BDO KNOWLEDGE WEBINAR SERIES€¦ · BDO KNOWLEDGE WEBINAR SERIES Technical Update – Q4 2015 January 7, 8, and 11, 2016 . Page 2 CPE AND SUPPORT CPE Participation Requirements ‒To

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

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BDO KNOWLEDGE WEBINAR SERIESTechnical Update – Q4 2015

January 7, 8, and 11, 2016

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CPE AND SUPPORT

CPE Participation Requirements ‒ To receive CPE credit for this webcast:• You’ll need to actively participate throughout the program.• Be responsive to at least 75% of the participation pop-ups. • Please refer the CPE & Support Handout in the Handouts section for more

information about group participation and CPE certificates.

Q&A: Submit all questions using the Q&A feature on the lower right corner of the screen. At the end of the presentation, the presenter(s) will review and answer all questions submitted.

Technical Support: If you should have technical issues, please contact LearnLive:• Click on the Live Chat icon under the Support tab, OR call: 1-888-228-4088

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WITH YOU TODAY

Adam BrownNational Director of AccountingBDO USA, LLPDirect: (214) [email protected]

Paula HamricDirector, SEC PracticeBDO USA, LLPDirect: (312) [email protected]

Jeff LenzNational Director of SEC PracticeBDO USA, LLPDirect: (312) [email protected]

Amy RojikNational Assurance PartnerBDO USA, LLPDirect: (617) [email protected]

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AGENDA

• Accounting Update• SEC Matters Update• PCAOB and Governance Update

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Accounting Update

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ACCOUNTING UPDATE – DISCUSSION OUTLINE

• “Big 3” Convergence Projects• Revenue • Leases• Financial Instruments

• Other FASB, EITF and PCC matters

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REVENUE RECOGNITION

FASB Proposed ASUs• Performance Obligations• Licenses of Intellectual Property• Principal vs Agent (Gross vs Net)• Narrow-Scope ImprovementsFinal guidance expected early in 2016

Transition Resource Group• Next meeting to be determined

BDO Resource Webpagehttps://www.bdo.com/services/assurance/revenue-recognition/overview

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LEASES AND FINANCIAL INSTRUMENTS

Leases• Status: final standard is expected in early 2016

Financial Instruments• Status:

• Classification and Measurement - ASU issued on January 5th 2016• Impairment - ASU expected in 2016• Hedging - Proposed ASU expected in Q1 2016

Stay Tuned - future BDO Knowledge Webinars planned

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FASB UPDATE

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FINAL ASUS ISSUED Q4 2015

ASU 2015- Title

17 Balance Sheet Classification of Deferred Taxes

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ASU 2015-17: BALANCE SHEET CLASSIFICATION OF DEFERRED TAXES

• Requires presentation of deferred taxes as a single noncurrent amount in the balance sheet:• Assets and liabilities of the same tax jurisdiction or tax filing group• Any related valuation allowance

• Effective date: (early adoption permitted)

• Transition: Prospective or retrospective• BDO Alert: https://www.bdo.com/insights/assurance/fasb/fasb-flash-

report-december-2015

Public Business Entities All Other Entities

FYs beginning after 12/15/16 (and interim periods within)

FYs beginning after 12/15/17 (interim periods within FYs beginning after 12/15/18)

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EITF AND PCC UPDATE

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EITF UPDATE

EITF meeting – November 2015• Final consensuses:

• Issue 15-B: Recognition of Breakage for Certain Prepaid Stored-Value Cards

• Issue 15-D: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships

• Issue 15-E: Contingent Put and Call Options in Debt Instruments

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EITF UPDATE

EITF meeting – November 2015 (continued)• Consensus-for-exposure:

• Issue 15-F: Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments1. Debt prepayment or extinguishment costs 2. Settlement of zero-coupon bonds3. Contingent consideration payments made after a business combination4. Restricted cash transactions 5. Proceeds from the settlement of insurance claims6. Proceeds from the settlement of company-owned life insurance (COLI)7. Distributions received from equity method investees8. Beneficial interests in securitization transactions9. Application of the predominance principle

• Next EITF meeting date is March 3, 2016

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PCC UPDATE

PCC Meeting – December 2015• Final consensus reached: Preferability Assessment and Transition of

PCC Alternatives • Other topics discussed:

• Applying Variable Interest Entities (VIE) Guidance to Non-Leasing Common Control Arrangements

• Disclosure Framework – Income Taxes• Improving the Presentation of Net Periodic Pension Cost and Net Periodic

Postretirement Benefit Cost

• Next PCC meeting date TBD

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SEC Matters Update

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SEC UPDATE – DISCUSSION OUTLINE

Topics -• Commission Activities• Practice reminders for this reporting season identified at the 2015 SEC

Conference

Resources -January 2016 BDO Knows: SEC newsletters• 2015 SEC Year in Review• Report on the 2015 SEC Conference

Newsletters located at:http://www.bdo.com/insights (menu option: Assurance)

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COMMISSION ACTIVITIES

• Fixing America’s Surface Transportation (FAST) Act – amendments to securities laws

• JOBS Act Rulemaking – Crowdfunding• Dodd-Frank Act Rulemaking – Resource Extraction Issuers

Alert available at:https://www.bdo.com/insights/assurance/sec/sec-flash-report-

december-2015-(1)

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FAST ACT

• Impact on emerging growth companies • Timing of publicly filing confidential submissions• Grace period for maintaining EGC status • Omission of certain historical financial statements in pre-effective

submissions• C&DIs

• SRCs and Form S-1• Regulation S-K study and revisions• Form 10-K summary page• Others

Alert available at:https://www.bdo.com/insights/assurance/sec/sec-flash-report-

december-2015

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PRACTICE REMINDERS – SEC CONFERENCETHEMES AND FREQUENT TOPICS

• Readiness for implementing new accounting standards• ICFR• Audit committee’s role • Disclosure effectiveness • Use of IFRS by domestic issuers• Accounting and disclosure matters

• Segment reporting• Non-GAAP disclosures• Foreign taxes

Speeches available at:http://www.sec.gov/news/speech.shtml

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REVENUE RECOGNITION - IMPLEMENTATION

The SEC staff continues to emphasize timely implementation efforts:• Revenue is one of the single most important measures used by investors• The Transition Resource Group (TRG) is addressing implementation questions• 75% of companies indicated they have not completed an initial assessment,

according to a recent survey• Industry specific efforts should be elevated to the TRG, as necessary• Companies should invest in appropriate resources (human and financial)

Remarks of Wes Bricker, Deputy Chief Accountant http://www.sec.gov/news/speech/bricker-remarks-2015-aicpa-conference-sec-pcaob-developments.html

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OTHER ACCOUNTING TOPICS

PAF Speeches – available at: http://www.sec.gov/news/speeches• Discontinued operations and share-based payments (post-vesting

restrictions) (Kanczuker)• Segment reporting (Sachtleben)• Customer incentives and ASU 2015-02 (Consolidation) (Semesky)• Defined benefit plans – changes in key assumptions and market interest

information (Wright)• Allowance for loan losses and consolidation – risk retention (Rickli)• Auditor independence issues (Husich)• Fair value measurements (Shirley)

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PCAOB and Governance Matters Update

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PCAOB CURRENT PROJECTSProject Timing

Reorganization of PCAOB Auditing Standards Effective as of 12/31/2016 with early implementation by auditors permitted.

Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits

Standard issued December 2015 – pending SEC approval

Supervision of Other Auditors and Multi-Location Audit Engagements

Proposed standard anticipated – Q1 2016

Going Concern Staff Consultation Paper anticipated - Q1 2016

Auditor’s Reporting Model Reproposed standard anticipated – Q1 2016

Auditor’s Use of the Work of Specialists Staff Consultation Paper issued May 2015; comments were due 7/31/2105Moving toward proposal phase – Q2 2016

Auditing of Accounting Estimates, Including Fair Value Measurements and Related Disclosures

Proposed standard anticipated – Q2 2016

Quality Control Standards Staff Consultation Paper anticipated – Timing TBD

Confirmation Reproposed standard anticipated – Timing TBD

Audit Quality Indicators Concept Release issued July 2015; comments were due 9/28/2015

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PCAOB RECENT ACTIVITYTransparency Reporting: Disclosure of Engagement Partner and Certain Audit Participants• In December 2015, the PCAOB adopted rules 3210 and 3211. In conjunction with these

new rules, auditors will be required to file a new PCAOB Form AP, “Auditor Reporting of Certain Audit Participants” for each issuer audit that includes:• The name of the engagement partner;• The names, location, and extent of participation of each other accounting firm

participating in the audit whose work constituted 5 percent of the total audit hours; and

• The number and aggregate extent of participation of all other accounting firms that took part in the audit whose individual participation was less than 5 percent of the total audit hours.

• Filing deadlines: 35 days after the date the auditor’s report is first included in a document filed with the SEC (Note: For IPOs, filing deadline is 10 days)

• Effective: • Auditor's reports issued on or after January 31, 2017*• For disclosure of other audit firms participating in the audit: Reports issued on or

after June 30, 2017.• Form AP will be accessible through a searchable database on PCAOB’s website.

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PCAOB OBSERVATIONS ON RISK ASSESSMENT AUDITING STANDARDS

• In October, the PCAOB issued Release 2015-007 that summarizes the PCAOB’s 2012-2014 audit inspection observations related to PCAOB “Risk Assessment” Auditing Standards No. 8-15.

• The Release contains common deficiencies noted across audit firms and indicates that the PCAOB remains concerned with preliminary 2014 inspection findings related to such standards.

• Release 2015-007: http://pcaobus.org/Inspections/Documents/Risk-Assessment-Standards-Inspections.pdf

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CENTER FOR AUDIT QUALITY ACTIVITY• In a December letter to the PCAOB, the CAQ issued Auditing Accounting

Estimates and Fair Value Measurements: A Framework• The Framework is a principles-based framework that allows for scalability and

includes examples designed to:• Improve linkage between performance requirements under existing PCAOB

auditing standards and the auditor’s risk assessment process when determining an appropriate audit response

• Clarify objectives and scope of standards to reduce perceived inconsistencies in expectations for substantive testing of FV measurements vs. other accounting estimates

• Provide supplemental or application guidance to promote greater consistency and more effective application across the audit profession

• The Framework expands on the views expressed in previous CAQ comment letters on standard-setting activities related to auditing accounting estimates, including fair value measurements, as well as the use of the work of specialists.

• Refer to this and other resources available on at: http://thecaq.org/.

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ADDITIONAL RESOURCES ACCESSIBLE VIA BDO BOARD GOVERNANCE:HTTPS://WWW.BDO.COM/SERVICES/ASSURANCE/BOARD-GOVERNANCE/OVERVIEW

RECENT BDO PUBLICATIONS:

• 2015 SEC Year in Review• 2015 Accounting Year in Review• 2015 AICPA SEC and PCAOB Conference • SEC Re-Proposes Rule Requiring Resource

Extraction Issuers to Disclose Payments to Governments

• FAST Act Amends SEC Reporting Requirements

• PCAOB Adopts Rules Requiring Disclosure of the Engagement Partner and Other Accounting Firms Participating in an Audit

• PCAOB Re-Opens Comment Period on Audit Quality Indicators Concept Release

• FASB Issues ASU to Simplify the Balance Sheet Presentation of Deferred Income Taxes

• FASB Issues ASU to Simplify the Accounting for Measurement-Period Adjustments

• Variable Interest Entities – After Adoption of ASU 2015-02

• Variable Interest Entities – Before Adoption of ASU 2015-02

BDO BOARD GOVERNANCE

For a complete listing of BDO publications, refer to: https://www.bdo.com/insights/

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BDO BOARD GOVERNANCEUpcoming BDO Governance and Financial Reporting Knowledge Webinars: • What’s on the Minds of Boards - January 12, 2016• The Board’s Role in Emerging Practices in Risk Management – January 28, 2016• Elevation of Cybersecurity to the Boardroom – February 26, 2016*Registration will be available shortly on https://www.bdo.com/events

Recent Archived Webinars: • Effective Audit Committees – November 2015• Establishing an Effective Internal Audit Function - October 2015• The Board’s Role in Anticorruption Compliance – October 2015• Quarterly Technical Update (Q3 2015) – October 2015• Revenue Recognition Transition Resource Group 2015 Update – September 2015• How ASU 2015-02 Changes Consolidation Accounting - May 2015 • Data Analytics and Risk Management – A Board Primer – April 2015 • 2015 Executive Pay Outlook for Mid-Cap Companies – March 2015• What’s On the Minds of Boards – January 2015

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GET TO KNOW BDOBDO commits significant resources to keep our professionals and our clients up to date on current and evolving technical, governance, industry and reporting developments. Visit http://www.bdo.com for all of our offerings.

To begin receiving email notifications regarding BDO publications and event invitations (live and web-based), visit https://www.bdo.com/member/registration and create a user profile. If you already have an account on BDO’s website, visit the My Profile page to login and manage your account preferences https://www.bdo.com/member/my-profile.

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GET TO KNOW BDOINDUSTRY EXPERIENCE

Industry experience has emerged at the top of the list of what businesses need and expect from their accountants and advisors. The power of industry experience is perspective - perspective we bring to help you best leverage your own capabilities and resources.

BDO’s industry focus is part of who we are and how we serve our clients, and has been for over a century. We demonstrate our experience through knowledgeable professionals, relevant client work and participation in the industries we serve.

A variety of publications and insights depicting specific industry issues, emerging trends and developments are available. For further information on the following BDO industries, please visit https://www.bdo.com/industries.

• Asset Management• Broker Dealers• Consumer Business• Financial Services • Gaming, Hospitality & Leisure • Government Contracting • Healthcare • Insurance

• Manufacturing & Distribution• Natural Resources • Nonprofit & Education • Private Equity • Public Sector• Real Estate & Construction • Restaurants • Technology & Life Sciences

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EVALUATION

We continually try and improve our programming and appreciate constructive feedback.

Following the program, we will be sending out a thank you e-mail that contains a link to a brief evaluation.

Thank you in advance for your participation!

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CONCLUSIONTHANK YOU FOR YOUR PARTICIPATION!

Certificate Availability – If you participated the entire time and responded to at least 75% of the polling questions, click the Participation tab to access the print certificate button.

Please exit the interface by clicking the red “X” in the upper right hand corner of your screen.

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APPENDIXEffective Dates of U.S. Accounting Pronouncements

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PRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC

ASC 205, Presentation of Financial Statements

ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

Effective for all entities, unless they have adopted the liquidation basis of accounting under Subtopic 205-30. The new standard applies prospectively to annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted.

Effective for all entities, unless they have adopted the liquidation basis of accounting under Subtopic 205-30. The new standard applies prospectively to annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted.

ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity

Effective for annual periods beginning on or after December 15, 2014, and interim periods within those years. Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements.

Effective for annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015.

Entities should not apply the amendments to a component of an entity (or a business or nonprofit activity) that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements.

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ASC 225, Income Statement

ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.

Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.

ASC 260, Earnings Per Share

ASU 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the Emerging Issues Task Force)

Effective retrospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted.


ASC 310, Troubled Debt Restructuring by Creditors

ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure

Effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted, if the entity has already adopted ASU 2014-04.

Effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted, if the entity has already adopted ASU 2014-04.

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ASC 310, Troubled Debt Restructuring by Creditors

ASU 2014-04, Reclassification of Residential Real Estate collateralized consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)

Effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method.

Effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method.

ASC 323, Investments – Equity Method and Joint Ventures

ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)

Effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. If adopted, the amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments.

Effective for annual periods beginning after December 15, 2014, and interim periods within annual reporting periods beginning after December 15, 2015. Early adoption is permitted. If adopted, the amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments.

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ASC 330, Inventory

ASU 2015-11, Simplifying the Measurement of Inventory

Effective prospectively for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period.

If an entity has previously written down inventory (within the scope of the ASU) below its cost, that reduced amount is considered the cost upon adoption. Upon adoption, the change from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of the ASU will be accounted for as a change in accounting principle

Effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. If an entity has previously written down inventory (within the scope of the ASU) below its cost, that reduced amount is considered the cost upon adoption. Upon adoption, the change from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of the ASU will be accounted for as a change in accounting principle

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ASC 350, Intangibles – Goodwill and Other

ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

Effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively.

Effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively.

ASU 2014-02, Accounting for Goodwill (a consensus of the Private Company Council)

Not applicable to public entities. The accounting alternative, if elected, should be applied prospectively to goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted, including application to any period for which the entity’s annual or interim financial statements have not yet been made available for issuance.

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ASC 360, Property, Plant, and Equipment

ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity

Effective for annual periods beginning on or after December 15, 2014, and interim periods within those years.


Effective for annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015.


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ASC 405, LiabilitiesASU 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)

Effective for fiscal years, and interim periods within those years, beginning after December 31, 2013. Early adoption is permitted. Retrospective application is required for all periods presented. Entities are permitted to use hindsight when determining the appropriate amount to be recorded in prior periods.

Effective for fiscal years ending after December 31, 2014 and interim and annual periods thereafter. Early adoption is permitted. Retrospective application is required for all periods presented. Entities are permitted to use hindsight when determining the appropriate amount to be recorded in prior periods.

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ASC 606, Revenue

ASU 2014-09, Revenue from Contracts with Customers;

ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date

Effective for annual periods beginning after December 15, 2017, including interim periods therein. Entities may adopt using a retrospective approach (with certain optional practical expedients) or a cumulative effect approach. Under the this alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2018) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year.

Effective for annual periods beginning after December 15, 2018. In addition, the new standard is effective for interim periods within annual periods that begin after December 15, 2019. The same transition alternatives apply.

Early adoption is permitted as of either: An annual reporting period beginning

after December 15, 2016, including interim periods within that year, or

An annual reporting period beginning after December 15, 2016 and interim periods within annual reporting periods beginning one year after the annual period in which the entity first applies the new standard.

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ASC 715, Compensation—Retirement Benefits

ASU 2015-04, Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets

Effective prospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted.

Effective prospectively for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted.

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ASC 718, Compensation—Stock Compensation

ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)

Effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.

Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost.

Effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted.

Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost.

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ASC 740, Income Taxes

ASU 2015-17, Balance Sheet Classification of Deferred Taxes

Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted as of the beginning of any interim or annual reporting period.

Effective for fiscal years beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted as of the beginning of any interim or annual reporting period.

ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)

Effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted.

Effective for fiscal years and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted.

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ASC 805, Business Combinations

ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments

Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted.

Effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted.

ASU 2015-08, Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 (SEC Update)

SAB 115 became effective November 21, 2014.

Not applicable to private entities.

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ASU 2014-18, Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council)

Not applicable to public entities.

If elected, the accounting alternative should be applied to eligible transactions in fiscal years beginning after December 15, 2015. Specifically, if the first eligible transaction occurs in the first fiscal year beginning after December 15, 2015, the elective adoption will be effective for that fiscal year’s annual financial reporting and all interim and annual periods thereafter. If the first eligible transaction occurs in fiscal years beginning after December 15, 2016, the elective adoption will be effective in the interim period that includes the date of that first in-scope transaction and subsequent interim and annual periods thereafter. Early application is permitted for any interim and annual financial statements that have not yet been made available for issuance.

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ASU 2014-17, Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)

Effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event.

Effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event.

ASC 810, Consolidation

ASU 2015-02, Amendments to the Consolidation Analysis

Effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.

Effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017.

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ASU 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity

Effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. Entities may adopt using either a full or modified retrospective approach. The modified approach only impacts the annual period of adoption by recording a cumulative-effect adjustment to equity.

Effective for annual periods beginning after December 15, 2016, and interim and annual periods thereafter. Early adoption is permitted as of the beginning of an annual period. Entities may adopt using either a full or modified retrospective approach. The modified approach only impacts the annual period of adoption by recording a cumulative-effect adjustment to equity.

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ASU 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements (a consensus of the Private Company Council)

Not applicable to public entities. If elected, the accounting alternative is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted, including application to any period for which the entity’s annual or interim financial statements have not yet been made available for issuance. The accounting alternative should be applied retrospectively to all periods presented. Prospective adoption is not permitted.

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ASC 815, Derivatives and Hedging

ASU 2015-13, Application of the Normal Purchases and Normal Sales Exception to Certain Electricity Contracts within Nodal Energy Markets

Effective upon issuance and should be applied prospectively. An entity will have the ability to designate qualifying contracts that are entered into on or after the effective date of the ASU as normal purchases and normal sales (“NPNS”). Because an entity may elect the NPNS scope exception at contract inception or at a later date, it also will be able to designate qualifying contracts entered into before the effective date as NPNS, but only prospectively.

Effective upon issuance and should be applied prospectively. An entity will have the ability to designate qualifying contracts that are entered into on or after the effective date of the ASU as normal purchases and normal sales (“NPNS”). Because an entity may elect the NPNS scope exception at contract inception or at a later date, it also will be able to designate qualifying contracts entered into before the effective date as NPNS, but only prospectively.

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ASC 815, Derivatives and Hedging

ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force)

Effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015.

Effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016.

ASU 2014-03, Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach (a consensus of the Private Company Council)

Not applicable to public entities.

If elected, the simplified hedge accounting approach will be effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted, and private companies are able (but not required) to adopt the new standards for December 31, 2013 year-end financial statements that are not yet available for issuance. Private companies have the option to apply the amendments in this Update using either a modified or full retrospective approach.

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ASC 820, Fair Value Measurement

ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force)



ASC 830, Foreign Currency Matters

ASU 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force)

Effective prospectively for all entities with derecognition events after the effective date. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 31, 2013. Early adoption is permitted. If early adoption is elected, the guidance should be applied as of the beginning of the entity’s fiscal year of adoption.

Effective prospectively for all entities with derecognition events after the effective date. The guidance is effective for fiscal years beginning after December 31, 2014 and interim and annual periods thereafter. Early adoption is permitted. If early adoption is elected, the guidance should be applied as of the beginning of the entity’s fiscal year of adoption.

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ASC 835, Interest

ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting)

Effective upon issuance. Effective upon issuance.

ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs


Effective retrospectively for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption is permitted.

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ASC 853, Service Concession Arrangements

ASU 2014-05, Service Concession Arrangements (a consensus of the FASB Emerging Issues Task Force)

Effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied on a modified retrospective basis, to all arrangements existing at the beginning of the fiscal year of adoption and to all arrangements entered into after that date.

Effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted. The amendments should be applied on a modified retrospective basis, to all arrangements existing at the beginning of the fiscal year of adoption and to all arrangements entered into after that date.

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ASC 860, Transfers and Servicing

ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures

The accounting changes and disclosure for certain transactions accounted for as a sale are effective for the first period (interim or annual) beginning after December 15, 2014. Earlier application for a public business entity is prohibited. The disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and for interim periods after March 15, 2015.

The accounting changes and both new disclosures are effective for annual periods beginning after December 15, 2014 and interim periods after December 15, 2015. These entities may elect early application and apply the requirements for interim periods beginning after December 15, 2014.

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ASC 915, Development Stage Entities

ASU 2014-10, Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation

DSE requirements – Effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. While the elimination of the DSE financial reporting requirements applies retrospectively, the new disclosures about related risks and uncertainties are required prospectively.

Early adoption is permitted for financial statements that have not yet been issued or made available for issuance.

Consolidation update – Effective for annual reporting periods beginning after December 15, 2015 and interim periods therein. The amendments apply retrospectively and also generally incorporate the transition provisions of Statement 167 to address situations in which it may not be practicable to obtain the necessary information for prior years.

Early adoption is permitted for financial statements that have not yet been issued or made available for issuance.See also ASC 810, Consolidation.

DSE requirements – Effective for annual reporting periods beginning after December 15, 2014, and interim periods beginning after December 15, 2015. While the elimination of the DSE financial reporting requirements applies retrospectively, the new disclosures about related risks and uncertainties are required prospectively.

Early adoption is permitted for financial statements that have not yet been issued or made available for issuance.

Consolidation update – Effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods beginning after December 15, 2017. The amendments apply retrospectively and also generally incorporate the transition provisions of Statement 167 to address situations in which it may not be practicable to obtain the necessary information for prior years.

Early adoption is permitted for financial statements that have not yet been issued or made available for issuance.See also ASC 810, Consolidation.

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ASC 944, Financial Services—Insurance

ASU 2015-09, Disclosures about Short-Duration Contracts

Effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods within annual periods beginning after December 15, 2016. Early adoption is permitted.

Effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods within annual periods beginning after December 15, 2017. Early adoption is permitted.

ASC 958, Not-for-Profit Entities

ASU 2013-06, Services Received from Personnel of an Affiliate

Not applicable to public entities. Effective prospectively for fiscal years beginning after June 15, 2014, and interim and annual periods thereafter. A recipient not-for-profit entity may apply the amendments using a modified retrospective approach under which all prior periods presented upon the date of adoption should be adjusted, but no adjustment should be made to the beginning balance of net assets of the earliest period presented. Early adoption is permitted.

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ASC 960, Defined Benefit Pension Plans

ASU 2015-12, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient

Effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for all parts individually or in the aggregate. Part II of the ASU should be applied retrospectively, while Part III should be applied prospectively.

Effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for all parts individually or in the aggregate. Part II of the ASU should be applied retrospectively, while Part III should be applied prospectively.

ASC 962, Defined Contribution Pension Plans

ASU 2015-12, (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient

Effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for all three parts individually or in the aggregate. Parts I and II of the ASU should be applied retrospectively, while Part III should be applied prospectively.


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ASC 962, Health and Welfare Benefit Plans

ASU 2015-12, (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient



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Other

ASU 2015-10, Technical Corrections and Improvements

Transition guidance varies based on the individual amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments became effective upon issuance.

Transition guidance varies based on the individual amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments became effective upon issuance.

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