy election to present sales taxes collected from customers on a net basis The new leasing standard does not offer a similar practical expedient for sales taxes collected from lessees Lessors are performing a revenuegenerating activity similar to a service; requested a similar practical expedient FASB tentatively decided to allow lessors to analogize to the guidance in ASC 606 to present sales taxes collected from lessees on a net basis Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 15

Narrow scope improvements: Sales taxes and property taxes and insurance (cont.) Property taxes and insurance FASB amended ASC 606 to address estimating gross revenue when an entity is acting as the principal but there is uncertainty in the transaction price that is not expected to ultimately be resolved Stakeholders requested a similar practical expedient be provided to lessors for: Situation 1: Property taxes and insurance that are paid directly by the lessee (but the lessor is still the primary obligor/beneficiary) Situation 2: Property taxes and insurance that are paid by the lessor but reimbursed by the lessee FASB tentatively decided to permit lessors to apply the same principles in ASC 606: Only applies in situations in which the lessor does not know the amount of the property taxes and insurance paid by the lessee for the benefit of the lessor (e.g., only Situation 1) Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 16

Revenue recognition Observed Industry impact Impact on timing, recognition and presentation: Well over half of companies disclosed that the adoption of ASC 606 had a material impact on their financial statements Industries more likely to say material impact Travel & Hospitality (loyalty points, mileage credits, contract costs) Technology (acceleration of revenue in integrated product offerings, commissions) Aerospace & Defense (measurement of progress during the contract) Industries with more of a mixed impact Financial Services (gross vs net, contract costs) Industrial Products (presentation of payments to customers) Industries more likely to say no material impact Energy Life Sciences & Healthcare Real Estate Investment Trusts 85% of registrants reviewed adopted using the modified retrospective approach Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 18

Revenue recognition-observations SEC comment themes Disaggregation of revenues Identification of performance obligations Nature of performance obligations Why the measure of progress selected is appropriate Significant judgments (timing of transfer of control, variable consideration) Principal vs agent considerations Significant payment terms Amortization period/method used for capitalized contract costs Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 19

Polling question #3 What aspects of the new revenue standard have you found the most challenging to implement? New disclosure requirements Identification of performance obligations Principal versus agent analysis New cost guidance None implementation was a piece of cake Don t know/not applicable Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 20

Sustainability landscape: why now? ESG (environmental, social, governance) market developments Increasing risk There s a 100% correlation between water availability and GDP growth. If there s no water there s no economic growth. 1 Transparency demands Sustainable investing has grown to an estimated $23 trillion globally, a 600% increase over the past decade 2. Market evidence Business value at stake from sustainability risks can be as high as 70% of EBITDA 3. Investor attention and action Our [Vanguard] position on climate risk is anchored in long-term economical value not ideology 4. Performance on MATERIAL factors Low High 6.01% 1.96% -2.90% 0.60% Low High Performance on IMMATERIAL factors Stock Returns (in annualized alpha) by Type of Sustainability Performance Firms with good performance on material sustainability issues and concurrently poor performance on immaterial sustainability issues enjoy the strongest financial returns 5. 1 Water and Money's $1 Trillion Relationship Costs. Bloomberg Briefs. March 21, 2018. 2 Sustainable Funds U.S. Landscape Report. Morningstar, January 2018. 3 Ceres, Lead From the Top: Building Sustainability Competence On Corporate Boards 4 Vanguard Investment Stewardship 2017 Annual Report 5 Mozaffar Khan, George Serafeim, and Aaron Yoon. Corporate Sustainability: First Evidence on Materiality. Harvard Business School, 2015. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 22

Sustainability landscape: why now? Policy, marketplace, and standard setting developments Stock exchanges making formal commitment to sustainability 1 EU Directive Non-financial Reporting Directive Policy & stock exchanges Shareholder proposals increasingly relate to environmental, social, or governance-related issues 4 Shareholders 73% of chartered financial analysts (CFAs) take ESG issues into account in their investment analysis and decisions 2 Investors Market forces driving ESG integration Customers 66% of consumers are willing to pay more for products with ESG attributes 5 650+ sustainability raters and rankers provide ESG data to the market 3 Raters and rankers Standard setters Sustainability Accounting Standards Board (SASB) Global Reporting Initiative (GRI) 1 World Federation of Exchanges Survey 2018: Exchanges Maturing in Their Sustainability Efforts 2 CFA ESG Survey 2017 www.cfainstitute.org 3 www.ratesustainability.org 4 https://www.ceres.org/news-center/press-releases/exxonmobilinvestors-make-history-majority-vote-climate-risk-disclosure 5 Nielsen Global Sustainability Report Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 23

Sustainability landscape: there s more to the story To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Larry Fink's 2018 Letter to CEOs Sustainability is the #1 risk for senior leaders 1 S&P 500 Companies Sustainability Reporting 5 Stakeholders Only 29% alignment between risks identified in sustainability reports vs. financial filings 2 50% of S&P 500 addressed ESG in Q4 calls 3 93% of investors are dissatisfied with disclosure of ESG-related risks 2 Disclosure 85% 2017 2011 #1 barrier to using nonfinancial information in investment analysis is lack of high-quality, material information 4 1 Deloitte & Touche LLP, Forbes Insights Survey: Taking Aim at Value, 2017 2 WBCSD Sustainability and enterprise risk management: The first step towards integration 20% How do we prepare for the unexpected? 3 Goldman Sachs Equity Research: GS SUSTAIN ESG Series A Revolution Rising From low chatter to loud roar 4 Purpose Beyond Profit 5 Governance & Accountability Institute Inc. 2017 Research www.ga-institute.com Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 24

Sustainability landscape: if you don t tell your story, someone else will Raters & rankers Proxy advisors Credit raters & others Example ESG raters and rankers MSCI CSRHub Sustainalytics Glass Lewis ISS Bloomberg S&P + over 650 others 1 Low Example ratings High MSCI: Sustainalytics: ESG Controversy CCC B BB BBB A AA AAA 1 50 100 1 2 3 4 5 CSRHub: 1 50 100 Ratings cover topics including, but not limited to: Compensation Diversity Energy Climate change Leadership Ethics Health & Safety Copyright 2018 Deloitte Development LLC. All rights reserved. 1 www.ratesustainability.org Quarterly accounting roundup: 25

Sustainability landscape: demand for meaningful disclosure Companies are expected to abide by a new social contract The International Integrated Reporting Council s (IIRC) Integrated Reporting Framework established the six capitals framework to guide meaningful disclosure of value creation. Financial Manufactured Intellectual Sustainability has traditionally captured: Natural Capitals Human Risks to: employee commitment to ethical standards employee satisfaction Is it really what we think it is? Risks to: access to critical natural capital inputs Social & Relationships Risks to: customer satisfaction supplier sourcing, etc. How do we prepare for the unexpected? IIRC 6 Capitals, www.iirc.org Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 26

Sustainability landscape: the role of Board of Directors Questions for the Board to consider Questions to ask Do we have regular access to the information needed to evaluate risks emerging from ESG trends? Who on the board has sustainability competence? Do we have an understanding of critical stakeholders and how we are meeting their needs? Do we have a clear message on how our long-term strategy considers sustainability risks and opportunities? What external sustainability disclosures do we provide and how confident are we that they are complete, accurate, and reliable and consistent with other external disclosures? Steps for the Board to consider Establish a standing board agenda item on sustainability. Consider giving the nominating committee responsibility for evaluating sustainability competence on the board. Ensure management has established clear sustainability responsibilities for functions such as finance, investor relations, legal, risk, strategy, talent, and operations. Establish a disclosure strategy that prioritizes the needs of stakeholders, aligns sustainability to business value, and uses leading sustainability standards to guide meaningful disclosure. Ensure management has taken steps to establish sustainability data management systems, document sustainability reporting processes and controls, engage internal audit (or external assurance provider) in sustainability reporting. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 27

Polling question #4 Are you involved with your company s sustainability reporting? Yes No - we provide a sustainability report, but I m not involved Not sure if we have sustainability reporting Our company does not provide significant sustainability reporting Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 28

Emerging Issues Task Force June Meeting Summary The Emerging Issues Task Force ( EITF or Task Force ) covered four issues at the June 7, 2018 meeting ( June meeting ) 1 3 Issue Issue 18-B, Improvements to Accounting for Episodic Television Series Issue 17-A, Customer s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract 2 Issue 15-F, Statement of Cash Flows: Classification of Certain Cash Receipts and 4Cash Payments 18-A, Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 30

Emerging Issues Task Force June Meeting Summary Issue 17-A, Customer s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract Summary: At the June meeting, discussed the comment letters received on the proposed ASU, reaffirming many issues and making minor revisions: Apply ASC 350-40 on internal-use software when capitalizing implementation costs related to a hosting arrangement that is a service contract Expense the capitalized implementation costs related to a hosting arrangement that is a service contract over the hosting arrangement s term, which should consider renewal periods and termination rights reasonably certain of exercise Present expense in the same line item in the statement of income as the fee associated with the hosting arrangement is presented Classify and present cash flows associated with the costs in the same manner as the fees related to the hosting arrangement Classify and present deferred costs in the same balance sheet line item that would include prepaid hosting services, if any Apply ASC 360 for impairment and consider each module as the unit of accounting for abandonment Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 31

Emerging Issues Task Force June Meeting Summary Issue 17-A, Customer s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract Effective date and transition: Public business entities Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years beginning after December 15, 2019 All other entities Fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021 Early adoption is permitted and an entity may apply either a retrospective or prospective transition method Next steps: FASB ratification is expected at the Board s June 27, 2018, meeting, after which a final ASU will be issued Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 32

Emerging Issues Task Force June Meeting Summary Issue 18-A, Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract Status: Consensus-for-exposure Affects: Entities that assume a liability in a revenue recognition contract acquired in a business combination after the acquirer has adopted ASC 606 Background: ASC 805 requires the recognition of assumed liabilities in a business combination At the March 28, 2018, Board meeting, the FASB added to the EITF s agenda a project to address how an entity recognizes a liability associated with a revenue contract acquired in a business combination after adopting ASC 606 Stakeholder feedback indicated two alternatives to determine recognition of an assumed liability: Alternative A: Legal obligation Alternative B: Performance obligation as described in ASC 606 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 33

Emerging Issues Task Force June Meeting Summary Issue 18-A, Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract Summary: The FASB discussed how to apply ASC 805 to a revenue contract acquired in a business combination after the acquirer has adopted ASC 606 The Task Force tentatively decided: An entity should recognize the assumed liability resulting from a revenue contract acquired in a business combination on the basis of whether the liability represents a performance obligation under ASC 606 It is not appropriate for an acquirer to use a carry-over basis to measure an assumed liability in a revenue contract acquired in a business combination Direct costs used in the acquirer s measurement of the assumed liability s fair value would take into account the other assets and liabilities in the acquired set Effective date and transition: Prospective transition method The effective date will be discussed at a future meeting Next steps: The FASB will issue a proposed ASU for public comment on the basis of the decisions made at the EITF meeting Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 34

Emerging Issues Task Force June Meeting Summary Issue 18-B, Improvements to Accounting for Episodic Television Series Status: Initial deliberations Affects: Entities that account for episodic television series Background: ASC 926-20 provides guidance on accounting for film costs in the media and entertainment industry An entity fully capitalizes film costs, while the capitalization of costs related to episodic content is subject to a constraint based on contract revenues The Board added a project to the EITF s agenda addressing whether the cost capitalization model for episodic series should be the same as the model applied to films Summary: The Task Force tentatively decided the following with respect to cost capitalization for episodic television series: The cost capitalization guidance related to episodic content will be aligned with the guidance for films by removing the content distinction The amortization guidance in ASC 926-20 does not need to be amended to provide more prescriptive guidance on viewership and to require the use of amortization curves Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 35

Emerging Issues Task Force June Meeting Summary Issue 18-B, Improvements to Accounting for Episodic Television Series Summary (cont.): The Task Force requested the FASB staff to obtain feedback from the industry working group on certain issues, including the following: Different examples of various models for measuring impairment Whether the Task Force should develop and whether an entity should evaluate impairment indicators at (1) an individual-film, unit-of-account level or (2) a group level Whether an entity should amortize capitalized episodic costs at an individual-film level Effective date and transition: The effective date and transition will be discussed at a future meeting Next steps: The Task Force is expected to redeliberate this Issue on the basis of the FASB staff s additional research on accounting for episodic television series Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 36

Emerging Issues Task Force June Meeting Summary Issue 15-F, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments Summary: In August 2016, the FASB issued ASU 2016-15,4 which contains amendments to eight issues related to the statement of cash flows The FASB received a comment letter related to beneficial interests in securitization transactions, which clarified that an entity should classify as cash inflows from investing activities cash receipts from payments on a transferor s beneficial interests in securitized trade receivables The feedback cautioned that classifying these cash inflows as investing activities could cause the statement of cash flows to be less relevant than it would be if the entity were to classify these cash inflows as operating activities At the June Meeting, the FASB solicited feedback from the Task Force: Task Force expressed mixed views and observed that the comment letter did not provide new information that the Task Force did not previously consider during the development of the guidance Next steps: The FASB will consider the Task Force s feedback at a future Board meeting Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 37

ASU 2018-07 Improvements to Nonemployee Share-Based Payment Accounting Summary: The ASU, issued on June 20, 2018 simplifies the accounting for share based payments granted to non-employees for goods or services Substantially aligns the non-employee share based payments guidance with the guidance for employee share based payments Amends ASC 606 to include share based payments as a form of consideration payable to a customer Does not provide measurement guidance Significant changes include the following: Establishes that the measurement date is the grant date The treatment of performance conditions Awards are required to be measured at fair value Does not change the manner and period of recognition Provides certain nonpublic practical expedients Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 39

Polling question #5 Do you agree with the Task Force s consensus on the treatment of implementation costs in a cloud computing arrangement that is a service? Yes No, implementation costs for a service should not be capitalized Partially agree with capitalization of costs but disagree with certain aspects (e.g. presentation) Don t know/not applicable Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 40

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Contact information Bob Uhl Partner Deloitte & Touche LLP ruhl@deloitte.com Connect with me on LinkedIn Chris Chiriatti Managing Director Deloitte & Touche LLP cchiriatti@deloitte.com Connect with me on LinkedIn Elena Cilenti Manager Deloitte & Touche LLP ecilenti@deloitte.com Connect with me on LinkedIn Kristen Sullivan Partner Deloitte & Touche LLP ksullivan@deloitte.com Connect with me on LinkedIn Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 44

Acronyms used in presentation ASC Accounting Standards Codification ASU Accounting Standards Update CSRHub Corporate Social Responsibility EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization EITF Emerging Issues Task Force EU European Union FASB Financial Accounting Standards Board GDP Gross Domestic Product GAAP Generally Accepted Accounting Principles MSCI Morgan Stanley Capital International PBE Public Business Entity SEC Securities and Exchange Commission TRG Transition Resource Group Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 45

Resources Roadmap A Roadmap to Applying the New Leasing Standard Deloitte Accounting Journal Entry FASB Votes to Finalize ASU on Practical Expedient for Lessor s Separation of Lease and Nonlease Components Deloitte Accounting Journal Entry FASB Discusses Feedback on Proposed Targeted Improvements to New Leasing Standard TRG Snapshot June 2018 Heads Up What Private Companies Should Know About the New Revenue Recognition Standard Heads Up FASB Issues Proposed ASU on Cloud Computing Arrangements Heads Up In the Spirit of Full Cybersecurity Disclosure Heads Up Observations From a Review of Public Filings by Early Adopters of the new Rev Standard Heads Up-FASB Simplifies the Accounting for Share-Based Payment Arrangements With Nonemployees On the Board s Agenda-Top of Mind Topics for Board Members Roadmap Series EITF Snapshot June 2018 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 46

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: 47

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