Second Quarter Accounting and Financial Reporting Developments

During the second quarter of 2018, the Financial Accounting Standards Board (FASB) proposed guidance on collaboration arrangements affecting primarily biotech companies and on the definition of collections for not-for-profit entities. Also, it issued final standards to remove obsolete guidance affecting mainly banks, to clarify guidance on contributions for not-for-profit entities, and to improve nonemployee share-based payment accounting. In addition to these highlights from the quarter, this article covers Securities and Exchange Commission (SEC) focus on the financial reporting process, new accounting standards, non-GAAP measures, tax reform, and auditor independence; Public Company Accounting Oversight Board (PCAOB) evaluation of its 2019 strategic plan; updates from the Center for Audit Quality (CAQ) and the American Institute of CPAs (AICPA); and more.