Following a very hot second quarter of the year, US IPO markets cooled off slightly in Q3’19, as global economic uncertainty and market volatility increased. The US IPO market remains buoyant and represents a very attractive platform for valuation-setting, capital–raising, acquisition currency, employee retention and investor exits.
What are TMT companies saying about their adoption journey? The results of our 2019 lease accounting survey are in, and while the deferral of ASC 842 for private companies may provide some relief, there are many opportunities for private companies to learn from public company adoption in 2019. Our recent survey also provides insights into what “Day 2” challenges public companies are continuing to work through.
Cloud computing arrangements
Many companies are moving data, applications, and platforms to the cloud. Migration from a traditional IT model to the cloud may create substantial business benefits because companies may be able to reduce capital expense outlays while maintaining a more flexible IT environment. As companies move to a cloud-based environment, software products that have traditionally been installed locally on a customer’s server are now often hosted on a vendor’s server and accessed by the customer remotely. These arrangements are typically referred to as cloud computing arrangements (CCAs). Companies should consider the financial reporting implications as well as broader tax and IT considerations as a result of IT transformation.
2019 AICPA conference
The 2019 AICPA National Conference on Current SEC and PCAOB Developments took place December 9–11, 2019. The conference featured representatives from regulatory and standard-setting bodies, along with auditors, preparers, securities counsel, and industry experts. Consistent with prior years, the theme of the conference focused on collaboration and transparency. Topics discussed at the conference included: observations on registrants’ implementations of the Revenue and Leases accounting standards including an analysis of factors that contributed to successful implementations. Additionally, conference topics included observations relative to monitoring of implementation of the Current Expected Credit Losses (CECL).