Financial Reporting and Regulatory Update

The quarterly Financial Reporting and Regulatory Update is prepared by the Financial Education & Research Foundation (FERF) in collaboration with Crowe LLP, highlighting pronouncements from the U.S. SEC, FASB, PCAOB, and other regulators and standard-setters. Each update includes ASU Effective Date Checklists for Public and Non-Public Business Entities.

Third Quarter 2018

Improvements in Accounting for the Costs of Cloud Computing Implementation

A Q&A With Sean Prince, Glenn Richards, and Matthew Schell of Crowe

Sean-Prince-(3).jpg
Sean Prince
Glenn Richards
Matthew Schell

Sean Prince is in the Crowe assurance professional practice; Glenn Richards is a partner in the Crowe audit services group and Matthew Schell is a partner in the Crowe assurance professional practice.

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Financial Reporting & Regulatory Update, Third Quarter 2018

During the third quarter of the 2018 calendar year, the Financial Accounting Standards Board (FASB) issued seven new accounting standards on the following topics:
  • General codification improvements
  • Lease accounting and transition improvements (Topic 842)
  • Long-duration insurance contracts
  • Fair value measurement disclosure
  • Defined benefit plan disclosure for sponsors
  • Implementation costs for cloud computing arrangements (CCAs)
The FASB also issued two proposals during the quarter – one related to lease accounting and one for financial instrument credit loss measurement.
The Securities and Exchange Commission (SEC) remained focused on disclosure and reporting simplifications and welcomed a new commissioner, Elad Roisman.
The Public Company Accounting Oversight Board (PCAOB) updated its staff guidance on the auditor’s reporting model and released its annual broker-dealer inspection report as well as a draft of its five-year strategic plan.
The Center for Audit Quality (CAQ) released a resource for audit committees and others seeking to understand critical audit matters (CAMs). It also released a tool for broker-dealers.
In addition to these highlights from the quarter, we have added recent developments from the Governmental Accounting Standards Board (GASB), including final standards and proposals.
Finally, checklists for the effective dates of FASB accounting standards updates (ASUs) and GASB statements are provided in the appendix.