FASB Announces Top Priorities for 2017
After issuing several key Accounting Standards Updates and announcing new board members last year, the Financial Accounting Standards Board (“FASB”) is preparing for a busy 2017. In a five-minute video, FASB Technical Director Sue Cosper outlines the FASB’s top priorities for this year. The FASB’s top priorities for 2017 include: Finalizing the hedging and long-duration insurance standards; Supporting the implementation of its revenue recognition, leases, and credit losses standards; Potential improvements to nonprofit financial reporting, particularly distinguishing between exchanges and contributions; and Redeliberating feedback on the Invitation to Comment and continuing to focus on its Conceptual Framework. Click here to watch the video.
Topics: Accounting Standards Update "ASU", Conceptual Framework Project, FASB Nonprofit Standard, Financial Accounting Standards Board "FASB", Hedging, Invitation to Comment, leases, Leases (Topic 842), Long-Duration Insurance, Revenue from Contracts with Customers (Topic 606), Revenue Recognition
FASB Working to Address Revenue Standard Guidance for Nonprofit Grants
Before nonprofits implement the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard, the board needs to decide how and when such organizations should disclose revenues from conditional grants. In particular, the FASB needs to resolve whether grants and contracts with government agencies should be characterized as exchanges or contributions, and how to distinguish between conditions and restrictions on such contributions. Some progress on the matter was made during the FASB’s December 14 meeting. The FASB approved adding illustrative examples to its nonprofit guidance, which will help differentiate between grants and related contracts that must be disclosed as contributions, as opposed. Read More.
Updates to FASB Revenue Recognition Standard Issued
The Financial Accounting Standards Board (“FASB”) has announced an Accounting Standards Update (“ASU”) featuring technical improvements to 13 areas of the guidance under ASU No. 2014-09 , Revenue from Contracts with Customers (Topic 606). Issued as ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, the amendments impact the following areas: Loan guarantee fees Impairment testing related to contract costs Interaction of impairment testing related to contract costs with guidance in other topics Provisions for losses on construction-type and production-type contracts Scope of Topic 606 Disclosure of remaining performance obligations Disclosure of prior-period performance obligations Contract modifications example Contract assets versus receivables Refund liability Advertising costs Fixed-odds wagering contracts in the. Read More.
AICPA Publishes Revenue Recognition Audit and Accounting Guide
Offering guidance for applying the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers, the American Institute of Certified Public Accountants (“AICPA”) has issued Audit and Accounting Guide (AAG): Revenue Recognition. The publication addresses issues to consider when auditors examine the revenue disclosed in financial statements, internal controls, fraud risks, and the assessment auditors must make on the accuracy of management’s estimates. The AICPA’s revenue recognition guide is based on the efforts of the task forces that worked under their Financial Reporting Executive Committee since the FASB issued its landmark standard and the International Accounting. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition
Companies Warned About Workload of Implementing Revenue Standard
As the 2018 effective date for the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard approaches, companies in the latter stages of the implementation process caution that the undertaking is extensive and complicated. Those insights were shared by company representatives at the recent Financial Executives International’s Current Financial Reporting Issues conference in New York. Christine DiFabio of Zoetis, Inc. said Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is all encompassing. She also noted that implementation takes a significant effort that could require assistance from all parts of an organization. Newly appointed Securities and Exchange Commission Chief Accountant Wesley Bricker made similar remarks, saying both. Read More.
FASB to Take on Collaborative Arrangements Project
The Financial Accounting Standards Board (“FASB”) plans to address the inconsistent application of Topic 808, Collaborative Arrangement. Last week, the FASB said it will look into clarifying when payments in a collaborative arrangement should be disclosed as revenue or cost reimbursement. Collaborative arrangements not established as legal entities would be impacted by the clarification. The collaborative arrangements project would be limited in scope, as the FASB wants to focus on the interaction between Topic 808 and Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). James Kroeker and board member Harold Schroeder were the sole detractors of. Read More.