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FASB to Propose Slight Changes to Revenue Standard

As the Financial Accounting Standards Board (“FASB”) prepares its annual project for making technical corrections to U.S. GAAP, the standard setter is concurrently planning to issue a separate proposal featuring minor changes to its revenue recognition standard. The proposed revenue corrections cover several areas, including the clarification of contracts within the scope of Topic 944, Financial Services — Insurance. Hoping to issue the revenue clarifications by the end of March, the FASB decided to release the amendments separately due to the prominence of Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Upon release, the proposed changes will have. Read More.

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Clarified Guidance on Intellectual Property Licenses Approved

On January 6th, the Financial Accounting Standards Board (“FASB”) approved clarifications to its upcoming revenue recognition standard. Specifically, the clarifications address questions concerning how to account for intellectual property licenses, which is considered one of the complex parts of the FASB and International Accounting Standards Board’s upcoming revenue recognition standards. The FASB has ordered its research staff to draft an update to be published by the end of the first quarter. The amendments will likely be based on Proposed Accounting Standards Update (ASU) No. 2015-250, Revenue From Contracts With Customers (Topic 606): Identifying Performance Obligations and Licensing.

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The New Revenue Recognition Standard: Step 5 Recognize Revenue as the Performance Obligations are Satisfied

As mentioned in our previous blogs , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 creating a whole new codification topic (ASC 606). The new standard ushers in a new era of revenue recognition by replacing thousands of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, and will be effective for public entities a year earlier. ASC 606. Read More.

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The New Revenue Recognition Standard: Step 4 — Allocate the Transaction Price to the Performance Obligations

As mentioned in our previous blog , on May 28th 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 ushers in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-19 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC. Read More.

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The New Revenue Recognition Standard: Step 3 — Determining the Transaction Price

As mentioned in our previous blog , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. This creates a whole new codification topic (ASC 606) and ushers in a new era of revenue recognition and replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-09 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC 606 creates. Read More.

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Report Suggests SEC Comment Letter Disclosure Period to be Shortened

A new study by the American Accounting Association (“AAA”) is reporting complications with the current Securities and Exchange Commission (“SEC”) policy of waiting up to 20 business days of making comment letters public based on registrant filing reviews. Per the AAA’s report, it was determined insider sales are 70 percent above the normal rate five business days before revenue recognition-related comment letters by the SEC are publicly disclosed. This is notable because revenue recognition is one of the most critical accounting issues discussed in comment letters and are likely to concern investors. As noted by the report, the SEC’s current. Read More.

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