Defining Issues   |   June 2018
 

SEC staff comments on accounting for tax reform and implementation efforts for new standards

Applicability

SEC Speech – Progress is being made: Continued focus on addressing implementation matters

  • All SEC registrants

Relevant dates

  • Effective immediately

Key impacts

  • SAB 118 does not allow deferring the accounting requirements until the end of the period
  • A registrant should make good faith progress to provide investors with timely, decision-useful information
  • Implementation efforts should be prioritized with adequate resources allocated
  • Successful implementations require adequate time dedicated to developing new or changed internal controls, informative transition disclosures, new required disclosures, and well-reasoned accounting judgments
  • Audit committees play a critical role in the adoption process

Report contents

  • Applicability
  • Key facts and impacts
  • Tax reform – SAB 118
  • Implementation of new accounting standards
  • Effective dates and implementation resources

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