The New Revenue Recognition Standard: Step 3 — Determining the Transaction Price
As mentioned in our previous blog , on May 28th the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. This creates a whole new codification topic (ASC 606) and ushers in a new era of revenue recognition and replacing hundreds of pages of industry specific guidance with a single comprehensive standard applicable to virtually all industries, and will significantly change how we recognize revenue. ASU 2014-09 isn’t effective for private entities until reporting periods beginning after December 15, 2017, but will be effective for public entities a year earlier. ASC 606 creates. Read More.
FASB Task Force Meeting to Vote on U.S. GAAP Amendments
When the Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“the Task Force”; “EITF”) meets next week, the group plans to vote on two proposed amendments to U.S. GAAP. The amendments to be voted on are: Proposed Accounting Standards Update (ASU) No. EITF-13G, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force); and Proposed ASU No. EITF-12F, Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging. Read More.
FASB Webinar on 2015 Taxonomy Release This Afternoon
Set for today at 1:00 p.m. EST, the Financial Accounting Standards Board (“FASB”) will host a live webinar on proposed changes to the 2015 GAAP Financial Reporting Taxonomy Release. Entitled, IN FOCUS: Proposed 2015 GAAP Financial Reporting Taxonomy, ASU Taxonomy Changes, Taxonomy Implementation Guides, Taxonomy Simplification, the event’s agenda includes: Update from the Securities and Exchange Commission on current XBRL issues; An overview of the 2015 Taxonomy changes; The new 2014 Taxonomy Implementation Guides; and A discussion of the Taxonomy Simplification findings. For more information or to register, visit the event page .
FASB Issues ASU No. 2014-15 to Help Reporting of Going Concern
Helping to disclose substantial doubt concerning a company’s ability to move forward as a going concern, the Financial Accounting Standards Board (“FASB”) has released Accounting Standards Update (ASU) No. 2014-15 , Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Announced on Wednesday, the ASU provides principles and definitions to an organization’s management for decreasing diversity in disclosures that are currently made available in financial statement footnotes. Presently, U.S. GAAP does not provide an organization’s management guidance regarding its responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern. Read More.
FASB Releases 2014 & 2015 UGT Implementation Guides
The Financial Accounting Standards Board (“FASB”) has issued the Final 2014 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Insurance Industry: Concentration of Credit Risk Disclosures . Following the 2014 U.S. GAAP Financial Reporting Taxonomy, the guide offers examples to assist UGT users understand the reinsurance-related concentrations of credit risk disclosures. In addition, FASB has issued a Proposed 2015 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Disposal Groups and Discontinued Operations . The proposed guide features examples of how users should model disclosures disposal groups and discontinued operations, and follows the 2015 U.S. GAAP Financial Reporting Taxonomy draft. Comments on the proposal are being accepted in writing and electronically until October 6th. Not viewed as authoritative, the guides are considered as documents that explain how the UGT. Read More.
AICPA Issues Alert on Revenue Recognition Standard
Offering guidance to practitioners implementing the joint Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) standard, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) recently issued Understanding Revenue Recognition: Changes to U.S. GAAP . The alert includes: a summary and overview of FASB’s Accounting Standards Update (ASU) No. 2014-09 , Revenue from Contracts with Customers (Topic 606), and IASB’s IFRS 15 , Revenue from Contracts with Customers; advice on helping entities transition to the new standard; AICPA’s learning and implementation plan; and a mapping tool chronicling key revenue recognition matters. The ASU 2014-09 amendments are effective for public entities during annual reporting periods starting after December 15,. Read More.