Audit Committee Brief

February 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.

Year in review — 2017

Deloitte’s Quarterly Accounting Roundup highlights key developments that occurred in 2017, including the FASB’s release of Accounting Standards Updates (ASUs) and issuance of two proposed ASUs; the PCAOB’s release of a new auditor reporting standard; the SEC’s publication of a proposed rule that is intended to streamline and improve disclosures; and the IASB’s issuance of its new insurance contracts standard.

Audit Committee Brief - February 2018

Observations by early adopters of the new revenue standard

This Heads Up provides insight into Deloitte’s review of the disclosures in the public filings of a group of companies that early adopted the FASB’s new revenue standard in 2017. Entities adopting the standard beginning in 2018 may benefit from evaluating the disclosure trends we have observed as a result of this review.

Valuation allowance considerations related to tax reform

Deloitte’s Tax Accounting Perspective concentrates on valuation allowance considerations as a result of the changes to the tax law, as the impacts of legislation should be recorded in period of enactment.

The Auditor of the Future Isn’t Who You Think

Today, the hallmark of an effective auditor isn’t an aptitude for sorting through massive amounts of information manually; it is an ability to navigate relationships, think critically, and leverage innovative ideas and cutting-edge technologies. This Deloitte post on highlights how audits are experiencing unprecedented transformation, and how the importance of talent, technological literacy, and interpersonal skills will be critical for the future.

FASB proposes income tax guidance related to new tax reform law

The FASB’s proposed Accounting Standards Update, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, would amend ASC 220, Income Statement — Reporting Comprehensive Income, to require “financial statement preparers to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (or portion thereof) is recorded.”

FASB discusses improvements to guidance on leases

The FASB recently discussed comments received on its September 2017 proposed ASU, Technical Corrections and Improvements to Recently Issued Standards: II. Accounting Standards Update No. 2016-02, Leases (Topic 842). The board made several tentative decisions on transition guidance related to leases acquired as part of a business combination, lessor recognition of variable payments for nonlease components, and other feedback—and directed its staff to begin drafting a final ASU for a vote by written ballot.

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