Audit Committee Brief

September 2018 issue

Audit Committee Brief is Deloitte's publication for audit committee members, providing recommendations, overviews of corporate governance resources, regulatory and legislative environment outlooks and technical updates.

SEC issues final rule to update and simplify disclosure requirements

This issue of Heads Up discusses SEC Final Rule Release No. 33-10532, Disclosure Update and Simplification, which amends disclosure requirements the SEC has determined to be redundant, outdated, or superseded. Issued as part of an ongoing disclosure effectiveness initiative, the final rule is effective 30 days after its publication in the Federal Register.

Audit Committee Brief - September 2018

Readiness for the new leases standards

The leases standards issued in the first quarter of 2016 by the International Accounting Standards Board (IFRS 16) and the FASB (ASC 842) are mostly converged. For most companies, the standards take effect for financial reporting periods beginning in 2019. Deloitte conducted a survey of global IFRS 16 and ASC 842 readiness to assess the complexities involved in implementing the standards. With a few regional exceptions, the survey indicates that many issues are similar regardless of organization size and industry.

Frequently asked questions about tax reform

This Financial Reporting Alert responds to frequently asked questions about the effects of tax reform legislation in accordance with ASC 740, Income Taxes. The alert has been updated to amend, add, or delete information on measuring the US deferred tax impact of global intangible low-taxed income inclusions for companies under the deferred method.

Quarterly earnings reports at center of debate

The Journal of Accountancy highlights the practice of quarterly earnings guidance after President Donald Trump’s recent tweet, asking the SEC to study whether a six-month reporting system would be better than quarterly reporting. The article outlines several perspectives on the quarterly earnings guidance practices, including a focus on enabling better performance indicators.

Updated guidance on the auditor’s report

The PCAOB issued guidance on its new auditor reporting standard, which focused primarily on the elements of the standard that were effective on December 15, 2017. These include standardized ordering, enhanced descriptions of the auditor’s role, and auditor firm tenure.

FASB amends guidance on cloud computing arrangements

This Heads Up discusses the FASB’s ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns accounting for the costs to implement cloud computing as a service with guidance on capitalizing costs associated with software for internal use.

FASB amends disclosure of fair-value measurements

This issue of Heads Up discusses ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which amends ASC 820 to add, remove, or modify requirements for disclosing fair-value measurements.

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