March 22, 2016 — On March 17, 2016, the SEC’s Division of Corporation Finance (the “Division”) revised certain sections of its Financial Reporting Manual.1 The changes (1) update the guidance on testing the significance of equity method investments, (2) incorporate certain requirements under the FAST Act,2 and (3) add guidance on the implementation of the FASB’s new revenue standard (ASU 2014-093) as amended by ASU 2015-14.4 The revisions are discussed below in more detail.
This publication is provided as an information service by Deloitte’s National Office and may contain summaries of Deloitte’s observations at meetings or other events. Such summaries are believed to be accurate; however, no representation can be made that it is complete or without error. Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.