United States

Disclosures for recent accounting standards issued but not yet adopted


The SEC staff reminds registrants of the need to evaluate the appropriate financial statement disclosures regarding the following Financial Accounting Standards Board Accounting Standards Updates (ASUs) that have been issued but not yet adopted:

  • ASU 2014-09, Revenue from Contracts with Customers (Topic 606)
  • ASU 2016-02, Leases (Topic 842)
  • ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Financial statement disclosures regarding these ASUs should include the potential material effects of the ASUs on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact that adoption of these ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have when adopted. The SEC staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies that the registrant expects to apply, if determined, and a comparison to the registrant’s current accounting policies. Also, a registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The SEC staff guidance also applies to any subsequent amendments to the aforementioned ASUs that are issued prior to a registrant’s adoption of the ASUs.

The full text of the SEC staff announcement regarding the above matters can be found in recently issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update).