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Proposed Grants and Contributions Guidance Receives Support

With the comment period ending last week for Proposed Accounting Standards Update (ASU) No. 2017-270, Not-for-Profit Entities (Topic 958) Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, nonprofit and professional groups and audit firms have expressed support for the Financial Accounting Standards Board’s (“FASB”) attempts to simplify how organizations disclose revenue from grants and contributions. Mostly impacting nonprofits like charities and foundations, the proposal revises the guidance on determining whether gifts to nonprofit groups must be presented as contributions subject to ASC 958-605, Not-for-Profit Entities—Revenue Recognition, or as reciprocal transactions (i.e., exchanges) subject to ASC 605/606. The. Read More.

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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.

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Revenue Recognition Draft Guidance Issued for Utilities and Time-Share Companies

The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee has issued the following working drafts to address implementation of Accounting Standards Update No. 2016-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board (“FASB”): Working Draft: Proposed Implementation Issues for Revenue Recognition: Power & Utility Entities (#13-1): Accounting for Tariff Sales to Regulated Customers. Intended to help power and utility companies with applying ASU No. 2016-09 to revenues caused by regulated utility tariffs, this working draft explains that agreements between utilities and customers for services provided under a regulated tariff must be disclosed as a customer. Read More.

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Revenue Standard Implementation Issues Receive Working Drafts

Shortly before Christmas, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) published working drafts to address implementation issues related to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The Proposed Implementation Issues recommend interpretative guidance to be included in the next Audit and Accounting Guide: Revenue Recognition update; the most recent guide was issued last month to help with application of the Financial Accounting Standards Board’s revenue recognition standard. Released as Working Drafts, Proposed Implementation Issues for Revenue Recognition: Telecommunications (#15-2, #15-9) and Working Drafts, Proposed Implementation Issues for Revenue Recognition: Time-Share (#16.1),. Read More.

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FinREC Publishes Three Revenue Standard Working Drafts

The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has issued the following working drafts in regard to the Financial Accounting Standards Board’s revenue recognition standard, Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers: Proposed Implementation Issues for Revenue Recognition: Telecommunications — Disclosure and Transition. This working draft concerns the required disclosures under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. The draft guidance notes that a disclosure presented due to another accounting standard does not need to be repeated to fulfill ASC 606. The draft also details several disclosure requirements under ASC. Read More.

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Working Drafts Offer Revenue Recognition Guidance for Telecommunications Suppliers

Revenue recognition implementation guidance could be on the way for telecommunications providers. Last week, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee issued two working drafts offering industry-specific guidance for adopting the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Proposed Issue #15-1– Portfolio Accounting, proposes that a telecommunications supplier can use the portfolio accounting shortcut when a large disparity does not exist when accounting for contracts jointly rather than individually. The draft guidance advises what suppliers should consider when deciding whether to use the portfolio approach. The second working draft,. Read More.

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