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.

Fourth Quarter 2018

How Blockchain Is Reshaping Audit and Assurance

A Q&A With David Uhryniak and Matthew Schell of Crowe

David Uhryniak is the Crowe blockchain services leader. Matthew Schell is a partner in the Crowe assurance professional practice.  

David Uhryniak
Matthew Schell
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Financial Reporting & Regulatory Update, Fourth Quarter 2018

During the fourth quarter of the 2018 calendar year, the Financial Accounting Standards Board (FASB) issued new accounting standards on the following topics:

  • Improvements to lease accounting for lessors
  • Clarifications to the accounting for credit losses under the current expected credit loss (CECL) model
  • Clarifications on the interaction between Topics 808 and 606 for collaborative arrangements
  • Targeted improvements to related party guidance for variable interest entities
  • Addition of a benchmark interest rate for hedge accounting purposes 

The FASB also issued proposals during the quarter for the entertainment film industry, financial instruments (related to hedge accounting, credit losses, and recognition and measurement), and clarifications for lessors that are financial institutions.

The Securities and Exchange Commission (SEC) participated in the annual American Institute of CPAs (AICPA) Conference on Current SEC and PCAOB Developments in December and issued a request for comment on quarterly reports and earnings releases.

The Public Company Accounting Oversight Board (PCAOB) issued its final five-year strategic plan, and board members were active in speechmaking during the quarter. It also released the areas of focus for 2019 inspections.

The Center for Audit Quality (CAQ) released its audit committee transparency barometer in the fourth quarter as well as a tool for audit committees and others to use during implementation of the PCAOB’s standard on critical audit matters (CAMs).

In addition to these highlights from the quarter, we have included recent developments from the Governmental Accounting Standards Board (GASB).

Checklists for the effective dates of FASB Accounting Standards Updates (ASUs) and GASB statements are provided in the appendix.