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FinREC to Create Accounting Guide for Revenue Recognition Standards

Planned for a mid-2016 release, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) is working on an accounting guide for the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board’s (“IASB”) recently issued revenue recognition standards. The guide will assist accountants’ implementation of FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Additionally, the guide will offer insightful tips, examples and what high impact industries should consider when implementing the standards. There will also be sessions in all AICPA conferences and. Read More.

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Frequently Asked Questions on ASU 2014-02

Since posting our alert , we’ve started to receive some questions about Accounting Standards Update (ASU) 2014-02. In response, we’ve taken the most popular questions and turned them into a FAQ. We hope you enjoy. Q: So what does ASU 2014-02 do? A: If a private company, as defined, makes an accounting policy election to adopt the goodwill alternative allowed by this ASU, existing goodwill (on a prospective basis) and all newly created goodwill will no longer be subjected to annual impairment testing. Instead, goodwill will be amortized over 10 years or a shorter life if that is more representative. In. Read More.

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A Push for Fewer Discontinued Operations

Overview In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Starting as a short-term convergence project with the International Accounting Standards Board in 2006, the end result was a multiyear effort to identify what events truly should qualify as a discontinued operation. The ASU changes the criteria for reporting a discontinued operation, which should reduce the number of items reported below income from continuing operations. Also, the ASU reduces the implementation guidance while increasing disclosure requirements. Strategic Shift? One criticism about the previous. Read More.

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New FASB Repurchase Disclosure Standard Released

Recently issued by the Financial Accounting Standards Board (“FASB”), Accounting Standards Update (ASU) No. 2014-11 , Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting. In addition, the ASU requires separate accounting separate accounting for a transfer executive with a repurchase agreement with the same counter party resulting in secured borrowing accounting for the repurchase agreement. Finally, the ASU adds new disclosures to provide for transparency with respect to the transaction. The effective dates are as followed: Public Private Public Interim Private Interim Accounting Changes beginning after December 15, 2014 beginning after Decem­ber 15,. Read More.

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Revenue Recognition Will Never Be the Same

It has taken over five years of debate to develop, but 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 new codification topic and ushering in a new era of revenue recognition. This new standard is a major achievement of the International Accounting Standards Board (“IASB”) and FASB joint project to converge U.S. GAAP and International Financial Reporting Standards (“IFRS”). With this release, the FASB has now replaced hundreds of industry specific guidance pages with a single, comprehensive standard applicable to virtually all industries that. Read More.

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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.

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