The first quarter of 2018 has been nothing short of taxing on financial statement preparers.
The first quarter of 2018 has been nothing short of taxing on financial statement preparers. The enactment of a new tax law on December 22, 2017 required most companies to quickly respond and determine the potential effect of the reforms on their financial statements for the year ended December 31, 2017. The reforms will significantly affect companies' accounting for and reporting of income taxes and their related processes and controls.
In January 2018, calendar year-end public companies adopted the revenue recognition standard, the financial instruments standard about recognition and measurement, and other standards intended to clarify or simplify accounting guidance.
Meanwhile, the FASB finalized and proposed amendments to the leases standard, including optional transition relief. Even with this relief, the time and resources required to gather all information to implement the standard will remain significant, and the 2019 effective date for public companies is quickly approaching.
Our publication summarizes these and other accounting and financial reporting developments potentially affecting you in the current period or near term.