Quarterly accounting roundup: An update on Q important developments The Dbriefs Financial Reporting series

Quarterly accounting roundup: An update on Q4 2018 important developments The Dbriefs Financial Reporting series Bob Uhl, Partner, Deloitte & Touche LLP Jen DeSanctis, Senior Manager, Deloitte & Touche LLP Susan Fennedy, Partner, Deloitte & Touche LLP Ruth Uejio, Partner, Deloitte & Touche LLP December 18, 2018

Items to note Keep in mind This webcast does not provide official Deloitte & Touche LLP interpretive accounting guidance. Check with a qualified advisor before taking any action. Learning objective To enhance participants understanding of important accounting issues and developments pertaining to recent actions of standard setters, regulators, and others. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 3

Polling question #1 What is the most common New Year s resolution? Get more exercise Drink less alcohol Save money Attend more Dbriefs Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 4

Key themes of the 2018 AICPA Conference Brexit disclosures Collaboration and partnership LIBOR Cybersecurity 2018 AICPA conference Shared responsibilities (Bricker Blueprint) Critical auditing matters New GAAP standards See Deloitte s December 16, 2018, Heads Up for more information about the 2018 AICPA Conference on Current SEC and PCAOB Developments. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 6

Highlights of the 2018 AICPA Conference Adoption of New GAAP standards and other current issues Revenue Leases CECL Hedging/LIBOR Tax reform Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 7

Highlights of the 2018 AICPA Conference Revenue recognition Prefiling consultations with OCA 01 Principal versus agent in a drop shipment Did not object to the conclusion that the registrant (i.e., the distributor) is acting as the principal. Principal-versus-agent determination requires significant judgment; however, judgment does not mean optionality. 02 03 Separation Security monitoring service Did not object to combining the equipment, installation, and monitoring service into a single performance obligation. Conclusion based on the significant service of integrating the inputs into a combined output. Separation Off-the-shelf software and service SEC staff objected to combining the software and related service. Basis for objection due to the software and service not significantly affecting each other. 04 Significant financing component Did not object to the contract not containing a significant financing component. Timing difference arises for reasons other than financing in a symbolic license fact pattern with an up-front payment. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 9

Highlights of the 2018 AICPA Conference Revenue recognition SEC comment letter themes Disclose significant judgments Identifying performance obligations Description of the nature of the goods and services promised in the contract Basis for separation or combination of the goods and services Timing of revenue recognition Performance obligations satisfied at a point in time Explanation of specific point in time that control transfers to the customer Performance obligations satisfied over time Measure of progress used to recognize revenue Judgments around principal-versus-agent guidance Determining the appropriate disaggregation of revenue to disclose Emerging growth companies The SEC staff discussed the transition requirements related to the adoption of new accounting standards (including ASC 606) for EGCs that elected to defer adoption of new ASU s using private companies adoption dates (including examples if they lose their EGC status) See Deloitte s September 26, 2018, Heads Up for more information about our observations related to comment letters issued by the SEC staff on the new revenue standard. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 10

Polling question #2 It s been almost a year since the effective date of the new revenue recognition standard; how has your implementation experience been so far? Easier than expected Met expectations Harder than expected Don t know/na Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 11

Highlights of the 2018 AICPA Conference Lease accounting Prefiling consultations 01 Transition Executory costs Did not object to the consistent application of historical policy under ASC 840 in transition to ASC 842. Change in transition represents an accounting policy change under ASC 250 (requires preferability). 02 03 Transition Index or rate Did not object to the consistent application of historical policy under ASC 840 in transition to ASC 842. Did not object to a change from using the lease inception index or rate to the current index or rate. Lessee costs to place leased asset into use Did not object to a lessee capitalizing these costs by analogy to ASC 360. Also appropriate to expense the costs as incurred. 04 Lessor fulfillment costs Did not object to a lessor analogizing to the fulfillment cost guidance in ASC 340-40. Also appropriate to expense the costs as incurred. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 13

Lease accounting ASU 2018-20 Narrow-scope improvements for lessors Sales taxes and other similar taxes collected from lessees Accounting policy election afforded to lessors to present all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the lessor from a lessee on a net basis Example of taxes in scope of this election include sales, use, value added, and some excise taxes Lessor costs Lessor should exclude from variable payments lessor costs paid by a lessee directly to a third party Lessor should include in variable payments lessor costs paid by the lessor directly to a third party and reimbursed by a lessee Recognition of variable payments for contracts with lease and nonlease components Clarify variable payments for contracts with lease and nonlease components should be allocated (rather than recognized) when the changes in facts and circumstances on which the variable payment is based occur EXAMPLE Lessor and Lessee enter into equipment lease whereby Lessee pays maintenance, insurance, and property taxes directly to a third party. Lessor should consider the charges as follows: Insurance and property taxes are lessor costs (i.e., noncomponents); thus, lessor should not report revenue or corresponding expense (net basis). Maintenance is a nonlease component; thus, lessor should report revenue and corresponding expense (gross basis). If Lessee reimbursed Lessor, maintenance, insurance, and property taxes would all be reported on a gross basis. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 14

Recent FASB meeting on leases implementation issues Two proposed codification improvements to ASC 842 Cash flow statement presentation for principal payments received on salestype and direct financing leases for depository and lending institutions ASC 842 as issued requires all cash flows from these leases be classified as an operating activity ASC 942-230-55-2 provides an example which illustrates these activities would generally be classified as an investing activity FASB tentatively decided entities within the scope of ASC 942 should present leasing cash flows in a manner consistent with the example in ASC 942-230-55-2 in investing activities Application of fair value to lessors that are not manufacturers or dealers ASC 840 provided a fair value exception to qualifying lessors which states the fair value of the property at lease inception ordinarily will be its cost, reflecting any volume or trade discounts that may apply. ASC 842, as issued, required all lessors to apply the ASC 820 definition of fair value, which resulted in qualifying lessors expensing acquisition costs at lease commencement, resulting in a day-one loss and recognizing significant greater interest income for sales-type and direct financing leases FASB tentatively decided to carryforward this fair value exception from ASC 840 to ASC 842 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 15

Polling question #3 Does the new credit losses standard apply to your company, the company you audit, or the company you follow? Yes No Don t know/na Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 16

Highlights of the 2018 AICPA Conference New GAAP Credit losses 01 Transition to implementation Discussions around CECL continue to evolve from a focus on understanding to implementation. 02 Subsequent events SEC staff addressed three specific situations from a recent consultation involving potential subsequent events and whether such information should be included in an entity s process when estimating expected credit losses. SEC staff also provided additional views for entities to consider (i.e., a framework) when evaluating information for subsequent events when estimating expected credit losses. 03 Charge-offs A registrant who concluded it is acceptable to assess loans at the individual level for charge-offs. The SEC staff did not object. A registrant who concluded it is acceptable to consider all relevant portfolio information when evaluating the collectibility of an individual loan. The SEC staff did not object. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 18

Highlights of the 2018 AICPA Conference Potential transition away from the LIBOR 01 Background Alternative Reference Rates Committee (ARRC) established in 2014 to find a suitable replacement for the LIBOR The ARRC announced in 2017 that the Secured Overnight Financing Rate (SOFR) would be that replacement Targeted phase-out date of fiscal year 2021 02 Standard-setting ASU 2018-16 adds the SOFR as a benchmark interest rate Addition of a project to the FASB s technical agenda, which aims to facilitate the transition 03 Recent OCA consultations LIBOR s replacement is implicitly included in the hedge documentation Transition away from the LIBOR similarly affects the hedged item and hedging instrument Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 20

The auditor s reporting model Critical audit matters Critical Audit Matters (CAMs) Any matter arising from the audit of the financial statements that was communicated or required to be communicated to the audit committee and that: Relates to accounts or disclosures that are material to the financial statements AND Involved especially challenging, subjective, or complex auditor judgment. Effective Date Communication of CAMs: Audits of large accelerated filers: fiscal years ending on or after June 30, 2019. Audits of all other companies: fiscal years ending on or after December 15, 2020. Exceptions Communication of CAMs is not required for audits of (1) brokers and dealers reporting under Rule 17a-5 of the Securities Exchange Act of 1934 (the Exchange Act ); (2) investment companies registered under the Investment Company Act of 1940, other than business development companies; (3) employee stock purchase, savings, and similar plans; and (4) emerging growth companies as defined in Section 3(a)(80) of the Exchange Act. Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 22

The auditor s reporting model Critical audit matters Expectations as to the types of matters that the auditor may evaluate as possible CAMs? Significant internal control deficiencies Critical Accounting Estimates Significant Risks Remote contingencies Critical Audit Matters Illegal acts of management Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 23

The auditor s reporting model Critical audit matters Potential benefits and challenges Benefits: Enhancement of the informational value, usefulness, and relevance of the auditor s report Opportunity for companies to take a fresh look at disclosures Additional data point for investors in their decision-making process Challenges: Possibility of CAMs becoming boilerplate over time and/or being written in auditor speak Perception of CAMs in the analyst community Robotic reading of Forms 10-K that may result in a misinterpretation of the auditor s report Preparing for CAMs reporting through dry runs Key reminders and early lessons: Important for management and audit committees to stay engaged with their auditors on CAMs during and after implementation Topics relating to CAMs should not be a surprise to management or audit committees since CAMs will be derived from matters communicated to the audit committee The process of identifying CAMs requires the application of significant auditor judgment When reviewing draft CAMs during the dry run process, auditors should take a step back and read the draft CAMs through the lens of an investor or financial statement user to determine whether the CAMs can be easily interpreted from such perspective Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 24

Polling question #4 Are you aware of discussions between the external auditors and management in your organization regarding the requirements to report critical audit matters? Yes No Don t know/na Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 25

Highlights of the 2018 AICPA Conference ICFR considerations OCA staff highlighted improvement opportunities in management s annual assessment of ICFR and related disclosures. Evaluating the operating effectiveness of ICFR Material weakness disclosures Evaluation of control deficiencies Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 26

Highlights of the 2018 AICPA Conference PCAOB developments PCAOB Board taking a fresh look at enhancing structure, processes, and effectiveness of the PCAOB. Improved engagement Effective oversight Process and culture optimization Innovation Strategic Priorities for 2018-2022 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 27

Highlights of the 2018 AICPA Conference PCAOB standard-setting activity Accounting Estimates Specialists Other Auditors Proposal issued in June 2017 for public comment Retains the three existing approaches to auditing accounting estimates Addresses the use of pricing services in auditing fair value measurements Proposal issued in June 2017 for public comment Separates the requirements for using the work of a company s specialists and using the work of the auditor s specialists Public meeting scheduled for December 20, 2018 Proposal issued in April 2016, with a supplement request for comment issued in September 2017 Develops a new standard for when the lead auditor divides responsibility with another firm Evaluating comments received Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 28

Highlights of the 2018 AICPA Conference Rulemaking update Final rules issued Smaller reporting company definition Inline XBRL Disclosure update and simplification Mining disclosures Proposed rules issued Guarantor financial information On the agenda Interim reporting Acquired business financial information Accelerated filer definition Other offering related matters Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 30

Highlights of the 2018 AICPA conference Communicating with the SEC Staff Regulation S-X, Rule 3-13 waivers - Provides the SEC staff with the authority to permit the omission or substitution of certain financial statement requirements outlined in Regulation S-X - Considered when the literal requirements are burdensome and do not provide the investor with material information - Consistent with investor protection Oral comments - Facilitate timely resolution of review process - Address time sensitive matters for impending offerings - Discuss issues in the news Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 31

Highlights of the 2018 AICPA conference Non-GAAP measures Still number one area of SEC comment letters Emphasis on disclosure controls and procedures (DCPs) Includes DCPs over correction of errors and changes in the calculation Transparent, company-specific disclosures regarding the use of the measure Individually tailored accounting principles Questions to ask Does the adjustment: Change the basis of accounting, such as from accrual to cash? Add in transactions that were reportable in another company s financial statements? Reflect part, but not all, of an accounting concept? Render the measure inconsistent with the economics of the transaction? Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 32

Highlights of the 2018 AICPA conference Cybersecurity Continued area of focus from the SEC staff Change from prevention mindset to forward-looking, proactive perspective is seen as essential Areas of emphasis include: Disclosure controls and procedures at the appropriate levels in the organization Insider trading policies Disclosures on the role of the board of directors in cyber risk oversight Reassess cybersecurity disclosures as risks evolve and incidents occur Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 33

Highlights of the 2018 AICPA conference Brexit Approaching March 29, 2019, withdrawal deadline Financial and business risks either not well understood or underestimated Accounting and reporting considerations: Transparent, company-specific disclosures: Risk factors Management s discussion & analysis Asset valuations Income taxes Continue to update disclosures as additional information becomes available Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 34

Polling question #5 Is your company or client planning on any financial reporting considerations around Brexit? Yes No Don t know/na Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 35

Recently issued ASUs and proposed ASUs Fourth quarter to date ASU ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments Credit Losses ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes Proposed ASU 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 Codification Improvements Financial Instruments Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 37

ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the interaction between ASC 808 and ASC 606 Key provisions Clarified when certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 Added unit-of-account guidance in ASC 808 to align with guidance in ASC 606 Precluded transactions to be presented with revenue recognized under ASC 606 when the participant is not a customer Effective date & transition Entities must apply the ASU retrospectively to the date of initial adoption of ASC 606 Public business entities: fiscal years beginning after December 15, 2019, and interim periods within those fiscal years All other entities: fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021 Early adoption is permitted Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 38

ASU 2018-17, Consolidation (Topic 810): Improvements to Related Party Guidance for Variable Interest Entities Amendments Two aspects of the related-party guidance in ASC 810: Aligns the evaluation of a decision maker s indirect interests held through a related party under common control in both (1) the identification of a variable interest and (2) the determination of a VIE s primary beneficiary Consider indirect interests on a proportionate basis Adds an elective private-company scope exception to the VIE guidance for entities under common control Effective Date & Transition For entities other than private companies: fiscal years beginning after December 15, 2019, including interim periods therein For private companies: fiscal years beginning after December 15, 2021 Early adoption is permitted Retrospective with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 39

Highlights of the 2018 AICPA Conference FASB accounting standard setting Short-term Educational Resources Enhancement of resources available to stakeholders TRG, plain-language documents, videos, implementation Web portal Continued gaps in accounting education among certain stakeholders CPE provider forums and train the trainer Midterm Research & Outreach Identification of the right accounting issues three- to five-year outlook Technical agenda topics: (1) financial performance reporting, (2) segment reporting, (3) distinguishing liabilities and equity Robust research agenda: hedging phase 2, backwards tracing (income taxes), convertible instruments, indexation Long-term The impact of Technology Goal is to ensure standards evolve as technology evolves How do these changes affect companies, investors, auditors, and accounting standards and disclosures Undertaken a study to understand how standards should adapt to changes in technology Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 41

FASB project agenda Q4 2018 Expected final standards Extending Private Company Alternatives on Goodwill and Certain Identifiable Intangibles to Not-For-Profit Entities Q1 2019 Expected final standards Simplifying the Balance Sheet Classification of Debt Q4 2018 Q1 2019 Expected exposure drafts Codification Improvements Financial Instruments Credit Losses (Vintage Disclosure) Recognition under Topic 805 for an Assumed Liability in a Revenue Contract (EITF 18-B) Expected exposure drafts Codification Improvements Nonemployee Stock-Based Compensation Financial Instruments Credit Losses Targeted Transition Relief Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 42

ASUs effective January 1, 2019 Public business entity effective dates ASU ASU 2018-09, Codification Improvements ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting ASU 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income ASU 2017-15, Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 43

ASUs effective January 1, 2019 Public business entity effective dates (cont.) ASU ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities ASU 2017-11, (Part I) Accounting for Certain Financial Instruments With Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities ASU 2017-06, Employee Benefit Plan Master Trust Reporting a consensus of the FASB Emerging Issues Task Force ASU 2016-02, Leases Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 44

ASUs effective January 1, 2019 Other than public business entity effective dates ASU ASU 2018-09, Codification Improvements ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made ASU 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income ASU 2017-15, Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995 ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ASU 2017-06, Employee Benefit Plan Master Trust Reporting a consensus of the FASB Emerging Issues Task Force ASU 2017-01, Clarifying the Definition of a Business Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 45

ASUs effective January 1, 2019 Other than public business entity effective dates (cont.) ASU ASU 2016-18, Restricted Cash a consensus of the FASB Emerging Issues Task Force ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments a consensus of the FASB Emerging Issues Task Force ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products a consensus of the FASB Emerging Issues Task Force ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2014-09, Revenue From Contracts With Customers Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 46

Polling question #6 The first ball to be dropped in New York s time square happened in what year? 1908 1922 1940 1965 Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 47

Join us March 27 at 2 p.m. ET as our Financial Reporting series presents: Quarterly accounting roundup: Q1 2019 update on important developments Copyright 2018 Deloitte Development LLC. All rights reserved. Insert title - Deck Template Guide for Deloitte Dbriefs Webcasts 49

Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen. CPE Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 50

Contact information Bob Uhl Partner Deloitte & Touche LLP ruhl@deloitte.com Connect on LinkedIn Ruth Uejio Partner Deloitte & Touche LLP ruejio@deloitte.com Connect on LinkedIn Susan Fennedy Partner Deloitte & Touche LLP sfennedy@deloitte.com Connect on LinkedIn Jen DeSanctis Senior Manager Deloitte & Touche LLP jdesanctis@deloitte.com Connect on LinkedIn Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 51

Acronyms used in presentation AICPA American Institute of Certified Public Accountants ARRC Alternative Reference Rates Committee ASC Accounting Standards Codification ASU Accounting Standards Update CAM Critical Audit Matters CECL Current Expected Credit Loss CPE Continuing Professional Education EGC Emerging Growth Company EITF Emerging Issues Task Force FASB Financial Accounting Standards Board GAAP Generally Accepted Accounting Principles ICFR Internal Control over Financial Reporting LIBOR London Inter-Bank Offered Rate OCA Office of Chief Accountant PBE Public Business Entity PCAOB Public Company Accounting Oversight Board SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate TRG Transition Resource Group VIE Variable Interest Entity XBRL Extensible Business Reporting Language Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 52

Resources Heads Up Highlights of the 2018 AICPA Conference on Current SEC and PCAOB Developments EITF Snapshot September 2018 Heads Up FASB Finalizes Targeted Amendments to the Related-Party Guidance for Variable Interest Entities Heads Up FASB Amends Guidance on Collaborative Arrangements Heads Up At Lease There Are Answers to Transition Questions Heads Up FASB Amends Guidance on Cloud Computing Arrangements Heads Up FASB Issues Standard to Amend Required Fair Value Measurement Disclosures Heads Up FASB Amends Guidance on Disclosures Related to Defined Benefit Plans Heads Up FASB Re-Leases Targeted Improvements to ASC 842 Heads Up SEC Comments Reflect Registrants Efforts to Implement ASC 606 Roadmap Series Copyright 2018 Deloitte Development LLC. All rights reserved. Quarterly accounting roundup: An update on Q4 2018 important developments 53

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation 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 qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2018 Deloitte Development LLC. All rights reserved. Insert title - Deck Template Guide for Deloitte Dbriefs Webcasts 54

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