FASB Makes Slight Changes to Collectibility Test
A key part of the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard received some minor adjustments at the standard setter’s February 10th meeting. After considering feedback that asked for simpler guidance in regard to Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, the FASB agreed to clarify some aspects of the collectibility threshold. However, the FASB decided not to make any significant changes to the test for determining the likelihood of collecting customer payments. Rather, the board confirmed that it must be “probable” for customers to meet their payments before a company tallies its revenue. With. Read More.