Private Company Accounting Alternatives Removed
Impacting the use of private company accounting alternatives, the Financial Accounting Standards Board has issued Accounting Standards Update (ASU) No. 2016-03 . The ASU eliminates the effective dates for the following alternatives: ASU No. 2014-02, Intangibles—Goodwill and Other (Topic 350). ASU No. 2014-03, Derivatives and Hedging (Topic 815). ASU No. 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. ASU No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination. ASU No. 2016-03 also waives the preferability assessment for the first time a private entity applies a private company accounting alternative. The amendments in ASU No. 2016-03 are effective immediately.
Topics: accounting alternatives, Accounting Standards Update "ASU", Business Combinations (Topic 805), Consolidation (Topic 810), Derivatives and Hedging (Topic 815), Intangibles (Topic 350), preferability assessment, Private companies
Public Companies Urged to Use Revenue Standard Panel’s Meeting Minutes
As the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard prepares to take effect in 2018, Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr is pushing public companies to follow the guidance in the Transition Resource Group’s (“TRG”) meeting minutes when implementing Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers. At last week’s SEC Speaks conference, Schnurr said while the TRG’s conclusions are not authoritative, companies should still use them in practice. Additionally, any alternative approach a company takes must be communicated to the SEC. FASB Vice Chairman and TRG Co-Chairman Jim Kroeker praised Schnurr’s comments,. Read More.
Topics: Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", Joint Transition Resource Group for Revenue Recognition, Revenue Recognition, U.S. Securities and Exchange Commission "SEC"
Decisions Reached on Accounting for Partial Sales of Nonfinancial Assets
The Financial Accounting Standards Board (“FASB”) recently reviewed the project on clarifying the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets, which is part of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). During its February 17th meeting, the FASB decided not to offer explicit guidance regarding the sales of undivided interests in Subtopic 610-20. The FASB also decided to maintain consistency with Topic 606 and require the assessment of control to be reviewed from the counterparty’s perspective. For transition purposes, the FASB decided that Subtopic 610-20 will go into. Read More.
Proposed Changes to Cash Flow Presentation Issued
The proposed Accounting Standards Update, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, was recently issued by the Financial Accounting Standards Board. Seeking to reduce the current diversity in practice in the presentation and classification of certain cash receipts and cash payments under Topic 230 and other Topics, the proposal addresses the following cash flow issues: Debt Prepayment or Debt Extinguishment Costs Settlement of Zero-Coupon Bonds Contingent Consideration Payments Made after a Business Combination Proceeds from the Settlement of Insurance Claims Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance. Read More.
FASB to Propose Slight Changes to Revenue Standard
As the Financial Accounting Standards Board (“FASB”) prepares its annual project for making technical corrections to U.S. GAAP, the standard setter is concurrently planning to issue a separate proposal featuring minor changes to its revenue recognition standard. The proposed revenue corrections cover several areas, including the clarification of contracts within the scope of Topic 944, Financial Services — Insurance. Hoping to issue the revenue clarifications by the end of March, the FASB decided to release the amendments separately due to the prominence of Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Upon release, the proposed changes will have. Read More.
Will New Revenue Standards on Customer Contracts Impact You?
By: Sara Crabtree , Manager, Government Contractor Services Group U.S. Generally Accepted Accounting Principles (GAAP), as codified in the Accounting Standards Codification, does not provide one, all-inclusive general standard on revenue recognition that applies across the board to all transactions and entities. Companies follow various subtopics in the Codification or industry specific standards to determine the proper procedures for recognizing revenue. That will all change for contracts with customers once new revenue recognition standards go into effect. In May 2014, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) issued new requirements on recognizing revenue that derives from customer-based. Read More.
Topics: Accounting Standards Codification, Accounting Standards Update "ASU", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Topic 606, U.S. GAAP