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Perspectives

Deloitte Controllership Digest

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Each month, the Deloitte Center for Controllership™ provides an easily digestible and regular stream of perspectives on the challenges facing controllers and those working in the controllership function. In each issue we share our latest thought leadership and details about upcoming Dbriefs webcasts to help you stay on top of the latest accounting, financial reporting, regulatory, and business developments.

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Heads Up—SEC proposes modernizing certain Regulation S-K disclosure requirements
On August 8, 2019, the SEC issued a proposed rule1 that would modernize the disclosure requirements in Regulation S-K, Item 101, "Description of Business"; Item 103, "Legal Proceedings"; and Item 105, "Risk Factors."

Deloitte comment letter on the IASB's proposed amendments to IFRS 3 to update a reference to the Conceptual Framework
The International Accounting Standards Board (IASB) published an exposure draft on May 30, 2019. We agree with the proposed amendments to IFRS 3 to replace a reference to an old version of the Conceptual Framework. We also agree with the proposed addition of an exception for the recognition principles in IFRS 3 with respect to liabilities and contingent liabilities in the scope of IAS 37 and of IFRIC 21 and of the clarification of the IFRS 3 requirements for contingent assets. However, we believe that an exception to the recognition principles in IFRS 3 is also required with respect to uncertain current tax positions within the scope of IFRIC 23.

Heads Up—Critical audit matters make their debut!
The first auditors' reports with critical audit matters (CAMs) were filed! In auditors' reports for all large accelerated filers with fiscal years ending June 30, 2019, the CAMs most often identified were related to goodwill and intangible assets, revenue, and income taxes, and on average, 1.8 CAMs were communicated.

2019 essential tax and wealth planning guide
Deloitte’s 2019 essential tax and wealth planning guide—released in three parts over the coming months—covers the issues critical to building and sustaining an effective wealth and tax plan in a post-reform environment. Each new release provides timely, accessible, and relevant insights for evolving your planning dialogue with your family members and tax advisers. Together, all three editions can help you gain an understanding of your new tax reality and help chart a course for today, tomorrow, and beyond.

Beyond Fintech: A pragmatic assessment of disruptive potential in financial service
Fintechs have defined the direction, shape, and pace of change across almost every financial services subsector. While they may not dominate the industry today, they have laid the foundation for future disruption.

2019 Financial Services Outlooks: Banking, commercial real estate, investment management, and insurance
What financial services industry trends, critical business issues, and regulatory challenges should you be ready for in 2019? Our 2019 Financial Services Industry Outlooks can help direct your focus to achieve peak value and growth in the year ahead.

September 2019

A Roadmap to applying then new revenue recognition standard (2019)
This roadmap provides Deloitte’s insights into and interpretations of the accounting guidance under the new revenue standard as codified in ASC 606, ASC 340-40 and ASC 610-20. The 2019 edition contains new interpretations and guidance that reflect developments in practice and activities of the Financial Accounting Standards Board (FASB), the US Securities and Exchange Commission (SEC), and American Institute of Certified Public Accountants (AICPA) since the publication of the 2018 edition.
 
FASB tentatively changes effective dates for new accounting standards
This issue discusses the FASB’s recent tentative decisions to change the manner in which it staggers effective dates for major standards and to amend the effective dates in some of its recently issued or amended major accounting standards to give implementation relief to certain types of entities.
 
A roadmap to segment reporting (2019)
This roadmap provides Deloitte’s insights into and interpretations of the guidance in ASC 280.
 
International Financial Reporting Standards (IFRS) in focus—IASB proposes amendments to IAS 12 'Income Taxes'
This IFRS in Focus discusses the proposed amendments to IAS 12 Income Taxes set out in Exposure Draft ED/2019/5 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12) that was published by the International Accounting Standards Board (IASB) in July 2019. 
 
Setting the north star: Staying focused and on track
The path to Industry 4.0 often requires multiyear transformation journeys. This article, second in a series, guides leaders on setting a transformation north star that helps their organizations stay focused and on track.
 
Tapping into the aging workforce in financial services: How baby boomers can help fill the talent gap
​As more and more boomers put off retirement, financial services firms have an opportunity to put their skills, values, and tacit knowledge to good use. Learn what they bring to the table.

August 2019

Quarterly Accounting Roundup: Second quarter—2019
This issue of Quarterly Accounting Roundup discusses notable accounting and financial reporting developments that occurred in the second quarter of 2019

A Closer Look—Revenue recognition—evaluating whether an entity is acting as a principal or as an agent
In April 2016, the International Accounting Standards Board (IASB) issued Clarifications to International Financial Reporting Standards (IFRS) 15 which amended the principal-versus-agent implementation guidance and illustrations in IFRS 15 to clarify how the principal-versus-agent indicators should be evaluated to support an entity’s conclusion that it controls a specified good or service before it is transferred to a customer. However, given the complexities of some arrangements, including those involving three or more parties, the evaluation of whether an entity is acting as a principal or as an agent continues to require significant judgment, and conclusions reached under IAS 18 may not be the same as those reached under IFRS 15.

IFRS in Focus—IASB publishes proposals for amendments under its 'Annual Improvements' process
This 'IFRS in Focus' newsletter explains the recently proposed amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards', IFRS 9 'Financial Instruments', the illustrative examples accompanying IFRS 16 'Leases', and IAS 41 'Agriculture' that were published by the IASB on May 21, 2019, as result of its annual improvements project 2018-2020.

A roadmap to SEC reporting considerations for business combinations (2019)
This roadmap combines the the US Securities and Exchange Commission's (SEC’s) guidance on reporting for business acquisitions—including acquisitions of real estate operations and pro forma financial information—with Deloitte’s interpretations (Q&As) and examples

Digital industrial transformation: Reinventing to win in Industry 4.0
In a shifting market landscape with constant disruption, leveraging automation to optimize production is a challenge. Introducing a series of articles to help guide leaders through digital transformation in an Industry 4.0 age.

The future of work in technology: How technology leaders can reimagine technology work, the workforce, and the workplace
The future of work in technology, encompassing work, workforce, and workplace, is undergoing a transformation. How can technology and business leaders strategize, design, and collaborate to succeed in this journey?

July 2019

Heads up—FASB proposes simplifications to accounting for income taxes
This Heads up discusses the FASB’s recently issued proposed Accounting Standards Update (ASU) Income Taxes (Topic 740), "Simplifying the Accounting for Income Taxes." The amendments in the proposed ASU are intended to reduce the cost and complexity of applying Accounting Standards Codification (ASC) 740 and were submitted by stakeholders in connection with the FASB vs. Board’s initiative to reduce complexity in accounting standards.

Accounting spotlight—Revenue recognition—Evaluating whether an entity is acting as a principal or as an agent
This Accounting spotlight discusses the key principal-versus-agent considerations under the FASB’s new revenue standard (the guidance in ASU 2014-09, "Revenue From Contracts With Customers (Topic 606)," as amended) that an entity must evaluate to determine whether it is a principal or an agent in a transaction. The changes result from the standard’s shift from a risks-and-rewards model to a control model.

International Financial Reporting Standards (IFRS) in focus—IASB publishes proposals for amendments under its 'Annual Improvements' process
This 'IFRS in focus' newsletter explains the recently proposed amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards', IFRS 9 'Financial Instruments', the illustrative examples accompanying IFRS 16 'Leases', and IAS 41 'Agriculture' that was published by the IASB on May 21, 2019, as result of its annual improvements project 2018-2020.

A roadmap to accounting for non-controlling interests
This Roadmap provides an overview of the requirements in ASC 470-20 related to convertible debt and our insights into and interpretations of how to apply them in practice. Determining the appropriate accounting for convertible debt instruments can often be time-consuming and complex and frequently requires the involvement of technical accounting specialists. This Roadmap is intended to help an issuer navigate the guidance, organize its analysis, and arrive at appropriate accounting conclusions.

Integrating cloud Enterprise resource planning (ERP) solutions for finance organizations: Navigating the cloud
Cloud technologies are a catalyst for change in digital finance, but even with a clear idea of the potential benefits, controllers may find themselves with more questions than answers as they discuss and play for cloud ERP implementation. On the Controllership Insights blog, we explore practical ways controllers are embracing cloud ERP to redesign their finance organizations.

Intercompany accounting framework and leading practices
The costs of a fragmented, manual, and non-standardized intercompany transaction processing and accounting can be significant. It is a process that has typically evolved over time “by default” as opposed to “by design;” but an evolving financial environment and digital transformation have been a catalyst for organizations to rethink, restructure, and redesign the intercompany accounting process. Explore an interactive framework to see how your current capabilities stack up and learn ways to improve business performance by bringing harmony to the intercompany transaction lifecycle.

Crunch time 9: Tax in a digital world
Organizations plow millions into upgrading their ERP systems. But when it comes to tax, not a lot of changes. This guide reveals that when Tax is modernized, it shifts from being mostly a compliance function to a high-value planning and reporting function. The result? CFOs may find that they can have it all−a high-performing, efficient tax department that’s tightly integrated with Finance and the rest of the organization.

Reimagining customer privacy for the digital age: Going beyond compliance in financial services
Privacy isn’t just about compliance anymore. Learn how financial institutions can adopt a more expansive framework to strike a balance between better access to information and ensuring consumer trust.

June 2019

Future in the balance? How countries are pursuing an AI advantage: Insights from the Deloitte’s State of AI in the Enterprise, 2nd Edition survey
In the coming years, artificial intelligence (AI) is expected to exert an enormous impact on economic development and the nature of work. It is also positioned to radically reshape the competitive dynamics of many industries. This global study explores the growing importance of AI and what can be learned from early adopters across seven countries.

A roadmap to accounting and financial reporting for carve-out transactions (2019)
This Roadmap summarizes specific factors for entities to consider in preparing carve-out financial statements (i.e., financial statements derived from those of a larger parent entity). Topics discussed include the basic principles of a carve-out transaction, accounting, and disclosure guidance on the common balance sheet and income statement items included in carve-out financial statements and the US Securities and Exchange Commission (SEC) reporting topics that entities should take into account when preparing initial public offering and other SEC filings. Appendix B of the Roadmap outlines the specific changes made since the publication of the 2018 edition.

Shifting a system: The reimagine learning network and how to tackle persistent problems
Some problems are simply too big for any one organization. One potential solution—a network of like-minded leaders working toward a common goal. Reimagine learning, taking on systemic education issues, offers a model that can be considered.

A Roadmap to the issuer's accounting for convertible debt
This Roadmap provides an overview of the requirements in ASC 470-20 related to convertible debt and our insights into and interpretations of how to apply them in practice. Determining the appropriate accounting for convertible debt instruments can often be time-consuming and complex and frequently requires the involvement of technical accounting specialists. This Roadmap is intended to help an issuer navigate the guidance, organize its analysis, and arrive at appropriate accounting conclusions.

Pursuing cybersecurity maturity at financial institutions
Many financial firms are stepping up their efforts to stay ahead of cyber and business threats. The latest Deloitte & Touche LLP and Financial Services Information Sharing and Analysis Center (FS-ISAC) survey reveal what differentiates the strongest cybersecurity programs from the rest.

May 2019

As Q1 filings season nears, many public company executives see no slowdown in lease accounting compliance efforts
Private company executives feel less prepared now than previously polled public executives ever did.

Common pitfalls in lease disclosures
Disclosure requirements are extensive and open-ended, but more is not necessarily better. Disclosing immaterial information could not only waste time, but it could also obscure the disclosures that truly matter.

Heads Up—The new revenue standard—A look at SEC feedback in year one
Calendar-year-end public business entities (PBEs) adopted the FASB’s new revenue standard (ASC 6061) in the first quarter of 2018. While some companies made wholesale changes to their financial statements, the effect of the new requirements was less significant for others. However, all entities were affected by the standard’s new and modified quantitative and qualitative disclosure guidance, which significantly increased the amount of information disclosed about revenue activities and related transactions.

Accounting for income taxes—Quarterly hot topics: April 2019
The recently issued proposed Treasury Regulations and Notices may impact the financial statement income tax accounting calculations pursuant to ASC 740 of companies for the period of enactment or subsequent quarters.

Eight ways controllers can evolve into strategic business partners in 2019
Perhaps now more than ever, controllers have the opportunity to influence and help drive the execution of their organizations' strategic objectives. We explore eight imperatives to help controllers evolve into strategic business partners across three main themes: elevating the brand, leveraging the digital transformation, and embracing the workforce of the future.

The United States economic forecast: 1st Quarter 2019
Risks of economic disruption—in particular, interest rate hikes and major trade disputes—are receding, a positive sign for growth. But fiscal risk, including potential clashes over the federal budget and debt ceiling, remains.

The future of work: How can health systems and health plans prepare and transform their workforce?
The health care industry should find ways to be dynamic yet steady as younger generations enter the workforce, open talent models change how and where work happens, and disruptive technologies transform processes and consumer demands.

April 2019

Moving into the fast lane: A guide to accelerating automation
Navigating the complexity of risks with disruptive technologies, our new article series guides leaders on practical steps to accelerate automation beyond pilots, create true automation scale, and ultimately achieve transformational results.

Challenges associated with applying the new revenue standard: Estimating stand-alone selling prices for term licenses and post-contract customer support
This technology alert discusses considerations related to establishing stand-alone selling prices for term licenses and post-contract customer support in the software industry under the Financial Accounting Standards Board’s new revenue recognition standard when stand-alone sales do not exist. The alert is the third in a series intended to help technology entities better understand the new guidance, particularly private organizations that are currently adopting the standard’s requirements.

Asset performance management: Driving value beyond predictive maintenance
Implemented well, asset performance management (APM) can do more than improve maintenance. By connecting systems across an enterprise, it can deliver insights to optimize operations, safety, and drive financial results.

IFRS in Your Pocket 2019
The 2019 edition is a comprehensive summary of the current standards and interpretations along with details of the projects on the International Accounting Standards Board (IASB) work plan. Backing this up is information about the IASB and an analysis of the use of International Financial Reporting Standards around the world. It is an ideal guide, update, and refresher for everyone involved.

Recognizing the value of bank branches in a digital world: Findings from the global digital banking survey
Bank branches are still valuable to customers, even those who mostly use digital channels. Learn how banks can transform branches to enhance customer experience and create more opportunities to connect with customers.

2019 Insurance M&A Outlook: Positioning for growth
What are the trends and drivers that will likely impact the insurance mergers and acquisitions market in 2019? How are tax reform, loosened regulations, and higher valuations expected to shape deal making? Will InsurTech continue to be in high demand? Learn why insurance M&A is well-positioned for growth in the year ahead in our new report.

March 2019

Insurance—Accounting and financial reporting update
The 2018 edition of our annual update highlights selected accounting and reporting developments that may be of interest to entities in the insurance sector. Among other topics, the publication discusses the guidance on accounting for long-duration insurance contracts, the FASB’s amendments on the new impairment model, and the continued work on issues related to the implementation of the new leasing standard.

A Roadmap to Non-GAAP financial measures (2019)
The 2019 edition of this Roadmap includes new and updated discussions of common themes identified by the SEC staff in comment letters and public statements as well as other recent developments related to non-GAAP measures. Appendix H of the Roadmap outlines the key changes made since the publication of the 2017 edition.

CFO Insights—Bridging the gap between the finance team you have—and the one you need
Given current technology trends, it seems fair to say that CFOs will be overseeing vastly different finance departments in the not-so-distant future—both in terms of who will be doing the work and how that work will get done.

EITF Snapshot—January 2019
This EITF Snapshot summarizes January 17, 2019, meeting of the Emerging Issues Task Force (EITF or “Task Force”). Initial Task Force consensuses (“consensuses-for-exposure”) are exposed for public comment upon ratification by the Financial Accounting Standards Board (FASB). After the comment period, the Task Force considers comments received and redeliberates the issues at a scheduled meeting to reach a final consensus. Those final consensuses are then provided to the FASB for final ratification and, ultimately, issuance as an Accounting Standards Update (ASU).

2019 Insurance Industry Outlook: Strategies to stay competitive
Sustained economic growth, rising interest rates, and higher investment income contributed to a strong year for insurers in 2018. Tanya Ott from the “Press Room” podcast, talks to insurance practice leader Gary Shaw about the possibilities for 2019—will it be another banner year, or will longer-term challenges like the potential for the economic slowdown and ongoing disputes over tariffs and trade rules cast a shadow on the industry?

How leaders are navigating the Fourth Industrial Revolution: Our latest survey of Industry 4.0 readiness
Industry 4.0 holds the promise of a new era of globalization. Yet while our latest survey identifies companies successfully implementing Industry 4.0 technologies, many senior executives remain less prepared than they think they are.

February 2019

Journal entry—FASB issues proposed ASU on two Codification improvements to new leasing standard
On December 19, 2018, the FASB issued a proposed Accounting Standards Update (ASU), which would provide Codification improvements to ASC 8422 related to the following two issues: determining the fair value of the underlying asset by lessors that are not manufacturers or dealers. Statement of cash flows presentation for sales-type and direct financing leases by lessors within the scope of ASC 942.

Federal borrowing is about to make corporate debt more expensive
The debt the US Treasury needs to issue is expected to rise in the coming years, pressuring treasury and other debt rates. If demand for US treasuries should soften, the expected rise in treasury and corporate rates in coming years could be steeper than anticipated.

Technology Alert—Challenges associated with applying the new revenue standard: Establishing the stand-alone selling price as a range
This Technology Alert discusses considerations related to establishing the stand-alone selling price of a promised good or service as a range under the FASB’s new revenue recognition standard. The alert is the second in a series intended to help technology entities better understand the new guidance, particularly private organizations that are currently adopting the standard’s requirements.

Deloitte comments on FASB's proposal to amendments guidance on financial instruments
Deloitte & Touche LLP comments on the FASB's proposed ASU, Codification Improvements—Financial Instruments, which was issued in November 2018. We support the Board’s efforts to clarify certain aspects of ASC 326, ASC 815, and ASC 825-10 to reduce the costs and complexity of implementing the recently issued standards that amended the accounting guidance on financial instruments. However, as noted in Appendixes A and B of this letter, we are concerned that the proposed ASU leaves open certain questions that the Board should address before issuing a final ASU to ensure consistent application in practice.

2019 Investment Management Industry Outlook: Asset management trends indicate another year of challenges
Investment management is in a period of rapid change, driven by shifting investor preferences, margin compression, regulatory developments, and advancing technologies. Our 2019 Investment Management Outlook highlights three specifics to consider when managing these challenges as the market evolves: Choosing the right growth options, creating operational efficiencies, and delivering the next level of customer experience.

The value of online banking channels in a mobile-centric world
It may be a mobile-first world, but consumers still use—and sometimes prefer—online banking channels. Here are some key lessons our global consumer survey on digital banking revealed about online banking usage.

January 2019

The state of AI in the Enterprise, 2nd Edition: Early adopters combine bullish enthusiasm with strategic investments
When implementing AI technologies, companies face social, ethical, and logistical challenges. Tom Davenport, of Deloitte’s analytics and cognitive practice, says a deeper understanding of AI and a pragmatic approach to its adoption can show a way forward.

Financial Reporting Alert 18-13—Financial reporting considerations related to High Court of Justice ruling on equalization of UK pension benefits
On October 26, 2018, in Lloyds Banking Group Pensions Trustees Limited vs. Lloyds Bank plc and Others, the High Court of Justice in the United Kingdom (the 'High Court') issued a ruling (the 'Court Ruling') requiring Lloyds Bank plc to equalize benefits payable to men and women under its UK-defined benefit pension plans by amending those plans to increase the pension benefits payable to participants that accrued such benefits during the period from 1990 to 1997. The inequalities arose from statutory differences in the retirement ages and rates of accrual of benefits for men and women related to Guaranteed Minimum Pension (GMP) benefits that are included in the UK defined benefit pension plans. In its ruling, the High Court also provided details on acceptable alternative methods of amending plans to equalize the pension benefits. While the effects of the Court Ruling will vary by an individual pension plan, current estimates of the potential increase in the projected benefit obligation of an affected defined benefit pension plan are in the zero to three percent range.

A Roadmap to Applying the New Revenue Recognition Standard (2018)
This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance under the new revenue standard as codified in ASC 606, ASC 610-20 and ASC 340-40. The 2018 edition contains new interpretations and guidance as a result of FASB, TRG, SEC, and AICPA activities, as well as developments in practice since the publication of the 2017 edition of this Roadmap. Appendix I of the Roadmap summarizes the changes made in the 2018 edition.

Model financial statements for the year-end
Deloitte's Global IFRS Office has released International GAAP Holdings Limited—Model financial statements for the year ended December 31, 2018.
These financial statements illustrate the presentation and disclosure requirements of IFRS for the year ended December 31, 2018, by an entity that is not a first-time adopter of IFRSs. They illustrate the impact of the application of IFRSs that are mandatorily effective for the annual period beginning on January 1, 2019.

Reporting in a digital world
Explore how Finance teams can leverage digital technologies to make reporting faster, more insightful, and less costly.

2019 Banking Industry Outlook: Optimism for banking and capital markets
There’s a new kind of promise in the banking industry—and possibly no better time than now for transformation. Economic fundamentals are strong; the regulatory climate is favorable; and transformation technologies are more readily accessible, powerful, and economical than ever before. Consumers around the globe expect their banks to act and interact more like top technology brands. Our latest global consumer survey on digital banking reveals where the gaps are—and what banks can do to meet heightened expectations.

December 2018

A Roadmap to Accounting for Contracts on an Entity’s Own Equity
The 2018 edition of A Roadmap to Accounting for Contracts on an Entity’s Own Equity provides an overview of the guidance in ASC 815-40 as well as insights into and interpretations of how to apply it in practice. For ease of reference, we have accompanied our discussion with the related authoritative text. This edition reflects changes to the guidance introduced by the FASB’s issuance of ASU 2018-07 in June 2018.

Algorithmic forecasting in a digital world: Improving the forecasting process with predictive analytics
CFOs are in a prime position to challenge the way the enterprise looks at and consumes data. In the area of forecasting, they can champion an innovative, data-driven approach that can help people predict the financial future of their business. By modeling the potential impact of important decisions, they can help generate smarter insights and stronger business outcomes.

IFRS in Focus—IASB amends the definition of a business in IFRS 3
This publication discusses the recent amendments to IFRS 3 Business Combinations that have been published by the IASB.

Fintech by the numbers: Incumbents, startups, and investors adapt to fintech evolution
From disruptive threat to enabling partner, fintech has entered a new phase of its evolution. Our insights track the development of the fintech market and explore how banks, insurers, and investment management companies are tackling fintech transformation initiatives

Open banking: How to flourish in an uncertain future
Regulatory initiatives are requiring UK banks to ‘open up’ customer transaction data to third parties–a development known as ‘open banking’. But how will these changes affect the traditional retail banking business model, and what can banks do to enable them to adapt to an ‘open banking’ future?

The Industry 4.0 Paradox
Deloitte’s research on how companies are investing in Industry 4.0 to enable digital transformation revealed paradoxes in several areas, including strategy, supply chain, talent, and investment.

November 2018

Model risk management at FinTech organizations
Considering applying for the Office of the Comptroller of the Currency (OCC) special purpose charter? Start formalizing your model risk management (MRM) framework. Discover key insights and leading practices for FinTechs as they take on this challenge.

Heads Up—SEC comments reflect registrants’ efforts to implement ASC 606
Calendar year-end public business entities (PBEs) adopted the FASB’s new revenue standard (ASC 6061) in the first quarter of 2018. While some companies made wholesale changes to their financial statements, the effect of the new requirements was less significant for others. However, all entities were affected by the standard’s new and modified quantitative and qualitative disclosure guidance, which significantly increased the amount of information disclosed about revenue activities and related transactions.

Blockchain and the five vectors of progress
For most companies, the value of blockchain is still more potential than actual. But barriers to adoption are falling, helping to resolve key issues and bring the technology into the mainstream.

Quarterly Accounting Roundup: Third quarter—2018
This issue of Quarterly Accounting Roundup discusses developments that occurred in the third quarter of 2018. This quarter was a busy one for the FASB. Guidance issued by the Board includes the lessor accounting model in ASC 842.

Regulator 4.0: Tools and technologies for tomorrow’s regulator
Regulating complex environments needn’t be cumbersome or expensive. New technologies and methods can help regulators operate efficiently and effectively, reduce compliance costs, and improve the business experience.

Accelerating digital transformation in banking
Consumers around the globe expect their banks to act and interact more like top technology brands. Our latest global consumer survey on digital banking reveals where the gaps are—and what banks can do to meet heightened expectations.

October 2018

Emerging technologies for state financial management: A Deloitte–NASACT survey of state auditors, comptrollers, and treasurers
Cognitive technology has a role in many organizations. For public finance, automation can boost accuracy, cut backlogs, and free workers from basic tasks. To capitalize, state bodies should evaluate processes, recognize areas of opportunities, and set integration plans.

Data and technology infrastructure: The cornerstone to an effective regulatory reporting program
A firm’s data architecture and the enabling infrastructure, which supports aggregating fit-for-purpose data for reporting, is fundamental to implementing an effective regulatory reporting program. This includes providing the capability to integrate different data sources in a highly automated fashion. Yet, implementing a firm-wide data architecture and IT infrastructure to meet these objectives remains challenging for many institutions due to legacy issues and pressure on costs and technology. At the same time, banking organizations are challenged by ever-increasing demands for detailed data by the regulators with more frequent turnaround times. As a result, a fragmented automation environment continues to exist in the banking industry.

CFO Insights: Cloud computing: Resolving some sticky questions
As companies explore cloud’s various potential impacts and business uses, many CFOs are finding that sticky questions related to accounting, fees, and analysts’ concerns keep popping up. In this issue of CFO Insights, we will explore ways CFOs can answer those questions and steer conversations and strategies to the potential implications of cloud migration

Journal entry—Financial Accounting Standards Board (FASB) issues proposed ASU on additional narrow-scope improvements to the lessor accounting model in ASC 842
On August 13, 2018, the FASB issued proposed ASU, "Leases (Topic 842): Narrow-Scope Improvements for Lessors," which would provide lessors with additional narrow-scope improvements under ASC 842 related to:

  1. Sales taxes and other similar taxes collected from lessees,
  2. Certain lessor costs paid directly by lessees, and
  3. Ecognition of variable payments for contracts with lease and non-lease components.

Distinctive traits of digital frontrunners in manufacturing
The Fourth Industrial Revolution was born in the factory, marrying computer-programmed automation with digital technologies such as analytics, artificial intelligence (AI), and the Internet of Things (IoT) on the production line. Since its inception, Industry 4.0 has spread beyond the factory walls to encompass a broader digital transformation that spans processes, functions, and industries. This technology-driven transformation could change the way many organizations make sense of information and act upon it to make decisions that could impact operations, deliver greater customer value, and improve performance.

Toward the next horizon of Industry 4.0
As established companies evaluate how Industry 4.0 can best help them with transformative actions such as optimizing processes and creating new business models, they could benefit by looking externally to collaborations and startups for solutions.

September 2018

Technology Alert—Challenges associated with applying the new revenue standard: Termination rights
This Technology Alert discusses various aspects of termination rights under the FASB’s new revenue recognition standard. The alert is the first in a series intended to help technology entities better understand the new guidance, particularly private organizations that are currently adopting the standard’s requirements.

Evolving from a controller to a strategic business partner
Unstoppable forces continue to drive business growth and create opportunities for the controllership function. Two studies explore these opportunities: One takes a closer look at controllership’s evolution to become a strategic business partner. The other looks at how to execute on a new vision for the changing role of the controller.

Lease accounting: Six questions CFOs should ask now
In this issue of CFO Insights, we discuss some pressing questions CFOs should consider asking their chief accounting officers to facilitate compliance as the adoption of the new standard enters its final stretch.

It’s time to modernize your big data management techniques
Data-management technology is adapting to the evolving ways data are disseminated. It is imperative for companies to take advantage of opportunities that allow for more efficient ways of managing streaming data with new storage hardware systems.

Reimagining the finance function and finance talent for industry 4.0
CFOs have often struggled in attracting and retaining finance talent, according to findings of Deloitte CFO surveys conducted across multiple geographies over the last several years. Now, faced with advances in digital technologies and changing workforce trends that are expected to reshape finance departments in the coming decade, CFOs may be further challenged. Looking out five to seven years from now, it will be critical for CFOs to take a holistic approach, encompassing developments in the workplace, new technologies such as artificial intelligence, and changing expectations of future generations of workers, according to Richard Muschamp, a partner and leader of the UK CFO Programme, Deloitte North West Europe (NWE).

Beyond fintech: A pragmatic assessment of disruptive potential in financial services
Fintechs have defined the direction, shape, and pace of change across almost every financial services subsector. While they may not dominate the industry today, they have laid the foundation for future disruption.

August 2018

The future of regulation: Principles for regulating emerging technologies
As emerging technologies drive new business and service models, governments must rapidly create, modify, and enforce regulations. A preeminent issue is how to protect citizens and ensure fair markets while letting innovation and businesses flourish.

Financial reporting alert 18-7, Emerging growth companies—Common-stock repurchase transactions
This second installment in our special Financial Reporting Alert series for start-up companies discusses accounting, valuation, tax, and interpolation framework considerations for nonpublic entities related to various transactions involving the repurchase of a nonpublic entity’s common stock.

Implementing the DATA Act for greater transparency and accessibility
The federal DATA Act could increase internal management efficiency and transparency by creating an open data set for all federal spending. A Deloitte survey explores how to navigate the cultural and technological hurdles for effective implementation.

Modernizing big data platforms
Many organizations are re-examining and evolving their big data strategies and systems to further imbue the business with data-derived insights.

United States economic forecast: 2nd quarter 2018
Shifting baselines make forecasting more challenging than ever. If normal keeps changing, can anyone confidently predict a return to normalcy? But the US economy is massive—and nowhere near as volatile as headlines might suggest.

The future of risk in financial services
With increased regulatory expectations and emergent technologies, the future of risk management will look dramatically different than the current risk capabilities many are familiar with.

July 2018

Balancing the risks, Rewards of people analytics
More companies than ever are using workforce data to analyze, predict, and improve performance. But as organizations start to use people analytics in earnest, new risks are also taking shape.

Finance in a digital world: It’s crunch time for CFOs!
Not a day goes by without clients asking us to help them make sense of blockchain. The technology is moving fast, with innovative applications popping up in finance organizations all around the world. To help CFOs understand what's happening and why, we've created Blockchain for Finance, the fourth installment in our Finance in a Digital WorldTM Crunch time series, which is a practical guide that covers blockchain basics, with more than a dozen frequently asked questions and a CFO checklist for getting organized.

Digital transformation at the core: Reinventing the back office
For many in the business and tech worlds, the word ‘digital’ still mainly conjures thoughts of the marketing, sales, and customer experience initiatives that have dominated business mindshare—and investments—to date. It only makes sense, given the imperative for organizations to improve engagement with their key constituents, be they customers, patients, citizens, or business partners.

How CDOs can overcome obstacles to open data-sharing
Governmental CDOs can take the lead in making data publicly accessible, enabling citizens to help find solutions for many thorny social problems. What challenges could stand in the way?

The state of cybersecurity at financial institutions
How do financial services firms measure success with cybersecurity? A Deloitte survey explored how firms developed and deployed leading practices. While many approaches are unique to individual firms, institutions typically can benefit from learning from their peers’ experiences.

The modernization of financial controllership: How can emerging technologies transform the banking industry?
Financial controllers are looking at an exciting period of change as emerging technologies accelerate the possibilities for managing financial information. Learn how financial controllers can imagine and implement programs to address the challenges and opportunities unique to banking in our new series on bank controllership modernization.

June 2018

A revolution in data-driven quality improvement
The way companies are dealing with quality improvement is being transformed by new forms of data and analytics. The most important change is perhaps the shift from exclusive dependence on post-manufacturing inspection work and retrospective analysis to the prediction and early identification of problem areas and maintenance requirements.

As digital transforms business, companies seek tech-savvy CFOs
Keenly aware of both the threat of digital disruption and the opportunities digital offers, boards and CEOs are sharpening their focus on CFO candidates with technology acumen, says Clem Johnson, managing director, Crist|Kolder Associates. “Companies are looking for CFOs to be front and center when it comes to strategic technology decisions, and CEOs want a CFO who can be a true partner with the CIO. That is turning fluency with digital technologies from a ‘nice-to-have’ to ‘a must-have’ skillset in many CFO searches,” says Mr. Johnson. He discusses why technology fluency is setting some CFOs apart from their competitors and what those lacking it can do to close the gap.

Tax reform and custom analytics: Uncovering opportunities today and beyond
Tax functions need to keep a close pulse on their key tax drivers, and analytics can help.

Machine learning: Things are getting intense
Five key trends will likely cause a significant uptick in enterprise use of machine learning this year, according to Deloitte Global.

The future of risk in Financial Services
With increased regulatory expectations and emergent technologies, the future of risk management will look dramatically different than the current risk capabilities many are familiar with.

2018 Global aerospace and defense industry outlook
The global aerospace and defense (A&D) industry is forecasted to experience a significant increase in revenues in 2018 after a year of subdued growth.

May 2018

Transparency: Key to managing information exchange risks in outsourcing
The use of outsourcing providers by organizations is increasing globally, and the functions and tasks being sent to third parties are more closely related to those organizations’ core business than in the past, according to research from Deloitte.

Smashing IT’s glass ceiling: Perspectives from leading women CIOs
Despite diversity being high on the agenda of businesses, not enough women occupy seats in the C-suite. The same is broadly true in technology, but women are slowly moving up the ranks, bringing with them a unique blend of leadership skills. In this special edition of CIO Insider, we explore perspectives from leading women CIOs on essential leadership qualities and what it takes to build an inclusive culture.

Quarterly Accounting Roundup: First quarter—2018
This issue of Quarterly Accounting Roundup discusses developments that occurred in the first quarter of 2018.

Envisioning the value of digital for finance
Caught up in the day-to-day challenges of finance, many CFOs have little time to envision the efficiencies and business value that emerging digital technologies—including cloud computing, robotics, analytics and cognitive technologies such as artificial intelligence, machine learning and automation—could deliver. The video, "Finance in a digital world: Lifting the fog of uncertainty," explores how forward-thinking CFOs can leverage digital transformation tools and finance organization talent to improve finance operations’ performance and provide better, deeper insights to the business—faster.

Selling Industry 4.0
As companies explore adopting smart, connected products, many may be deterred by the greater complexity and cost. So how might sales teams sell these connected solutions and better communicate their value proposition to customers? Learn how.

Building new ecosystems in middle-market insurance
Learn how middle-market insurance companies could utilize product innovation, segmentation, and bundling strategies to expand beyond traditional product and service offerings and help achieve growth and differentiation.

April 2018

Accounting for the effects of US tax reform under IFRS
The US tax reform legislation signed into law in December may present challenges for some organizations that prepare their financial statements using International Financial Reporting Standards (IFRS). “Challenges could arise in determining how an aspect of the legislation applies to an organization’s specific facts and circumstances, in gathering data to quantify that application or a combination of the two,” says Todd Izzo, partner, International Tax, Deloitte Tax LLP.

Insurance regulators in an era of advanced technologies
As more and more insurance companies embrace the latest technologies, such as advanced and predictive analytics and robotic process automation, a growing number of regulators are doing the same. How may these developments alter how regulators provide oversight and, ultimately, protect consumers?

Machine learning: FOROIL sees opportunities in brownfield development
Among the many technologies driving digital transformation at organizations large and small, machine learning is one that many CFOs have been particularly keen to deploy. While its uses are many, some senior finance executives may be surprised to learn that French company FOROIL has patented a way to apply machine learning to help oil companies optimize production from “brownfields”—conventional oilfields with more than seven years’ operating history. Hugues de Saint Germain, FOROIL’s founder and chairman, explains how his company is redefining how oil companies can get more production from their brownfield assets—with little to no capex—in this conversation with Scott Sanderson, principal, Deloitte Consulting LLP.

Managing risks raised by algorithmic applications
The rise of advanced data analytics and cognitive technologies has led to an explosion in the use of algorithms across industries and business functions to help guide strategic, operational, financial, and other key business decisions. These algorithms, which are routine processes or sequences of instructions for analyzing data, solving problems and performing tasks, are influencing decisions that have a profound impact on individuals as well—including their finances, healthcare, education, and media exposure.

The changing world of technology in financial services
Cognitive and analytical technologies are set to bring about widespread change in the financial services industry, not just when it comes to "defense" functions such as risk and compliance, but also in "offense" activities that drive marketing and revenue growth.

Industry 4.0: Are you ready?
While our exclusive survey finds executives optimistic about the potential impact of Industry 4.0, few are confident they are ready to lead its implementation.

March 2018

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