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SEC Staff Experiences Uptick in Revenue Standard Implementation Questions

As public companies prepare to implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (ASC 606), they are increasingly turning to Securities and Exchange Commission (“SEC”) staff members for implementation guidance. It is being reported that submitted questions concerning the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard increased by one-third last year, largely due to public companies needing assistance with financial reporting. One question submitted to the SEC involves revenue from credit cards. A company asked for guidance on its decision to record revenue from interchange fees that a merchant’s bank pays to the cardholder’s bank. Speaking. Read More.

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FASB Moves Forward with Simplifying Debt Classification Guidance

At its September 13 meeting, the Financial Accounting Standards Board (“FASB”) wrapped up talks on the Proposed Accounting Standards Update, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). As part of the discussion, the FASB reached the decisions on the following topics: Classification Principle: Debt and other instruments that are part of the final Accounting Standards Update must be categorized as noncurrent liabilities in a classified balance sheet if: The liability is contractually due to be settled over one year (or operating cycle, if longer) after the balance sheet date; or The. Read More.

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Banks Express Concerns over FASB Credit Loss Standard

Banking institutions of all sizes are preparing to implement the Financial Accounting Standards Board’s (“FASB”) new standard that requires the calculation of future losses on bad loans versus disclosing losses that have already occurred. While the largest accounting update in years for banks requires an additional workload, some lenders are uncertain about how to sift through their data for estimating future losses and setting aside cash reserves. At the American Institute of Certified Public Accountants’ National Conference on Banks & Savings Institutions last week, Federal Savings Bank executive vice president and CFO James Brannen touched on the difficulties a small. Read More.

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Separating Fact from Fiction About Cloud Technology: Part 2

It might seem like every company on the planet is migrating to “the cloud” – but does that mean every business should be connected to the cloud? Is cloud computing right for every company – or have its benefits been overstated? In Part 1 of “Separating Fact from Fiction About Cloud Technology,”  we examined some of the logistical features of cloud computing that make work easier for people, such as being able to connect remote teams and giving startups and small companies more affordable access to big-company business services. Part two of this series is going to look at the technical features of cloud computing, as we take the time. Read More.

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FASB Still Working to Address Disclosure Overload in Financial Statement Footnotes

Since 2014, the Financial Accounting Standards Board (“FASB”) has been working to simplify U.S. GAAP disclosure requirements for financial statement footnotes. The project, which was released under Proposed Statement of Financial Accounting Concepts No. 2014-200, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, aimed to avoid writing rules that would lengthen a company’s financial statements without benefiting investors. Despite its efforts, the FASB has received frequent complaints from companies who were frustrated over the various disclosure requirements. Board representatives are also concerned about what they consider disclosure overload. They believed investors were becoming overwhelmed with additional information that. Read More.

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Enterprise Risk Management Framework Update Issued

The Committee of Sponsoring Organizations of the Treadway Commission has issued an update to its enterprise risk management (“ERM”) Framework, Enterprise Risk Management–Integrating with Strategy and Performance (“ERM Framework”). Building on the previous version, the update is designed to help companies with managing their risks and create and preserve value. Structured in five components with different viewpoints and operating structures the updated ERM Framework features opinions on the present concepts and applications of enterprise risk management. In addition, the update covers challenges of enterprise risk management that business leaders and boards currently face, such as economic market changes, and evolving. Read More.

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