The Financial Accounting Resource Center™ is a comprehensive research service that provides the full text of standards, the latest news from the Accounting Policy & Practice Report ®,...
Dec. 5 — Public companies don’t start fully applying far-reaching accounting rules on revenue until 2018, but accountants at the Securities and Exchange Commission will start scrutinizing preliminary reporting on their potential impacts next year, the SEC’s chief accountant said.
The Securities and Exchange Commission’s Wesley Bricker highlighted Dec. 5 what advance preparation companies should consider soon to shift as smoothly as possible to the 2014 standard that governs reporting on what is considered the most important single line in financial statements.
“The changes in standards will affect all companies, and even if the extent of change for a particular industry or company is slight, the disclosures necessary to explain the changes” and their effects on revenue streams might not be, Bricker said Dec. 5 at a conference of the American Institute of CPAs.
Investors and staff of the SEC accountants will be looking for increased disclosures in 2016 filings on the potential effects of the new accounting rule, he said. Also in 2017, they will be checking for footnote reporting about the significance of the new rules’ potential impact.
An example of potential significance that should be disclosed could emerge from the shift to a point-in-time recognition prescription from the current practice of recognizing revenue over time.
Bricker said that companies in 2016 had improved their collective outlook in preparing for the advent of the major new rules. However, he said more work on that front—including “assessment,” or basic work on what reporting changes are in store for companies—needs to be done.
To contact the reporter on this story: Steve Burkholder in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: S. Ali Sartipzadeh at email@example.com
Copyright © 2016 Tax Management Inc. All Rights Reserved.
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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)