The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving,...
May 18 — The Financial Accounting Standards Board proposed technical changes to its revenue reporting rules.
The rules allow companies with unfinished obligations—to provide goods or services—an easier financial disclosure process.
As part of the planned implementation guidance, FASB's May 18 proposal also would clarify that fixed-odds wagering contracts are to be covered in the far-reaching revenue recognition standard—ASU 2014-09; Accounting Standards Codification 606—rather than in existing derivatives and hedging rules—Accounting Standards Codification 815.
The board aims, via the draft guidance and an earlier final ASU, to help smooth the shift in January 2018 to the revenue rules, issued in 2014.
FASB wants comments on the May 18 proposal submitted by July 2.
The May 18 propsoal comes on the heels of FASB's publication May 9 of supplementary revenue guidance. That ASU, among other things, eases the adoption of the new rules in the factoring of sales and similar taxes into the price of a revenue-generating transaction (see related story) .
On what FASB calls “remaining performance obligations,” the board proposes “practical expedients”—implementation shortcuts—for such obligations in circumstances “in which an entity need not estimate variable consideration in order to recognize revenue,” the board states in the May 18 draft ASU. FASB also calls for an expansion of information to be disclosed when an entity uses one of the practical expedients.
Other items in the draft implementation guidance on revenue reporting include:
FASB and the International Accounting Standards Board released their jointly-written, like-minded revenue standards in May 2014 (10 APPR 525, 6/6/14). The boards' Transition Resource Group for Revenue Recognition helped the two boards frame the supplemental implementation guidance.
FASB has chosen to issue more implementation guidance, including minor amendments to its revenue standard, than IASB has.
To contact the reporter on this story: Steve Burkholder in Norwalk, Conn., at email@example.com
To contact the editor responsible for this story: Steven Marcy at firstname.lastname@example.org
The draft technical corrections and improvements issued May 18 are available athttp://src.bna.com/e69.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)