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.
Topics: Accounting Standards Update "ASU", Conceptual Framework Project, FASB Nonprofit Standard, Financial Accounting Standards Board "FASB", Hedging, Invitation to Comment, leases, Leases (Topic 842), Long-Duration Insurance, Revenue from Contracts with Customers (Topic 606), Revenue Recognition
Revenue Standard Implementation Issues Receive Working Drafts
Shortly before Christmas, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) published working drafts to address implementation issues related to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The Proposed Implementation Issues recommend interpretative guidance to be included in the next Audit and Accounting Guide: Revenue Recognition update; the most recent guide was issued last month to help with application of the Financial Accounting Standards Board’s revenue recognition standard. Released as Working Drafts, Proposed Implementation Issues for Revenue Recognition: Telecommunications (#15-2, #15-9) and Working Drafts, Proposed Implementation Issues for Revenue Recognition: Time-Share (#16.1),. Read More.
Topics: Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", Proposed Implementation Issues, Revenue Recognition, Telecommunications, Time-Share, Working Drafts
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.
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.
Topics: American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition
Companies Warned About Workload of Implementing Revenue Standard
As the 2018 effective date for the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard approaches, companies in the latter stages of the implementation process caution that the undertaking is extensive and complicated. Those insights were shared by company representatives at the recent Financial Executives International’s Current Financial Reporting Issues conference in New York. Christine DiFabio of Zoetis, Inc. said Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is all encompassing. She also noted that implementation takes a significant effort that could require assistance from all parts of an organization. Newly appointed Securities and Exchange Commission Chief Accountant Wesley Bricker made similar remarks, saying both. Read More.
FASB Says to Use Judgment When Applying Revenue Standard
Companies will have to make a judgment call when recording revenue from customer contracts over time when the Financial Accounting Standards Board’s (“FASB”) revenue standard becomes effective in 2018. That was the message members of the FASB’s Transition Resource Group (“TRG”) stressed during last week’s discussion on Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. FASB assistant project manager Aaricka Friend commented that the standard makes it very clear that revenue is to be recorded from the moment when a business meets its obligations to a customer. TRG members also said that the timing could change, so companies. Read More.