We are pleased to release MaloneBailey's December 2018 issue of The Crunch, our newsletter highlighting recent accounting, regulatory and tax updates. Please note that the updates provided in this newsletter are not a comprehensive list.  We encourage you to visit the  SEC ,  FASB   and  IRS   websites for more information as well as a complete list of updated rules, regulations and proposals.  We invite you to   contact us   should you have any questions about the information provided in this issue.  We invite you to visit our website to review   archived versions   of this newsletter containing past accounting, regulatory and tax updates. The MaloneBailey Team www.malonebailey.com

What's the Crunch? Featured Podcast Simplifying the Classification of Debt in a Classified Balance Sheet Accounting and Regulatory Updates Recent FASB Updates & Proposals Codification Improvements to Topic 326, Financial Instruments - Credit Losses - FASB ASU No. 2018-19 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 - FASB ASU. No. 2018-18 Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable Interest Entities – FASB ASU No. 2018-17 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 – FASB ASU 2018-16 Codification Improvements – Financial Instruments- FASB Proposed ASU 2018-300 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 – FASB Proposed ASU 2018-290 FASB Ratifies EITF Decisions FASB Discusses Simplifying the Balance Sheet FASB Discusses Narrow-Scope Improvements for Lessors FASB Discusses Codification Improvements for Nonemployee Share-Based Payments Recent SEC Updates & Proposals Regulation of NMS Stock Alternative Trading Systems – Release No. 34-84541 Modernization of Property Disclosures for Mining Registrants – Release No. 33-10570 Adoption of Updated EDGAR Filer Manual – Release No. 33-10566 Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934 Regarding Certain Cyber-Related Frauds Perpetrated Against Public Companies and Related Internal Accounting Controls Requirements – Release No. 34-84429 Statement on Digital Asset Securities Issuance and Trading – SEC Staff Views Competition: The Forgotten Fourth Pillar of the SEC’s Mission by Commissioner Robert J. Jackson Jr. – SEC Staff Speeches Improving Information for Investors in the Digital Age by Commissioner Kara M. Stein – SEC Staff Speeches The New American Dream: Retirement Security by Commissioner Kara M. Stein – SEC Staff Speeches Cross-Border Exemptions – SEC Staff Views Tax Updates 2018 Year-End Tax Planning Extra Crunch IASB Amends Definition of Material About MaloneBailey, LLP

Featured Podcast

Our featured podcast for December 2018 discusses a FASB proposal that would simplify the classification of debt in a classified balance sheet. Collins Ncho, Supervising Audit Senior, talk s about the proposed update and its purpose, which is to introduce a cohesive principle for determining whether debt should be classified as current or noncurrent. Click the podcast image below to listen to this month's episode!

Recent FASB Updates & Proposals

Codification Improvements to Topic 326, Financial Instruments - Credit Losses - FASB ASU No. 2018-19 Summary - The FASB has issued Accounting Standards Update (ASU) No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses,  that amends the transition requirements and scope of the credit losses standard issued in 2016. First, the ASU mitigates transition complexity by requiring entities other than public business entities, including not-for-profit organizations and certain employee benefit plans, to implement it for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. Second, the ASU clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard. The effective date and transition requirements are the same as the effective dates and transition requirements in the credit losses standard, as amended by the new ASU, which is as follows: For public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For public business entities that do not meet the definition of an SEC filer, for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, including not-for-profit entities within the scope of Topic 958 and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 - FASB ASU No. 2018-18 Summary -  The FASB has issued Accounting Standards Update (ASU) No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606,  that clarifies the interaction between the guidance for certain collaborative arrangements and the Revenue Recognition financial accounting and reporting standard. A collaborative arrangement is a contractual arrangement under which two or more parties actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. The ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard. The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. It accomplishes this by allowing organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard. For public companies, the amendments in ASU No. 2018-18 are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other organizations, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Consolidation (Topic 810) - Targeted Improvements to Related Part Guidance for Variable Interest Entities - FASB ASU No. 2018-17 Summary -  The FASB has issued Accounting Standards Update (ASU) No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities  that reduces the cost and complexity of financial reporting associated with consolidation of variable interest entities (VIEs). A VIE is an organization in which consolidation is not based on a majority of voting rights. The new guidance supersedes the private company alternative for common control leasing arrangements issued in 2014 and expands it to all qualifying common control arrangements. Under the new standard, a private company could make an accounting policy election to not apply VIE guidance to legal entities under common control (including common control leasing arrangements) when certain criteria are met. This accounting policy election must be applied by a private company to all current and future legal entities under common control that meet the criteria for applying the alternative. A private company will be required to continue to apply other consolidation guidance, specifically the voting interest entity guidance.  Additionally, a private company electing the alternative is required to provide detailed disclosures about its involvement with, and exposure to, the legal entity under common control. The ASU also amends the guidance for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). Therefore, these amendments likely will result in more decision makers not consolidating VIEs. For organizations other than private companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this ASU are effective for a private company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

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 - FASB ASU No. 2018-16 Summary -  The SEC has proposed rule changes designed to improve disclosure for investors about variable annuities and variable life insurance contracts. The proposal is intended to “help investors better understand these contracts' features, fees, and risks, and to more easily find the information that they need to make an informed investment decision.” According to the SEC, the proposal would permit these contracts to use a summary prospectus to provide disclosures to investors. This document would be a concise, reader-friendly summary of key facts about the contract. More-detailed information about the contract would be available online, and an investor also could choose to have that information delivered in paper or electronic format at no charge.  Mutual funds have been permitted to use a similar layered approach to disclosure, with investors receiving a summary prospectus, and more-detailed information available on request, since 2009.  The public comment period will remain open through February 15, 2019. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Codification Improvements-Financial Instruments-FASB Proposed ASU 2018-300 Summary -  The FASB has issued a proposed Accounting Standards Update (ASU), Codification Improvements—Financial Instruments,  that would clarify and improve areas of guidance related to the recently issued standards on financial instruments and hedging. Stakeholders are encouraged to review and provide comment on the proposal by December 19, 2018. The proposed ASU is part of the FASB’s ongoing agenda project focused on improving the FASB Accounting Standards Codification®  and correcting its unintended application. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

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 - FASB Proposed ASU 2018-290 Summary -  The FASB has issued a proposed Accounting Standards Update (ASU) that would align the accounting for production costs for films and episodic content produced for television and streaming services. Stakeholders are encouraged to review and provide input on the ASU, based on an Emerging Issues Task Force (EITF) consensus-for-exposure, by December 7, 2018. Current accounting guidance provides different capitalization requirements for entertainment industry content production depending on the type of content being produced. 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. In recent years, however, the entertainment industry has experienced a significant change in production and distribution models. For example, online streaming services and new participants into the industry have introduced different business models, such as subscription-based revenue models. As a result, some stakeholders have questioned whether the constraint in the capitalization guidance for episodic content still provides relevant information to investors considering these changes. The proposed ASU would address this issue by converging the capitalization guidance for films and episodic content. It would also address when a company or organization should assess films and license agreements for program material for impairment at the film-group level, while amending the presentation and disclosure requirements for content that is either produced or licensed. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

FASB Ratifies EITF Decisions Summary -  As reported in its "Summary of Board Decisions" publication, the FASB met on October 10, 2018, and ratified the consensuses-for-exposure reached at the September 27, 2018 EITF meeting on the following EITF Issues. The FASB directed its staff to draft proposed Accounting Standard Updates (ASUs) reflecting each consensus-for-exposure for vote by written ballot. Issue No. 18-A, “Recognition under Topic 805 for an Assumed Liability in a Revenue Contract” The EITF reaffirmed the consensus-for-exposure (which was reached at its June 7, 2018 meeting) that the performance obligation definition in Topic 606, Revenue from Contracts with Customers, would be used to determine whether a liability assumed for a contract liability from a revenue contract with a customer is recognized by the acquirer in a business combination. The Task Force also reaffirmed the consensus-for-exposure that it reached at a prior meeting that would require an entity to apply the proposed amendments prospectively to all business combinations that occur after the proposed amendments are effective and not to require any disclosures in the period of adoption. The Task Force decided not to address the measurement of the contract liability and the effect of payment terms on subsequent revenue recognition. In addition to the consensus-for-exposure being ratified by the Board, the FASB chairman authorized the staff to prepare a Discussion Paper in the form of an Invitation to Comment (separate from the proposed Update) to solicit input about measurement and other topics related to the Task Force’s consensus-for-exposure. The Board decided to expose the proposed Update and the Invitation to Comment (the Discussion Paper) for public comment concurrently for a period ending on April 30, 2019. Issue No. 18-B, “Improvements to Accounting for Episodic Television Series” The EITF reached a consensus-for-exposure to converge the capitalization guidance for films and episodic content. The Task Force also reached a consensus-for-exposure to allow an entity to assess a film group for impairment and amend the presentation and disclosure requirements for films and episodic content. In addition, the Task Force agreed to make conforming amendments to Subtopic 920-350, Entertainment—Broadcasters—Intangibles—Goodwill and Other, to align its impairment and presentation and disclosure guidance with the Task Force’s decisions. The Task Force also decided to require that an entity reassess estimates of the use of a film and account for any changes prospectively. In addition, the Task Force reached a consensus-for-exposure that would require that an entity apply the amendments resulting from this Issue on a prospective basis and disclose the nature of and reasons for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. The Board decided to expose the proposed Update for public comment for a period of 30 days. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

FASB Discusses Simplifying the Balance Sheet Summary -  As reported in its "Summary of Board Decisions" publication, the FASB met on October 24, 2018, and continued redeliberations of proposed ASU, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). The FASB directed its staff to conduct additional research, focusing on a potential alternative that considers the contractual linkage between certain debt arrangements and unused long-term financing arrangements in place at the balance sheet date. That research also would consider the need to include other conditions within or surrounding that financing arrangement, such as the financial capability of the lender, the existence of a subjective acceleration clause, the required use of the proceeds, and the timing and terms of the arrangements. The FASB also discussed the research project on the subsequent accounting for goodwill and the accounting for certain identifiable intangible assets in a business combination. The FASB decided to add a project to the technical agenda for not-for-profit entities and directed the staff to draft a proposed ASU for vote by written ballot to extend the amendments in ASU No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill (a consensus of the Private Company Council), and ASU No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council), to not-for-profit entities.  For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

FASB Discusses Narrow-Scope Improvements for Lessors Summary -  As reported in its "Summary of Board Decisions" publication, the FASB met on October 31, 2018, and redeliberated the proposed amendments to Topic 842, Leases, for the following three issues related to lessor accounting in that Topic: Issue 1: Sales Taxes and Other Similar Taxes Collected from Lessees. The FASB affirmed its decision to provide an accounting policy election for sales and other similar taxes not to be accounted for as lessor costs as provided in the proposed Accounting Standards Update. Issue 2: Lessor Costs. The FASB decided to require that lessors exclude from variable payments all costs paid by a lessee directly to a third party. Additionally, the FASB decided that costs not part of the consideration in the contract that are paid by a lessor directly to a third party and are reimbursed by a lessee are considered lessor costs that the lessor should account for as variable payments. Issue 3: Recognition of Variable Payments for Contracts with Lease and Nonlease Components. The FASB affirmed its decision to clarify paragraph 842-10-15-40, subject to additional amendments that would further clarify how and when variable payments may be allocated to a lease component only. The FASB also discussed transition and effective dates. For entities that have not yet adopted the amendments in Accounting Standards Update No. 2016-02, Leases (Topic 842), the FASB decided to align the transition and effective date guidance of a final Update with the guidance in the amendments in Update 2016-02. For entities that have already adopted Update 2016-02 at the time a final Update is issued, the Board decided that the effective date should be the original effective date of Update 2016-02 for those entities. Alternatively, those entities may adopt the amendments either: (1) in the first reporting period ending after issuance of the Update; or (2) in the first reporting period following the issuance of the Update. The FASB decided to allow either prospective application or retrospective application for entities that have already adopted the amendments in Update 2016-02. The FASB decided that the amendments apply to all new and existing leases. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

FASB Discusses Codification Improvements for Nonemployee Share-Based Payments Summary -  As reported in its "Summary of Board Decisions" publication, the FASB met on November 14, 2018, and discussed proposed improvements to the amendments in the recently issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The FASB made the following decisions: To add a project to its technical agenda to clarify the accounting for share-based payments that are made as consideration payable to a customer. The FASB decided that such payments would be measured and classified using the guidance in Topic 718. For entities that have not adopted the amendments in Update 2018-07, the proposed Update would have the same transition and effective date requirements as ASU 2018-07. For entities that have adopted the amendments in Update 2018-07, the same transition provisions as Update 2018-07 would be applied retrospectively to all relevant prior periods beginning with the initial adoption date of Update 2018-07. Any awards issued where the grant date is prior to the initial adoption date of Update 2018-07 should be measured prospectively using fair value at the initial adoption date of ASU 2018-07. The FASB determined that the expected benefits of the changes related to its proposed amendments of the accounting for share-based payments made to a customer under Topic 606, Revenue from Contracts with Customers, justify the expected costs of the changes. The FASB directed its staff to draft a proposed ASU for vote by written ballot and decided to expose the proposed Update for public comment for a period ending on March 29, 2019, or for 30 days (whichever is longer).  For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Recent SEC Updates & Proposals

Regulation of NMS Stock Alternative Trading Systems - Release No. 34-84541 Summary -   The SEC has issued a technical correction to its final rule, Regulation of NMS Stock Alternative Trading Systems.  This document makes technical corrections to a rule that was published in the Federal Register  on August 7, 2018. The SEC adopted amendments to the regulatory requirements in Regulation ATS under the Securities Exchange Act of 1934 applicable to alternative trading systems (“ATSs”) that trade National Market System (“NMS”) stocks (hereinafter referred to as “NMS Stock ATSs”), which included, among other items, Form ATS-N. This document is being published to correct a citation contained in the adopted language of Part III, Item 15.a of Form ATS-N. This final rule became effective November 13, 2018. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Modernization of Property Disclosure for Mining Registrants - Release No. 33-10570 Summary -   The SEC adopted amendments to modernize the property disclosure requirements for mining registrants, and related guidance, under the Securities Act of 1933 and the Securities Exchange Act of 1934. The amendments “will provide investors with a more comprehensive understanding of a registrant’s mining properties, which should help them make more informed investment decisions. The amendments also will more closely align the Commission’s disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards.” Under the final rules, a registrant with material mining operations must disclose specified information in its Securities Act and Exchange Act filings concerning its mineral resources, in addition to its mineral reserves. Current SEC rules and guidance permit the disclosure of non-reserve estimates only in limited circumstances. The SEC indicates that requiring the disclosure of mineral resources in addition to mineral reserves will provide investors with important information concerning the registrant’s operations and prospects. The final rules include several other requirements designed to further the protection and understanding of investors. The final rules also reflect a number of changes to the rules proposed in June 2016 in response to comments received by the SEC. The final rules provide a two-year transition period so that a registrant will not be required to begin to comply with the new rules until its first fiscal year beginning on or after January 1, 2021. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Adoption of Updated EDGAR Filer Manual - Release No. 33-10566 Summary -   The SEC is adopting revisions to the Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”) Filer Manual  and related rules. Updates to the EDGAR Manual include various technical changes, including those related to XBRL validation. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934 Regarding Certain Cyber-Related Frauds Perpetrated Against Public Companies and Related Internal Accounting Controls Requirements - Release No. 34-84429 Summary -   The SEC issued an investigative report cautioning that public companies should consider cyber threats when implementing internal accounting controls. The report is based on the SEC Enforcement Division's investigations of nine public companies that fell victim to cyber fraud, losing millions of dollars in the process. According to the SEC, the investigations focused on "business email compromises" (BECs) in which perpetrators posed as company executives or vendors and used emails to dupe company personnel into sending large sums to bank accounts controlled by the perpetrators. The frauds in some instances lasted months and often were detected only after intervention by law enforcement or other third parties. Each of the companies lost at least $1 million, two lost more than $30 million, and one lost more than $45 million. In total, the nine companies wired nearly $100 million as a result of the frauds, most of which was unrecoverable. No charges were brought against the companies or their personnel. The companies, which each had securities listed on a national stock exchange, covered a range of sectors including technology, machinery, real estate, energy, financial, and consumer goods. Public issuers subject to the internal accounting controls requirements of Section 13(b)(2)(B) of the Securities Exchange Act of 1934 must calibrate their internal accounting controls to the current risk environment and assess and adjust policies and procedures accordingly. The SEC indicates that the “FBI estimates fraud involving BECs has cost companies more than $5 billion since 2013.” For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Statement on Digital Asset Securities Issuance and Trading - SEC Staff Views Summary -   The staff in the SEC’s Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets, have issued a statement highlighting several recent SEC enforcement actions involving the intersection of long-standing applications of federal securities laws and new technologies. The SEC staff encourages “technological innovations that benefit investors and our capital markets, and we have been consulting with market participants regarding issues presented by new technologies. We wish to emphasize, however, that market participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain.” Topics covered in the statement include: Offers and Sales of Digital Asset Securities; Investment Vehicles Investing in Digital Asset Securities; and Trading of Digital Asset Securities. Recent SEC enforcement actions have addressed these and other issues associated with digital assets. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Competition: The Forgotten Fourth Pillar of the SEC's Mission by Commissioner Robert J. Jackson Jr. - SEC Staff Speeches Summary -   SEC Commissioner Robert J. Jackson, Jr. recently spoke about his belief that the SEC needs to put more focus on consideration of competition in our capital markets. Jackson cautioned that there "is a striking lack of competition across crucial areas of our capital markets." Topics discussed by Jackson are:  A history of competition and the SEC; Costs of neglecting competition in our capital markets; and The path ahead. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Improving Information for Investors in the Digital Age by Commissioner Kara M. Stein - SEC Staff Speeches Summary -   SEC Commissioner Kara M. Stein recently urged the SEC to improve the disclosures provided to investors given the importance of information in today’s Digital Age. Commissioner Stein discussed how some companies are using non-GAAP metrics to provide voluntary disclosures to investors on “environmental, social, and governance issues” (ESG disclosures). Stein cautioned that while these voluntary disclosures “increase information to investors and the marketplace, I am concerned that the lack of uniform standards and the lack of comparability may result in presentations that are not fairly balanced or fairly presented. In effect, what non-GAAP metrics measure, or attempt to communicate, more often are in the eye of the preparer rather than the beholder. In fact, one analyst study showed that a popular non-GAAP metric, “core earnings” was on average 30% higher than earnings reported under GAAP. Also, misaligned incentives, such as customized measures linked to executive compensation may fuel this growth.” Commissioner Stein cautioned that despite the growing integration of ESG disclosure into corporate reporting, there are still competing private groups and competing methodologies, leaving both companies and investors in a state of confusion. And that, in and of itself, is unsustainable. Commissioner Stein urged the SEC to ensure that its disclosure system meets the needs of investors by providing information that is truthful and useful. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

The New American Dream: Retirement Security by Commissioner Kara M. Stein - SEC Staff Speeches Summary -   SEC Commissioner Kara M. Stein recently discussed ideas on how the SEC can play a role in retirement security for investors. Stein discussed retirement investments and believes the SEC "must work to ensure that those investments are protected from fraud." Stein's remarks included discussion of: Education of investors; Enhancing investment advice; Investor incentives; and Protecting investors.   For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Cross-Broder Exemption - SEC Staff Views Summary -  The staff in the Division of Corporation Finance (Corp Fin) has issued a new Compliance and Disclosure Interpretation (C&DI), Cross-Border Exemptions.  This C&DI provides, in a question and answer format, Corp Fin’s interpretations of the cross-border exemptions. Topics addressed in this C&DI include:  Calculation of U.S. ownership; Determination of the subject class for purposes of determining exemption eligibility; Equal treatment in the Tier I and Tier II exemptions; Filing, publication, and dissemination of offer materials; and Withdrawal rights. For more information, click here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Tax Updates

2018 Year-End Tax Planning Year-end 2018 presents challenges and opportunities for tax planning that have not been present before. With 2018 seeing the implementation of the vast majority of the Tax Cuts and Jobs Act (TCJA) provisions, tax professionals will have to be ready to adopt new strategies to assist taxpayers in maximizing tax savings under the new laws. The IRS also released guidance on the new provisions that presents opportunities. These changes on top of standard year-end planning, and potential legislation, could make for a busy end to 2018. And now, with mid-term elections in the rear view mirror, and the House flipping to Democratic control with an expanded GOP majority in the Senate, legislative action during the lame duck season and beyond is unpredictable. For more information on 2018 year-end tax planning, please see the Wolters Kluwer Tax Briefing here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission. Should you have any questions, please contact Nicole Zhao for more information.

Extra Crunch

IASB Amends Definition of Material Summary  - The IASB has issued amendments to its definition of “material” to make it easier for companies to make materiality judgements. The definition of material, an important accounting concept in IFRS Standards, helps companies decide whether information should be included in their financial statements. The updated definition amends IAS 1, Presentation of Financial Statements, and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. The amendments are a response to findings that some companies experienced difficulties using the old definition when judging whether information was material for inclusion in the financial statements. The amendments clarify the definition of material and how it should be applied by including in the definition guidance that until now has featured elsewhere in IFRS Standards. In addition, the explanations accompanying the definition have been improved. Finally, the amendments ensure that the definition of material is consistent across all IFRS Standards. The changes are effective from January 1, 2020, but companies can decide to apply them earlier. Old definition: Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements (IAS 1 Presentation of Financial Statements). New definition: Information is material if omitting, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.  For more information on Public Accounting Report, click  here . © 2018 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

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