FASB Revenue Standard Has Little Impact on Google’s Finances
After adopting the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard one year before the 2018 effective date, Google is acknowledging that the standard has had little effect on its financial results. Google says that its recorded revenue for 2016 was $15 million less than it would have been if determined under the revenue rules prior to Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. Speaking on the matter at the June 27 Financial Executives International Conference in Philadelphia, Google’s Josh Paul said the revenue decrease seemed like a rounding error. Google’s director of technical accounting remarked that. Read More.
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
PCAOB Considering Revenue Recognition Interpretive Guidance for Auditors
Auditors could receive interpretive guidance on the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard. Last month, Public Company Accounting Oversight Board (“PCAOB”) Chief Auditor Martin Baumann said a project is in the works to determine what type of guide the board should release concerning Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606). To help public companies implement ASU No. 2014-09, Baumann remarked that the PCAOB is considering releasing an Audit Practice Alert. The PCAOB staff has already reviewed Staff Audit Practice Alert (“APA”) No. 12, Matters Related to Auditing Revenue in an Audit of. Read More.
Topics: Accounting Standards Update "ASU", Audit Practice Alert, audits, FASB, FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", PCAOB, Public Company Accounting Oversight Board "PCAOB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Staff Audit Practice Alert
Forthcoming Revenue Standard Proposal to Help Nonprofits
New Financial Accounting Standards Board (“FASB”) guidance could make it easier for nonprofits to record revenue from grants and donations with restrictions. On June 7, the FASB unanimously agreed on a proposal to help nonprofits differentiate between a condition and a restriction in U.S. GAAP for received grants and donations. Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606) removed guidance on “exchange” transactions. Furthermore, many nonprofit organizations have had trouble distinguishing between a condition and restrictions. To address the matter, the FASB will clarify that when a gift comes with a donor-imposed condition, the agreement must. Read More.
Topics: Accounting Standards Update "ASU", Charitable Giving, FASB, Financial Accounting Standards Board "FASB", Nonprofits, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, U.S. GAAP
Survey Reveals Slow Revenue Standard Implementation
Over 70 percent of 300 major public businesses in the U.S. have yet to upgrade their accounting systems in preparation for the Financial Accounting Standards Board’s revenue recognition standard. In a survey conducted by one of the Big Four firms, one-third of respondents said their company are facing implementation challenges and could fall behind schedule. Reasons companies reported for falling behind implementation efforts include insufficient funding or staff, problems interpreting the revenue standard’s technical requirements, and issues collecting data. Public companies have six months to comply with Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Survey officials believe. Read More.
FASB Webcast to Focus on Aerospace and Defense Revenue Recognition
On Thursday, the Financial Accounting Standards Board (“FASB”) will host the first in a webcast series discussing how its revenue recognition standard will impact different sectors. The first webcast will focus on the aerospace and defense sector, and feature speakers from the FASB, GE and Raytheon. Panelists will cover the standard’s more significant changes, as well as give attendees the opportunity to ask questions and help shape the new revenue recognition guidance. The hour-long webcast starts at 2 p.m. ET. To attend, register at FASB.org.