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.
FASB Proposes Amendments to Codification Guidance
The Financial Accounting Standards Board (“FASB”) has proposed several changes that would correct errors or offer slight improvements to its Accounting Standards Codification (Codification). Issued as a Proposed Accounting Standards Update, Technical Corrections and Improvements, the planned changes would simplify the Codification and make it easier to apply by removing inconsistencies and clarifying guidance. Generally, the proposed amendments fall under one of the following categories: Amendments related to differences between original guidance and the Codification; Guidance clarification and reference corrections; Simplification; or Minor improvements. Comments on the proposal are due Tuesday, July 5th. Check out the Accounting Web for more. Read More.