Common U.S. GAAP Issues Facing Accountants, 2nd Edition

Chapter 2Summary of Recent Accounting Standards Updates

Learning objectives

• Identify key aspects of FASB Accounting Standards Updates (ASUs) effective in 2018.
• Identify key aspects of ASUs effective in 2019 and beyond.
• Identify key aspects of ASUs specific to private companies.

Overview

This chapter is organized in the following two parts:

Part 1: ASUs effective in 2018.

Part 2: ASUs effective in 2019 and beyond.

Part 1: Guidance effective in 2018

ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

Overview

This ASU is part of FASB’s simplification project to reduce the unnecessary complications of determining the current and noncurrent portions of deferred taxes. The ASU addresses feedback from stakeholders about the costs and benefits of current requirements. Specifically, the separation of deferred income tax liabilities and assets into current and noncurrent components offers limited benefit to users of financial statements because the classification does not generally align with the time period in which the recognized deferred tax amounts are expected to be recovered or settled.

Scope

This ASU is applicable to all entities who present a classified balance sheet (statement of financial position).

Requirements

This ASU, when effective, will require that an entity within the scope present deferred tax assets or deferred tax liabilities only as noncurrent. The requirement to offset deferred tax assets and liabilities is not affected ...