SEC Chief Accountant Advises Against Credit Loss Standard Delay
In an unexpected move, Wesley Bricker warned banks not to drag their feet when implementing the Financial Accounting Standards Board’s (“FASB”) credit loss standard. At Baruch College’s Annual Financial Reporting Conference, the Securities and Exchange Commission’s (“SEC”) chief accountant shared his general concerns over Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Although Bricker provided few details, he did highlight how critical it is for implementation of the standard to be correct. Bricker also remarked that some bankers have approached him with their own concerns. In response, he advises. Read More.
Topics: FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Securities and Exchange Commission "SEC", Transition Resource Group "TRG"
FASB Says to Use Judgment When Applying Revenue Standard
Companies will have to make a judgment call when recording revenue from customer contracts over time when the Financial Accounting Standards Board’s (“FASB”) revenue standard becomes effective in 2018. That was the message members of the FASB’s Transition Resource Group (“TRG”) stressed during last week’s discussion on Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. FASB assistant project manager Aaricka Friend commented that the standard makes it very clear that revenue is to be recorded from the moment when a business meets its obligations to a customer. TRG members also said that the timing could change, so companies. Read More.
Results from April 18th Revenue Recognition TRG Meeting
Earlier this week, the Revenue Recognition Transition Resource Group (“TRG”) held a meeting to discuss the issues regarding the implementation of Topic 606, Revenue from Contracts with Customers, and International Financial Reporting Standards 15, Revenue from Contracts with Customers. Staff members and the TRG agreed on the following matters: Memo No. 50, Scoping Considerations for Incentive-based Capital Allocations. Incentive-based capital allocations are within the scope of Topic 606. Memo No. 51, Contract Asset Treatment in Contract Modifications. A contract asset is sustained in the new modified contract and recognized under the new modified contract similar to receivables, resulting in prospective accounting.. Read More.
Transition Resource Group Members for Credit Losses Standard Announced
On Tuesday, the Financial Accounting Standards Board (“FASB”) named the members of the Transition Resource Group (“TRG”) for its forthcoming credit losses standard. Comprised of financial statement preparers, auditors, users and financial services regulators, the TRG will address issues companies may face during the implementation process. Members are expected to share their feedback with the FASB, which will help determine how the Board should address such issues. It is anticipated that the FASB will release the credit losses standard this year. The complete list of the TRG members for the FASB’s credit losses standard is available on the Business Wire website. Details on the credit losses standard are. Read More.