FASB Amends Disclosure Rule for Revenue Standard
Recently approved technical corrections to the Financial Accounting Standards Board’s (“FASB”) upcoming revenue recognition standard include a disclosure break for companies in the technology, entertainment, and payment card processing industries. The exemption will give some companies a pass in reporting the remaining contractual obligations to a customer before they receive payments. Sales-based or usage-based royalties for intellectual property licenses and variable consideration distributed to distinct goods or services would qualify for the break. Termed a “practical expedient” in the Proposed Accounting Standards Update No. 2016-240, Technical Corrections and Improvements to Update 2014-09, Revenue From Contracts With Customers (Topic 606), the. Read More.