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FASB to Clarify Guidance for Collaborative Arrangements

The Financial Accounting Standards Board (“FASB”) will seek ways to make its guidance under Topic 808, Collaborative Arrangements, easier to follow. At its October 4 meeting, the FASB unanimously agreed to simplify the guidance to reflect the board’s initial goal of clarifying when partners in a collaborative arrangement must record revenue due to the venture’s cost reductions. The FASB also plans to examine the guidance for transactions that do not generate revenue for the partners, as well as consider guidance for what is the unit of accounting under Topic 808. FASB members and staffers said that the board will not. Read More.

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FASB to Take on Collaborative Arrangements Project

The Financial Accounting Standards Board (“FASB”) plans to address the inconsistent application of Topic 808, Collaborative Arrangement. Last week, the FASB said it will look into clarifying when payments in a collaborative arrangement should be disclosed as revenue or cost reimbursement. Collaborative arrangements not established as legal entities would be impacted by the clarification. The collaborative arrangements project would be limited in scope, as the FASB wants to focus on the interaction between Topic 808 and Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). James Kroeker and board member Harold Schroeder were the sole detractors of. Read More.

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FASB Reviews Ongoing and Future Projects

Several projects received attention at the Financial Accounting Standards Board’s (“FASB”) August 31 meeting. Last week’s board meeting featured staff research updates on the following potential projects: Accounting for service concession arrangements Collaborative arrangements Scope of modification accounting in Topic 718, Compensation─Stock Compensation The FASB also redeliberated its proposed Accounting Standards Update, Technical Corrections and Improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606); discussed the revenue recognition of grants and contracts by nonprofits; and reached conclusions on the proposed guidance updates for long-duration contracts. More on the tentative board decisions from the August 31 meeting is available at

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