FASB Member Says No Major Accounting Changes Coming
In the last 18 months, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Updates (“ASU”) for leases, credit losses, and revenue recognition. FASB member Christine Botosan, however, stated last week that the board has no immediate plans to publish additional major accounting changes. During the American Institute of Certified Public Accountants’ Not-for-Profit Conference in Maryland, Botosan assured attendees by announcing the board’s plans to pause on adding major accounting standards to its agenda. Botosan said the FASB is considering undertaking other significant accounting projects, but is also aware of how much effort goes into complying with ASU No.. Read More.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Leases (Topic 842), Revenue From Contracts With Customers, Revenue Recognition
AICPA Task Forces Issue Revenue Recognition Exposure Drafts
In response to Financial Accounting Standards Board Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants’ (“AICPA”) Revenue Recognition Task Forces have issued ten exposure drafts for public comment. The exposure drafts impact four industries and include the following: Airlines 2-3 – Passenger Tickets – Breakage and Accounting for Travel Vouchers 2-4 – Ancillary Fees and Services 2-5 – Interline Transactions 2-6a & d – Brand Name and Customer List 2-6i – Interline Loyalty Transactions 2-11 – Change Fees Gaming 6-8a – Loyally and Other Incentive Programs without Tier Status Hospitality 7-1 – Franchise Fees 7-2 – Hotel Management Service Arrangements 7-3 – Owned and Leased Property Revenues Timeshare 16-2 – Collectibility Comments on the exposure drafts are due Thursday, June 1.
Revenue Standard Working Drafts Released for Insurers & Software Companies
Two working drafts addressing implementation problems with the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard have been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee: Proposed Implementation Issues for Revenue Recognition: Insurance Entities (#9-1): Considerations for Applying the Scope Exception in FASB ASC 606-10-15-2 and 606-10-15-4 to Contracts Within the Scope of ASC 944. This working draft explains that contracts bound by the financial reporting requirements under FASB Accounting Standards Codification (“ASC”) 944, Financial Services – Insurance, are not impacted by FASB ASC 606, Revenue From Contracts With Customers. Proposed Implementation Issues for. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", Insurers, Revenue From Contracts With Customers, Revenue Recognition, Software Companies, Working Drafts