CPAs and Advisors with Your Growth in Mind

ASU 2014-05 – Agreeing on Service Concessions Agreements

The Bottom Line Published January 23rd, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2014-05, Service Concession Arrangements (Topic 853) — a consensus of the FASB Emerging Issues Task Force, in response to an increase in public sector entities (i.e. governmental bodies) entering into service concession agreements with operating entities who follow U.S. GAAP. The overall conclusion of this ASU is that these types of arrangements should not be considered leases within the scope of ASC 840. What is a Service Concession Arrangement? A service concession arrangement (“SCA”) is an arrangement between a public sector entity (the. Read More.

Topics: , , , , ,