Summary
Marsh & McLennan Companies, Inc. (MRSH) filed an 8-K on March 26, 2018, primarily to disclose the adoption of new accounting standards effective January 1, 2018. The company implemented ASC Topic 606, "Revenue from Contracts with Customers," using the modified retrospective method. This means the new standard is applied prospectively, and prior financial years' statements are not restated. Additionally, an amendment to ASC Topic 715, affecting the presentation of net periodic pension and postretirement costs, was adopted. To aid investors in understanding the potential impact of these changes, the company provided supplemental financial schedules for 2017. These schedules present an estimate as if ASC 606 had been adopted earlier, allowing for a directional view of how 2018 financial information might be affected. The pension cost presentation under ASC 715 is also illustrated in these supplemental schedules. Investors should note that this supplemental information is illustrative and not a restatement of previously filed historical financial statements.
Key Highlights
- 1Marsh & McLennan adopted ASC 606 (Revenue from Contracts with Customers) effective January 1, 2018, using the modified retrospective method.
- 2The adoption of ASC 606 is prospective and does not restate prior financial statements.
- 3The company also adopted an amendment to ASC 715, changing the presentation of net periodic pension and postretirement costs.
- 4Supplemental financial schedules for 2017 were provided to illustrate the potential directional impact of ASC 606 adoption.
- 5These supplemental schedules also reflect the reclassification of net periodic benefit costs per the ASC 715 amendment.
- 6The supplemental information is for illustrative purposes only and not a restatement of historical filings.
- 7This filing is primarily for disclosure and regulatory compliance regarding accounting standard changes.