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AICPA Updates Two Technical Questions and Answers

July 13, 2018

The American Institute of Certified Public Accountants (“AICPA”) has amended the following Technical Questions and Answers (“TQA”) sections:

  • Section 1200.01, “Disclosure of Revenues of an Agent”: The amendment this TQA Section acknowledges that the AICPA has yet to revise the TQA to reflect Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and ensuing ASUs amending Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The AICPA will delete this TQA upon ASU No. 2014-09’s effective date for all entities.
  • Section 6910.25, “Considerations in Evaluating Whether Certain Liabilities Constitute ‘Debt’ for Purposes of Assessing Whether a Company Must Present a Statement of Cash Flows”: The amendments to this TQA Section reflect coinciding changes necessary caused by the release of ASU No. 2015-07, Fair Value Measurement (Topic 820). The example under TQA Section 6910.25 was amended to replicate the fair value practical expedient measurement as given under ASU No. 2015-07.