Recap of Private Company Council’s July 11 Meeting
Private Company Council (“PCC”) and Financial Accounting Standards Board (“FASB”) members met Tuesday to discuss stakeholder feedback from the June 13 private company town hall meeting. In addition, the PCC offered input on the following FASB projects: Consolidation Targeted Improvements to Related Party Guidance for Variable Interest Entities Liabilities and Equity—Targeted Improvements Cloud Computing (EITF Issue No. 17-A) Nonemployee Share-Based Payment Accounting Improvements Invitation to Comment on Agenda Consultation Balance Sheet Classification of Debt Updates on these FASB projects and a full meeting recap are available on the PCC website.
Topics: Balance Sheet, Cloud Computing, Consolidation, FASB, FASB standard-setting agenda, Financial Accounting Standards Board "FASB", Invitation to Comment, liabilities and equity, nonemployee share-based awards, Private Company Council "PCC", Variable Interest Entity "VIE"
Trade Group Calls for Digital Currency Accounting Guidance
A project to create accounting guidance for digital currency could be added to the Financial Accounting Standards Board’s (“FASB”) standard-setting agenda. In response to a request from the Digital Chamber of Commerce, the FASB plans to hold a public meeting to review whether a digital currency project is necessary. A date for the meeting has yet to be announced. In its June 8 letter, the Digital Chamber of Commerce asked for the FASB to establish guidance regarding when and how to measure digital currency. The letter calls for the FASB to develop an accounting model allowing companies to acknowledge digital. Read More.
Topics: Cash and Cash Equivalents (Topic 305), digital currency, FASB, FASB standard-setting agenda, Financial Accounting Standards Board "FASB", Financial Instruments (Topic 825), Intangible Assets (Topic 350), Inventory (Topic 330)
Industry-Specific Revenue Standard Implementation Guidance Proposed
On July 3, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee released four working drafts on the Financial Accounting Standards Board’s revenue recognition standard. The working drafts are tailored to the following four industries: Airlines. Working Draft: Airlines Revenue Recognition Implementation Issue #2-1: Regional Contracts addresses capacity purchase agreements established by major airlines with regional carriers to reach smaller markets. The working draft applies the guidance in Topic 840, Leases, to the aspects of a capacity purchase agreement that are not deemed leases. In addition, the working draft instructs air carriers how Topic 606, Revenue From Contracts With Customers, is to be employed to review the various. Read More.
Topics: AICPA, Airlines, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Gaming, Health Care, Proposed Implementation Issues, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Telecommunications, U.S. GAAP, Working Drafts
FASB Revenue Standard Has Little Impact on Google’s Finances
After adopting the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard one year before the 2018 effective date, Google is acknowledging that the standard has had little effect on its financial results. Google says that its recorded revenue for 2016 was $15 million less than it would have been if determined under the revenue rules prior to Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. Speaking on the matter at the June 27 Financial Executives International Conference in Philadelphia, Google’s Josh Paul said the revenue decrease seemed like a rounding error. Google’s director of technical accounting remarked that. Read More.
FASB Aims to Eliminate Guidance for Bad Debt Reserves Regarding Savings and Loans
A new Financial Accounting Standards Board (“FASB”) proposal seeks to replace out-of-date deferred tax guidance regarding bad debt reserves for savings and loans that began after December 31, 1987, as well as guidance concerning the Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges (Circular 202). The amendments under the Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 942, Financial Services—Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans, are similar to the technical corrections and improvements being made to clarify the FASB Accounting Standards Codification. As a. Read More.
Eliminating Steamship Entities Guidance Proposed
The Financial Accounting Standards Board (“FASB”) has issued a proposal that would replace Topic 995, U.S. Steamship Entities. The Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 995, US Steamship Entities: Elimination of Topic 995, was created because the guidance in Topic 995 has become irrelevant. FASB Statement No. 109, Accounting for Income Taxes, allows steamship entities that made statutory reserve deposits prior to December 15, 1992, to voluntarily disclose their deferred taxes. The board believes steamship entities with statutory reserve funds should report all deferred taxes according to Topic 740, Income Taxes. In addition, the FASB deems. Read More.