FASB Distinguishes Revenue and Collaborative Arrangements Standards
In its efforts to clarify when collaborative arrangements between companies generate revenue instead of payments between partners, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-18— Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. Per the narrow update, when a collaborative participant acts as a customer, the contract should be accounted for under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. The accounting must include the recognition, measurement, presentation, and disclosure provisions. ASU No. 2018-18 also allows companies to disclose units of account in collaborative arrangements within the. Read More.
Revenue Recognition Implementation: Getting Into the Details
By: Craig Hunter , Partner In our last newsletter, we discussed the highlights of the new revenue recognition standard and what everyone should begin to expect. In this article and future articles, we want to go into more detail about the specific requirements of the standard. As mentioned in the previous edition, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606), and introduces in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a. Read More.