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2018 GAAP: The Year in Review

 

2018 GAAP: The Year in Review

Jan 17, 2019

It’s that time of year. Time to take stock of 2018 and look forward to what 2019 will bring. And the world of generally accepted accounting principles (GAAP) is no exception. Let’s look at what gifts the Financial Accounting Standards Board (FASB) bestowed upon us in 2018.

The FASB issued 20 new Accounting Standards Updates (ASU) in 2018. Below you’ll find a list of the issued standards with a link to each full written standard if you want to dive in deeper. In this article, we will discuss in a little more detail what we feel to be seven of the more widely applicable standards issued in 2018. In addition, we will give some attention to other standards issued in prior years with approaching effective dates.

New GAAP Issued in 2018:

  • Update 2018-20 — Leases (Topic 842): Narrow-Scope Improvements for Lessors  
  • Update 2018-19 — Codification Improvements to Topic 326, Financial Instruments — Credit Losses  
  • Update 2018-18 — Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606  
  • Update 2018-17 — Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities  
  • 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  
  • 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 (a consensus of the FASB Emerging Issues Task Force)  
  • Update 2018-14 — Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans  
  • Update 2018-13 — Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement  
  • Update 2018-12 — Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts  
  • Update 2018-11 — Leases (Topic 842): Targeted Improvements  
  • Update 2018-10 — Codification Improvements to Topic 842, Leases  
  • Update 2018-09 — Codification Improvements [Revised 07/18/18—Wording corrected in summary to reflect actual Codification wording.]
  • Update 2018-08 — Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made  
  • Update 2018-07 — Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting  
  • Update 2018-06 — Codification Improvements to Topic 942, Financial Services — Depository and Lending  
  • Update 2018-05 — Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update)  
  • Update 2018-04 — Investments — Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update)  
  • Update 2018-03 — Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities 
  • Update 2018-02 — Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income  
  • Update 2018-01 — Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842  

2018-17 Consolidation (Topic 810)

Targeted Improvements to Related Party Guidance for Variable Interest Entities

This ASU allows a private company to elect not to apply variable interest entity (VIE) guidance to legal entities under common control if both the parent and the legal entity being evaluated for consolidation are not public business entities. 

This expands the option private companies currently have for common control leasing arrangements to other types of VIE arrangements and greatly simplifies private company accounting.

Certain VIE guidance is also amended for related party arrangements and the consideration of indirect interests and decision-making fees. 

For entities other than private companies, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments are effective for a private company for fiscal years beginning after December 15, 2020 (calendar year 2021), and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted.

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

This ASU clarifies guidance provided in an earlier update issued in April 2015 on Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The earlier update distinguished treatment of cloud computing arrangements based on whether arrangements include a software license. If an arrangement does not include a software license, an entity should account for the arrangement as a service contract. For those arrangements that are to be accounted for as service contracts, the codification did not contain any explicit guidance. 

Following comments issued by stakeholders, FASB issued this ASU to address the accounting for implementation, setup and other upfront costs applicable to entities that are a customer in a hosting arrangement that is a service contract.

It simplifies the issue by aligning the requirements to expense or capitalize implementation costs incurred in a hosting arrangement that is a service contract with the requirements for implementation costs incurred to develop internal-use software and hosting arrangements that include an internal use software license.

The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, the ASU is effective for annual reporting periods beginning after December 15, 2020 (calendar year 2021), and interim periods within annual periods beginning after December 15, 2021. Early adoption is permitted.

2018-14 Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20)

Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans

This ASU affects all employers that sponsor defined benefit pension or other postretirement plans by modifying the disclosure requirements.

Most notably, the following disclosure requirements are removed:

  • The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year.
  • The amount and timing of plan assets expected to be returned to the employer.
  • The disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law.
  • Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan.
  • For nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. However, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets.
  • For public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the 1) aggregate of the service and interest cost components of net periodic benefit costs and 2) benefit obligation for postretirement health care benefits.

Two disclosure requirements were added: 1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and 2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.

And two requirements were clarified by stating that the following information should be disclosed: 1) the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets 2) and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets.

The amendments in this ASU are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021 (calendar year 2021), for all other entities. Early adoption is permitted.

2018-13 Fair Value Measurements (Topic 820)

Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement

The amendments in this ASU remove, modify and add certain disclosure requirements for entities with recurring or nonrecurring fair value measurements under Topic 820.

Disclosure requirements that are removed include: the amount of and reasons for transfers between Levels 1 and 2; the policy for timing of transfers between levels; the valuation processes for Level 3; and, for nonpublic entities, the changes in unrealized gains and losses for the period for recurring Level 3 fair value measurements held at the end of the reporting period.

Disclosure requirements that are modified include: Nonpublic entities are required to disclose transfers into and out of Level 3 and purchases and issues of Level 3 assets and liabilities in lieu of a Level 3 rollforward; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse for investments in certain entities that calculate net asset value, is now only required if the investee has communicated the timing to the entity or publicly announced the timing; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.

Two disclosure requirements were added for public entities only: 1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period 2) and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.

The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (calendar year 2020). Early adoption is permitted, including early adoption of the removed and modified disclosures, with delayed adoption of the additional disclosures until their effective date.

2018-11 Leases (Topic 842)

Targeted Improvements

This ASU offers an optional method in the transition to Topic 842, Leases. The original standard required application of the new leases standard (ASU 2018-02) to all periods presented, necessitating new and enhanced disclosures for each period presented.

Entities can elect the optional transition method provided in this ASU, which allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.

This ASU also provides lessors with a practical expedient to not separate non-lease components (such as maintenance services) from the associated lease component (such as leasing office space). This expedient was provided to lessees in the original update and is now made available to lessors. The update also clarifies which topic should be applied in accounting for the combined component: Topic 842, Leases, or Topic 606, Revenue.

Where an entity has not adopted Topic 842 prior to the issuance of this update, the amendments in this ASU are generally effective following the effective date and transition requirements of the new leases standard. For entities who early-adopted Topic 842, the update provides effective date and transition guidelines.

2018-08 Not-for-Profit Entities (Topic 958)

Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made

The amendments in this ASU will assist entities in evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) or as exchange (reciprocal) transactions, and determining whether a transaction is conditional.

Classification difficulties have been longstanding under existing GAAP; with the approach of the revenue recognition standard (ASC 606), the FASB determined some clarification and improvement was needed.

In a contribution transaction, the provider receives no direct benefit for its contribution. This ASU clarifies that while a resource provider may receive an indirect benefit by providing a societal benefit, that benefit is generally not considered to be of commensurate value, and the transaction would be accounted for by the recipient as a contribution. Conversely, in an exchange transaction, the resource provider directly receives commensurate value for its payment, and any potential public benefits are secondary.

The update provides additional factors in determining if transactions qualify as contributions or exchange transactions. Upon determination of the transaction as a contribution or an exchange transaction, different topics within the codification will be applied to record, present and disclose the transaction.

The update also serves to clarify the treatment of conditional contributions by introducing the term “barrier.” Conditional contributions are those with a donor-imposed condition that has 1) one or more barriers that must be overcome and 2) a right of return or release if the barrier(s) is not overcome. Conditional contributions are recognized when the barriers are overcome.

The amendments in this ASU are effective for public entities that are resource recipients for annual periods beginning after June 15, 2018, including interim periods within those annual periods. For all other entities, the ASU is effective for annual periods beginning after December 15, 2018 (calendar year 2019), and for interim periods within fiscal years beginning after December 15, 2019, for transactions in which the entity serves as the resource recipient. Early adoption is permitted.

2018-07 Compensation — Stock Compensation (Topic 718)

Improvements to Nonemployee Share-Based Payment Accounting

The amendments in this ASU affect all entities that enter into share-based payment transactions for acquiring goods or services from nonemployees. Share-based payments are used by employers as additional incentives for employees. Employers may also offer share-based payments in acquiring goods or services from nonemployees. 

Prior to this update, GAAP rules differed in the treatment of share-based payments for employees and nonemployees. This update expands the codification section for employee share-based payments to include nonemployees, and it now provides similar accounting for employee and nonemployee payments for the following:

  • Award measurement
  • Measurement date
  • Measurement of awards with performance conditions

And additional conformance for nonpublic entities for the following:

  • Expected volatility input used in the calculated value
  • Option to use intrinsic value instead of solely fair value

ASU 2018-07, Stock Compensation, is effective for public companies for annual reporting periods beginning after December 15, 2018 (calendar year 2019), including interim periods within that fiscal year. All other entities will apply the new guidance to annual reporting periods beginning after December 15, 2019 (calendar year 2020) and interim reporting periods beginning after December 15, 2020. Early adoption is permitted, but not prior to the adoption of Topic 606, Revenue from Contracts with Customers.

Prior Year ASUs With Approaching Effective Dates

Now we’ll turn to highlights from prior years’ issued ASUs — those with nearing effective dates or provisions you may want to early adopt.

Many of the ASUs offer simplification to existing accounting and disclosure requirements.  Check out those with early adoption provisions to simplify your current reporting requirements before the effective due dates.

2014-09 Revenue From Contracts With Customers (Topic 606)

This standard is now effective for most companies.

For calendar year public business entities, the standard was effective on January 1, 2018. For private companies, the update is effective for fiscal years beginning after December 15, 2018 (calendar year 2019). Private entities with calendar year ends should be recognizing revenue under ASC 606 on January 1, 2019.

Analysis of this standard must be addressed so your organization can implement the standard in 2019.  This should be a Quarter 1 objective.

We have been busy assisting companies in their analysis and implementation of ASC 606 and are ready to assist you in any way we can. Please contact your Wipfli relationship executive to discuss the standard and develop next steps.

No. 2016-01 Financial Instruments — Overall (Subtopic 825-10)

Recognition and Measurement of Financial Assets and Financial Liabilities

ASU 2016-01 impacts all entities holding financial assets or owing financial liabilities and was designed to make targeted improvements to GAAP. The amendments in this ASU update, enhance and improve financial reporting disclosures for certain topics and simplify other areas of GAAP.

A few highlights include:

  • Investments in marketable equity securities will be recorded at fair value, with changes in fair value being recognized in net income. This is a change from the current practice of classifying equity securities as trading or available-for-sale. Currently the change in fair value of available-for-sale equity securities is reported in other comprehensive income. The amendments in ASU 2016-01 will eliminate the need for other comprehensive income and accumulated other comprehensive income for many entities. Marketable debt securities will continue to be classified as trading, available-for-sale or held to maturity, with the change in fair value of available-for-sale debt securities being recorded as other comprehensive income.
  • Simplifying the impairment assessment of equity investments without readily determinable fair values. Only if impairment exists, based upon the qualitative assessment, do entities need to calculate the fair value of the investment.
  • Eliminate the requirement to disclose in the notes to the financial statements, the fair value of financial instruments that have not been measured at fair value (for example loans receivable and loans payable), for entities that are not public business entities.

This ASU is effective for all public business entities for fiscal years beginning after December 15, 2017 (calendar year 2018) and for all other entities for fiscal years beginning after December 15, 2018 (calendar year 2019). Entities that are not public business entities may adopt the provision eliminating the fair value disclosure of financial instruments not measured at fair value immediately for any financial statements that have not been made available for issuance.

2016-02 Leases (Subtopic 842)

February 2016 brought the issuance of the much-discussed new Leasing standard with applicability to all entities that enter into leases, with some specific scope limitations. This update is a complete rewrite of the leasing standards, creating a new subtopic in the FASB Codification, subtopic 842. The universal applicability of the provisions may warrant an early look at how this ASU will impact your organization. We are a year closer to the effective date; now is the time to address your company’s implementation plan.

Some highlights for lessees include:

  • Lease assets and lease liabilities will be recorded for virtually all leases. Currently, a lessee does not recognize an asset or liability on its balance sheet for leases classified as operating leases.Under this ASU’s amendments, a right-of-use asset and lease liability, initially measured at the present value of the lease payments, will be recognized in the balance sheet.
  • The amendments do retain a distinction of two types of leases, finance leases and operating leases, with differing treatment in recognizing the expense of the lease. The classification criteria for recognizing a lease as an operating or financing lease is similar to the existing rules.
  • An exception to recording lease assets and liabilities does exist for leases with terms of 12 months or less. A lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities for short-term leases. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.
  • In recording the lease assets and lease liabilities, a lessee will recognize payments made during optional periods only if lessee is reasonably certain to exercise its option to extend the lease.Reasonably certain is a high threshold (potentially implying a probability of 75% to 80%).Purchase options should be treated similarly.

This ASU is effective for all entities other than public business entities for fiscal years beginning after December 15, 2019 (calendar year 2020). The amendments for public business entities are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted.

2016-13 Financial Instruments — Credit Losses (Topic 326)

Measurement of Credit Losses on Financial Instruments

This ASU is applicable to all entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. Therefore, this standard will have far-reaching effects.  It will affect not only the banking and financial industry but also virtually all operating entities with trade receivables and notes receivable, being two of the more common financial instruments.

The main provision of this amendment is to change the basis of recording credit losses from an “incurred loss” methodology to a current expected credit loss model. Expected losses are required to be recorded at the time of recognizing the financial instrument (e.g., sale of product and recording an accounts receivable).

Under the revised guidance, financial assets measured at amortized cost basis (e.g., loans receivable, trade receivables and off-balance-sheet credit exposures) are required to be presented at the net amount expected to be collected. The measurement of expected credit losses will be based on relevant information about past events, current conditions and, new in 2016-13, reasonably supportable forecasts that affect collectability. 

Many of the loss-estimation techniques currently being used will continue to apply, although techniques will change to reflect forecasted information that captures an estimate of all expected credit losses. This is based on the premise that historical experience may not fully reflect expectations about future estimated expected credit losses; therefore, estimating credit losses based solely on historical experience is no longer permitted.

Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This changes the existing accounting, which recognizes such losses as a write-down in value. Recording the credit loss as an allowance allows for the potential recovery of the loss as circumstances change.

This ASU is effective for all entities, other than public business entities, for fiscal years beginning after December 15, 2020 (calendar year 2021); with early adoption permitted for fiscal years beginning after December 15, 2018 (calendar year 2019). For public business entities, it is effective for fiscal years beginning after December 15, 2019.

2016-14 Not-for-Profit Entities (Topic 958)

Presentation of Financial Statements for Not-for-Profit Entities

ASU 2016-14 is the first in the FASB’s efforts to improve the financial statements of not-for-profit entities (NFP). This ASU applies to NFPs, which include nongovernmental foundations, colleges, healthcare providers, religious organizations and others.

Some highlights include:

  • Reducing the number of net asset classes from three to two, resulting in the requirement for NFPs to present on the face of the statement of financial position amounts for net assets with donor restrictions and net assets without donor restrictions, as well as total net assets.
  • A requirement to report expenses by both their natural classification and their functional classification and disclose the methods used to allocate costs among program and support functions.
  • Enhanced disclosures about amounts and purposes of board-designated funds.
  • Provisions to improve the information presented in financial statements and notes that is useful in assessing a NFP’s liquidity, financial performance and cash flows.

This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017 (calendar year 2018). Early application is permitted.

2016-18 Statement of Cash Flows (Topic 230) — Restricted Cash

ASU 2016-18 sets out to reduce diverse practices in the classification and presentation of changes in restricted cash transactions on the statement of cash flows. The amendments in this ASU apply to all entities that have restricted cash or cash equivalents and are required to present a statement of cash flows. 

Some examples of restricted cash and cash equivalents include funds received with a donor-imposed restriction that limits use of that cash to a long-term purpose or funds required to be set aside by contractual arrangement, such as a reserve for payment for certain insurance claims or for escrow accounts for financing arrangements.

Some highlights include:

  • Accounts described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period cash reported on the statement. Therefore, activity within the restricted accounts will be recorded in the statement of cash flows.
  • The financial statements will require disclosure about the nature of restrictions on cash.
  • The statement of cash flows will now include, as applicable, captions:
    • Net increase (decrease) in cash, cash equivalents and restricted cash
    • Cash, cash equivalents and restricted cash — Balance beginning-of-period
    • Cash, cash equivalents and restricted cash — Balance end-of-period
  • When cash, cash equivalents and restricted cash are presented on different line items in the balance sheet, a reconciliation should be included on the face of the cash flow statement or in the notes to the financial statements which reconciles the total of the line items to the ending balance on the cash flow statement.

This ASU is effective for all entities, other than public business entities, for fiscal years beginning after December 15, 2018 (calendar year 2019). Early application is permitted. The effective date for public business entities is fiscal years beginning after December 15, 2017.

2017-04 Intangibles — Goodwill and Other (Topic 350)

Simplifying the Test for Goodwill Impairment

Current accounting for the subsequent measurement of goodwill requires an entity to perform procedures to determine the fair value of its individual assets and liabilities (including those unrecognized) at the impairment testing date following the same procedures that would be required in a business combination to arrive at a total entity value, from which the implied fair value of goodwill is derived. The carrying amount of goodwill is then compared to the implied fair value for goodwill.

The new standard eliminates this test and allows an entity to perform impairment testing by comparing the fair value of the reporting unit as a whole with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the fair value; such charge shall not, however, be greater than the amount of goodwill recorded.

This ASU should be applied on a prospective basis with early adoption permitted for testing dates performed after January 1, 2017. The standard is effective for public business entities that are SEC filers in fiscal years beginning after December 15, 2019; for other public business entities in fiscal years beginning after December 15, 2020; and for all other entities in fiscal years beginning after December 15, 2021 (calendar year 2022).

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 the Partial Sales of Nonfinancial Assets

While much has been publicized about the new standard for revenue recognition, it is important to highlight this update, which also relies on certain principles in ASC 606 Revenue from Contracts with Customers. Subtopic 610-20 was issued in Update 2014-09 which established ASC 606. Update 2017-05 is a clarification of the original issuance.

While ASC 606 deals with revenue generated by the ongoing activities of an entity, ASC 610-20 covers sales and disposals of nonfinancial assets in contracts with noncustomers. This primarily includes the sale of fixed assets (when this is not an entity’s ongoing activities); it is specifically relevant for real estate sales as the real-estate-specific guidance in current GAAP will be superseded.

Often sales of nonfinancial assets include financial assets. ASC 610-20 provides guidance detailing in what circumstances a financial asset is considered an “in substance” nonfinancial asset and can therefore be grouped with nonfinancial assets (such as selling a building with existing leases). An “in substance” nonfinancial asset is a financial asset that is promised to a counterparty in a contract in which substantially all the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. When evaluating if “substantially all” has been met, entities will exclude cash or cash equivalents and liabilities (both assumed and relieved).

The amendments in this update are effective at the same time as the new revenue recognition standard for annual reporting periods beginning after December 15, 2017 (calendar year 2018) for public entities, and for annual reporting periods beginning after December 15, 2018 (calendar year 2019) for all other entities.

2017-07 Compensation — Retirement Benefits (Topic 715)

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

The amendments in this update do not change the accounting for pension costs but rather address presentation issues. Under GAAP, defined benefit pension cost and postretirement benefit cost consist of several components (such as service costs, interest cost, actual return on plan assets, gain or loss, amortization of prior service costs or credit). Current GAAP does not definitively prescribe where the net benefit cost should be presented or what level of detail must be disclosed for the components.

This ASU requires that the service cost component of the net benefit cost be separated and reported in the same line item or items as other compensation costs for the respective employees. The other components should be presented outside of the subtotal of income from operations. The items should be described appropriately.

The amendments in this update are effective for annual reporting periods beginning after December 15, 2017 (calendar year 2018) for public entities, and for annual reporting periods beginning after December 15, 2018 (calendar year 2019) for all other entities. Early adoption is permitted.

Conclusion

The above reviewed ASUs are only a limited representation of the issued updates. For further detailed information, presentation and disclosure requirements on any of the accounting standards, visit FASB.org. This website includes issued standards, standards in draft form, effective dates, comment letters and much more. It is a valuable resource for staying up to date on U.S. GAAP.

In addition to the highlighted updates, there have been numerous others over the past few years that are equally important and should be properly evaluated for applicability to your organization. 

Please contact your Wipfli relationship executive if you have questions or need help with guidance on the applicability of any of the new standards.

Author(s)

Border_Sheila
Sheila Border, CPA
Senior Manager
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