SEC Deputy Chief Accountant Speaks at Financial Reporting Conference
As guest speaker at the 15th Annual Baruch College Financial Reporting Conference, Securities and Exchange Commission (“SEC”) Deputy Chief Accountant Wesley Bricker expressed his views on the current transition period undertakings for the upcoming revenue recognition and leases standards, and the Financial Accounting Standards Board’s proposal for financial instruments’ credit impairment. He also cautioned companies that presenting non-generally accepted accounting principles in public filings, especially adjustments to revenue, will increase the likelihood of receiving an SEC comment letter. He also spoke about the Public Company Accounting Oversight Board’s efforts to encourage auditor attention on financial reporting risks. A transcript of Bricker’s speech is available on. Read More.
Revenue Recognition Narrow-Scope Amendments and Practical Expedients Issued
The Financial Accounting Standards Board has issued Accounting Standards Update (“ASU”) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU No. 2016-12 clarifies guidance in certain areas and adds practical expedients. The updated guidance and practical expedients in the amendments include the following: Assessing the Collectibility Criterion in Paragraph 606-10-25-1(e) and Accounting for Contracts That Do Not Meet the Criteria for Step 1 (Applying Paragraph 606-10-25-7). ASU No. 2016-12 clarifies the collectibility criterion in Step 1, and adds a new criterion to paragraph 606-10-25-7 which clarifies when revenue is recognized for a contract that. Read More.
FASB Updates Revenue Recognition Guidance
The Financial Accounting Standards Board (“FASB”) recently issued Accounting Standards Update (ASU) No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify guidance in Topic 606 for identifying performance obligations in a contract and the licensing of intellectual property. Public entities must apply the new guidance for annual reporting periods, and interim periods therein, starting December 15, 2017. Early application is permitted for public entities as of annual reporting periods, and interim periods therein, starting December 15, 2016. Nonpublic entities have a one-year deferral of the effective date. More on the issuance of ASU No. 2016-10 is available on. Read More.
GASB to Hold Four-Day Meeting Next Week
From Monday to Thursday next week, the Governmental Accounting Standards Board (“GASB”) will meet to discuss several topics pertinent to its current agenda. As mentioned in its Tentative Notice of Meetings , the GASB is scheduled to review the following: Feedback from the Governmental Accounting Standards Advisory Council on technical agenda projects; A ballot draft of a final Statement, Pension Issues; The financial reporting model; Debt extinguishment issues, particularly recognition issues related to defeasances using existing resources; and Results from the pre-agenda research concerning Revenue Recognition from Exchange and Exchange-Like Transactions. The first meeting is expected to start Monday afternoon at 1:00 p.m. EST.. Read More.
Public Companies Urged to Use Revenue Standard Panel’s Meeting Minutes
As the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard prepares to take effect in 2018, Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr is pushing public companies to follow the guidance in the Transition Resource Group’s (“TRG”) meeting minutes when implementing Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers. At last week’s SEC Speaks conference, Schnurr said while the TRG’s conclusions are not authoritative, companies should still use them in practice. Additionally, any alternative approach a company takes must be communicated to the SEC. FASB Vice Chairman and TRG Co-Chairman Jim Kroeker praised Schnurr’s comments,. Read More.
Topics: Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", Joint Transition Resource Group for Revenue Recognition, Revenue Recognition, U.S. Securities and Exchange Commission "SEC"
IASB Bows Out of Revenue Standard Advisory Panel
The International Accounting Standards Board (“IASB”) has withdrawn participation from future meetings of the Transition Resource Group (“TRG”), the advisory panel assigned to address questions concerning its revenue recognition standard. Announced last month, the IASB said it was done making changes to International Financial Reporting Standards 15, Revenue From Contracts With Customers, and was ready for businesses to begin the implementation process. Moving forward, the IASB will make itself available for consultation if necessary. In the meantime, the Financial Accounting Standards Board will continue participation with the advisory panel in regard to its revenue recognition standard, Accounting Standards Update No. 2014-09, Revenue From Contracts. Read More.