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FASB Adds Nonprofit Consolidation Reporting and Nonemployee Share-Based Compensation Projects

As a result of its December 16th meeting, the Financial Accounting Standards Board (“FASB”) has added the following two projects to its standard-setting agenda: Nonprofit consolidation reporting. The FASB will propose guidance clarifying when a nonprofit group serving as a general partner should report the holdings of a for-profit limited partnership on its balance sheets. Some nonprofits previously said that the guidance was not clear in Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Nonemployee share-based compensation. Subtopic 505-50, Equity—Equity Based Payments to Non-Employees, addresses some of the accounting for nonemployee share-based payments, but the. Read More.

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U.S. GAAP Update to Offer Accounting Alternative for Private Companies

Last month, the Financial Accounting Standard Board (“FASB”) approved a proposal that would offer private companies an easier method to adopt special accounting alternatives from U.S. GAAP. Scheduled to be published in early 2016, the proposal is in response to the Private Company Council’s (“PCC”) calls for accounting changes. In September, the FASB issued Proposed Accounting Standards Update No. PCC-15-01, Intangibles—Goodwill and Other (Topic 350): Business Combinations (Topic 805): Consolidation (Topic 810): Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance — a Proposal of the Private Company Council. The proposal eliminates the effective dates for the following accounting. Read More.

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FASB Discusses Phase 1 of Nonprofit Accounting Project

On Friday, the Financial Accounting Standards Board (“FASB”) met to discuss Phase 1 of redeliberations for its proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. In particular, the discussion focused on the following issues: Methods of Presenting Operating Cash Flows. The FASB agreed not to require the direct method of presenting operating cash flows, but will continue to allow nonprofit entities to use the direct method or indirect method. The FASB also decided to no longer require the indirect reconciliation if a nonprofit entity uses the. Read More.

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The New Revenue Recognition Standard: Step 5 Recognize Revenue as the Performance Obligations are Satisfied

As mentioned in our previous blogs , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 creating a whole new codification topic (ASC 606). The new standard ushers in a new era of revenue recognition by replacing thousands of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, and will be effective for public entities a year earlier. ASC 606. Read More.

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Accounting for PCC Issue on Identifiable Intangible Assets Finalized

Announced by the Private Company Council (“PCC”), the accounting for identifiable intangible assets in PCC Issue No. 13-01A, “Accounting for Identifiable Intangible Assets in a Business Combination” has been finalized. In preparation for endorsement by the Financial Accounting Standards Board (“FASB”), a final Accounting Standards Update (ASU) is being prepared. The ASU will feature amendments stating an entity would not identify non-competition agreements, and customer-related intangible assets not able to be sold or licensed separately from other assets in a business combination. Once endorsed, the amendments would go into effect for business combinations agreed upon in the first annual period. Read More.

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The New Revenue Recognition Standard: Step 4 — Allocate the Transaction Price to the Performance Obligations

As mentioned in our previous blog , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606) and ushers in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC. Read More.

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