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SEC Staff Observer Comments Rescinded

The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. The Update rescinds Securities and Exchange Commission (“SEC”) paragraphs in accordance with the following SEC Staff Observer comments, which are related to Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, upon the effective date of Topic 606, Revenue from Contracts with Customers:

  • Revenue and Expense Recognition for Freight Services in Process in paragraph 605-20-S99-2
  • Accounting for Shipping and Handling Fees and Costs in paragraph 605-45-S99-1
  • Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products) in paragraph 605-50-S99-1
  • Accounting for Gas-Balancing Arrangements in paragraph 932-10-S99-5

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