FASB s new qualitative goodwill impairment assessment Implications and opportunities
|
|
- Lester Horace Harris
- 7 years ago
- Views:
Transcription
1 FASB s new qualitative goodwill impairment assessment Implications and opportunities
2 Complying with the requirement for annual goodwill impairment testing can be time-consuming and expensive for companies, especially private organizations. Recently, preparers of private companies financial statements have been striving for a less costly and complex solution. In response to their efforts, the Financial Accounting Standards Board (FASB) proposed, issued, and recently finalized Accounting Standards Update (ASU) No to the existing requirement, which introduced an optional qualitative impairment assessment. This article provides an overview of the current impairment testing requirement; the introduction of the qualitative assessment and evaluation process; the potential costs and savings associated with a qualitative assessment; and possible road bumps in its adoption and application.
3 Background Accounting Standards Codifi cation (ASC) requires that the Goodwill of a reporting unit shall be tested for impairment on an annual basis and between annual tests in certain circumstances. The annual goodwill impairment test may be performed any time during the fi scal year provided the test is performed at the same time every year. 1 This requirement applies to all entities, both public and nonpublic, that have goodwill recorded on their balance sheet. The annual goodwill impairment testing requirement is a two-step process involving a thorough quantitative analysis of a company s reporting units. The ASU introduces an optional qualitative impairment assessment effective for annual and interim goodwill impairments tests in fi scal years beginning after December 15, Furthermore, the ASU applies to both public and nonpublic companies and early adoption is permitted. Due to the complexity of performing Step 1 of the annual goodwill impairment testing, most companies engage valuation specialists to conduct the analysis, especially when the entity has executed a series of business combinations and has goodwill residing in various reporting units. Auditors also rely on the help of valuation specialists to evaluate the underlying data and assumptions. The complexities associated with Step 1 of the goodwill impairment testing could arise from assignment of assets/liabilities to reporting units; supportability of forecasts from a market participant perspective; discount rates and terminal value assumptions; choices of valuation multiples; and environmental awareness with respect to fi nancial reporting fair value estimates. In response to concerns raised about the complexity and cost associated with performing Step 1 of the goodwill impairment testing, the FASB proposed an update to ASC 350, Intangibles Goodwill and Other. The ASU introduced the option to perform a qualitative assessment of a reporting unit before performing Step 1 of the test, if necessary. A company may, at its discretion, bypass the qualitative assessment for any reporting unit in any period. The traditional goodwill impairment test is a two-step process: Step 1 Determine whether the fair value of the reporting unit is less than its carrying amount, including goodwill. If so, proceed to Step 2. If the fair value of the reporting unit is greater than the carrying amount, further testing of goodwill for impairment is not performed. Step 2 Determine the implied fair value of the goodwill of the reporting unit by assigning the fair value of the reporting unit used in Step 1 to all the assets and liabilities of that reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination (ASC 805). Compare the implied fair value of goodwill with the carrying amount of goodwill to determine whether goodwill is impaired. Calculate impairment loss as the carrying value minus the implied fair value of goodwill. The ASU: Qualitative assessment The ASU, a qualitative assessment option, is intended to reduce the costs and complexity of performing the annual goodwill impairment test. The qualitative assessment requires management to perform the assessment using a more likely than not concept. In other words, to determine whether there is a greater than 50 percent chance that the fair value of the company s reporting units is less than their carrying values. If, after performing the qualitative assessment, management determines there is less than a 50 percent chance that the fair value of a reporting unit is less than its carrying amount, then performing the two-step test is unnecessary. If a company elects to forgo the qualitative assessment and transitions directly to the traditional Step 1 reporting unit valuation, additional documentation, and associated audit procedures regarding the qualitative assessment are not required. 1 FASB Accounting Standards Codifi cation 350, Intangibles Goodwill and Other. 2
4 According to ASC C, In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, relevant events and circumstances shall be assessed. 2 Examples of such events and circumstances include the following: 1. Macroeconomic conditions: a. Deterioration in general economic conditions b. Limitations on accessing capital c. Fluctuations in foreign exchange rates d. Other developments in equity and credit markets 2. Industry and market considerations: a. Deterioration in the environment in which an entity operates b. Increased competitive environment c. Decline (both absolute and relative to its peers) in market-dependent multiples or metrics d. Change in the market for an entity s products or services e. Regulatory or political development 3. Cost factors: a. Increases in raw materials, labor, or other costs that have a negative effect on earnings and cash fl ows 4. Overall fi nancial performance: a. Negative or declining cash fl ows b. Decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods 5. Other relevant entity-specifi c events: a. Changes in management, key personnel, strategy, or customers b. Contemplation of bankruptcy c. Litigation 6. Events affecting a reporting unit: a. Change in the carrying amount of net assets b. More-likely-than-not expectation of selling or disposing all, or a portion of, a reporting unit c. Testing for recoverability of a signifi cant asset group within a reporting unit d. Recognition of a goodwill impairment loss in the fi nancial statements of a subsidiary that is a component of a reporting unit 7. A sustained decrease (both absolute and relative to its peers) in share price Complexities might prompt the need for valuation specialists While the premise of the qualitative assessment appears simple, the highly subjective nature of a qualitative assessment may often be challenging. Deloitte 3 anticipates that a signifi cant number of companies (both public and nonpublic) that elect to take advantage of the qualitative assessment option could still require the assistance of external valuation specialists to assess the relevant factors and prepare robust documentation capable of satisfying an auditor s challenge. The scrutiny of fi nancial statements by the Securities and Exchange Commission might deter large public companies, particularly those with complex business operations and an extensive goodwill balance (and private companies with public debt) from adopting the qualitative assessment option without outside valuation assistance. Another challenge could be the availability of suffi cient audit evidence that supports management s assessment. In cases where companies have a material goodwill asset, it is anticipated that a preparer would need to develop a robust analysis of the qualitative factors to support an assertion that goodwill is not impaired. Auditors will adjust the nature and extent of the procedures performed on the qualitative assessment to take into consideration the subjective nature of the assessment. Private companies and non-fi lers that choose to adopt the qualitative assessment option would be subject to the same audit procedures as public companies. However, the extent of those audit procedures is still to be determined, and will likely vary by company and its risk profi le. Some companies may not have the personnel with the knowledge and expertise to perform the assessment and provide the level of documentation necessary to support the position that goodwill is not impaired. 2 Ibid. 3 As used in this document, Deloitte means Deloitte Financial Advisory Services LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. 3
5 It is important to note that the scope of the qualitative testing is limited to goodwill. However, as of September 14, 2011, the FASB announced, based on feedback from the proposed ASU comments, that it had added a new short-term narrow-scope project to its Technical Agenda. The project will address how to simplify the manner in which an entity tests other indefi nite-lived intangible assets for impairment, as well as how to improve the consistency of impairment testing guidance among long-term asset categories. Potential to reduce impairment test cost and complexity The FASB s exposure draft was generally well-received by those responding with comment letters, with a signifi cant number supporting the goal of a reduction in cost and complexity for the impairment test. However, Deloitte s assessment of the uncertainties surrounding the qualitative impairment assessment and the potential diversity in practice caused by the ASU indicated that while the ASU could reduce the cost and complexity of goodwill impairment testing in certain cases, particularly for small private companies, the cost and complexities might not change signifi cantly for large, multinational, and public companies. The ASU could reduce cost and complexity if an entity recently performed a quantitative assessment of the fair value of a reporting unit and this fair value exceeded carrying value by a signifi cant margin or cushion. The estimated fair value could then be used as a baseline for subsequent interim and annual testing to analyze the effects of market conditions, industry changes, and other factors on the cushion. Cost savings could be realized if a valuation specialist performed both the initial quantitative testing used as the baseline and the interim and annual qualitative assessment thereafter. The company may consider under what conditions they would determine it appropriate to perform a quantitative test to ensure the accuracy and applicability of observable and market inputs. The ASU s basis for conclusions state that there is no requirement to perform a periodic update of a reporting unit s fair value estimate. Such a periodic update would enable companies to keep track of the relative movement of the reporting unit carrying value and its fair value. However, the ASU s basis for conclusions does note that the more time that elapses since an entity last calculated the fair value of a reporting unit, the more diffi cult it may be to make a conclusion based solely on a qualitative assessment of relevant events and circumstances. 4 The ability to adequately document, and then audit, a qualitative assessment may dissipate quickly for companies with frequent changes in reporting unit carrying value and volatile stock prices, as in today s markets. In addition, companies should note that in the ASU s Basis for Conclusions (BC 20) it states, The amendments do not change the guidance about other events affecting the recognition of goodwill that require an entity to calculate the fair value of a reporting unit, such as when an entity reorganizes its reporting structure in a manner that changes the composition of one or more reporting units and when an entity disposes of a portion of a reporting unit that constitutes a business. 5 As such, companies would likely need to perform a Step 1 valuation if the company reallocates assets/liabilities/goodwill or when there is a sale of a business from inside a reporting unit. Although these situations may not be frequent, it is another area where employing the qualitative option may not be feasible. The cost benefi t of performing the qualitative assessment could easily vanish in the following circumstances: The qualitative assessment indicated more than a 50 percent chance that the fair value of a reporting unit is less than its carrying amount; and The entity performed the qualitative assessment internally, but subsequently required the assistance of a valuation specialist to perform the current Step 1 of the impairment test. 4 FASB Accounting Standards Update No BC FASB Accounting Standards Update No BC 20. 4
6 Potential issues One of the potential issues that could arise from a qualitative assessment is the added complexity associated with developing appropriately detailed documentation of the qualitative factors to support an assertion that goodwill is not impaired. In a situation where an entity has recently performed a quantitative test to establish a baseline fair value a fair value that shows a suffi cient cushion for a company with a positive business outlook that is operating in a thriving economy with stable fi nancial markets it should be fairly easy to perform a qualitative assessment to determine that the traditional Step 1 is not necessary. However, in times of economic or market uncertainty, a qualitative assessment may be diffi cult to perform, and companies may be better served proceeding straight to Step 1. Auditing a qualitative assessment of a business s reporting units fair value relative to its carrying value is clearly a new concept. It presents a new challenge for companies and auditors. Without a quantitative analysis of market data to justify a position, it is possible that management could be more subjective in its interpretation of market factors to reduce the chances for impairment, thus introducing more risk into the process of evaluating goodwill. Currently under Step 1 of the impairment testing, an entity is required to determine whether the fair value of the reporting unit is less than its carrying amount, including goodwill. If it is, the entity proceeds to Step 2. Fair value is defi ned in ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 6 ASC 820 requires that selected valuation techniques maximize the use of observable market data. The primary inputs for this tend to be publicly available, easily accessed, industry- and market-based data. A qualitative assessment does not fall under fair value as defi ned in ASC 820 and so could potentially lack such observable and verifi able market-based data. Concluding thoughts The qualitative assessment and evaluation process aims to reduce both the cost and complexity of goodwill impairment testing. However, such an assessment can be complicated, particularly when it is conducted amid continued global economic uncertainty and a volatile stock market that might not necessarily refl ect the actual value of the company. These uncertainties may impact management s ability to effectively assess the company and its reporting unit s future outlook and apply the factors previously discussed in the qualitative goodwill impairment assessment. Deloitte suggests that a company that seeks to benefi t from the ASU develop a clear plan for future interim and annual goodwill testing. The plan which should be discussed with the company s auditors and external valuation specialists should outline the kind of supporting documentation that will be necessary and how frequently the qualitative assessment should be performed. In addition, management may consider establishing criteria for when it would be appropriate to perform a quantitative Step 1 reporting unit valuation to reset the reporting unit carrying value and fair value relationship. Due to the new ASU, communications among company management, valuation specialists, and auditors regarding the specifi c applicability of the ASU to a company s facts and circumstances will be key to arriving at reasonable and supportable goodwill impairment testing conclusions. 6 FASB Accounting Standards Codifi cation 820, Fair Value Measurements and Disclosures. 5
7 Contacts Stamos Nicholas Principal Phone: Greg Forsythe CFA, ASA Director Phone: Omotade Akinkugbe Senior Associate Phone: Alexander Greenhouse, CPA Associate Phone: This publication contains general information only and (Deloitte FAS) is not, by means of this publication, rendering accounting, business, fi nancial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualifi ed professional advisor. Deloitte FAS, its affi liates and related entities shall not be responsible for any loss sustained by any person who relies on this publication. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2011 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
Goodwill PCC Alternative Assurance Tax Advisory dhgllp.com
Assurance Tax Advisory dhgllp.com Overview...3 Appendix A - Frequently Asked Questions...4 1.704.367.7020 dhgllp.com 2016 by Dixon Hughes Goodman LLP. All rights reserved. Permission is granted to view,
More informationPrivate Company Reporting: Accounting for Goodwill
Private Company Reporting: Accounting for Goodwill Table of Contents EXECUTIVE SUMMARY... 3 SCOPE... 3 DEFINITION OF PUBLIC BUSINESS ENTITY... 3 RECOGNITION & MEASUREMENT... 4 AMORTIZATION OF GOODWILL...
More informationDataline A look at current financial reporting issue
Dataline A look at current financial reporting issue No. 2013-24 November 25, 2013 What s inside: Overview... 1 At a glance... 1 The main details... 1 Contents of the Guide... 2 Concepts and application
More informationFASB Issues PCC Alternative for Identifiable Intangible Assets in a Business Combination
FASB Issues PCC Alternative for Identifiable Intangible Assets in a Business Combination February 25, 2015 Highlights of the Update In This Update Highlights of the Update... 1 Appendix A Frequently Asked
More informationIntangibles Goodwill and Other (Topic 350)
No. 2011-08 September 2011 Intangibles Goodwill and Other (Topic 350) Testing Goodwill for Impairment The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting
More informationMPI. Goodwill Impairment Testing Joseph C. Hassan, CFA, ASA. Valuation Opinions & Transaction Advisory. www.mpival.com
Valuation Opinions & Transaction Advisory Goodwill Impairment Testing Joseph C. Hassan, CFA, ASA www.mpival.com What is goodwill? The Financial Accounting Standards Board ( FASB ) defines goodwill as an
More informationInsurance Accounting:
Financial Services Insurance Accounting: The Implications By Alexander Dollhopf and Kamran Foroughi Insurers will face unprecedented change in the way they report their business under International Financial
More informationNew Developments Summary
January 28, 2014 NDS 2014-02 New Developments Summary Accounting alternative for private company goodwill ASU 2014-02 codifies simplified accounting alternative for subsequent measurement of goodwill and
More informationCFO Insights: Gaining fi nancial visibility into your project portfolio
CFO Insights: Gaining fi nancial visibility into your project portfolio From simple research analyzing competitor data to complex ERP implementations, most work in modern corporations is done in projects.
More informationImpairment Testing Procedures and Pitfalls
Audio Conference Dial-in Number: 877.691.9300; Access Code: 4321206 Impairment Testing Procedures and Pitfalls November 3, 2009 Presenters: Cory J. Thompson, CFA, CIRA Ryan A. Gandre, CFA Moderator: Jay
More informationUCLA ALUMNI ASSOCIATION (A NONPROFIT ORGANIZATION AFFILIATED WITH UCLA) FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2009
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2009 CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statement of Financial Position 2 Statement of Activities 3 Statement of Changes
More informationFinancial Reporting for Taxes
Financial Reporting for Taxes TEI May A&A Update Meeting Acquisition accounting May 8, 2012 Orlando, FL Wendi Christensen Deloitte Tax LLP wendichristensen@deloitte.com Agenda Disclosures and supporting
More informationStatement of Financial Accounting Standards No. 142
Statement of Financial Accounting Standards No. 142 FAS142 Status Page FAS142 Summary Goodwill and Other Intangible Assets June 2001 Financial Accounting Standards Board of the Financial Accounting Foundation
More informationStock based compensation guidance to increase income statement volatility (see update note below)
Stock based compensation guidance to increase income statement volatility (see update note below) No. US2016 03 April 19, 2016 (Revised April 25, 2016) What s inside: Background. 1 Key provisions 2 Income
More informationThe Re-emergence of Collective Investment Trust Funds
The Re-emergence of Collective Investment Trust Funds A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all figures are based in USD. 1 Introduction As the retirement plan
More informationAssets acquired to be used in research and development activities
No. 2014-04 January 30, 2014 What s inside: Overview... 1 Background... 1 Accounting and reporting concepts... 2 Accounting for assets acquired in a business combination that are to be used in R&D activities...
More informationKey financial risks and uncertainties
Key financial risks and uncertainties Change of economic environment Key areas on the Audit Committee agenda: Valuation Impairment of assets Lack of liquidity Going concern 2 Liquidity risks Risk factors:
More informationMortgage series on management estimates
Background and accounting primer Mortgage series on management estimates 1 Deloitte Center for Financial Services U.S. Residential Mortgage Market Update, October 2012. Many of the most subjective and
More informationInternational Financial Reporting Standards What it means for private company reporting
International Financial Reporting Standards What it means for private company reporting IFRS: What it means for private company reporting This point of view discusses the movement toward International
More informationAccounting & Valuation Guide: Determining Fair Value of Portfolio Company Investments Held by Venture Capital and Private Equity Firms
Accounting & Valuation Guide: Determining Fair Value of Portfolio Company Investments Held by Venture Capital and Private Equity Firms Task Force Update Mark Hayden, Co-chair Disclaimer Views expressed
More informationFair Value Measurements and Disclosures (Topic 820)
Proposed Accounting Standards Update Issued: August 28, 2009 Comments Due: October 12, 2009 Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements This
More informationThe Auditor s Consideration of an Entity s Ability to Continue as a Going Concern *
An Entity s Ability to Continue as a Going Concern 2047 AU Section 341 The Auditor s Consideration of an Entity s Ability to Continue as a Going Concern * Source: SAS No. 59. See section 9341 for interpretations
More informationA Synthesis of Asbestos Disclosures
A Synthesis of Disclosures From Form 10-Ks Insights This article provides a comparative analysis of asbestos disclosures from hundreds of annual reports on Form 10-K submitted to the Securities and Exchange
More informationDefining Issues. Implementing the Forthcoming Revenue Recognition Standard. February 2014, No. 14-9
Defining Issues February 2014, No. 14-9 Implementing the Forthcoming Revenue Recognition Standard Advanced planning will provide companies with the flexibility to spread the work of implementing the new
More informationTAX SERVICES. Maximizing benefi ts. Minimizing risk.
TAX SERVICES Maximizing benefi ts. Minimizing risk. The right tax strategy can make a big difference in your bottom line results. CohnReznick s tax professionals can help you capitalize on applicable tax
More informationINDEX TO FINANCIAL STATEMENTS. Balance Sheets as of June 30, 2015 and December 31, 2014 (Unaudited) F-2
INDEX TO FINANCIAL STATEMENTS Page Financial Statements Balance Sheets as of and December 31, 2014 (Unaudited) F-2 Statements of Operations for the three months ended and 2014 (Unaudited) F-3 Statements
More informationNATIONAL BANK OF CANADA FINANCIAL INC. AND SUBSIDIARIES
Consolidated statement of financial condition as of and independent auditor s report and supplemental report on internal control NATIONAL BANK OF CANADA FINANCIAL INC. (SEC I.D. No. 8-39947) Table of Contents
More informationAn Insurance Contract IFRS Is Coming
An Insurance Contract IFRS Is Coming Are Your Financial Models Ready? By John Nicholls and Ana Escudero Efforts to develop new international accounting standards are moving apace, as the joint IASB FASB
More informationU.S. GAAP & IFRS: Today and Tomorrow Sept. 13-14, 2010. New York. Payout Annuities Under GAAP
U.S. GAAP & IFRS: Today and Tomorrow Sept. 13-14, 2010 New York Payout Annuities Under GAAP Patricia Matson GAAP for Payout Annuities FASB 60 and FASB 97 Society of Actuaries - Basic GAAP 2010 Patricia
More informationAccounting for Employee Benefits
Accounting for Employee Benefits and Stock-Based Compensation Under IFRS Implications and Considerations for U.S. Companies Over the next few years, companies in the U.S. will need to assess the implications
More informationInternational Financial Reporting Standards: Provisions, pensions and share based payments. The Ohio State University Session 6 April 1, 2011
International Financial Reporting Standards: Provisions, pensions and share based payments The Ohio State University Session 6 April 1, 2011 Topical areas Session Topic 1 Introduction, first time adoption
More informationDeferred income tax assets: Allowance for doubtful accounts 30,000 25,000 Tax loss carryforwards 100,000 100,000 Accruals and other 20,000 25,000
Handout 1 LOL Draft Income Statement and Excerpt From Tax Footnote as of December 31, 2010 LOL Corporation CONSOLIDATED STATEMENT OF OPERATIONS Years ended December 31, 2010, 2009, and 2008 (in thousands)
More informationGOAL SM Collective Investment Trust Funds: Another Life Cycle Innovation
GOAL SM Collective Investment Trust Funds: Another Life Cycle Innovation Manning & Napier - Driving Outcomes for More than Four Decades With over 40 years of experience managing life cycle strategies,
More informationSelling your S corporation Is it now or never?
Merger & Acquisition Services M&A Insights Selling your S corporation Is it now or never? With improving corporate confidence, increasing political certainty, and strengthened balance sheets, conditions
More informationNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008
1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES British Polythene Industries PLC (the Company ) is a company domiciled and incorporated in the United Kingdom. The consolidated annual fi nancial
More informationUsing Hedge Accounting to Better Reflect Risk Mitigation Strategies. Jeff Craft Jason Weaver Deloitte & Touche LLP
Using Hedge Accounting to Better Reflect Risk Mitigation Strategies Jeff Craft Jason Weaver Deloitte & Touche LLP Agenda Benefits / Requirements / Challenges of Hedge Accounting Risk Management / What
More informationORIGINAL PRONOUNCEMENTS
Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 Copyright 2010
More informationUsing Derivatives in the Fixed Income Markets
Using Derivatives in the Fixed Income Markets A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all figures are based in USD. 1 Introduction While derivatives may have a
More informationReport on. 2010 Inspection of PricewaterhouseCoopers LLP (Headquartered in New York, New York) Public Company Accounting Oversight Board
1666 K Street, N.W. Washington, DC 20006 Telephone: (202) 207-9100 Facsimile: (202) 862-8433 www.pcaobus.org Report on 2010 (Headquartered in New York, New York) Issued by the Public Company Accounting
More informationOBSERVATIONS FROM 2010 INSPECTIONS OF DOMESTIC ANNUALLY INSPECTED FIRMS REGARDING DEFICIENCIES IN AUDITS OF INTERNAL CONTROL OVER FINANCIAL REPORTING
1666 K Street, N.W. Washington, DC 20006 Telephone: (202) 207-9100 Facsimile: (202) 862-8430 www.pcaobus.org OBSERVATIONS FROM 2010 INSPECTIONS OF DOMESTIC ANNUALLY INSPECTED FIRMS REGARDING DEFICIENCIES
More informationGAAP accounting update
GAAP accounting update December 17, 2015 Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. Agenda 1) Introduction 2) ASU 2015-16:
More informationGoing concern. FASB defines management s going concern assessment and disclosure responsibilities. At a glance. Background
No. US2014-07 September 23, 2014 What s inside: Background... 1 Key provisions... 2 Disclosure threshold: Substantial doubt... 2 Consideration of management s plans... 4 Required disclosures... 6 What
More informationCONNEXUS ENERGY. Financial statements as of and for the Years Ended December 31, 2010 and 2009, and Independent Auditors Report.
CONNEXUS ENERGY Financial statements as of and for the Years Ended December 31, 2010 and 2009, and Independent Auditors Report. INDEPENDENT AUDITORS REPORT To the Board of Directors of Connexus Energy
More informationInternational Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. ITEM 7. MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Current Business Activities General Livengood Gold Project Developments
More informationDefining Issues. FASB Simplifies Accounting for Share-based Payments. April 2016, No. 16-11
Defining Issues April 2016, No. 16-11 FASB Simplifies Accounting for Share-based Payments The FASB recently issued an Accounting Standards Update (ASU) intended to improve the accounting for share-based
More informationNOTES TO THE UK GAAP PARENT COMPANY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008
1. SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION The Company s fi nancial statements are prepared on the historical cost basis, except for derivative fi nancial instruments which are stated at their
More informationTax Accounting Services. Goodwill impairment testing: Tax considerations
Tax Accounting Services Goodwill impairment testing: Tax considerations In financial accounting, goodwill is an asset representing the future economic benefits arising from other assets acquired in a business
More informationProposed Major Changes in Lease Accounting
Proposed Major Changes in Lease Accounting Scott Hunsaker * This article provides an overview of the more important aspects of the proposed changes to Generally Accepted Accounting Principles for leases;
More informationLifting the fog* Accounting for uncertainty in income taxes
Lifting the fog* Accounting for uncertainty in income taxes Contents Introduction 01 Identifying uncertain tax positions 02 Recognizing uncertain tax positions 03 Measuring the tax benefit 04 Disclosures
More informationManagement s Discussion and Analysis
Management s Discussion and Analysis 1473 AT Section 701 Management s Discussion and Analysis Source: SSAE No. 10. Effective when management s discussion and analysis is for a period ending on or after
More informationAbsolute return investments in rising interest rate environments
2014 Absolute return investments in rising interest rate environments Todd White, Head of Alternative Investments Joe Mallen, Senior Business Analyst In a balanced portfolio, fixed-income investments have
More informationConsolidated Financial Statements. FUJIFILM Holdings Corporation and Subsidiaries. March 31, 2015 with Report of Independent Auditors
Consolidated Financial Statements FUJIFILM Holdings Corporation and Subsidiaries March 31, 2015 with Report of Independent Auditors Consolidated Financial Statements March 31, 2015 Contents Report of Independent
More informationFOR IMMEDIATE RELEASE
FOR IMMEDIATE RELEASE For media inquiries, contact: Eric Armstrong, Citrix Systems, Inc. (954) 267-2977 or eric.armstrong@citrix.com For investor inquiries, contact: Eduardo Fleites, Citrix Systems, Inc.
More informationFY2011 Third Quarter Consolidated Financial Results (Prepared in accordance with U.S. GAAP) (Period ended December 31, 2011) (Unaudited)
FY2011 Third Quarter Consolidated Financial Results (Prepared in accordance with U.S. GAAP) (Period ended December 31, 2011) (Unaudited) Advantest Corporation (FY2011 Q3) January 27, 2012 Company name
More informationFinancial and Regulatory Reporting. Five Stages of Evolution The Critical Role of Financial Models
Insights November 2011 Financial and Regulatory Reporting Five Stages of Evolution The Critical Role of Financial Models This is the second in a three-part series examining the five stages of evolution
More informationAccounting Update March 2011 John Blakey, Business Assurance Partner
Accounting Update March 2011 John Blakey, Business Assurance Partner Disclosure Moss Adams LLP The content of this presentation is general in nature designed for a broader audience. It is not intended
More informationBusiness Combinations (Topic 805)
No. 2014-18 December 2014 Business Combinations (Topic 805) Accounting for Identifiable Intangible Assets in a Business Combination a consensus of the Private Company Council An Amendment of the FASB Accounting
More informationThe Depository Trust Company
The Depository Trust Company Unaudited Condensed Consolidated Financial Statements as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 THE DEPOSITORY TRUST
More informationFinancial Issue 2010-7 Instruments, Structured
Financial Issue 2010-7 Instruments, Structured October 8, 2010 Products and Real Estate (FSR) Capital Markets Accounting Developments Advisory Issue 2010-8 December 13, 2010 Analysis of ASU 2010-20 Disclosures
More informationProposed Statement of Financial Accounting Standards
FEBRUARY 14, 2001 Financial Accounting Series EXPOSURE DRAFT (Revised) Proposed Statement of Financial Accounting Standards Business Combinations and Intangible Assets Accounting for Goodwill Limited Revision
More informationPRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2014 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2014 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ******** REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
More informationIntangibles Goodwill and Other (Topic 350)
No. 2014-02 January 2014 Intangibles Goodwill and Other (Topic 350) Accounting for Goodwill a consensus of the Private Company Council An Amendment of the FASB Accounting Standards Codification The FASB
More informationTD Ameritrade Trust Company Collective Investment Funds for Employee Benefit Plans Retire Funds. Financial Reports May 31, 2015
TD Ameritrade Trust Company Collective Investment Funds for Employee Benefit Plans Financial Reports May 31, 2015 Contents Independent Auditor s Report 1-2 Financial Statements Statements of Financial
More informationPurchase Price Allocations for Solar Energy Systems for Financial Reporting Purposes
Purchase Price Allocations for Solar Energy Systems for Financial Reporting Purposes July 2015 505 9th Street NW Suite 800 Washington DC 20004 202.862.0556 www.seia.org Solar Energy Industries Association
More information10-Q 1 mtmq2.htm FORM 10-Q U.S. SECURITIES AND EXCHANGE COMMISSION
10-Q 1 mtmq2.htm FORM 10-Q U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly
More informationPractical Guidance for Mutual Fund Directors Board Governance and Review of Investment Advisory Agreements
Report of the Mutual Fund Directors Forum Practical Guidance for Mutual Fund Directors Board Governance and Review of Investment Advisory Agreements October 2013 Table of Contents RECOMMENDATIONS TO ENHANCE
More informationDoes Providing Tax Services Impair Auditor Independence? Evidence from Assessing Tax Accrual Quality
Does Providing Tax Services Impair Auditor Independence? Evidence from Assessing Tax Accrual Quality By Choudhary, Koester, and Pawlewicz A Practitioner s Perspective Russ Hamilton Deloitte Tax LLP Agenda
More informationStaples, Inc. Announces First Quarter 2016 Performance
Media Contact: Mark Cautela 508-253-3832 Investor Contact: Chris Powers/Scott Tilghman 508-253-4632/1487 Staples, Inc. Announces First Quarter 2016 Performance FRAMINGHAM, Mass., May 18, 2016 Staples,
More informationWhat s On the FASB s Technical Agenda for 2016?
What s On the FASB s Technical Agenda for 2016? As you plan for the year ahead, you may wonder how changes to the accounting standards might affect the information you report on your company s financial
More informationMulti-manager asset allocation funds for investors interested in sustainability. Strategic allocation, manager selection and
Multi-manager asset allocation funds for investors interested in sustainability Strategic allocation, manager selection and portfolio construction by Morningstar Associates Investment adviser to ESG Managers
More informationOF CPAB INSPECTION FINDINGS
PROTOCOL FOR AUDIT FIRM COMMUNICATION OF CPAB INSPECTION FINDINGS WITH AUDIT COMMITTEES CONSULTATION PAPER NOVEMBER 2013 The Canadian Public Accountability Board ( CPAB ) is requesting comments on the
More informationCONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For years ended December 31 ($ THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) 2006 2005 Revenue New mobile equipment $ 1,738,651 $ 1,551,743 New
More informationApplying VIE Guidance to Common Control Leasing Arrangements
Applying VIE Guidance to Common Control Leasing Arrangements HIGHLIGHTS OF THE UPDATE... 1 APPENDIX A FREQUENTLY ASKED QUESTIONS... 4 APPENDIX B DEFINITION OF A PUBLIC BUSINESS ENTITY... 9 APPENDIX C ILLUSTRATIVE
More informationA: SGEAX C: SGECX I: SGEIX
A: SGEAX C: SGECX I: SGEIX NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Salient Global Equity Fund The investment objective of the Salient Global Equity Fund (the Fund ) is to seek long term capital
More informationINTERNATIONAL STANDARD ON AUDITING 540 AUDITING ACCOUNTING ESTIMATES, INCLUDING FAIR VALUE ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES CONTENTS
INTERNATIONAL STANDARD ON AUDITING 540 AUDITING ACCOUNTING ESTIMATES, INCLUDING FAIR VALUE ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES (Effective for audits of financial statements for periods beginning
More informationCondensed Interim Consolidated Financial Statements
Condensed Interim Consolidated Financial Statements Unaudited (Expressed in Canadian dollars) NOTICE TO READER: These condensed interim consolidated financial statements have not been reviewed by the Company's
More informationFASB issues enhanced disclosure guidance for insurer claim liabilities
No. US2015-10 June 18, 2015 What s inside: Background... 1 Summary of key provisions... 1 Detail of key provisions... 2 Scope... 3 Rollforward interim disclosure requirements... 3 Claims development table
More informationFair Value Measurement
U.S. GAAP AND IFRS Fair Value Measurement Questions and Answers November 2013 kpmg.com Contents Substantial Convergence 1 About this Publication 2 Summary of Differences Between U.S. GAAP and IFRS 3 Questions
More informationMunicipal Clean Audit Efficiency Series Effective Cash Management
Municipal Clean Audit Efficiency Series Effective Cash Management Introduction The fi nancial performance of the South African local government has recently come under signifi cant scrutiny. This has led
More informationStay Informed Pharmaceutical and Life Sciences Industry Alert 2015-3. FASB Income tax projects update A PLS perspective Background
Stay Informed Pharmaceutical and Life Sciences Industry Alert 2015-3 FASB Income tax projects update A PLS perspective Background The FASB has accelerated the pace of rulemaking in recent months, largely
More informationCONTACT(S) Rachel Knubley rknubley@ifrs.org +44 207 246 6904
IASB Agenda ref 10B STAFF PAPER REG IASB Meeting Project Paper topic Conceptual Framework Measurement Measurement bases CONTACT(S) Rachel Knubley rknubley@ifrs.org +44 207 246 6904 October 2014 This paper
More informationPlanning for Succession of a Business Interest
Planning for Succession of a Business Interest Page 1 of 5, see disclaimer on final page Planning for Succession of a Business Interest Business succession planning--what is it? One of the important decisions
More informationFinancial Reporting Advisors, LLC 100 North LaSalle Street, Suite 2215 Chicago, Illinois 60602 312.345.9101 www.finra.com.
Financial Reporting Advisors, LLC 100 North LaSalle Street, Suite 2215 Chicago, Illinois 60602 312.345.9101 www.finra.com VIA EMAIL TO: director@fasb.org Technical Director File Reference No. 2015-270
More informationIASB Agenda Ref 16A. FASB Memo No. 140A. Issue Date September 11, 2015. Meeting Date September 23, 2015. Assistant Director
Memo IASB Agenda Ref 16A FASB Memo No. 140A Issue Date September 11, 2015 Meeting Date September 23, 2015 Contact(s) Alex Casas Author / Project Lead Peter Proestakes Assistant Director Project Topic Insurance
More informationArticle by Martin Kelly, BSc (Econ) Hons, DIP. Acc, FCA, MBA, MCMI. Examiner in Professional 2 Advanced Corporate Reporting
IMPAIRMENT - IAS 36 Article by Martin Kelly, BSc (Econ) Hons, DIP. Acc, FCA, MBA, MCMI. Examiner in Professional 2 Advanced Corporate Reporting Introduction Intangible assets, particularly goodwill, have
More informationTAIPAN RESOURCES INC.
Financial Statements of TAIPAN RESOURCES INC. (formerly Taipan Capital Corp.) Unaudited Prepared by Management) Nine months 2010 NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National
More informationNIKE, Inc. Consolidated Statements of Income
NIKE, Inc. Consolidated Statements of Income (In millions, except per share data) 2014 2013 2012 Income from continuing operations: Revenues $ 27,799 $ 25,313 $ 23,331 Cost of sales 15,353 14,279 13,183
More informationSTATUS Final EFFECTIVE DATE N/A
ILLUSTRATIVE EXAMPLES TO ACCOMPANY IFRS 13 FAIR VALUE MEASUREMENT UNQUOTED EQUITY INSTRUMENTS WITHIN THE SCOPE OF INTERNATIONAL FINANCIAL REPORTING BULLETIN 2013/06 Summary In December 2012, the IFRS Foundation
More informationFinancial Statements and Estimuation - A Primer
56 The Procter & Gamble Company Notes to Consolidated Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Procter & Gamble Company s (the Company, we or us )
More informationNew Accounting for Business Combinations and Non-controlling Interests
IFRS ADVISORY SERVICES New Accounting for Business Combinations and Non-controlling Interests August 2008 KPMG LLP The proposed new accounting standards for business combinations and non-controlling interests
More informationHow To Know What To Do In A Business
PEO/ASO/HRO Quarterly Update Insights & Observations for PEO/ASO/HRO Organizations In This Issue Significant Tax Breaks Expiring Soon...1, 2 New Rules For Goodwill Impairment Testing... 3 Texas: Changes
More informationHow To Calculate Cash Flow From Operating Activities
Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 Q
More informationGAAP UPDATE SERVICE GAAP GOVERNMENTAL. Summary & Highlights. Asset Retirement Obligations. Analysis. Overview of an ARO
GOVERNMENTAL GAAP UPDATE SERVICE GAAP Volume 15, Issue 7 April 15, 2015 Asset Retirement Obligations Summary & Highlights The Governmental Accounting Standards Board (GASB) is in the midst of a project
More informationEADS N.V. EADS N.V. Consolidated Financial Statements (IFRS) 5. Notes to the Consolidated Financial Statements (IFRS) 13
financial statements 2012 EADS N.V. FINANCIAL STATEMENTS 2012 1 2 3 4 5 EADS N.V. Consolidated Financial Statements (IFRS) 5 Notes to the Consolidated Financial Statements (IFRS) 13 EADS N.V. Auditors
More informationFinancial Accounting Series
Financial Accounting Series NO. 312 JUNE 2009 Statement of Financial Accounting Standards No. 168 The FASB Accounting Standards Codification TM and the Hierarchy of Generally Accepted Accounting Principles
More informationCONSOLIDATED FINANCIAL REPORT FIRST QUARTER FISCAL 2009
CONSOLIDATED FINANCIAL REPORT FIRST QUARTER FISCAL 2009 (March 1, 2009 to May 31, 2009) July 9, 2009 F&A Aqua Holdings, Inc. is listed on the First Section of the Tokyo Stock Exchange under the securities
More informationAn in Depth Look at Community Banks and Valuations
Scott Deters An in Depth Look at Community Banks and Valuations Presented by Scott Deters, Kent Pummel and Doug Michel Doug Michel Kent Pummel 5 Today s Agenda Community Banks and Valuations - Four primary
More informationSCORPEX INTERNATIONAL, INC.
AUDIT REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND CONSOLIDATED FINANCIAL STATEMENTS C O N T E N T S Report of Independent Registered Public Accounting Firm.... 3 Consolidated Balance Sheets...
More informationNo. 2014-09 May 2014. Revenue from Contracts with Customers (Topic 606) An Amendment of the FASB Accounting Standards Codification
No. 2014-09 May 2014 Revenue from Contracts with Customers (Topic 606) An Amendment of the FASB Accounting Standards Codification The FASB Accounting Standards Codification is the source of authoritative
More informationINSURANCE. Moving towards global insurance accounting
IFRS NEWSLETTER INSURANCE Issue 31, November 2012 The redeliberations are winding down, with an exposure draft in sight next year. Field and user input will be key in evaluating the operationality of the
More information