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End of SEC Tax Reform Grace Period Could Increase Disclosures

Last December after the Tax Cuts and Jobs Act (“TCJA”) was signed into law, the Securities and Exchange Commission (“SEC”) issued interpretative guidance that allows companies to use good faith estimates to adapt to the income tax effects. With the guidance expiring soon, the agency is advising businesses to apply the income tax disclosure requirements under U.S. GAAP once the grace period ends. SEC Staff Accounting Bulletin (“SAB”) No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, allows businesses to use reasonable estimates and provisional amounts to calculate the new tax law’s impact. SAB No. 118 also. Read More.

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SEC Chief Accountant Offers Banks Advice on Implementing Credit Loss Standard

Along with attending a session with lawmakers and banking representatives on the Financial Accounting Standards Board’s credit loss standard , the Securities and Exchange Commission’s (“SEC”) Wesley Bricker gave a speech on the matter at the American Institute of Certified Public Accountants’ National Conference on Banks and Savings Institutions in Maryland. During his speech, the SEC chief accountant told financial companies to be careful when implementing Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. He advised banks to have an implementation process in place to understand the possible impact of the standard on their financial situation. Bricker’s reasoning is due to ASU No. 2016-13 requiring banks. Read More.

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SEC Deputy Chief Accountant Discusses Impact of Tax Reform

Earlier this month at the 37th annual Securities and Exchange Commission (“SEC”) and Financial Reporting Institute Conference, SEC deputy chief accountant Sagar Teotia spoke on the financial reporting impact of the Tax Cuts and Jobs Act. In particular, Teotia shared his observations on Staff Accounting Bulletin (“SAB”) No. 118, which was issued in January to help public companies and auditors adjust to the tax changes . He noted that SAB No. 118 does not offer companies an option to defer the application of the income tax guidance and splits the accounting for the income tax effects caused by the Act into three “buckets”. Teotia also cautioned that the disclosure guidance under SAB No. 118 offers financial statement users vital information concerning how. Read More.

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FASB Issues GAAP Taxonomy Improvements and Implementation Guidance

The Financial Accounting Standards Board (“FASB”) has issued GAAP Taxonomy improvements and implementation guidance concerning the following Accounting Standards Updates (“ASU”): ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU No. 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) ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) More on these Taxonomy Improvements is available on. Read More.

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SEC to Help Companies Disclose Tax Reform Effects

At a recent SEC Speaks event in Washington, D.C., Securities and Exchange Commission (“SEC”) chief accountant Wesley Bricker told attendees that the commission intends to help public companies with disclosures on their periodic filings related to the impact of the Tax Cuts and Jobs Act (“TCJA”). In his remarks, Bricker referenced Staff Accounting Bulletin No. 118, (Topic 5.EE), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was issued in December 2017. The bulletin covers the judgments and assumptions that a company’s management must make when including the effects of tax reform into financial statements. It also. Read More.

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FASB Standard Addresses New SEC Guidance

A new Accounting Standards Update (“ASU”) features amendments to select Securities and Exchange Commission (“SEC”) paragraphs under the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Issued as ASU No. 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), the standard amends the Accounting Standards Codification to incorporate the following SEC guidance: SEC Staff Accounting Bulletin (“SAB”) No. 116: SAB No. 116 aligns current SEC staff guidance with ASC Topic 606, Revenue from Contracts with Customers. This bulletin updated SAB Topic 13, Revenue Recognition, SAB Topic 8, Retail Companies,. Read More.

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