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Nonfinancial Assets Guidance to Coincide with FASB Revenue Standard

The Financial Accounting Standards Board’s (“FASB”) latest Accounting Standards Update (“ASU”) clarifies guidance to help determine when gains and losses on nonfinancial assets should be recognized. Issued as ASU No. 2017-05, Other Income—Gains and Losses From the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, the amendments clarify the term “in substance nonfinancial asset” to inform financial reporting professionals which transactions are part of the nonfinancial asset derecognition guidance. The FASB had failed to define the term in ASU No. 2014-09, Revenue From Contracts With Customers (Topic. Read More.

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SEC Announcement Added to FASB Codification

The Financial Accounting Standards Board (“FASB”) recently announced the issuance of Accounting Standards Update (“ASU”) No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendments update the FASB Codification for the Securities and Exchange Commission (“SEC”) Staff Announcement regarding the following standards: ASU No. 2014- 09, Revenue from Contracts with Customers (Topic 606) ASU No. 2016-02, Leases (Topic 842) ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit. Read More.

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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.

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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.

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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.

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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.

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