What You Need to Know – Changes in Financial Accounting Standards: 2015 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (EITF 15-F) The objective of this project is to reduce diversity in practice, clarify existing principles and provide additional guidance on what an entity should consider in determining classification of certain cash flows. As part of the project, the staff will research potential additional disclosures that could result in increased relevance for users. FASB is in the initial deliberation phase of this project. Improving the Equity Method of Accounting FASB is in the initial deliberation stage of this project. Accounting for Interest Income Associated with the purchase of Callable Debt Securities FASB tentatively decided to amortize all premiums to the first call date and all discounts to the maturity date. An exposure draft is expected in early 2016. Research Projects In addition to the topics above, FASB has the following research projects on its agenda:  Accounting for Convertible Financial Instruments  Accounting for Financial Instruments: Interest Rate Risk Disclosures  Accounting for Income Taxes: Presentation of Tax Expense/Benefit  Applying Variable Interest Entity Guidance to Non-Leasing Arrangements under Common Control (PCC Research Agenda)  Financial Performance Reporting (formerly Financial Statement Presentation)  Improving Classification Guidance in the Statement of Cash Flows  Nonemployee Share-Based Payment Accounting Improvements  Partnership Accounting (PCC Research Agenda) Conclusion FASB addressed many topics in 2015. Companies are encouraged to plan for the numerous effects on company operations, compliance and financial systems and results that could be caused by upcoming GAAP changes.

If you have any questions or would like more information, contact your BKD advisor. Contributor Connie Spinelli Director 303.861.4545 cspinelli@bkd.com 27 .