Accounting and financial reporting developments for ......Accounting and financial reporting developments for private companies FOURTH QUARTER 2019 In this update, we highlight some

Accounting and financial reporting developments for private companiesFOURTH QUARTER 2019

In this update, we highlight some of the more important 2019 fourth quarter accounting and financial reporting activities for private companies. The content is not meant to be all-inclusive.

Accounting Guidance Issued in Fourth Quarter 2019

Simplifying the Accounting for Income TaxesASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, simplifies the accounting for income taxes by removing the following exceptions from Topic 740:

• Exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items.

• Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment.

• Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign-equity method investment becomes a subsidiary.

• Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year.

2 Plante MoranFourth quarter 2019 update

The ASU also makes the following changes to the accounting for income taxes:

• Requires an entity to recognize a franchise tax (or similar tax) that is based partially on income as an income-based tax and account for any incremental amount incurred as a nonincome-based tax.

• Requires an entity to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction.

• Specifies that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements.

• Requires an entity to reflect the effect of an enacted change in tax law or rates in the annual effective tax rate computation in the interim period that includes the enactment date.

The standard is effective for public business entities for fiscal years beginning after Dec. 15, 2020. For all other entities, the standard is effective for fiscal years beginning after Dec. 15, 2021.

Codification Improvements to Financial Instruments — Credit LossesASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, provides updates to ASU 2016-13 Financial Instruments – Credit Losses, and will be effective when an entity adopts ASU 2016-13. The update is summarized below:

• Provides guidance to clarify the allowance for credit losses for purchased financial assets with credit deterioration (PCD assets) should include expected recoveries; although the amount of recoveries should not exceed the amounts previously written off and expected to be written off.

• Clarifies that when a method other than discounted cash flows is used to estimate expected credit losses on PCD assets, expected recovery amounts should not include any amounts that would result in an acceleration of the noncredit discount.

• Provides transition relief by permitting entities to make an accounting policy election to adjust the effective interest rate on existing troubled debt restructurings using prepayment assumptions on the date of adoption of Topic 326.

• Extends the disclosure relief for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis.

• Clarifies that in order to adopt the practical expedient for measuring expected credit for financial assets secured by collateral maintenance provisions, entities should assess whether they reasonably expect the borrower to be able to continually replenish collateral securing the financial asset.

Deferral of Effective DatesASU 2019-10, Financial Instruments – Credit Losses (Topic 326) Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates and ASU 2019-09 Financial Services-Insurance (Topic 944), delays the effective dates of four major accounting standards issued in recent years. The delay is due to feedback from companies regarding the challenges of implementing the new revenue recognition standard as well as the other new rules on the near horizon. The significant new accounting rules have created a significant burden especially for private companies and smaller reporting companies (SRCs).

The proposed effective dates for calendar year-end companies are as follows:

• Lease accounting:

› Public business entities, employee benefit plans and conduit bond obligors (no change) Jan. 2019

› All other entities Jan. 2021

• Derivatives and hedging:

› Public business entities (no change) Jan. 2019


• Accounting for credit losses:

› SEC filers, excluding smaller reporting companies (SRCs) Jan. 2020


• Long-duration insurance contracts:

› SEC filers, excluding SRCs Jan. 2022


In addition to the changes identified above, based on stakeholder feedback, the Board plans to amend the effective date of ASU 2017-04 Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment to align with the amended effective dates for the Accounting for Credit Losses (as noted above).


Codification Improvements — Share-based Consideration Payable to a CustomerASU 2019-08, Compensation — Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codifications Improvements — Share-Based Consideration Payable to a Customer, provides measurement guidance for situations where entities grant share-based payment awards to customers. Prior to the issuance of this update, there was no measurement guidance for these types of transactions. The ASU requires application of the classification and measurement guidance in ASC Topic 718 for share-based payment awards granted to customers. This means the reduction in the transaction price for an award granted to a customer is measured at the award’s grant date fair value. The standard is effective for fiscal years beginning after Dec. 15, 2019, for all entities.

New Revenue Recognition Rules — Effective Calendar Year 2019As a reminder, the new standard, as amended, is effective year-end 2019 for calendar year private companies (interim periods in 2020), and companies can adopt using a full retrospective or modified retrospective (cumulative effect) method.

As discussed in previous newsletters, the Transition Resource Group (TRG) was formed to review implementation issues and bring issues to the FASB’s attention if further amendments to the guidance were deemed necessary. The TRG has issued numerous white papers addressing implementation issues. Additionally, the AICPA formed 16 industry task forces to help develop a new Revenue Recognition Audit and Accounting Guide that will provide helpful hints and illustrative examples for how to apply the new revenue standard. The industry task forces continue to discuss industry-specific implementation issues, and FinRec released various industry guidance, which was incorporated into the AICPA’s new Audit and Accounting Guide.

Companies should consider the TRG and FinRec white papers in implementing ASC 606. Calendar year-end public companies were required to adopt the standard Jan. 1, 2018. Private companies should also consider reviewing disclosures made by public companies in their industry sector.

New Lease Standard — Effective Calendar Year 2021The new lease standard is effective year-end 2021 for calendar year private companies.

Under the new guidance, including amendments, lessees will be required to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance (capital) or operating lease. However, unlike current GAAP, which requires only finance leases to be recognized on the balance sheet, the guidance in this ASU will require both types of leases to be recognized on the balance sheet.

Lessees (for finance and operating leases) and lessors (for sales-type, direct financing, and operating leases) may apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, or may apply the practical expedient in ASU 2018-11, if elected, to apply the cumulative effect in the period of adoption. The modified retrospective approach does not require any transition accounting for leases that expired before the date of adoption and provides for certain other practical expedients. Lessees and lessors may not apply a full retrospective transition approach.

As discussed above, during 2019 FASB deferred the effective date of the new lease standard for private companies by one year. This was due to feedback received on the additional time and resources that have been required to successfully adopt the standard. Given this feedback, entities should take advantage of the deferral and reassess the current status and implementation plans to ensure they are devoting the appropriate resources toward implementing the standard.


Measurement of Credit Losses on Financial InstrumentsAs a reminder, ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, changes the impairment model to a current expected credit loss model, and will require an entity to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. As a result, entities will need to incorporate forward-looking information to better form their credit loss estimates, and credit losses will generally be recognized earlier when a current expected credit loss exists. The new guidance also permits the restoration of prior credit losses on available-for-sale-debt securities in circumstances where the estimate of credit losses has declined. Entities will continue to use judgment to determine loss estimation for their circumstances.

This ASU is effective for SEC filers (excluding SRCs) for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019 (i.e., Jan. 1, 2020, for calendar year entities). For all other entities, this ASU is effective for fiscal years beginning after Dec. 15, 2022, Early adoption is permitted.

The FASB established a Transition Resource Group (TRG) to solicit, analyze, and discuss implementation issues related to the new credit impairment standard. The group has discussed various topics of interest, and the meeting materials can be accessed on the FASB website.

Accounting for digital assets, including cryptocurrenciesIn December 2019, the AICPA published a practice aid, Accounting for and Auditing of Digital Assets. This practice aid provides nonauthoritative guidance on how to account for digital assets and addresses 10 specific questions. This guidance should be considered by companies that invest in or transact with (that is, make or receive payments with) digital assets, including cryptocurrencies.

Standards Effective Calendar Year 2019

Certain key Updates (as described more fully in earlier Newsletters) are effective calendar year 2019 as follows (not all-inclusive):

Extending the private company alternatives on goodwill and certain identifiable intangible assets to not-for-profit entities (ASU 2019-06): Allows not-for-profit entities to adopt the existing private company alternatives on goodwill and certain identifiable intangible assets.

Reclassification of certain tax effects from accumulated other comprehensive income (ASU 2018-02): Allows entities the option to reclassify the stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings.

Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost (ASU 2017-07): Requires an employer to report the service cost component of net periodic pension/postretirement cost in the same line item as other compensation costs. All other components of net periodic pension/postretirement cost are required to be presented outside of income from operations.

Definition of a business (ASU 2017-01): Clarifies guidance for determining whether an acquisition or disposition meets the definition of a business requiring accounting under business combination and deconsolidation guidance.

Restricted cash in cash flow presentation (ASU 2016-18): Provides guidance to combine restricted and unrestricted cash balances on the cash flow statement.

Intra-entity transfers of assets other than inventory (ASU 2016-16): Provides that income tax consequences of intra-entity transfers of assets other than inventory be recognized when the transfer occurs.

Cash flow statement classification (ASU 2016-15): Provides guidance for cash flow classification for eight types of transactions.

https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf


Recognition and measurement of certain financial instruments (ASU 2016-01): Removes fair value disclosure requirements for financial instruments not measured at fair value for private companies. The amendments also introduce changes to the accounting for equity investments and the reporting of other comprehensive income for certain financial liabilities, and various changes to the presentation and disclosure of financial instruments. The removal of the fair value of financial instruments disclosure may be implemented before the other changes.

Accounting Guidance Eligible for Early Adoption in Calendar Year 2019In addition to the guidance effective this calendar year discussed above, many ASUs allow for early adoption if the financial statements have not been issued. Key ASUs (not all-inclusive) allowing for early adoption include the following:

Simplifying the accounting for income taxes (ASU 2019-12): Simplifies the accounting for income taxes by eliminating certain exceptions to the income tax accounting guidance and other targeted simplifications.

Codification improvements — share-based consideration payable to a customer (ASU 2019-08): Provides measurement guidance for situations where entities grant share-based payment awards to customers.

Updating the definition of collections (ASU 2019-03): Aligns the definition of collections within U.S. GAAP with the definition that entities are required to use for accreditation purposes.

Targeted improvements to related party guidance for variable interest entities (ASU 2018-17): Provides an accounting alternative for private companies to not apply the variable interest entity (VIE) guidance to potential VIEs that are under common control when certain criteria are met. Also, changes the guidance for determining if a decision-making fee arrangement is a variable interest for entities under common control.

Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract (ASU 2018-15): Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license.

Changes to the disclosure requirements for fair value measurements (ASU 2018-13): Modifies the disclosure requirements on fair value measurements. Certain targeted disclosures are removed, modified, and added.

Improvements to nonemployee share-based payment accounting (ASU 2018-07): Expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.

Hedge accounting (ASU 2017-12): Expands eligible hedge strategies, simplifies hedge documentation and effectiveness testing, and revises presentation of hedging results.

Down-round features in certain financial instruments (ASU 2017-11): Eliminates requirement to consider down-round features when assessing classification of certain warrants and financial instruments containing conversion features.

Premium amortization on purchased callable debt securities (ASU 2017-08): Requires the premium on purchased callable debt securities to be amortized to the earliest call date instead of to maturity.

Simplifying goodwill impairment testing (ASU 2017-04): Eliminates Step 2 of the goodwill impairment test and requires recognition of an impairment loss if the carrying value of the reporting unit exceeds its fair value.


*Effective 2019 for nonpublic companies **Effective 2019 for public business entities

Standards issued in 2019

Final ASU Early adoption Effective date

Update 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Yes Nonpublic: fiscal years ending after Dec. 15, 2021, and interim periods within annual periods beginning after Dec. 15, 2022.

Public business entities: fiscal years ending after Dec. 15, 2020, and interim periods within these fiscal years.

Update 2019-11: Codification Improvements to Topic 326, Financial Instruments — Credit Losses

Yes, if ASU 2016-13

adopted

See ASU 2016-13

Update 2019-10: Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

N/A See ASU 2016-02

See ASU 2016-13

See ASU 2017-12

Update 2019-09: Financial Services — Insurance (Topic 944): Effective Date

N/A See ASU 2018-12

Update 2019-08: Compensation — Stock Compensation (Topic 718) and Revenue from Contracts with Customers

Yes, if ASU 2018-07

adopted

Nonpublic: annual reporting periods beginning after Dec. 15, 2019, and interim periods within annual periods beginning after Dec. 15, 2020.

Public business entities: fiscal years beginning after Dec. 15, 2019, and interim periods within these fiscal years.

Update 2019-07: Codification Updates to SEC Sections — Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates (SEC Update)

N/A Effective upon issuance

Update 2019-06: Intangibles — Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangibles to Not-for-Profit Entities

N/A Effective upon issuance

Update 2019-05: Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief

Yes, if ASU 2016-13

adopted

See ASU 2016-13



Update 2019-04: Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments

Yes See ASU

Update 2019-03: Not-for-Profit Entities (Topic 958): Updating the Definitions of Collections

Yes Fiscal years beginning after Dec. 15, 2019, and interim periods beginning after Dec. 15, 2020.

Update 2019-02: Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment Broadcasters — Intangible — Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials

Yes Nonpublic: fiscal years ending after Dec. 15, 2020.

Public business entities: fiscal years ending after Dec. 15, 2019.

Update 2019-01: Leases (Topic 842): Codification Improvements

Yes, if ASU 2016-02

adopted

See ASU 2016-02**

Standards issued in prior years effective 2019 or after


Update 2018-20: Leases (Topic 842): Narrow-Scope Improvements for Lessors

Yes, if ASU 2016-02

adopted

See ASU 2016-02**

Update 2018-19: Codification Improvements to Topic 326, Financial Instruments — Credit Losses

Yes, if ASU 2016-13

adopted

See ASU 2016-13

Update 2018-18: Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606

Yes, if ASU 2014-09

adopted

Nonpublic: annual reporting periods beginning after Dec. 15, 2020, and interim periods within annual periods beginning after Dec. 15, 2021.


Update 2018-17: Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities

Yes Nonpublic: annual reporting periods beginning after Dec. 15, 2020, and interim periods within annual periods beginning after Dec. 15, 2021.





Update 2018-16: Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes

Yes, if ASU 2017-12

adopted

See ASU 2017-12**

Update 2018-15: Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Yes Nonpublic: annual reporting periods beginning after Dec. 15, 2020, and interim periods within annual periods beginning after Dec. 15, 2021.

Public business entities: fiscal years beginning after Dec. 15, 2019, and interim periods within those fiscal years.

Update 2018-14: Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans

Yes Nonpublic: fiscal years ending after Dec. 15, 2021.

Public business entities: fiscal years ending after Dec. 15, 2020.

Update 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement

Yes All entities: fiscal years beginning after Dec. 15, 2019, and interim periods within those fiscal years.

Update 2018-12: Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

Yes SEC registrants (excluding entities eligible to be SRCs): fiscal years beginning after Dec. 15, 2021, and interim periods within those fiscal years.

All other entities: fiscal years beginning after Dec. 15, 2023, and interim periods beginning after Dec. 15, 2024.

Update 2018-11: Leases (Topic 842): Targeted Improvements

Yes, if ASU 2016-02

adopted

See ASU 2016-02**

Update 2018-10: Codification Improvements to Topic 842, Leases

Yes, if ASU 2016-02

adopted

See ASU 2016-02**

Update 2018-09: Codification Improvements N/A See ASU 2018-09




Update 2018-08: Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made

Yes Nonpublic entities that serve as a resource recipient: annual periods beginning after Dec. 15, 2018, and interim periods within fiscal years beginning after Dec. 15, 2019. *

Nonpublic entities that serve as a resource provider: annual periods beginning after Dec. 15, 2019, and interim periods within fiscal years beginning after Dec. 15, 2020.

Public business entities that serve as a resource recipient: annual periods beginning after June 15, 2018, and interim periods within those fiscal years.

Public business entities that serve as a resource provider: annual periods beginning after Dec. 15, 2018, and interim periods within those fiscal years. **

Update 2018-07: Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

Yes, if ASU 2014-09

adopted

Nonpublic: fiscal years beginning after Dec. 15, 2019, and interim periods beginning after Dec. 15, 2020.

Public business entities: fiscal years beginning after Dec. 15, 2018, and interim periods within those fiscal years.**

Update 2018-05: Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)

N/A Upon addition to FASB codification*

Update 2018-03: Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Yes, if ASU 2016-01

adopted

See ASU 2016-01*

Update 2018-02: Income Statement — Reporting Comprehensive Income (Topic 220) — Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

Yes Fiscal years beginning after Dec. 15, 2018, and interim periods within those fiscal years.*,**

Update 2018-01: Leases (Topic 842) — Land Easement Practical Expedient for Transition to Topic 842

Yes See ASU 2016-02 **

Update 2017-15: Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995

Yes Fiscal years and first interim periods beginning after Dec. 15, 2018.*,**

Update 2017-13: Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)

See ASU 2015-14

See ASU 2015-14*




Update 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities

Yes Nonpublic: fiscal years beginning after Dec. 15, 2020 and interim periods beginning after Dec. 15, 2021.

Public business entities: fiscal years beginning after Dec. 15, 2018 and interim periods within those fiscal years.**

Update 2017-11: Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncon-trolling Interests with a Scope Exception

Yes Part I: Nonpublic: fiscal years beginning after Dec. 15, 2019, and interim periods beginning after Dec. 15, 2020.


Part II: No transition guidance is required, as no accounting impact exists.

Update 2017-10: Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services

See ASU 2015-14

See ASU 2015-14 *

Update 2017-08: Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities

Yes Nonpublic: fiscal years beginning after Dec. 15, 2019, and interim periods beginning after Dec. 15, 2020.


Update 2017-07: Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost

Yes Nonpublic: fiscal years beginning after Dec. 15, 2018, and interim periods within fiscal years beginning after Dec. 15, 2019.*


Update 2017-06: Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting

Yes Fiscal years beginning after Dec. 15, 2018.*,**

Update 2017-05: Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets

See ASU 2015-14

See ASU 2015-14*





Update 2017-04: Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

Yes Nonpublic: fiscal years beginning after Dec. 15, 2021.

Public business entities that are SEC filers: fiscal years beginning after Dec. 15, 2019.

All other public business entities: fiscal years beginning after Dec. 15, 2020.

Update 2017-01: Business Combinations (Topic 805): Clarifying the Definition of a Business



Update 2016-20: Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers

See ASU 2015-14

See ASU 2015-14*

Update 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)



Update 2016-16: Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory

Yes Nonpublic: fiscal years beginning after Dec. 15, 2018, and interim periods within fiscal periods beginning after Dec. 15, 2019.*

Public business entities: fiscal years beginning after Dec. 15, 2017, including interim periods within those fiscal years.

Update 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)



Update No. 2016-13: Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Yes, as of fiscal years

beginning after Dec. 15, 2018,

including interim periods within

those fiscal years

See ASU 2018-19

SEC registrants (excluding entities that qualify as SRCs): fiscal years beginning after Dec. 15, 2019, including interim periods within those fiscal years.

All other entities: fiscal years beginning after Dec. 15, 2022, including interim periods within those fiscal years.




Update No. 2016-12: Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients

See ASU 2015-14

See ASU 2015-14*

Update No. 2016-11: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at March 3, 2016 EITF meeting

See ASU 2014-09

See ASU 2014-09*

Update No. 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing

See ASU 2015-14

See ASU 2015-14*

Update No. 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

See ASU 2015-14

See ASU 2015-14*

Update No. 2016-04: Liabilities — Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

Yes Nonpublic: fiscal years beginning after Dec. 15, 2018, and interim periods within fiscal periods beginning after Dec. 15, 2019.*Public business entities: certain not-for-profit entities and certain employee benefit plans: fiscal years beginning after Dec. 15, 2017, including interim periods within those fiscal years.

Update No. 2016-02: Leases (Topic 842) Yes Nonpublic: fiscal years beginning after Dec. 15, 2019, and interim periods within fiscal periods beginning after Dec. 15, 2020.Public business entities: fiscal years beginning after Dec. 15, 2018, including interim periods within those fiscal years.**

Update No. 2016-01: Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Yes, for certain

amendments

Nonpublic: fiscal years beginning after Dec. 15, 2020, and interim periods within fiscal periods beginning after Dec. 15, 2021.

Public business entities: fiscal years beginning after Dec. 15, 2018, including interim periods within those fiscal years.**

Documents

Accounting and financial reporting developments for ......Accounting and financial reporting developments for private companies FOURTH QUARTER 2019 In this update, we highlight some