Nonfinancial Assets Guidance to Coincide with FASB Revenue Standard
The Financial Accounting Standards Board’s (“FASB”) latest Accounting Standards Update (“ASU”) clarifies guidance to help determine when gains and losses on nonfinancial assets should be recognized. Issued as ASU No. 2017-05, Other Income—Gains and Losses From the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, the amendments clarify the term “in substance nonfinancial asset” to inform financial reporting professionals which transactions are part of the nonfinancial asset derecognition guidance. The FASB had failed to define the term in ASU No. 2014-09, Revenue From Contracts With Customers (Topic. Read More.
Topics: Accounting Standards Update "ASU", Derecognition of Nonfinancial Assets (Subtopic 610-20), FASB, Financial Accounting Standards Board "FASB", Nonfinancial Assets, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Transfers & Servicing
FASB Approves Nonfinancial Assets Guidance Proposal
The Financial Accounting Standards Board (“FASB”) recently approved most of the planned changes to its accounting guidance for sales and disposals of nonfinancial assets. Outlined in Proposed Accounting Standards Update No. 2016-250, Other Income — Gains and Losses From the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, the proposed amendments are part of the FASB’s wider efforts to help companies differentiate between a business acquisition or sale and the acquisition or sale of a group of assets. The FASB confirmed the proposal’s main principle, which requires. Read More.