FASB Standard Addresses New SEC Guidance
A new Accounting Standards Update (“ASU”) features amendments to select Securities and Exchange Commission (“SEC”) paragraphs under the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Issued as ASU No. 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), the standard amends the Accounting Standards Codification to incorporate the following SEC guidance:
- SEC Staff Accounting Bulletin (“SAB”) No. 116: SAB No. 116 aligns current SEC staff guidance with ASC Topic 606, Revenue from Contracts with Customers. This bulletin updated SAB Topic 13, Revenue Recognition, SAB Topic 8, Retail Companies, and Section A, Operating-Differential Subsidies, of SAB Topic 11, Miscellaneous Disclosure. ASU No. 2017-14 replaces several SEC paragraphs and amends an SEC paragraph by SAB 116.
- SEC Interpretive Release on Vaccines for Federal Government Stockpiles (Release No. 33-10403): Release No. 33-10403 updates the SEC’s Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile. The release said manufacturers must recognize revenue for vaccines in the Vaccines for Children Program and the Strategic National Stockpile. Registrants should continue using the guidance under the release until adopting ASC Topic 606. ASU No. 2017-14 replaces several SEC paragraphs and adds an SEC paragraph by this guidance.