BDO KNOWLEDGE 2014 Technical Update Q1 Presenters · 2014-04-01 · BDO KNOWLEDGE WEBINAR SERIES Technical Update – Q1 2014 April 10, 11 or 14, 2014 Page 2 CPE AND SUPPORT CPE

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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 SERIES

Technical Update – Q1 2014

April 10, 11 or 14, 2014

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CPE AND SUPPORTCPE 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.

Certificate of Attendance:If you are logged in the entire time and respond to all participation pop-ups, you will be able to print your certificate from the “Participation” section at the end of the webcast. If you log out before printing your certificate:• BDO USA professionals ‒ CPE will automatically be issued in CPE Tracking & Reporting at the end of

every week. A copy of your certificate will be sent after you have been issued credit.• Clients and Contacts and all other individual participants ‒ You will be emailed instructions on how

to access your certificate.

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CPE AND SUPPORT (CONTINUED)Group Participation ‒ To receive credit:• Sign-in sheets must list a Proctor name and CPA license number.• Clients and contacts ‒ Email sign-in sheets to [email protected] within 24 hours of the webcast.• BDO USA professionals ‒ Submit your sign-in sheets using a General Training & Development Request in

BDO Service Now found at: BDOWorld > Applications & Resources > BDO Service Now > Click “Service Catalog” in the left menu, then under Training & Development, “Make a Request”.

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LEARNING OBJECTIVES

Upon completion of this course participants will be able to:

• Recognize recently released FASB guidance and appropriately implement relevant guidance to their business

• Describe project and proposal stage literature that may have a broad impact on financial reporting

• Analyze pitfalls in implementing new guidance• Discuss recent and proposed SEC and PCAOB rulemaking

and activities

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DISCUSSION AND PRESENTER OUTLINE

• Accounting UpdateAdam Brown, Partner, BDO USA, [email protected]

• SEC Matters UpdateJeff Lenz, Partner, BDO USA, [email protected]

• PCAOB and Other Update Amy Rojik, Director BDO USA, [email protected]

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Accounting Update

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ACCOUNTING UPDATE – DISCUSSION OUTLINE

• “Big 3” Convergence Projects- Revenue - Leases- Financial Instruments- Convergence: 1 out of 3?

• Other FASB, EITF and PCC matters

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LEASE CLASSIFICATION – MARCH 2014 DECISION

• In a change from the ED, the FASB decided to use IAS 17 to determine the classification of a lease—whether or not the lease is effectively an installment purchase.

• Most existing capital leases would be Type A—separate amortization of ROU asset and LP liability.

• Most existing operating leases would be Type B—single line item “rent expense” recorded evenly over the term.

• Under IAS 17, an analysis of substance over form is required. The bright lines in current US GAAP (75% and 90%) would be eliminated.

• Lessor would only recognize Day 1 selling profit if it transfers control of the underlying asset to the lessee, consistent with the forthcoming revenue recognition project.

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OTHER LEASE PROVISIONS – MARCH 2014 DECISIONS

• Short term leases - 12 months or less. However, this test is based on the lease term that include renewal and termination options that are “reasonably certain.” As such, more leases are expected to qualify as ST.

• Portfolio approach – may be used if results are materially the same as if applied individually.

• FASB not expected to provide additional exemption for “small ticket” items.

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FINANCIAL INSTRUMENTS• Classification and Measurement- Abandoned “solely payments of principal and interest” cash flow test- Retained current US GAAP for classifying loans vs. securities- Retained bifurcation of embedded derivatives - Permits a fair value option for hybrid instruments, if bifurcation

otherwise applies

• Impairment- Affirmed “current expected credit loss” (CECL) approach for

instruments at amortized cost- estimate all cash flows not expected to be collected

- Modified CECL test for instruments at fair value – OCI

• Currently scheduled to issue standards in second half of 2014, but timing is subject to change.

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FASB UPDATE

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FINAL ASUS ISSUED 1Q 2014ASU 2014 - Title EITF PCC

01 Accounting for Investments in Qualified Affordable Housing Projects X

02 Accounting for Goodwill X

03 Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach X

04 Troubled Debt Restructurings by Creditors X

05 Service Concession Arrangements X

06 Technical Corrections and Improvements Related to Glossary Terms

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07 Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements X

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EITF AND PCC UPDATE

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ISSUE NO. 13-D, ACCOUNTING FOR SHARE-BASED PAYMENTS WHEN THE TERMS OF AN AWARD PROVIDE THAT A PERFORMANCE TARGET COULD BE ACHIEVED AFTER THE REQUISITE SERVICE PERIOD (EITF)

• Example: Award with two-year service requirement that vests upon an IPO anticipated in four years.

• Final ASU: Such features should be viewed as performance conditions and excluded from grant date fair value. Comp charge recognized when performance is considered “probable.”• Considered more operational than reflecting in grant date fair value.• Not expected to change practice for most companies.

• The final amendments are expected to be effective for all entities for annual periods beginning after December 15, 2015 and interim periods within those years. Early adoption is expected to be permitted.• ASU to be posted soon.

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MARCH EITF MEETING – OTHER ISSUES

Issue No. 12-F, "Recognition of New Accounting Basis (Pushdown) in Certain Circumstances” • Exposure draft anticipated soon: Option to apply pushdown accounting in the

standalone statements of a target company when an acquirer obtains control.

Ongoing Deliberations:• Issue No. 12-G, "Measuring the Financial Assets and the Financial Liabilities of a

Consolidated Collateralized Financing Entity”• Issue No. 13-F, "Classification of Certain Government Insured Residential

Mortgage Loans upon Foreclosure"• Issue No. 13-G, "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"

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PUBLIC COMPANY IMPLICATIONS OF PCC ACCOUNTING ALTERNATIVES• Public parent will need to conform private company subsidiary accounting in

consolidation.— Acquired business financial statements (SX 3-05)

• Public equity method investor will need to conform accounting of private investee.— Reverse goodwill amortization and simplified method of hedge accounting of

private equity method investee (SX 4-08g).— Presentation of equity method financial statements (SX 3-09)

• No transition guidance for private company going public, or vice-versa.

• No specified guidance regarding preferability of accounting changes away from PCC accounting alternatives.

• Definition of a private company not clear in all cases.— Private placement transactions and secondary markets

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ASU 2014-02, ACCOUNTING FOR GOODWILL (PCC)

Key provisions:• Option to amortize goodwill (GW) on straight-line basis over 10 years or

shorter life if appropriate

• If adopted, entity must also amortize fresh-start goodwill (Topic 852) and equity method goodwill (Topic 323)

• Entity may revise useful life if circumstances change; remaining GW to be amortized over revised useful life (prospective)

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Key provisions (continued)• Simplified one-step impairment test:- Test goodwill for impairment only when a triggering event occurs- Elect to perform the test either at entity-wide level or reporting unit level- Optional qualitative assessment (“Step 0”)- Amount of impairment, if any, is determined by comparing the fair value

(FV) of the entity/reporting unit to its carrying amount

• Equity method investments still reviewed for impairment under Topic 323.

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Frequently Asked Questions:• Early adoption• Pushdown accounting• Useful life determination• Impairment matters• Deferred tax matters• Disclosures• Changes in accounting principle and preferability• Impact on the auditor’s report

BDO’s FRL: http://www.bdo.com/download/3044

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ASU 2014-03, SIMPLIFIED HEDGE ACCOUNTING APPROACH (PCC)

Three key provisions1. Option to assume no ineffectiveness for a “plain-vanilla” receive-

variable, pay fixed interest rate swap (i.e., detailed hedge effectiveness testing not required) if specific criteria are met

2. Documentation requirements also relaxed – may be prepared any time prior to the date the financial statements are available for issuance

3. Option to record swap at settlement value vs. FV

If adopted, resulting P&L charge for interest expense will approximate that of a fixed-rate borrowing

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ASU 2014-03, SIMPLIFIED HEDGE ACCOUNTING APPROACH (PCC)Option to assume no ineffectiveness for a “plain-vanilla” receive-variable, pay fixed interest rate swap if the following criteria are met:

a. Both the variable rate on the swap and the borrowing are based on the same index and reset period (e.g., both the swap and borrowing are based on one-month LIBOR). Not limited to benchmark interest rates described in paragraph 815-20-25-6A.

b. The terms of the swap are typical (i.e., the swap is what is generally considered to be a “plain-vanilla” swap), and there is no floor or cap on the variable interest rate of the swap unless the borrowing has a comparable floor or cap.

c. The repricing and settlement dates for the swap and the borrowing match or are within a few days.

d. The swap’s FV at inception (that is, at the time the derivative was executed to hedge the interest rate risk of the borrowing) is at or near zero.

e. The notional amount of the swap matches the principal amount of the borrowing being hedged. In complying with this condition, the amount of the borrowing being hedged may be less than the total principal amount of the borrowing.

f. All interest payments occurring on the borrowing during the term of the swap (or the effective term of the swap underlying the forward starting swap) are designated as hedged whether in total or in proportion to the principal amount of the borrowing being hedged.

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ASU 2014-03, SIMPLIFIED HEDGE ACCOUNTING APPROACH (PCC)

Frequently Asked Questions:• Early adoption• Entity wide vs. instrument-by-instrument election• Existing and future swaps• Hedge documentation matters• Fair value vs. settlement value• Impact on the auditor’s report• Plain-vanilla swap• Forward-starting swap

BDO’s FRL: http://www.bdo.com/download/3044

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ASU 2014-07, APPLYING VIE GUIDANCE TO COMMON CONTROL LEASING ARRANGEMENTS (PCC)Option not to apply variable interest entity (VIE) guidance for assessing whether to consolidate a lessor when:

1. The lessor and the private company are under common control,2. The private company has a leasing arrangement with the lessor, 3. Substantially all of the activity between the two companies is related to

the leasing activity of the lessor to the private company lessee, AND4. If the private company lessee explicitly guarantees or provides collateral

for any obligation of the lessor legal entity related to the asset leased by the private company, then the principal amount of the obligation at inception of such guarantee/collateral arrangement does not exceed the value of the asset leased by the private company from the lessor.

If adopted, the entity would account for its lease under Topic 840 as either an operating or capital lease, as appropriate.

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ASU 2014-07, APPLYING VIE GUIDANCE TO COMMON CONTROL LEASING ARRANGEMENTS (PCC)

New disclosures required• The amount and terms of liabilities recognized by the lessor that create

financial exposure for the private company • Circumstances that are not recognized, but nonetheless expose the

private company to providing financial support to the lessor

The above disclosures would replace VIE disclosures, and supplement other applicable disclosures (e.g., leases, guarantees, related parties).

BDO Flash Report: http://www.bdo.com/download/3124

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SEC Matters Update

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RULEMAKING PROJECTS

• Crowdfunding: http://www.sec.gov/rules/proposed/2013/33-9470.pdf

• Regulation A+: http://www.sec.gov/rules/proposed/2013/33-9497.pdf

• Disclosure Efficiency: Study at http://www.sec.gov/news/studies/2013/reg-sk-disclosure-requirements-review.pdf

• Payments by Resource Extraction Issuers

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SEC STAFF ACTIVITIES

February 6, 2014 update of the Financial Reporting Manual posted: http://www.sec.gov/divisions/corpfin/cffinancialreportingmanual.shtml• Revised Section 9520 - stock-based compensation disclosures in MD&A

section of IPO registration statements• Changed updating process• See BDO Flash Report at: http://www.bdo.com/download/3065

Conflict Minerals FAQs: http://www.sec.gov/divisions/corpfin/guidance/conflictminerals-faq.htm

PCC/PBE Implementation issues

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Regulatory Update

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PCAOB ROUNDTABLE ON AUDITOR REPORTING MODEL

PCAOB hosted a public roundtable on April 2-3, 2014 on its August 2013 proposal

Auditor’s report would describe critical audit matters (CAM) as determined by the auditor –• Legal concerns – protection for auditors?• Infringement of management’s duties?• Voice for auditors?• Useful information for investors?

Auditors would evaluate and report on other information in the annual report • What does evaluate mean?• Objectively verifiable information

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OTHER SEC ACTIVITIES

SEC Roundtable on Cybersecurity• Focus on public companies and other market participants• How companies and other market participants are addressing such risks• Awareness and concerns at public company board level

SEC approval of PCAOB AS 17 – Auditing Supplemental Material Accompanying Audited Financial Statements• Generally focused on required supplemental information – broker

dealer filings an example

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ACTIVITY IN EUROPE: IMPROVING QUALITY ON STATUTORY AUDITS

European Parliament approved proposal:• Limit term of auditor • Limit other services performed by auditors• If all approvals received will take effect within 2 years• Member states some judgment in how they adopt (term limits can vary)• Impacts European listed companies, banks and insurance companies• Impact on US banks with European subsidiaries

European Commission FAQ: http://europa.eu/rapid/press-release_MEMO-14-256_en.htm?locale=en

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ADDITIONAL WEBINARSBDO Knowledge Webinar Archives:• BDO Board Matters – Top Issues at 2014 Shareholder Meetings• Private Company Financial Reporting Update• Management Risk in Cyberspace

http://www.bdo.com/acsense/archive.aspx

BDO Knowledge Upcoming Webinars:• COSO 2013 – Practical Application – To Be Scheduled• Cybersecurity – Responding to a Cyber Breach – To Be Scheduled• Technical Update Q2 2014 – To Be Scheduled

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BDO BOARD REFLECTIONSAdditional resources accessible via the BDO Board Reflections:http://www.bdo.com/library/boardreflections.aspx

Recent BDO Publications:2013 COSO Internal Control – Integrated Framework – Update on Implementation Considerations• BDO Guide to Going Public• BDO Board Reflections: Perspectives on Executive Succession Planning• Cybersecurity – Its Impact on the External Audit and Other Recent

Developments• Cybersecurity – A Board Primer• Private Company Council (PCC) Flash Reports• SEC Proposes Amendments to Regulation A• Significant Accounting and Reporting Matters Guide

For a complete listing of publications, refer to: http://www.bdo.com/publications/assurance/

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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.

Group Participation Reminder – to receive credit:• Sign-in sheets must list a Proctor name and CPA license number.• Clients and Contacts – email sign-in sheets to [email protected] within 24 hours of the webcast.• BDO USA professionals ‒ Submit your sign-in sheets using BDO Service Now.• Alliance Firm Members – Should proctor their own group participants. This process is detailed in the LearnLive Participant Guide on Alliance Portal > Resource Center. Call LearnLive Support for questions – 1-888-228-4088.• International Firm Members - Unfortunately, we cannot currently support group CPE for International Firms. Those requesting CPE must have registered and participated from their own computer.

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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ACCOUNTING PRONOUNCEMENTS EFFECTIVE DATESPRONOUNCEMENT EFFECTIVE DATE – PUBLIC EFFECTIVE DATE – NON PUBLIC

ASC 205, Presentation of Financial Statements

ASU 2013-07, Liquidation Basis of Accounting

Effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013. Early adoption is permitted.

Effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013. Early adoption is permitted.

ASC 220, Comprehensive Income

ASU 2013-01, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

Effective prospectively for reporting periods beginning after 12/15/2012.

Effective prospectively for reporting periods beginning after 12/15/2013. Early adoption is permitted.

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ASC 230, Statement of Cash Flows

ASU 2012-05, Not-for-Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows (a consensus of the FASB Emerging Issues Task Force)

Not applicable to public entities.

Effective prospectively for fiscal years, and interim periods within those years, beginning after 6/15/2013. Retrospective application to all prior periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted. For fiscal years beginning before 10/22/2012, early adoption is permitted only if an NFP’s financial statements for those fiscal years and interim periods within those years have not yet been made available for issuance.

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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.

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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 350, Intangibles – Goodwill and Other

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


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 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 12/31/2013. 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 12/31/2014 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.

ASC 720, Other Expenses

ASU 2011-06, Fees Paid to the Federal Government by Health Insurers (a consensus of the FASB Emerging Issues Task Force)

Effective for calendar years beginning after 12/31/2013, when the fee initially becomes effective.

Effective for calendar years beginning after 12/31/2013, when the fee initially becomes effective.

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ASC 740, Income Taxes

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 810, Consolidation

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


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


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 815, Derivatives and Hedging

ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for hedge Accounting Purposes (a consensus of the FASB Emerging Issues Task Force)

Effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013.

Effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013.

ASC 820, Fair Value Measurement

ASU 2013-09, Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update no 2011-04


Effective upon issuance for financial statements that have not been issued.

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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 12/31/2013. 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 12/31/2014 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 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 926, Entertainment - Films

ASU 2012-07, Accounting for Fair Value Information That Arises after the Measurement Date and its Inclusion in the Impairment Analysis of Unamortized Film Costs (a consensus of the FASB Emerging Issues Task Force)

Effective for impairment assessments performed on or after 12/15/2012. The amendments resulting from this Issue should be applied prospectively. In addition, earlier application is permitted, including for impairment assessments performed as of a date before 10/24/2012, if, for SEC filers, the entity’s financial statements for the most recent annual or interim period have not yet been issued.

Effective for impairment assessments performed on or after 12/15/2013. The amendments resulting from this Issue should be applied prospectively. In addition, earlier application is permitted, including for impairment assessments performed as of a date before 10/24/2012, if interim period financial statements have not yet been issued or, for all other entities, have not yet been made available for issuance.

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ASC 946, Financial Services – Investment Companies

ASU 2013-08, Financial Services –Investment Companies (Topic 946): Amendments to the Scope measurement and Disclosure Requirements

Effective for an entity’s interim and annual reporting periods in fiscal years that begin after 12/15/2013. Earlier application is prohibited.

Effective for an entity’s interim and annual reporting periods in fiscal years that begin after 12/15/2013. Earlier application is prohibited.

ASC 954, Health Care EntitiesASU 2012-01, Continuing Care Retirement Communities –Refundable Advance Fees

Effective for fiscal years beginning after 12/15/2012. Early adoption is permitted. Entities must apply the requirements retrospectively by recording a cumulative-effect adjustment to opening retained earnings (or unrestricted assets) as of the beginning of the earliest period presented.

Effective for fiscal years ending after 12/15/2013. Early adoption is permitted. Entities must apply the requirements retrospectively by recording a cumulative-effect adjustment to opening retained earnings (or unrestricted assets) as of the beginning of the earliest period presented.

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ASC 958, Not-for-Profit Entities

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


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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Other Topics

ASU 2014-06, Technical Corrections and Improvements Related to the Glossary Terms

The amendments resulting from this Update do not have transition guidance and will be effective upon issuance.

The amendments resulting from this Update do not have transition guidance and will be effective upon issuance.

ASU 2014-12, Definition of a Public Business Entity (An Addition to the Master Glossary)

There is no actual effective date for the amendment in this Update. However, the term public business entity will be used in Accounting Standards Updates No. 2014-01 and 2014-02, which are the first Updates that will use the term public business entity.

There is no actual effective date for the amendment in this Update. However, the term public business entity will be used in Accounting Standards Updates No. 2014-01 and 2014-02, which are the first Updates that will use the term public business entity.

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Other Topics

ASU 2012-04, Technical Corrections and Improvements

The amendments in this Update that do not have transition guidance are effective upon issuance for both public entities and nonpublic entities. The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after 12/15/2012.

The amendments in this Update that do not have transition guidance are effective upon issuance for both public entities and nonpublic entities. The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after 12/15/2013.

Documents

BDO KNOWLEDGE 2014 Technical Update Q1 Presenters · 2014-04-01 · BDO KNOWLEDGE WEBINAR SERIES Technical Update – Q1 2014 April 10, 11 or 14, 2014 Page 2 CPE AND SUPPORT CPE