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More Revenue Recognition Clarifications Proposed

The Financial Accounting Standards Board (“FASB”) has proposed another set of clarifications to its revenue recognition standard. Issued as the proposed Accounting Standards Update (“ASU”), Technical Corrections and Improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), the clarifications impact the following issues under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606):

  • Preproduction costs associated with long-term supply arrangements
  • Contract costs related to impairment testing
  • Contract costs related to the interaction of impairment testing with guidance in other topics
  • Provisions for losses on construction-type and production-type contracts
  • The scope of Topic 606
  • Disclosure of remaining performance obligations
  • Contract modifications example
  • Fixed-odds wagering contracts in the casino industry
  • Cost capitalization for advisors to private and public funds

Comments on the proposed clarifications were due Saturday, July 2. More on the FASB’s proposal can be found on the Journal of Accountancy website.

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