Changes to FASB Revenue Recognition Standard Proposed
Updates are in the works regarding Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The proposed ASU, Technical Corrections and Improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606): Additional Corrections, includes amendments impacting certain aspects of the Financial Accounting Standards Board’s (“FASB”) landmark standard. Per its proposed amendments, the FASB aims to: Clarify that guarantee fees under the scope of Topic 460, with the exception of product or service warranties, are not under the scope of Topic 606, Revenue from Contracts with Customers; Provide a better connection between the analysis in. Read More.
Working Drafts Offer Revenue Recognition Guidance for Telecommunications Suppliers
Revenue recognition implementation guidance could be on the way for telecommunications providers. Last week, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee issued two working drafts offering industry-specific guidance for adopting the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Proposed Issue #15-1– Portfolio Accounting, proposes that a telecommunications supplier can use the portfolio accounting shortcut when a large disparity does not exist when accounting for contracts jointly rather than individually. The draft guidance advises what suppliers should consider when deciding whether to use the portfolio approach. The second working draft,. Read More.
GASB to Hold Meetings August 10-12
Beginning Wednesday, the Governmental Accounting Standards Board (“GASB”) will hold a series of meetings at its Norwalk offices. According to the GASB Notice of Meetings , the following topics will be discussed this week: The preballot draft of the proposed Exposure Draft, Certain Debt Extinguishments; The proposed Exposure Draft, Omnibus; Asset retirement obligations; Fiduciary activities; Leases; Financial reporting model; Revenue and expense recognition; and The GASB’s technical plan for the end of 2016. The GASB’s three-day meeting is expected to start Wednesday at 8:30 a.m. ET. With the exception of Thursday evening’s administrative session from 5:15 p.m. – 6:15 p.m. ET, all meeting sessions. Read More.
Revenue Recognition Working Drafts Issued for Nine Industries
Earlier this month, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) issued 20 working drafts of interpretative guidance for implementation issues related to the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The working drafts offer industry-specific examples for implementing the revenue recognition standard, and pertain to the following sectors: Aerospace and Defense Airlines Broker-dealers Engineering and Construction Contractors Gaming Health Care Asset Management Nonprofits Software Comments on the working drafts must be submitted by Thursday, September 1.
Topics: Aerospace, Airlines, Asset Management, Broker-Dealer, Engineering and Construction Contractors, Financial Reporting Executive Committee "FinREC", Gaming, Health Care, Nonprofits, Revenue Recognition, Software
Recap of FASB’s June 15 Meeting
At its Board meeting on June 15, the Financial Accounting Standards Board (“FASB”) reached tentative decisions on the following topics: Accounting for income taxes—intra-entity asset transfers. The FASB will require entities to disclose the income tax consequences of an intra-entity asset transfer, excluding an intra-entity asset transfer of inventory, when the transfer takes place. Current GAAP will also be retained for intra-entity asset transfers of inventory, which requires the disclosure of income tax consequences when an outside party purchases the inventory. Public entities will have to apply the amendments during annual periods, and interim periods within, starting after December 15,. Read More.
SEC Staff Observer Comments Rescinded
The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. The Update rescinds Securities and Exchange Commission (“SEC”) paragraphs in accordance with the following SEC Staff Observer comments, which are related to Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, upon the effective date of Topic 606, Revenue from Contracts with Customers: Revenue and Expense Recognition for Freight Services in Process in paragraph. Read More.