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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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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.
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.
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,
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.
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.
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:
- Sales taxes and other similar taxes collected from lessees,
- Certain lessor costs paid directly by lessees, and
- 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.
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.
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.
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.
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.
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.
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.
Financial reporting impacts of tax reform
The recently passed tax legislation is expected to have significant and immediate financial reporting impacts on organizations. Learn about the tax law changes that could have a significant financial statement impact, including in the areas of deferred tax assets and liabilities, recognition of a foreign subsidiary liability, and tax credits.
The global economy: Set to hit the gas, yet wary of roadblocks
Ten years since the recession, we take a look at how the global economy is faring. Economic activity seems to be strong, driven by trade growth, easy monetary policies, and positive consumer sentiment. However, risks—in the form of high household debt, increasing uncertainties due to geopolitical events, rising protectionist rhetoric, and a move away from a multilateral trading order—could derail the current growth story.
Revenue recognition: Is your company ready? Don’t run out of time
In January 2018, the new revenue recognition standard (Update No. 2014-09; ASC 606) takes effect. The standard has broad implications and may affect many parts of your organization: financial statements, business processes, taxes, and internal control over financial reporting. It requires the collaborative efforts of multiple departments within the company, including financial reporting, IT, sales, tax, investor relations, human resources, and others. Read on to learn what your organization can do to get started now or to continue down your current path toward implementation.
Managing the execution risks of change initiatives
CxOs aren’t usually hired to maintain the status quo—they are often hired to improve the performance of a company, business unit or functional area. This requires incoming executives to catalyze change in their organizations, often early in their transition. Successfully driving change can be both hard and risky for incoming executives. Based on the numerous transition labs conducted by Deloitte LLP’s CFO Program, we have identified various execution risk factors we call the “Wheel of Woe” issues. These are issues that leaders must be able to address to deliver successful change initiatives. Thoughtful consideration of and response to these dozen execution risk factors can help improve the odds of success.
Forces of change: Industry 4.0
We're in the middle of a fourth Industrial Revolution—and this one goes far beyond manufacturing. Smart, connected technologies are transforming how parts and products are designed, made, used, and maintained. And by ushering in a digital reality, they are transforming organizations themselves.
2018 Insurance Outlook: Shifting strategies to compete in a cutting-edge future
What critical business and regulatory issues should the financial services industry consider in 2018? Learn about the trends that banks, commercial real estate firms, insurance companies, and investment management firms should keep in mind to enhance value and growth in the year ahead.
Flexible consumption models: Implications under the new revenue standard and beyond
Flexible consumption may change the pattern of revenue recognition within technology companies and can result in even greater complexity to revenue recognition and further may require organizations to assess a new set of capabilities to identify, track, and record multiple revenue streams under ASU2014-09.
Beyond process: How to get better, faster as “exceptions” become the rule
In an unpredictable and constantly shifting business environment, it’s not enough to continue emphasizing efficiency and automation. Organizations can pick up the pace by redesigning business practices, focusing on helping frontline workgroups to learn faster and accelerate performance improvements.
Cultivating a strong reputation for a crisis and beyond
Reputation resides in the collective thoughts and feelings of a very broad set of stakeholders—employees, customers, regulators, suppliers, and more. It’s the perception that results from the combination of all decisions, actions, and behaviors of the people within an organization.
What projects will you—or should you—sponsor?
Incoming CFOs, as company leaders, not only need to frame how they will oversee their function and team, but also need to give careful thought to what they will likely sponsor—and what they will not. Unlike direct leadership of a function, project or initiative, sponsorship is more subtle and indirect. It often takes the form of shaping the context where others lead and drive an initiative to success. Whatever form it takes, sponsorship can be an important activity for CFOs to catalyze new behaviors and make an impact.
2018 Banking Industry Outlook
For 2018 and beyond, banks must contend with multiple challenges tied to regulations, legacy systems, disruptive models and technologies, new competitors, and a restive customer base while pursuing new strategies for sustainable growth. Our 2018 Banking Industry Outlook examines the six macro themes—from customer centricity to cyber risk—facing each of the industry’s five primary business segments in the coming 12-to-18 months.
Tech Trends 2018
It’s all CIOs can do to keep up with each new disruptive technology—blockchain, cognitive, digital reality—and incorporate them into specific organizational domains. But there’s a better way to understand and use today’s profound changes: To see these technological forces as complementary, working in harmony.
What do CEOs expect from a strategic CFO? Perhaps a new business model
Disruption, shareholder activism, digital transformation, demographic shifts, and industry convergence: These are just some of the forces that are altering the landscape in which most CFOs now operate. As these demands mount, the nature of the CFO role is evolving, with many senior finance executives devoting more of their time to strategic issues and less to traditional "steward/operator" responsibilities.
The state of the deal: M&A trends 2018
More than 1,000 corporate executives and private equity investors weighed in for our fifth annual M&A trends survey, and the message was loud and clear: Anticipate M&A activity to accelerate as we head into 2018, with tech in the driver's seat.
Can CEOs be un–disruptable: Why today's best leaders are flexible, not steadfast
What does it take to meet the challenges of today's relentless market pressures? Our study suggests a new model for CEOs to aspire to.
Implementing the new revenue standard raises challenges beyond accounting
Public companies with calendar year–ends still seem to be grappling with implementation challenges of FASB's new revenue standard, ASU 2014-09—Revenue from Contracts with Customers.
Disrupting through innovation: Advancing the dialogue on digital technologies
Disruption is striking at the core of nearly every business, bringing with it opportunities for new growth, as well as competitive threats. Blockchain, cognitive intelligence and robotic process automation are just a few of the digital technologies that C–suite executives are seeking to better determine how they can help advance corporate strategy amid disruption and drive greater value.
Capital markets industrialization 2.0
An innovative and more comprehensive approach to achieving sustainable cost efficiency, scale, and operating leverage is emerging: Industrialization (IZ) 2.0. IZ 2.0 is composed of five change levers that enable CMIB firms to address the current tension and set themselves up for future success.
Shaping a vision for the future of controllership
Unstoppable forces continue to drive business growth and create opportunities for the Controllership function to take on a more strategic role in the organization. To transition the role of the controller and integrate a new direction with current demands, shaping a new vision for the future of controllership is beneficial—fully realizing that vision is imperative.
Special teams: A new way to deploy finance, planning, and analysis (FP&A)
In this issue of CFO Insights, we pose the question: Is it time to envision a new operating model for FP&A—one that dramatically elevates its contribution to the organization?
Crunch time III: The CFO’s guide to cognitive technology
30 percent of CFOs surveyed say they are moving beyond pilots with emerging technologies, including cognitive, to fundamentally transform their Finance function and bring it into the digital world. Gain insight into how Finance organizations are deploying new cognitive technologies to help create a more efficient, insightful, and controlled Finance function, all without sacrificing service and quality.
United States economic forecast: 3rd quarter 2017
Don’t pay much attention to front-page headlines: Back in the newspaper’s business section, fundamentals remain solid, and those are what drive corporate investment—and US economic growth. That said, a few storm clouds loom, as always, and the recent hurricanes’ impacts on the US economy are as yet unclear.
Modernizing transaction banking: Service externalization and the right technology portfolio
Traditionally a profitable business, transaction banking is under threat from new and disruptive forces. Our new report looks at ways banks can tackle modernization with a different approach to outsourcing—service externalization. Its potential to increase customer satisfaction while driving down costs has the potential to create a competitive edge.
Cognitive technology to comply with new accounting standards
The new accounting standard for revenue is just the beginning—changes to lease accounting are up next. While the compliance task may seem monumental, analytics and cognitive technologies can greatly accelerate compilation, evaluation, and decision processes—and ultimately, compliance.
Revenue recognition: Pain points beyond the accounting
In this issue of CFO Insights, we look at the multiple tentacles of the new revenue recognition standard and outline some of the things CFOs should prepare for.
Global Economic Outlook, Q3 2017
At a time when the global economy appears to be accelerating, the two leading economies of the English-speaking world, the United States and United Kingdom, are not following the trend. Yet the overall global trend is positive, though the specter of protectionism looms.
Influencing stakeholders: Persuade, trade, or compel—Executive Transitions series
New executives need to identify and map their influence needs early during their tenure with an organization in order to bring about change. The next step is to identify a strategy for influencing stakeholders that can range from friendly persuasion to trading by using different influence currencies to using the last resort—power play.
2017 oil and gas industry executive survey
After the emergence of a more optimistic outlook in 2016, oil and gas industry executives appear to have reverted to a more cautious outlook on the future in 2017. What’s behind the shift in sentiment? Explore the findings from Deloitte’s 2017 oil and gas industry survey to learn more about the trends shaping the oil and gas industry and the opportunities and challenges expected across the value chain.
The new digital divide: The future of digital influence in retail
Today, retailers almost universally recognize that digital has reshaped customer behavior and shopping forever. So why are so many traditional brick-and-mortar retailers still so far behind at creating the digital experiences that customers really want?
Riding a synchronized recovery: Global CFO Signals
With a synchronized economic recovery apparently underway, CFOs seem to be enjoying the ride, according to the most recent Global CFO Signals report from Deloitte Touche Tohmatsu Limited. In fact, many CFOs in responses to the nine surveys
Achieving digital maturity: Adapting your company to a changing world
Digital maturity isn't only about technology; it addresses how businesses are adapting in a digital environment. Learn why it matters, and ways it can be enabled to help organizations thrive.
Beyond office walls and balance sheets: Culture and the alternative workforce
Managing organizational culture, often a
2017 US Current Expected Credit Loss (CECL) survey: Explore implications of the FASB’s new credit impairment standard
Implementing the new CECL standard is expected to have broad implications for banks, affecting numerous functions and lines of business. Fortunately, bank executives have a resource as they assess how to comply. Deloitte’s first US CECL survey of 31 bank senior executives explores how banks are responding, as well as the challenges and opportunities they are facing. Navigate a sea change with specialized insight.
Finance and financial reporting: Central to Life Sciences’ expanding business ecosystem
Financial reporting rarely conjures up images of robotic nursing assistants, light bulbs that kill bacteria, and gels that stop bleeding in seconds. However, in just the past year, financial reporting professionals working in life sciences were expected to account for these and other innovations by properly recognizing related revenue, booking licensing arrangements and disclosing non-GAAP measures. Further, business leaders may be counting on finance professionals to turn financial reporting data into actionable business insights.
Oil & Gas Mergers and Acquisitions report—Midyear 2017: Overcoming the headwinds
Global oil and gas (O&G) mergers and acquisitions (M&A) were on the upswing during the first half of 2017. Do the trends driving increased M&A activity signal a sustained global oil and gas market recovery? What factors should the industry watch in the second half of the year to assess the strength of the recovery?
Implementing the new revenue standard raises challenges beyond accounting
With less than six months left for public companies with calendar year-ends to implement the FASB’s new revenue standard, ASU 2014-09, Revenue from Contracts with Customers, some organizations still seem to be grappling with implementation challenges, according to panelists participating in “Revenue recognition: The way forward,” a day-long event held by Deloitte and Bloomberg BNA.
Talent retention, global uncertainty rank among surveyed CFOs’ “most worrisome” risks: CFO Signals
Year after year, talent concerns have placed near the top of CFOs’ most worrisome internal risks, according to Deloitte’s quarterly CFO Signals™ surveys¹, and they easily topped the list again in the Q2 2017 survey of 132 CFOs representing some of North America’s largest companies. “While employee morale and engagement have ranked high among CFOs’ talent concerns in recent surveys, CFOs’ worries in the most recent survey were more focused on the challenges in securing and keeping key talent,” notes Greg Dickinson, managing director, Deloitte LLP, who leads the North American CFO Signals survey.
FP&A: Why talent counts and what CFOs can do to improve it
As finance continues to reinvent itself through more strategic orientation, different operating models, and the use of new technologies, the implications for the financial planning & analysis (FP&A) function are enormous. That’s because FP&A is ideally positioned to leverage its experience in analysis, along with data-driven insights, to drive business decisions.
Your team is your brand: A podcast with Dr. Ajit Kambil, Deloitte’s CFO Program
CFOs today are well aware that much of their success depends on the collective strengths, competencies, and chemistry of their finance team. But they may be less focused on the degree to which their own brand within the organization is directly tied to their team’s ability to function at a high level.
Finance and financial reporting: Central to life sciences’ expanding business ecosystem
Financial reporting rarely conjures up images of robotic nursing assistants, light bulbs that kill bacteria, and gels that stop bleeding in seconds. However, in just the past year, financial reporting professionals working in life sciences were expected to account for these and other innovations by properly recognizing related revenue, booking licensing arrangements, and disclosing non-GAAP measures. Further, business leaders may be counting on finance professionals to turn financial reporting data into actionable business insights.
Global expansion and revenue recognition challenges
Given the current marketplace trends of international expansion, US parent companies face many potential challenges with respect to revenue recognition. Some of these challenges may include timing and recognition of revenue, recording fictitious revenues, and incomplete disclosures around revenue recognition.
PCAOB adopts changes to the auditor’s report
The Public Company Accounting Oversight Board (PCAOB) adopted a new auditing standard aimed at increasing the informational value, usefulness and relevance of the auditor’s report. The standard, issued on June 1, 2017, retains the PCAOB’s current “pass/fail” opinion of the existing auditor’s report, and includes several significant modifications.
Implementing the new revenue standard: How do your disclosures stack up?
As the effective date of the FASB’s new revenue standard approaches, there has been an increased focus on companies’ progress toward implementing its requirements. To gain additional insight into the implementation status of public companies, particularly regarding the types of disclosures they have provided about adopting the standard, Deloitte recently completed a review of the SAB 74 disclosures that the Fortune 1000 public companies have included in their periodic filings with the SEC. Following is a discussion of certain observations from Deloitte’s review of those disclosures.
Four ways CFOs can avoid a digital talent crunch
Regardless of size or industry, many organizations are confronting an increasingly digital future, and that can have important implications for how CFOs think about finance talent. Technology is redefining how work gets done, both in the back office and in frontline operations. While the rapid growth of digital technologies creates new opportunities for finance, it also creates the potential for a digital divide: If members of the finance team lack the necessary skillsets and business acumen, they may not be able to make the most of these new digital capabilities.
Protecting the connected barrels: Cybersecurity for upstream oil and gas
Oil and gas might not seem like an industry that hackers would target. But they do—and the cybersecurity risks rise with every new data-based link between rigs, refineries, and headquarters. In an increasingly connected world, how can upstream O&G companies protect themselves?
Infographic: Cyber risk in consumer business
As technology adoption outpaces cybersecurity investment, cyber risks emerge around six key themes in consumer business.
Looking to improve earnings calls? Start with better information
As many organizations close their books, the final numbers are often coming together late in the information production process, giving executives a short time frame—sometimes just 24 hours—to cram for earnings calls. By improving information flow on the front end, though, CFOs may have an opportunity to craft a more effective message to the market during earnings calls. In this issue of CFO Insights, we explore why streamlining the information production process may provide executives with both insights to manage the business more effectively and greater confidence in discussing current and future plans with the investment community.
Keeping finance talent relevant to changing needs: Charles Holley, CFO-in-Residence
It’s no secret that talent is key to a CFO’s success, yet talent is a perennial top challenge for CFOs. That’s partly due to the continually changing definition of what it means to have a talented finance team, says Charles Holley, an independent senior advisor to Deloitte. Drawing on his extensive leadership experiences, he explains how to identify, recruit, and develop the people best-suited for the fast-changing demands of finance. A key, he says, is finding the best athletes and keeping their capabilities relevant and aligned to the needs of the business.
Minds and machines: The art of forecasting in the age of artificial intelligence
The human/artificial intelligence (AI) relationship is just heating up. So when is AI better at predicting outcomes, and when are humans? What happens when you combine forces? And more broadly, what role will human judgment play as machines continue to evolve?
Unleashing the potential—and power—of FP&A
As CFOs make structural changes to their finance departments—weaving together a mix of shared service centers, centers of excellence and outsourcing arrangements—they create new opportunities for the remaining or “retained” finance function to add more value. Case in point: The financial planning and analysis (FP&A) function, which may be particularly poised to play a more strategic role across the enterprise.
2017 Life Sciences Accounting and Financial Reporting Update
Life sciences companies face a time of uncertainty, with significant financial reporting challenges related to:
- Revenue recognition
- The definition of a business
- Non–GAAP measures
These issues require attention to ensure that the implementation of these financial reporting changes are timely, appropriate, and transparent to financial statement users.
A sea change in controllership
Controllers are faced with greater expectations and responsibilities—often with increasingly limited resources. This infographic identifies five steps controllership functions can take to respond to heightened expectations and effectively navigate a new course.
The consolidated audit trail: Key implementation milestones
The consolidated audit trail is finally here. Even though reporting obligations do not begin until November 2018, broker-dealers shouldn’t wait to kick off their compliance programs. Our quick guide outlines key requirements and milestones to help you stay ahead of the move to the consolidated audit trail—and even make improvements to your broader business operations in the process.
Audit value survey: Mining business insights from the audit
Financial statement audits have been a longstanding, fundamental pillar of the capital markets, helping investors make informed decisions and invest with confidence. But according to Deloitte's recent survey of 300 C-suite executives and 100 audit committee members, that’s just part of the value an audit can provide.
Strengthening internal audit’s impact and influence: How to effectively respond to stakeholder needs
Even as internal audit (IA) becomes increasingly critical for many companies, Deloitte research shows most chief audit executives don’t feel that IA has a strong impact and influence across their organizations. This report outlines nine demonstrated ways IA can better address stakeholder needs, ultimately increasing the impact and influence of the function.
Managed services: A catalyst for transformation in banking
As part of their ongoing efforts to innovate and grow, some banks are leveraging managed services to help bridge gaps in internal capabilities and adopt a more holistic, value-based approach to outsourcing. Learn what’s behind this trend, when it works well, and why.
Tech Trends 2017
Technology has moved far beyond desktop devices and software upgrades to data analysis, augmented reality, and reimagining products as services. In fact, the range of recent advances—from nanotech to robotic process automation—can seem overwhelming. But CIOs can look ahead to help shape their company’s future.
Crunch time, too: CFOs talk off the record about finance in a digital world
Deloitte interviewed 30 finance executives to get their thoughts and experiences with digital transformation. See what they had to say, off the record, in this follow-up report to Crunch time: Finance in a digital world, and discover the opportunities that lie ahead.
Time: Your most irrecoverable resource (podcast)
Executives who take on a new C-level role often find themselves working 80-hour work weeks, making burnout pretty much inevitable. Based on experience in more than 250 labs with new CFOs, hear five things new C-suite executives can do to take back their time.
Using advanced management controls to strengthen FCPA compliance
The US Department of Justice and the US Securities and Exchange Commission, charged with enforcing the US Foreign Corrupt Practices Act (FCPA), have signaled they expect companies to strengthen anti-bribery management systems, with an emphasis on preventive controls.
Outsourcing transparency evolution: Creating value across the extended enterprise
Many companies are trying to manage thousands of service providers at any given time. So what can they do to improve these relationships? Explore how information transparency can increase the value of outsourcing relationships and see a three-step process that can help you improve communication with your service providers.
Technology spotlight—The future of revenue recognition
Read about the framework of the new revenue model and some of the key accounting issues and potential challenges for technology entities.
Regulatory productivity: Is there an answer to the rising cost of compliance?
Regulatory expectations have increased for all financial services institutions. Even as penalties are levied for non-compliance with existing rules, new rules continue to be released. And one thing is clear: The cost of compliance is a heavy burden.
New IRS regulations on intercompany debt transactions: Not just a tax matter
The impacts of new IRS regulations governing intercompany debt transactions could potentially stretch beyond corporate tax departments to operational functions, and in some cases, strategic decision-making at certain organizations.
Getting strategic on technology spend
For some finance executives, information technology and its related costs can look like a black box, one that they might be reluctant to open. Meanwhile, as the pace of digital technology innovations quickens—along with its ability to disrupt business—CFOs are being inundated with technology requests, and differentiating them can be difficult.
Heightened expectations: Internal audit’s role in resolution and recovery planning
Regulators continue to push recovery and resolution planning as a key driver to reduce systemic risk. Internal expectations of internal audit are raised as stakeholders look to the third line of defense to ensure that effective controls are in place to assure the accuracy of their 2017 recovery and resolution plan submissions. This report provides a strategy and framework for internal audit to leverage as they advise their organization during the preparation of the 2017 FR Y-14 forms.
A new operating model for talent acquisition
Many big companies have embraced shared services for HR, yet when it comes to recruiting, the local hiring managers tend to work largely alone, with the help of local recruiters or HR professionals. Given the expense, corporate HR is the most likely choice to invest in the talent acquisition products that can make the company stand out. Here’s a look at how HR leaders can transform hiring processes to be scalable, flexible, and focused on the moments that matter in the overall candidate experience.
Navigating a sea change: US current expected credit losses (CECL) survey
The Financial Accounting Standards Board’s new CECL accounting standards will have a pervasive impact on all banks. Yet, despite the challenges associated with implementation, banks can use these new requirements as a catalyst to improve their financial and regulatory reporting capabilities. Read our survey report to learn how senior bank executives are responding. If you missed our March 9 Dbriefs webcast on this topic, you can watch the archive now.
Industry 4.0 and distribution centers: Transforming distribution operations through innovation
Warehouse-based stockpiling of inventory has been transforming into high-velocity distribution centers, which are increasingly considered strategic to providing competitive advantage. Industry 4.0 can aid the distribution center’s evolution, enabling adaptable, automated systems that can work with humans.
Crunch time: Finance in a digital world
Learn how finance executives can leverage digital tools to improve the finance operations’ performance and provide better insight
How stress affects team dynamics
Deloitte surveyed more than 23,000 professionals about their stress levels at work and matched their responses to the four patterns of behavior identified in Business Chemistry®, a framework that helps teams work together more effectively. Knowing which employees are experiencing the most stress can help leaders better promote productivity, health, and performance—important factors for success in today’s competitive business environment.
Analytics: Five skills to help finance soar
More than half of responding CFOs in North America are investing substantially in customer analytics, with finance/accounting analytics running a close second in terms of priority, according to a recent Deloitte CFO Signals™ survey. Making analytics a core competency for finance depends on people, as well as strategy, process, data, and technology.
Leadership transitions: Making the leap from CFO to CEO
Learn how CFOs-who-become-CEOs land squarely on two feet and plan their development, overcome inherent challenges, and go on to successfully lead complex organizations. Please share this article with your CFO.
Drones mean business: Advanced software applications are driving commercial drone adoption
Does your firm routinely need to count, measure, or inspect things, perhaps in locations that are sprawling or hard to access? Then you’re probably already using drones. As software expands their capabilities, you can expect to see more drones scrutinizing farms, forests, oil rigs, pipelines, mines, construction sites, and warehouses.
A blueprint for digital identify
Today’s increasingly digital economy still depends on physical records to establish identity, and that’s creating numerous problems. By paving the way for a global digital identity system, financial services firms stand to reap big rewards.
Accounting Roundup: Year in review 2016
Learn more about some of the key accounting developments that occurred in 2016.
Staying true to your leadership style
When changing roles or taking on new responsibilities, how can executives adapt the way they communicate, manage, and inspire?
4 ways to empower millennial employees
Millennials seek purpose, flexibility, collaboration, and innovation at work. To help build and nurture your organizations’ young talent—while fostering an environment that can benefit employees of all ages—focus on improving these four areas.
Lease accounting: Early steps in FASB compliance and centralizing data
As we approach the one-year anniversary of the Financial Accounting Standards Board (FASB) releasing the new leases standard, many organizations are beginning to work on their transition timelines and implementation plans. Check out the results of a recent Dbriefs webcast poll to see how your organization compares to your peers.
Are you facing data integrity issues in your gross-to-net process?
Some life sciences companies, especially those that have gone through a series of mergers and acquisitions, are often saddled with multiple legacy systems that are unable to communicate with one another. Learn how one mid-sized pharmaceutical company was able to address data disparity, lack of auditability, and control issues and advance their GTN model from foundational to advanced.
2017 Oil and Gas Outlook
What are the long-term impacts of the oil and gas downturn? What are the reasons to be positive for an oil and gas recovery? Read about the state of the industry.
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