Audit & Accounting Update: July 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

Updated guide to revenue recognition
We have issued an updated version of our guide to revenue recognition to further assist middle-market companies in applying the new revenue recognition model in Topic 606 with recent activities of the FASB, AICPA and SEC. The guide has been updated for recent developments, including activities of the:

  • FASB, such as the issuance of new Accounting Standards Updates and non-authoritative guidance related to the implementation of ASC 606
  • AICPA, such as the issuance of its revenue recognition guide
  • SEC, such as speeches by SEC staff during the 2018 AICPA Conference on Current SEC and PCAOB Developments, which articulated their views on certain aspects of ASC 606

Updates to our hedging guide for ASU 2019-04
We recently updated our hedging guide for the clarifications made by FASB Accounting Standards Update 2019-04, including those related to having multiple separately designated partial-term fair value hedging relationships of a single financial instrument outstanding at the same time. This summary includes discussion of the effective date and transition provisions of ASU 2019-04 for situations in which ASU 2017-12 has already been adopted and situations in which ASU 2017-12 has not yet been adopted.

business man reading updated guide to revenue recognition

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: June 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

FASB provides targeted transition relief for CECL
ASU 2019-05 provides the ability to elect the fair value option for certain financial assets upon transition to ASU 2016-13. ASU 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed, and expected credit losses recognized, when fair value is less than the amortized cost basis.

FASB proposes to simplify the accounting for income taxes
The The Financial Accounting Standards Board (FASB) has proposed amendments intended to simplify the accounting for income taxes in accordance with ASC Topic 740. If finalized, the proposed ASU would remove the following exceptions to the general principles in Topic 740.

FASB responds to SEC disclosure update and simplification
The the Financial Accounting Standards Board (FASB) has proposed Codification amendments in response to the SEC’s Disclosure Update and Simplification Initiative. After considering these referred disclosures, the FASB recently issued a proposed Accounting Standards Update (ASU), Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.

women on computer with note pad and pen next to her reading about FASB proposes to simplify the accounting for income taxes

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: April 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition for federal government contractors
We recently published a white paper to assist federal government contractors in understanding the guidance in ASC 606.

Proposed changes to disclosure requirements for income taxes
If finalized, a recent proposed Accounting Standards Update would modify the current disclosure requirements for income taxes.

ASC 842: Lessee transition
We have published a white paper to assist lessees in identifying and understanding the applicable transition guidance in ASC 842.

Treatment of cumulative dividends on preferred stock
Our article addresses questions often raised regarding how and when cumulative dividends should be recognized on preferred stock.

FASB updates the definition of “collections”
Collection-holding entities should be aware of a change to the definition of “collections” and new required disclosures.

Critical audit matters: PCAOB guidance
The PCAOB recently issued guidance related to the requirement for auditors to communicate critical audit matters.

Amendments to modernize and simplify Regulation S-K
The SEC recently issued amendments to modernize and simplify some of the disclosure requirements in Regulation S-K.

 

patrons at an art gallery as the FASB updates the definition of collections for nonprofits, museums

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: February 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition in the consumer products industry
We have published a white paper to assist consumer products entities in understanding the new revenue recognition guidance.

Private company accounting for common control arrangements
Our white paper provides insights on private company accounting for variable interest entities under common control.

Business combinations: In motion
Our summary highlights standard-setting activities that affect the content in our Guide to Accounting for Business Combinations.

Market volatility: Consideration of goodwill impairment
Reminder: a significant drop in share price could be a triggering event for the consideration of the impairment of goodwill.

FASB proposes targeted transition relief for CECL
The FASB proposes to allow the option of measuring certain types of assets within the scope of Subtopic 326 at fair value.

 

computer, phone and pens on a desk

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: July 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Substantial accounting changes for nonemployee share-based payments
We have prepared a summary of the accounting changes for nonemployee share-based payments resulting from the issuance of ASU 2018-07. The Financial Accounting Standards Board’s recently updated guidance to align nonemployee share-based payment accounting with employee share-based payment accounting will result in significant measurement changes.

Changes to revenue recognition in the construction industry
Our white paper assists in understanding the application of the new revenue recognition guidance to construction contracts and how a construction contractor could be significantly affected by the new guidance.

Leases: Impact of ASC 842 on the retail and restaurant sector
Our article discusses specific aspects of the new leasing standard that retailers and restaurant operators should consider. To understand these considerations the first step is to understand the full inventory of all contracts that would fall under the new definition of a lease. Understanding the financial reporting and operational impact is imperative also to the middle market.

Monitoring inflation when applying ASC 830
A framework is available to assist in the determination of whether a country’s economy should be considered highly inflationary. The determination of a highly inflationary economy begins by calculating the cumulative inflation rate for the three-year period that precedes the beginning of the reporting period, including interim reporting periods.

accounting achievement aerial

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: May 17, 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

ASC 606 and certain transactions in collaborative arrangements
The FASB proposed guidance on whether certain transactions in collaborative arrangements should be accounted for under ASC 606.

Upcoming Webcasts

Revenue recognition: Key considerations for the business and professional services industry
Join RSM on May 22 at 2 p.m. ET as we share insights on how FASB ASC 606 affects the business and professional services industry.

Implementing the new revenue recognition standard in the manufacturing industry
Join RSM on May 23 at 2 p.m. ET as we share insights on implementing FASB ASC 606 in a manufacturing company.

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: May 10, 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

RSM whitepapers: Private companies and the new revenue guidance
Our whitepapers encourage private companies to consider the impact of ASC 606 and to start early in the implementation process.

Effective date reminder and updated whitepaper on ASU 2016-01
We recently updated our whitepaper on ASU 2016-01 to incorporate the clarifications brought forth by ASU 2018-03.

Staff interpretations of ASU 2017-12: Prepayable financial instruments
Recent FASB Staff interpretations address the scope of Accounting Standards Update 2017-12 for prepayable financial instruments.

Donor-advised funds: Accounting implications related to pledges
This article addresses the accounting implications related to a donor’s use of a donor-advised fund to service a pledge.

SEC

Cybersecurity risk management oversight tool
A recent CAQ tool provides questions board members can consider as they address cybersecurity risks and disclosures.

Upcoming Webcasts

Revenue recognition: Key considerations for the business and professional services industry
Join RSM on May 22 at 2 p.m. ET as we share insights on how FASB ASC 606 affects the business and professional services industry.

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: March 22, 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

FASB clarifies certain hedge accounting matters
The FASB recently clarified the opportunity to transfer prepayable held-to-maturity securities to available-for-sale.

FASB clarifies guidance in ASU 2016-01
ASU 2018-03 provides clarifying amendments for recognition and measurement of financial assets and financial liabilities.

Financial Institutions

Webinar: Practical methods smaller community banks can use for CECL
A recent webinar provides methods smaller, less complex financial institutions may use in their implementation of CECL.

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: March 8, 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

New Lease Accounting Resource Center
Our new resource center provides information about the new guidance in Accounting Standards Update 2016-02, Leases (Topic 842).

Additional hedge accounting benchmark interest rate proposed
The FASB has proposed adding a fifth U.S. benchmark interest rate that would be permitted in the application of hedge accounting.

The FASB issued AOCI standard
ASU 2018-02 allows entities to make a one-time reclassification from AOCI to retained earnings for certain effects of the TCJA.

 

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: February 22, 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

FASB addresses AOCI reclassification related to tax reform
The FASB will allow a one-time reclassification from AOCI to retained earnings for stranded tax effects as a result of the TCJA.

Simplifying the test for goodwill impairment
Our white paper provides information about the provisions of ASU 2017-04 as well as effective date and transition information.

Clarifications to land easements application guidance
A recent ASU addresses the application of ASC 842 to land easements, and permits a transition practical expedient.

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.