FEI Chicago October PD Session "GAAP & SEC Update with Crowe LLP"
FEI Chicago OCtober Professional Development Meeting
GAAP & SEC Update With Crowe LLP
WHEN
Thursday, October 18, 2018
3:00—5:30pm
WHERE
The Metropolitan Club, Willis Tower
233 S. Wacker Dr., Michigan Room 66th Floor, Chicago
Registration and Refreshments 3:00pm, Program 3:30-5:30pm
Free to FEI Chicago Chapter Members; $25 Guests and NonMembers.
“Annual GAAP/ SEC Accounting Update"
As we often do near the start of the new FEI season, the Chicago Chapter will again have an update on major developments that may affect your company's accounting and financial reporting in the current period and in the near future. Updates on current period matters will include recently and soon-to-be-effective FASB standards having wide applicability to all members' companies.
The major item to be discussed this year is the major accounting standard on lease accounting which is effective for year-end public companies on January 1, 2019 – just over 3 months away and just 15 months later for non-public entities. The lease pronouncement was issued in early 2016 and now requires all operating leases to be recorded as a right-to-use asset and related lease obligation on the balance sheet with different P&L recognition for operating vs. finance (capital) leases.
Although most public companies have already adopted the new revenue recognition standard (effective for year-end public companies on January 1, 2018), non-public entities need to adopt this major standard in a few months. Representatives from Crowe will not dive into the Revenue Recognition standard to the level of the Five-Step Model we’ve heard about in prior years, but will discuss key leanings from public companies, especially the intricacies of expanded disclosures requiring modified processes and potentially systems solutions.
The new CECL (Current Expected Credit Loss) rules will impact the bad debt calculation recorded against trade accounts receivable for many companies.
Fortunately, accounting standards have had limited applicability for a number of years often requiring an overlay to the operational financial statements. The Revenue Recognition, Leasing and CECL accounting standards have the potential of greatly affecting major operational aspects of all businesses. Technical accounting experts from Crowe LLP will help us understand these impacts and how best to address our concerns in the short time remaining for some of these items.