FASB Proposes Amendments on Acquired Liabilities in Customer Contracts
A new Financial Accounting Standards Board (“FASB”) proposal aims to clarify U.S. GAAP’s business combinations guidance concerning specific issues following implementation of Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers. Issued as Proposed ASU No. 2019-300, Business Combinations (Topic 805): Revenue from Contracts with Customers—Recognizing an Assumed Liability, a consensus of the FASB Emerging Issues Task Force, the proposal offers clarifications regarding when an entity acquiring another entity must recognize a contract liability in a business combination. The amendments would require the acquiring entity to recognize a liability from a customer contract in a business combination if the liability. Read More.