CPAs and Advisors with Your Growth in Mind

Three Revenue Recognition Working Drafts Published

The American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) recently published the following working drafts featuring proposed implementation guidance for Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606): Engineering & Construction Contractors, Issue #4-4: Uninstalled Materials. This working draft covers accounting for items acquired for a construction project but are not immediately installed. Depository and Lending Institutions Revenue, Issue #5-1; Scope Issues. This working draft covers how guidance under Topic 606 is applied to credit card annual fees, deposit-related charges, and servicing and sub-servicing income. Power & Utility Entities, Issue #13-2: Requirements. Read More.

Topics: , , , , , , , ,

Revenue Recognition Implementation: Getting Into the Details

By: Craig Hunter , Partner In our last newsletter, we discussed the highlights of the new revenue recognition standard and what everyone should begin to expect. In this article and future articles, we want to go into more detail about the specific requirements of the standard. As mentioned in the previous edition, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606), and introduces in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a. Read More.

Topics: , , , , , ,

SEC Gives Certain Companies Additional Year to Adopt Key FASB Standards

Securities and Exchange Commission (“SEC”) Deputy Chief Accountant Sagar Teotia has announced that companies that fail to meet the public business entity definition, separate from being required to include financial statements with their filings of public business entities, will receive an additional year to adopt the Financial Accounting Standards Board’s (“FASB”) revenue recognition and lease standards. Decided at the FASB’s Emerging Issues Task Force meeting last week, Teotia said his staff will not object to the affected companies complying with Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), and ASU No. 2016-02, Leases (Topic 842),. Read More.

Topics: , , , , , , , ,

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.

Topics: , , , ,

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: , , , , , , , , ,

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: , , , , , , , , , ,