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ACCOUNTING AND SEC HEADLINES:
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Intangible Assets – FASB Improves Accounting for Series Television
The FASB has issued ASU 2019-02,
Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials. ASU 2019-02 helps organizations align their accounting for production costs for films and episodic content produced for television and streaming services.
In recent years, the entertainment industry experienced a significant change in production and distribution models. For example, online streaming services have introduced subscription-based revenue models. However, current accounting guidance provides organizations in the entertainment industry with differing capitalization requirements for content production:
- For films, production costs are capitalized.
- For episodic content (e.g., a TV series that airs a new episode each week), production costs are capitalized subject to a constraint based on contracted revenues in the initial and secondary markets.
The standard addresses when an organization should assess films and license agreements for program material for impairment at the film-group level.
The amendments in the standard also:
- Revise presentation requirements;
- Require that an organization provide new disclosures about content that is either produced or licensed; and
- Address cash flow classification for license agreements.
For public companies, the standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other organizations, the standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.
Checklist – New Edition of Summary Checklist of Recent Authoritative U.S. Accounting Standards Published
We have published a new edition of our “CCH Accounting Research Manager Summary Checklist of Recent Authoritative U.S. Accounting Standards,” to reflect the issuance of ASU 2019-02, which is discussed above.
See our Literature Update for complete details.
Financial Instruments – New Edition of GAAP Update Service Discusses ASU 2018-19
We have published a new edition of GAAP Update Service. This new edition discusses ASU 2018-19,
Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The FASB is making a number of targeted changes to its new accounting model for credit losses on financial instruments. The first of these changes to be finalized affects private companies and lessors. Specifically, the amendments:
- Defer the effective date of the new accounting model for credit losses on financial instruments by one year for private companies (including banks that are not “public business entities,” not-for-profit organizations and certain employee benefit plans).
- Clarify that receivables related to operating leases are not in the scope of the new standard for credit losses on financial instruments.
This newsletter also discusses two exposure drafts proposing additional amendments to the rules on measuring credit losses, a recently published FASB Staff Q&A on the topic of estimating expected credit losses, and a recent roundtable discussion on the presentation of loan loss provisions in the income statement.
Public Accounting Report – Post-Merger Concerns Discussed
We have added a new edition of the
Public Accounting Report (PAR). This edition of PAR discusses post-merger concerns that may arise. PAR interviewed a number of sources to gain frank perspective on the sometimes thorny challenges that executives and team members face after a deal is completed and integration is under way or finalized.
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AUDITING AND INTERNAL CONTROLS HEADLINES:
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Employee Benefit Plans – Knowledge-Based DOL Limited Scope Audits of Employee Benefit Plans
We have published a new edition of
Knowledge-BasedTM DOL Limited-Scope Audits of Employee Benefit Plans. This publication is designed to help the auditor efficiently and effectively perform financial statement audits of employee benefit plans in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS) when applying the ERISA limited scope exemption.
The tools in the 2019 edition have been updated to help auditors conduct efficient and effective audit engagements in accordance with U.S. GAAS and to take into account the latest literature, standards, and guidance, including AICPA Statement on Auditing Standards (SAS) No. 133,
Auditor Involvement with Exempt Offering Documents. The 2019 tools include links to detailed analysis related to the steps and processes discussed in the workpapers. Many new tips and examples have been incorporated. Also included are revised financial statement disclosures checklists that provide a centralized resource of the required and recommended U.S. GAAP disclosures and key presentation items currently in effect, using the style referencing under the
FASB Accounting Standards Codification™.
See our Literature Update for complete details.
Public Accounting Report – Post-Merger Concerns Discussed
We have added a new edition of the
Public Accounting Report (PAR). This edition of PAR discusses post-merger concerns that may arise. PAR interviewed a number of sources to gain frank perspective on the sometimes thorny challenges that executives and team members face after a deal is completed and integration is under way or finalized.
Auditing Accounting Estimates – New Edition of GAAS Update Service Examines PCAOB Auditing Standard 2501
We have published a new edition of GAAS Update Service. This new edition discusses PCAOB Auditing Standard (AS) No. 2501,
Auditing Accounting Estimates, Including Fair Value Measurements. The February 15, 2019 GAAS Update discussed in detail the requirements and guidance in AS 2501. This GAAS Update focuses on practical issues relating to AS 2501 by using a “Question & Answer” format designed to provide practical discussion, advice, and specific implementation guidance under the new estimates standard.
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GOVERNMENT HEADLINES:
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Debt – New Edition of Governmental GAAP Update Service Discusses GASB 88
We have published a new edition of Governmental GAAP Update Service that discusses implementing the provisions of GASB No. 88,
Certain Disclosures Related to Debt Including Direct Borrowings and Direct Placements, and what governments should be doing to adjust their note disclosure (and potentially, basic financial statements,) now.
Public Accounting Report – Post-Merger Concerns Discussed
We have added a new edition of the
Public Accounting Report (PAR). This edition of PAR discusses post-merger concerns that may arise. PAR interviewed a number of sources to gain frank perspective on the sometimes thorny challenges that executives and team members face after a deal is completed and integration is under way or finalized.
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