Financial Reporting Manual Updated
On March 17th, the Securities and Exchange Commission’s Division of Corporation Finance issued an updated Financial Reporting Manual that addresses transition issues in regard to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). The updates include implementation guidance for companies that adopt the Financial Accounting Standards Board’s revenue recognition standard using the full retrospective method or modified retrospective approach. Companies that adopt the full retrospective method, for instance, will not have to recalculate their investments in other entities, as stated by Rule 3-09 of Regulation S-X.
The revised Financial Reporting Manual also reflects changes from the Fixing America’s Surface Transportation Act, as well as reporting issues caused by a company’s operations being discontinued.